Unite Here v. Wilton Rancheria

District Court, E.D. California·Decided December 9, 2024·No. 2:23-cv-02767·Unknown

Opinion

UNITE HERE, No. 2:23-cv-02767-KJM-SCR Plaintiff, ORDER v. Wilton Rancheria, 1S Defendant. UNITE HERE is an organization that represents employees in casinos, hotels and the food service industry, and it is the plaintiff in this lawsuit. Wilton Rancheria is a federally recognized Indian Tribe, and it is the defendant. The parties completed arbitration related to the Union’s efforts to organize employees at the Tribe’s casino earlier this year, and the Tribe now seeks to vacate the arbitrator’s award. As explained in this order, because the arbitrator’s decision was rational and within his authority, the court denies the Tribe’s motion to vacate the award. I. BACKGROUND The Union filed this lawsuit to compel the Tribe to follow a process laid out in a 2017 “Memorandum of Agreement” or “MOA” between the two of them. See MOA, Compl. Ex. B, ECF No. 1; Prev. Order (Aug. 7, 2024) at 2, ECF No. 32. Under that agreement, if the Union gives written notice of its intent to organize employees at the Tribe’s casino in Elk Grove, California, then the Tribe and the casino’s operator are obligated to give the Union access to the

casino and its employees. See Prev. Order (Aug. 7, 2024) at 2. If the Union requests recognition as an exclusive collective bargaining agent, then an arbitrator checks employee authorization cards or membership records to confirm whether the Union represents a majority. See id. at 2–3. The Union alleges in its complaint that it received access and requested recognition, which would mean it was time to select an arbitrator, but the Tribe refused to do so. See Compl. ¶¶ 22, 29, 32. The Union also alleges the Tribe and its casino operator later excluded the Union’s representatives from parts of the casino. See id. ¶ 31. Soon after this case was filed, the Tribe moved to dismiss the Union’s complaint. See generally Mot. Dismiss, ECF No. 5. It relied primarily on the argument that the case was unripe. See generally Mem. Dismiss, ECF No. 5-1. In the Tribe’s view, before any disputes about the 2017 agreement and card check could be litigated or arbitrated, it was first necessary to resolve a different dispute and complete a parallel arbitration that had begun on approximately the same timeline. See Mem. Dismiss at 9–16. The parallel arbitration had its roots in a gaming compact between the Tribe and the State of California, which became effective in early 2018. See id. at 2– 3. As required by that compact, the Tribe adopted a “Tribal Labor Relations Ordinance” or “TLRO.” See id. at 2–3; see also TLRO, Compl. Ex. A, ECF No. 1. That ordinance makes a card check only the first step in a two-step process for recognizing a bargaining representative; the second step is a secret ballot election. See TLRO § 3-210.1 The ordinance, like the 2017 agreement, includes an arbitration clause, and by the time the Union filed this case, the Tribe had already demanded arbitration under the ordinance. See Prev. Order at 4. Arbitration had in fact already begun. See id. The arbitrator, Norman Brand, had framed the issue as “[w]hether the Union must comply with the TLRO . . . or the Tribe must comply with the MOA.” Case Mgmt. Order, Carroll Decl. ¶ 3 & Ex. A, ECF No. 10-2. And so, the Tribe argued, the Union’s motion to compel arbitration under the 2017 agreement would be premature until the arbitrator decided whether the ordinance or agreement would control. See Mem. Dismiss at 9–16. 1 For clarity, the court refers in this order to the section numbers used in the version of the TLRO adopted by Wilton Rancheria, not those in the version attached to the complaint. See Biddle Decl. Ex. 2, ECF No. 33-2. After a hearing, this court stayed the Union’s lawsuit until the pending arbitration was complete. See Min. Order (Feb. 23, 2024), ECF No. 16. The arbitrator issued his decision a few months later. See Joint Status Rep. & Attachment, ECF No. 18.2 He ordered the Tribe to comply with the 2017 agreement. See Award at 20. The arbitrator’s opinion offers “three reasons for this finding:”  First, the arbitrator cited the “essential promises” of the 2017 agreement. Id. at 16. The Union received the Tribe’s promises both to be neutral during a Union organizing campaign and to recognize a card check, and in return, the Tribe secured the Union’s political support in its “efforts to have the legislature approve its compact with the State.” Id. The “bargaining history” was, in the arbitrator’s assessment, “unequivocal.” Id. The arbitrator did not credit the testimony the Tribe had offered in support of its contrary position. The person who offered that testimony—a former Tribe chairperson—had not attend the negotiations, so he had no first-hand knowledge of what was discussed. See id. Nor was the arbitrator persuaded by the Tribe’s claim that it had been misled about what it was agreeing to. The Tribe had been represented by an experienced negotiator who had gone up against the Union in similar negotiations about multiple similar agreements before. See id. at 16–17.  Second, the arbitrator concluded that the Tribe’s version of events lacked “support in the evidence, logic, or the MOA” itself. Id. at 17. The person who had negotiated the MOA on behalf of the Union “credibly testified” in the arbitration “that the whole purpose of the negotiation was to get a card check agreement.” Id. The arbitrator found that position was “logical because the Union could have most of what it negotiated in the MOA—without supporting ratification of the Compact—if it sought certification through an election under the TLRO.” Id. The arbitrator found confirmation of this conclusion in the fact that the Tribe’s 2 The award is also attached as an exhibit to Steven Biddle’s declaration. See Award, Biddle Decl. Ex. 3, ECF No. 33-2. interpretation of its ordinance was unprecedented and novel. Id. at 18. The Tribe’s preferred interpretation also turned some provisions in the 2017 agreement into useless “surplusage,” contrary to the rules of contract interpretation. Id. at 18–19.  Third, the Tribe did not show in the arbitration that “the TLRO is a law it made as a sovereign that takes precedence over the MOA.” Id. at 19. Rather than the act of a sovereign, the arbitrator saw the TLRO as evidence the Tribe had actually surrendered “its right to legislate about labor relations.” Id. “Therefore,” the arbitrator concluded, “enacting the TLRO did not affect the Tribe’s obligations under the MOA it negotiated with the Union.” Id. at 20. After the arbitrator made this award, the Tribe sought to vacate it by filing a motion in this action. See Joint Status Rep., ECF No. 18; Prev. Order (Apr. 19, 2024), ECF No. 20; Mot. Vacate, ECF No. 22. It was clear the Tribe had not met and conferred effectively with the Union about that motion, however, as required by this court’s standing orders, so the court struck it without prejudice to renewal. See Prev. Order (Apr. 19, 2024) at 2. The court also lifted the stay that had been in effect while the arbitration was pending, denied the Tribe’s motion to dismiss, and granted the Union’s motion to compel arbitration under the 2017 agreement, i.e., the card- check process. See Prev. Order (Aug. 7, 2024) at 13. After the court issued these orders, the Tribe renewed its motion to vacate the arbitrator’s decision, this time after meeting and conferring. See generally Renewed Mot. Vacate, ECF No. 33. The Union opposes the motion, see generally Opp’n at 36, and the Tribe has filed its reply, see generally Reply, ECF No. 37. The court took the matter under submission without holding a hearing. Min. Order (Sept. 25, 2024), ECF No. 40. It is first necessary to clarify the basis of this court’s jurisdiction and the applicable law. The Tribe and the Union agree this court has jurisdiction, but they disagree about the reasons. The Union alleges in its complaint that this court has jurisdiction over its claims against the Union under section 301 of the Labor Management Relations Ac

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