United Food & Commerciall Workers Union Local 1000 v. Texoma Area Paratransit Systems, Inc.

Court of Appeals of Texas·Decided April 20, 2015·No. 05-12-01556-CV·Published

Opinion

Affirmed and Opinion Filed April 17, 2015

S In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-12-01556-CV

UNITED FOOD & COMMERCIAL WORKERS UNION LOCAL 1000, Appellant V.

TEXOMA AREA PARATRANSIT SYSTEMS, INC., Appellee

On Appeal from the 59th Judicial District Court Grayson County, Texas

Trial Court Cause No. CV-10-0917

MEMORANDUM OPINION

Before Justices Bridges, Lang, and Evans Opinion by Justice Bridges United Food & Commercial Workers Union Local 1000 (the Union) appeals the trial

court’s summary judgment awarding Texoma Area Paratransit Systems, Inc. (TAPS) declaratory relief and attorney’s fees. In four issues, the Union argues the trial court’s “final judgment” was signed after the court’s plenary power expired; the trial court lacked subject matter jurisdiction and committed reversible error in denying the Union’s plea to the jurisdiction and motion to dismiss; the trial court erred in granting TAPS’ motion for summary judgment; and the trial court erred in awarding TAPS $115,578.77 in attorney’s fees. We affirm the trial court’s judgment.

In May 2010, TAPS filed its original petition seeking a declaratory judgment. TAPS alleged the Union had engaged TAPS in collective bargaining negotiations regarding TAPS’ employees since March 2010. The petition stated TAPS had advised the Union that TAPS was

forbidden under Texas law from engaging in collective bargaining, and any agreement reached would be in violation of the law and deemed void. The petition sought the following declarations:

(1) that Plaintiff TAPS, as a rural transit district under the Texas Transportation [sic], is a governmental entity and political subdivision of the State of Texas;

(2) that Plaintiff TAPS, as a governmental entity and political subdivision of the State of Texas, must comply with Texas law, specifically Chapter 617 of the Texas Government Code;

(3) that Plaintiff TAPS, as a governmental entity and political subdivision of the State of Texas, may not enter “into a collective bargaining agreement with a labor organization regarding wages, hours, or conditions of employment of public employees” pursuant to § 617.002(a) of the Texas Government Code, and that any contract entered into in violation of same is void under § 617.002(b) as a matter of law;

(4) that Plaintiff TAPS, as a governmental entity and political subdivision of the State of Texas, cannot be forced to engage in such negotiations as such would be in violation of Texas law.

The petition also sought an award of reasonable attorney’s fees under section 37.009 of the Declaratory Judgment Act.

In June 2010, the Union filed with the National Labor Relations Board (the NLRB) a charge that TAPS had engaged in unfair labor practices. Specifically, the Union alleged TAPS had, “[s]ince on or about May 27, 2010 . . . refused to bargain with” the Union. In response to this charge, TAPS filed with the NLRB a letter asserting Texas law explicitly forbids TAPS from engaging in collective bargaining. Further, TAPS objected to the NLRB asserting jurisdiction over the matter because a suit regarding the same issues was then pending in state court and had been pending since before the Union’s charge was filed with the NLRB. Thus, TAPS argued, “the NLRB has no jurisdiction over this matter and must dismiss or, at the very least, abate the above-referenced union charge until the state lawsuit has been formally resolved.” In support of its argument, TAPS cited Bill Johnson’s Restaurants, Inc. v. NLRB, 461 U.S. 731, 748-49

(1983), for the proposition that the NLRB “may not halt the prosecution of a state-court lawsuit, regardless of the plaintiff’s motive, unless the suit lacks a reasonable basis in fact or law.”

In July 2010, the Union filed an answer containing a general denial and asserting (1)

TAPS’ claims were preempted by federal law, including the National Labor Relations Act; (2) an action was pending before the NLRB, involving jurisdictional questions; (3) the court lacked personal jurisdiction over the Union; (4) TAPS failed to state “a claim cognizable against” the Union; and (5) TAPS misstated Dallas Area Rapid Transit v. Amalgamated Transit Union Local No. 1338, 273 S.W.3d 659 (Tex. 2008) in that the court in that case did not make a determination as to whether the prohibition of bargaining applied to DART, but accepted the parties’ acquiescence. The Union also requested an award of attorney’s fees.

In August 2010, the NLRB issued its ruling dismissing the charge against TAPS because there was insufficient evidence to support the alleged violation; the Union appealed this decision. In January 2011, TAPS filed a traditional motion for summary judgment in which it discussed how the Union had engaged TAPS in collective bargaining in the past before TAPS was made aware of prohibitions under Texas law forbidding such negotiations. TAPS alleged that, after receiving notice from legal counsel and after the expiration of all prior contractual agreements, TAPS advised the Union that TAPS was forbidden from engaging in collective bargaining with a labor organization. The motion alleged the Union was “attempting to force” collective bargaining, necessitating the lawsuit in state court. TAPS reiterated the declarations it sought in the state court proceeding and asserted its entitlement to summary judgment on those claims for declaratory relief. In support of its motion, TAPS similarly renewed its arguments that Chapter 617 of the Texas Government Code prohibited TAPS from collective bargaining.

As to the Union’s claim that TAPS’ suit was preempted by federal law, TAPS again cited Bill Johnson’s Restaurants for the proposition that the NLRB does not have jurisdiction over any

pending state court suit which has a reasonable basis in fact or law. Bill Johnson’s Rests., 461 U.S. at 748-49. Further relying on and quoting Bill Johnson’s Restaurants, at 746-47, TAPS argued that, “[j]ust as the [NLRB] must refrain from deciding genuinely disputed material fact issues with respect to a state suit, it likewise must not deprive a litigant of his right to have genuine state-law legal questions decided by the state judiciary. [The] NLRB should allow such issues to be decided by the state tribunals if there is any realistic chance that the plaintiff’s legal theory might be adopted.”

To the extent the Union argued the state court lacked personal jurisdiction over it, TAPS pointed out the Union had not filed a special appearance; had filed an answer and general denial constituting a general appearance and subjecting the Union to the jurisdiction of the court for all purposes; and maintained its offices in Grapevine, Texas, where it was served with notice of the suit. On the issue of whether TAPS stated a cognizable claim pursuant to the Texas Declaratory Judgment Act, TAPS identified the justiciable controversy as whether TAPS, as a statutorily defined governmental entity and political subdivision, can be forced to violate Texas law by engaging in collective bargaining. Finally, TAPS asserted it did not misstate the holding in DART, 273 S.W.3d at 661-62, where the court held Texas law prohibits a state political subdivision from collective bargaining with public employees, and this prohibition has been held to apply to DART. Id. at 661.

In February 2011, the NLRB denied the Union’s appeal of the dismissal of the Union’s complaint. In a letter, the NLRB stated TAPS is an exempt political subdivision, and the NLRB could not assert jurisdiction over TAPS under section 2(2) of the National Labor Relations Act providing an exemption for political subdivisions “to entities that are either: (1) created directly by the state, so as to constitute departments or administrative arms of the government, or (2)

administered by individuals who are responsible to public officials or to the general electorate,” citing NLRB v. Natural Gas Utility District of Hawkins County, 402 U.S. 600 (1971).

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United Food & Commerciall Workers Union Local 1000 v. Texoma Area Paratransit Systems, Inc., (Tex. Ct. App. 2015).

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