University of Vermont v. State of Vt.

748 F. Supp. 235, 135 L.R.R.M. (BNA) 2427, 1990 U.S. Dist. LEXIS 13213, 1990 WL 146093
CourtDistrict Court, D. Vermont
DecidedMay 9, 1990
DocketCiv. A. 88-179
StatusPublished
Cited by1 cases

This text of 748 F. Supp. 235 (University of Vermont v. State of Vt.) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
University of Vermont v. State of Vt., 748 F. Supp. 235, 135 L.R.R.M. (BNA) 2427, 1990 U.S. Dist. LEXIS 13213, 1990 WL 146093 (D. Vt. 1990).

Opinion

OPINION AND ORDER

COPFRIN, District Judge.

This suit is an action for declaratory judgment brought by the University of Vermont and State Agricultural College (the “University”) against the State of Vermont (the “State”). In this action, the University seeks an order that 1987, No. 177 (Adj.Sess.), “An Act Relating to Labor Relations and [the] University of Vermont” (“H. 328”), is violative of the Supremacy Clause of the United States Constitution and is preempted by the National Labor Relations Act (the “NLRA” or the “Act”). The National Labor Relations Board (the “Board”) was granted intervenor status and moved to dismiss the University’s complaint. For the reasons stated below, the motion of the Board is granted and the University’s complaint is dismissed.

Background

In early 1988, the Vermont General Assembly passed H. 328, “An Act Relating to Labor Relations and [the] University of Vermont,” amending 3 V.S.A. § 901 et seq. This legislation purportedly made the University and its employees subject to the Vermont Labor Relations Act. The governor signed the bill into law, effective July 1, 1988. See 1987, No. 177 (Adj.Sess.).

On July 14, 1988, the University filed a suit in this court against the State of Vermont seeking a declaratory order that H. 328 is preempted by the NLRA. The State filed a motion to dismiss, claiming that (1) declaratory judgment was inappropriate in this case because the Board alone is charged with deciding its jurisdiction on a case-by-case basis; (2) the University employees were the real parties in interest and were not joined in the lawsuit; and (3) the eleventh amendment to the United States Constitution protected the State from suit by the University in federal court. The University opposed the State’s motion to dismiss.

*237 On December 12, 1988, the Board filed a motion to intervene in the instant case, as well as a motion for a permanent injunction and declaratory judgment. The basis for these motions was that the Board had asserted jurisdiction over the University since 1976 and intended to continue doing so. See University of Vermont and State Agricultural College, 223 N.L.R.B. 423 (1976). At this juncture, the Board believed H. 328 was preempted by federal labor law.

On February 21, 1989, the Vermont Labor Relations Board petitioned the National Labor Relations Board for an advisory opinion regarding whether the Board would continue to assert jurisdiction over the University, arguing that the University was not an employer within the meaning of the National Labor Relations Act (the “NLRA” or the “Act”). Section 2(2) of the NLRA, codified at 29 U.S.C. § 152(2), states that, “[t]he term ‘employer’ includes any person acting as an agent of an employer, directly or indirectly, but shall not include ... any State or political subdivision thereof.” In a 1976 certification decision, the Board had held that the University was “a private non-profit educational institution ... [and] not ‘a political subdivision’ of the State.” This finding was based on the “uncontro-verted facts” presented by the University and a potential bargaining representative, both of whom consented to the Board’s jurisdiction. 1 The Board accepted the February 1989 petition and the parties agreed to stay the instant proceedings until the Board issued its advisory opinion.

In reaching its decision, the Board requested and received briefs and reply briefs from the University, the State and the Vermont-NEA 2 addressing the issue of whether the University was a political subdivision of the State and hence not an employer under the NLRA. In its brief before the Board, the University “specifically reserve[d] its right to request that the Board conduct hearings to properly adjudicate ... any factual dispute that may arise.” Brief For the University Before the Board at 1-2. No hearing was held because the Board found the relevant facts as set out in the parties’ written submissions to be “essentially undisputed” and adequate to resolve the question of the Board’s jurisdiction. See University of Vermont and State Agricultural College, 297 N.L.R.B. No. 42 (1989) at 3.

On November 21, 1989, the Board issued its advisory opinion. The opinion held that the University was a political subdivision of the State and could not be an employer within the meaning of section 2(2) of the NLRA. Consequently, the Board concluded it could not assert jurisdiction over the University. See id.

The basis for the Board’s opinion was that the University satisfied both prongs of the Supreme Court’s test for determining whether an entity is a political subdivision. 3 Of primary importance in the Board’s analysis were the undisputed facts that (1) *238 the University was created by a charter from the State, and (2) a majority of the University trustees were appointed by popularly-elected officials. The advisory opinion also noted numerous other undisputed connections between the University and the State.

On January 22, 1990, the Board filed its motion to dismiss that is the basis, of this Opinion and Order. In that motion and subsequent memorandum, the Board argues that this court lacks subject matter jurisdiction to review the Board’s decision, expressed in the advisory opinion, that the University is outside the Board’s jurisdiction and that H. 328 is therefore not preempted by the NLRA. 4

The University filed a response to the Board’s motion on January 24, 1990. In this pleading the University claimed that:

[Gjranting of such Motion [to Dismiss] would violate [the University’s] inherent constitutional rights; would violate administrative due process; would violate the precepts of the preemption doctrine under the Supremacy Clause of the United States Constitution and, finally, would violate any and all rights of appeal from orders of the National Labor Relations Board.

University’s Motion in Opposition at 1.

Discussion

Resolution of this motion turns on whether and to what extent a district court has jurisdiction to review an advisory opinion of the Board issued in accordance with the Board’s regulations. As far as our research reveals, this is an issue of first impression in the federal system. Because we believe that this court lacks subject matter jurisdiction to review the conclusions of the advisory opinion, and we find that due process was not violated by the lack of a hearing or judicial review in this case, the Board’s motion to dismiss is granted.

The National Labor Relations Act was motivated by Congress’ desire to ameliorate the disruptive effects of “industrial strife or unrest, which have the intent or the necessary effect of burdening or obstructing commerce.” Findings and Declaration of Policy, 29 U.S.C. § 151.

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748 F. Supp. 235, 135 L.R.R.M. (BNA) 2427, 1990 U.S. Dist. LEXIS 13213, 1990 WL 146093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/university-of-vermont-v-state-of-vt-vtd-1990.