PER CURIAM.
Plaintiffs Michigan AFSCME Council 25 and its affiliate, Local 3552, a labor union that represents noninstructional employees of defendant Woodhaven-Brownstown School District, brought an action in circuit court to enjoin defendant from privatizing custodial, facility maintenance, and transportation work performed by members of the bargaining unit pending resolution of plaintiffs' unfair labor practice charge before the Michigan Employment Relations Commission (MERC). The circuit court granted a preliminary injunction. Defendant filed an application for leave to appeal and this Court, in lieu of granting leave to appeal, peremptorily reversed the circuit court's order. Mich. AFSCME Council 25 v. Woodhaven-Brownstown Sch. Dist, unpublished order of the Court of Appeals, entered September 3, 2010 (Docket No. 299945). Thereafter, in lieu of granting leave to appeal, our Supreme Court vacated this Court's order and remanded the case to this Court for "expedited plenary consideration." Mich. AFSCME Council 25 v. Woodhaven-Brownstown Sch. Dist, 488 Mich. 974, 790 N.W.2d 831 (2010). We again reverse the circuit court's decision and vacate the preliminary injunction.
A court's issuance of a preliminary injunction is generally considered equitable relief. Pontiac Fire Fighters Union Local 376 v. City of Pontiac, 482 Mich. 1, 11, 753 N.W.2d 595 (2008). "The objective of a preliminary injunction is to maintain the status quo pending a final hearing regarding the parties' rights."
As a preliminary matter, we note that the parties' briefs on appeal include documentary evidence that was not presented to the circuit court. Enlargement of the record on appeal is generally not permitted. Amorello v. Monsanto Corp., 186 Mich.App. 324, 330, 463 N.W.2d 487 (1990). Because neither party moved to amend the record pursuant to MCR 7.216(A)(4), we shall limit our review to the record presented to the circuit court at the time it considered plaintiffs' motion for a preliminary injunction. See Golden v. Baghdoian, 222 Mich.App. 220, 222 n. 2, 564 N.W.2d 505 (1997).
The parties do not dispute that plaintiffs had a right to seek injunctive relief from the circuit court pending resolution of its unfair labor practice charge by the MERC. Under the public employment relations act (PERA), MCL 423.201 et seq., a charging party may petition a circuit court for "appropriate temporary relief or restraining order, in accordance with the general court rules, and the court shall have jurisdiction to grant to the commission or any charging party such temporary relief or restraining order as it deems just and proper." MCL 423.216(h). Therefore, plaintiffs had the burden of showing that a preliminary injunction should be issued. MCR 3.310(A)(4). "Traditional equity principles are a circuit court's guide to whether injunctive relief is `just and proper'." Local 229, Mich. Council 25, AFSCME, AFLCIO v. Detroit, 124 Mich.App. 791, 794-795 n. 3, 335 N.W.2d 695 (1983).
Moreover, we note that federal circuit courts disagree on the appropriateness of the standard for granting injunctive relief applied by the Sixth Circuit in Ahearn. See Muffley ex rel. Nat'l Labor Relations Bd. v. Spartan Mining Co., 570 F.3d 534, 541-543 (C.A.4, 2009) (adopting a traditional equitable test). In light of this Court's decision in Local 229, 124 Mich. App. at 794-795 n. 3, 335 N.W.2d 695, that traditional equitable principles apply, we agree that the circuit court applied the proper test for evaluating whether to grant a preliminary injunction. Nonetheless, we conclude that the circuit court failed to reach a reasonable and principled decision in its evaluation and application of the relevant factors.
When deciding whether to grant an injunction under traditional equitable principles,
With respect to the first factor, we note that our Supreme Court has declined to consider a party's likelihood of success on the merits when the irreparable-harm factor was not established. Pontiac Fire Fighters, 482 Mich. at 13 n. 21, 753 N.W.2d 595. Therefore, we shall first consider the irreparable-harm factor.
The irreparable-harm factor is considered an indispensable requirement for a preliminary injunction. Id. at 8-9, 753 N.W.2d 595. It requires a particularized showing of irreparable harm. Id. at 9, 753 N.W.2d 595. "[I]t is well settled that an injunction will not lie upon the mere apprehension of future injury or where the threatened injury is speculative or conjectural." Dunlap v. City of Southfield, 54 Mich.App. 398, 403, 221 N.W.2d 237 (1974); see also Pontiac Fire Fighters, 482 Mich. at 9 n. 15, 753 N.W.2d 595. The injury is evaluated in light of the totality of the circumstances affecting, and the alternatives available to, the party seeking injunctive relief. State Employees Ass'n v. Dep't of Mental Health, 421 Mich. 152, 167, 365 N.W.2d 93 (1984). "Equally important is that a preliminary injunction should not issue where an adequate legal remedy is available." Pontiac Fire Fighters, 482 Mich. at 9, 753 N.W.2d 595.
Later, however, in Pontiac Fire Fighters, 482 Mich. at 10 n. 20, 753 N.W.2d 595, the Supreme Court expressed doubt about the correctness of the "dictum" in State Employees Ass'n, but, in any event, found that the record before it did not support application of that principle. The Court also observed that the MERC has a number of means available to it to remedy economic injuries, such as awarding back pay and reinstating a laid-off employee to make the employee whole. Id. at 10, 753 N.W.2d 595; see also MCL 423.216(b). The alleged injury in that case, which involved financial hardship for laid-off firefighters, was found insufficient to satisfy the requirement of irreparable harm because there existed an adequate remedy at law. Pontiac Fire Fighters, 482 Mich. at 10, 753 N.W.2d 595.
In this case, there was no evidence that any affected union member would suffer the loss of medical treatment if defendant acted on either request for proposal and privatized certain services. Although plaintiffs' counsel asserted at the motion hearing that he had witnesses willing to testify about their medical conditions and inability to afford health insurance, no affidavit from any member was presented. Under MCR 2.119(E)(2), when a motion is based on facts not appearing in the record, the trial court "may hear the motion on affidavits presented by the parties, or may direct that the motion be heard wholly or partly on oral testimony or deposition." An affidavit must be based on personal knowledge, "state with particularity facts admissible as evidence," and show that the affiant, if sworn as a witness, can testify competently to the facts stated in the affidavit. MCR 2.119(B)(1). Because plaintiffs did not file an appropriate affidavit and it would be speculative to conclude from the record that the requisite particularized irreparable harm would occur, the circuit court did not reach a principled
Plaintiffs' alternative claim that they will suffer irreparable harm by ceasing to exist in their current form if a preliminary injunction is not granted was not a basis for the circuit court's decision to grant the preliminary injunction. In any event, this Court's decision in Van Buren Pub. Sch. Dist. v. Wayne Circuit Judge, 61 Mich.App. 6, 232 N.W.2d 278 (1975), which is the basis for plaintiffs' argument, is somewhat inconsistent in its evaluation of whether the MERC could provide an adequate remedy if a school district is permitted to engage in privatization pending resolution of an unfair labor practice charge. Moreover, Van Buren Pub. Sch. Dist. was decided before the Legislature amended MCL 423.215 to specifically address whether contracts with third parties should be a proper subject of collective bargaining. The statute presently provides, in pertinent part:
By contrast, the version of the statute in effect when Van Buren Pub. Sch. Dist. was decided did not contain any provision that expressly addressed contracts with third parties, but rather required mandatory collective bargaining with respect to wages, hours, and other employment conditions. The question before the MERC as relevant to the preliminary injunction issued by the trial court in Van Buren Pub. Sch. Dist. was whether the contracting of bus-transportation work performed by bargaining unit members was a mandatory subject of bargaining under MCL 423.215. In considering whether irreparable harm occurred, this Court focused on the harm that would occur to the union's bargaining position if the school district were free to terminate the employment of bus drivers pending the MERC decision. It found the MERC's remedial system inadequate to ensure that there would still be something to bargain about in the event the MERC decided there was a duty to bargain. Van Buren Pub. Sch. Dist, 61 Mich.App. at 17, 232 N.W.2d 278. The Court viewed the passage of time as making the school district's decision irrevocable, explaining:
At the same time, the facts before this Court indicated that the school district had failed to abide by the preliminary injunction. Id. at 31, 232 N.W.2d 278. Further, this Court had an opportunity to consider the actual MERC action, which was consolidated with the appeal of the trial court's contempt finding against the school district. In the MERC action, the school district's contemptuous behavior was considered by the MERC in deciding to remedy unfair labor practices by, among other things, requiring that the school district rescind its contract with the third party, reinstate services to those existing before the unlawful privatization, offer reinstatement and provide back pay to former employees, and bargain upon request with the union with respect to the privatization of bargaining unit work. Id. at 32, 232 N.W.2d 278. This Court upheld the MERC's remedies, finding that they were "designed to return the parties to the bargaining positions they were in before the unfair labor practices were engaged in, in full recognition of the fact that in order to make the duty to bargain meaningful there must be something to bargain about." Id. at 33, 232 N.W.2d 278.
While this Court in Van Buren Pub. Sch. Dist. thus upheld a trial court's determination that the passage of time would make the decision to privatize irrevocable and leave nothing to bargain about, when presented with the actual remedies that the MERC was able to fashion to return the parties to the status quo to provide for meaningful bargaining, in the face of the school district's contemptuous behavior, it is clear that the privatization did not become "irrevocable."
In this case, there may very well be union members who would decide to find other employment and not consider returning to the bargaining unit if plaintiffs succeed in the MERC. But there was neither evidence nor a finding by the circuit court that the bargaining unit would be totally destroyed if a preliminary injunction was not granted. Plaintiffs' own evidence that the membership in Local 3552 includes clerical, security, and food service personnel who are unaffected by the instant dispute contravenes any claim that the bargaining unit would be destroyed.
Because plaintiffs failed to establish that they would be eliminated if a preliminary injunction was not granted or that the MERC could not craft an appropriate remedy to protect collective bargaining rights, the circuit court did not abuse its discretion by failing to consider this circumstance when assessing the element of irreparable harm. Nonetheless, the circuit court did not reach a principled decision given its failure to require particularized irreparable harm with regard to individual members of the bargaining unit affected by the privatization of their work.
While we conclude that the lack of evidence of a particularized injury alone provides support for defendant's argument that the preliminary injunction should be reversed, we also find merit to defendant's challenges to other relevant factors.
Our consideration of the placement of the exception for bidding described in MCL 423.215(3)(f) and the requirement that there be an "opportunity to bid on the contract . . . on an equal basis as other bidders," reveals no ambiguity. The word "bid," in a contractual setting, denotes an offer. It is defined in Random House Webster's College Dictionary (1997), as "to offer (a certain sum) as the price one will charge or pay: They bid $25,000 and got the contract" The phrase "equal basis as other bidders," examined in context, also is not ambiguous. It does not support plaintiffs' position that they were entitled to input into the terms of any request for proposal before the bidding process, or to have terms drafted in a manner that would permit the bargaining unit an opportunity to submit a bid on terms that differed from those of other potential bidders. This approach would put plaintiffs in a superior position to other bidders.
While opinions of the Attorney General are not binding on the courts, Danse Corp. v. City of Madison Hts., 466 Mich. 175, 182 n. 6, 644 N.W.2d 721 (2002), we find the Attorney General's interpretation of MCL 423.215(3)(f) in OAG, 2010, No. 7249 (June 15, 2010), persuasive with respect to the legislative intent. In particular, we conclude that once the opportunity is afforded to a bargaining unit to bid for a contract on an equal basis with other bidders, the prohibition against collective bargaining concerning all listed subjects in MCL 423.215(3)(f) applies. Considered in this context, it is unlikely that plaintiffs will prevail in the MERC proceedings so as to prevent defendant from going forward with either request for proposal with respect to custodial, facility maintenance, and transportation work. The circuit court's contrary conclusion regarding whether plaintiffs were given an opportunity to bid on an equal basis with other bidders lacks both factual and legal support.
With respect to the public-interest factor, it has been said that the private
The circuit court's speculation with respect to the harm to plaintiffs' members also permeated its evaluation of "the risk that the party seeking the injunction would be harmed more by the absence of an injunction than the opposing party would be by the granting of the relief[.]" Alliance for the Mentally Ill, 231 Mich. App. at 661. Considering the burden imposed on plaintiffs to establish that they had the greater risk of harm, the circuit court did not reach a principled decision by finding that defendant would achieve "purported future savings" if it was allowed to privatize, but that, on balance, the potential harm to plaintiffs and their members outweighed the harm to defendant. As indicated in Alliance for the Mentally Ill, the risk of economic harm to an entity such as defendant is that it would be unable to recoup tax dollars spent for bargaining unit work if it succeeds in the MERC. Id. at 666, 588 N.W.2d 133. There was no evidence in this case that defendant was provided with a means of recouping tax dollars in the event it succeeded in defending against the unfair labor practice charge in the MERC.
Considering all relevant factors, we conclude that the circuit court abused its discretion by granting the preliminary injunction. Accordingly, the circuit court's decision is reversed and the injunction is vacated. In light of our decision, it is unnecessary to consider defendant's challenge to the circuit court's decision not to require a bond as security for the preliminary injunction.
Reversed and vacated. This opinion is to have immediate effect pursuant to MCR 7.215(F)(2).
SERVITTO, P.J., and HOEKSTRA and OWENS, JJ., concurred.