MATSUMOTO, District Judge.
On July 3, 2013, Petitioner James G. Paulsen, Regional Director of Region 29 of the National Labor Relations Board ("NLRB"), acting for and on behalf of the NLRB, filed a motion seeking a preliminary injunction under section 10(j), 29
Pending before the court is a motion to dismiss respondents' counterclaim and third-party complaint for lack of subject matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1), filed by petitioner, former NLRB members Block and Griffin, and former NLRB acting general counsel Solomon (collectively, "defendants"). (ECF No. 56, Motion to Dismiss for Lack of Jurisdiction ("Mot."), 8/16/13.) For the reasons provided below, defendants' motion to dismiss the counterclaim and the third-party complaint for lack of subject matter jurisdiction is granted.
The general facts of this case have been set forth by the court in detail in previous decisions and will only be summarized briefly here. The respondents in this case are 28 companies that contract with DOE to provide school bus transportation for general and special education students. After twelve negotiation sessions with Local 1181-1061, Amalgamated Transit Union, AFL-CIO ("Local 1181"), five of which followed the termination of a strike by Local 1181, respondents declared an impasse because the union apparently would not agree to include a Most Favored Nations ("MFN") clause in the collective bargaining agreement ("CBA") during the negotiations sessions. Under the MFN clause, if Local 1181 granted an employer certain specified economic terms more favorable than the equivalent terms in its CBAs with respondents, then any respondent could adopt those more favorable terms in its CBA with Local 1181. (ECF No. 63, Preliminary Injunction Order ("Preliminary Injunction Order"), 8/28/13, at 4-12.) After reviewing the parties' arguments, and the exhibits and transcript of the testimony presented at a NLRB hearing before Administrative Law Judge Raymond P. Green,
On October 23, 2013, this court denied respondents' motion to stay the Preliminary Injunction Order. (ECF No. 77, Order Denying Stay of Preliminary Injunction Order ("Order Denying Stay"), 10/23/13.)
The other facts relevant to this motion to dismiss are largely undisputed and primarily
Block and Griffin were also appointed to the NLRB by President Obama during an intrasession recess of the Senate on January 4, 2012. Noel Canning v. NLRB, 705 F.3d 490, 498 (D.C.Cir.2013). The Fourth Circuit Court of Appeals and the D.C. Circuit Court of Appeals later held that President Obama's intrasession appointments of Block and Griffin violated the Recess Appointments Clause of the Constitution. NLRB v. Enter. Leasing Co. Se., LLC, 722 F.3d 609 (4th Cir.2013); Noel Canning, 705 F.3d 490.
The consolidated complaint was issued by Paulsen on June 10, 2013 (ECF No. 1-6, Consolidated Complaint, 6/10/13), and the petition for section 10(j) relief was issued on July 3, 2013, (ECF No. 1, Motion for Preliminary Injunction, 7/3/13). Former NLRB Acting General Counsel Solomon, however, ratified the issuance of the complaint in a letter on July 12, 2013. (ECF No. 26-5, Letter from Lafe E. Solomon to Peter Kirsanow, 7/12/13, at 3 (stating that "although Regional Director Paulsen has at all relevant times held the authority to issue the challenged complaint on my behalf, I also now expressly ratify the issuance of the complaint.").)
The NLRB currently has five members who have all been confirmed by the Senate. See Board Members Since 1935, http://www.nlrb.gov/who-we-are/board/board-members-1935 (last visited Nov. 9, 2013). Griffin was sworn in as the NLRB's general counsel on November 4, 2013. See Richard F. Griffin, Jr., http://www.nlrb.gov/who-we-are/general-counsel/richard-f-griffin-jr (last visited Nov. 9, 2013).
"A case is properly dismissed for lack of subject matter jurisdiction under Rule 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it." Makarova, 201 F.3d at 113
Additionally, it is well settled that courts "avoid reaching constitutional questions when they are unnecessary to the disposition of a case." Anobile v. Pelligrino, 303 F.3d 107, 123 (2d Cir.2002); see also Hutchinson v. Proxmire, 443 U.S. 111, 122, 99 S.Ct. 2675, 61 L.Ed.2d 411 (1979) ("Our practice is to avoid reaching constitutional questions if a dispositive nonconstitutional ground is available."); Ashwander v. TVA, 297 U.S. 288, 347, 56 S.Ct. 466, 80 L.Ed. 688 (1936) ("The Court will not pass upon a constitutional question although properly presented by the record, if there is also present some other ground upon which the case may be disposed of.") (Brandeis, J., concurring).
Respondents claim that this court has subject matter jurisdiction over their counterclaim and third-party complaint based on two legal theories. First, respondents argue that this court has jurisdiction pursuant to 28 U.S.C. § 1361, the Mandamus Act, which provides that "district courts shall have original jurisdiction of any action in the nature of mandamus to compel an officer or employee of the United States or any agency thereof to perform a duty owed to the plaintiff." 28 U.S.C. § 1361. Respondents also argue that this court has jurisdiction under Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210 (1958), because defendants' actions "plainly violate the applicable governing statute or the United States Constitution." (Answer at 4.) These arguments will be discussed below.
"The common-law writ of mandamus, as codified in 28 U.S.C. § 1361, is intended to provide a remedy for a plaintiff only if he has exhausted all other avenues of relief and only if the defendant owes him a clear nondiscretionary duty." Heckler v. Ringer, 466 U.S. 602, 616, 104 S.Ct. 2013, 80 L.Ed.2d 622 (1984) (emphasis added). To establish jurisdiction under 28 U.S.C. § 1361, respondents must show "(1) a clear right ... to the relief sought; (2) a plainly defined and peremptory duty on the part of [defendants] to do the act in question; and (3) [that there is] no other adequate remedy available." Anderson v. Bowen, 881 F.2d 1, 5 (2d Cir.1989) (quoting Lovallo v. Froehlke, 468 F.2d 340, 343 (2d Cir.1972)).
Respondents claim that jurisdiction is appropriate under the Mandamus Act because the actions taken by defendants "constitute a plain constitutional and statutory violation." (ECF No. 56-5, Opposition to Motion to Dismiss ("Opp."), 8/12/13, at 6.) Respondents also argue that there is no adequate remedy available, other than review in this court, because (1) the decisions to issue the consolidated complaint and to initiate section 10(j) proceedings are not "reviewable by a circuit court of appeals," and (2) they cannot seek circuit court review of a final NLRB order because there was no lawfully appointed quorum and thus "there was no [NLRB]" to issue an order that can be appealed under the Act. (Id. at 6-7.)
Second, as defendants correctly point out, the NLRB's adjudication of an unfair labor practice case can be reviewed by a circuit court of appeal after the issuance of an order by the NLRB. 29 U.S.C. § 160(e, f); United Food & Commercial Workers Union, 484 U.S. at 118-122, 108 S.Ct. 413. The Supreme Court has determined that this process provides "an adequate opportunity to secure judicial protection against possible illegal action on the part of the [NLRB]" because the NLRB cannot enforce its own orders and, when a circuit court reviews an NLRB order, "all questions of the jurisdiction of the [NLRB] and the regularity of its proceedings and all questions of constitutional right or statutory authority, are open to examination by the court." Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 48-49, 58 S.Ct. 459, 82 L.Ed. 638 (1938) (emphasis added) (quoting NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1, 46-47, 57 S.Ct. 615, 81 L.Ed. 893 (1937)); see also Amerco v. NLRB, 458 F.3d 883, 887 (9th Cir.2006) (affirming a district court's holding that it did not have subject matter jurisdiction to enjoin an unfair labor practice hearing for alleged constitutional violations because "review in the courts of appeals is both exclusive and comprehensive" for such allegations) (citing Myers, 303 U.S. at 43, 46, 48-49, 58 S.Ct. 459); Remington Lodging & Hospitality, LLC v. Ahearn, 749 F.Supp.2d 951, 957 (D.Alaska 2010) (holding that "district courts do not have authority to enjoin [unfair labor practice] hearings" in denying a writ of mandamus and granting a motion to dismiss for lack of subject matter jurisdiction).
Moreover, respondents cannot plausibly argue that they are unable to make their constitutional arguments before the Second Circuit because, in the circuit court cases they rely upon to argue that a valid quorum of the NLRB does not exist, those circuit courts held that President Obama's intrasession recess appointments were unconstitutional after reviewing NLRB orders that had been appealed. See Noel Canning v. NLRB, 705 F.3d 490 (D.C.Cir. 2013); NLRB v. New Vista Nursing & Rehab., 719 F.3d 203 (3d Cir.2013); NLRB v. Enter. Leasing Co. Se., LLC, 722 F.3d 609 (4th Cir.2013). Therefore, this court lacks subject matter jurisdiction under 28 U.S.C. § 1361 because respondents have
Respondents also argue that this court has jurisdiction under Leedom v. Kyne, which provides that district courts have jurisdiction "to strike down an order of the [NLRB] made in excess of its delegated powers and contrary to a specific prohibition in the Act." Leedom, 358 U.S. at 188, 79 S.Ct. 180. This basis for jurisdiction is "`a narrow one,' and is not to be applied `whenever it can be said that an erroneous assessment of the particular facts before the [NLRB] has led it to a conclusion which does not comport with the law.'" New York Racing Assoc. v. NLRB, 708 F.2d 46, 55 (2d Cir.1983) (quoting Boire v. Greyhound Corp., 376 U.S. 473, 481, 84 S.Ct. 894, 11 L.Ed.2d 849 (1964)). To establish that this court has jurisdiction under Leedom, respondents must demonstrate that "the NLRB has acted contrary to a specific mandate of the [Act]." United Fed. of Coll. Teachers v. Miller, 479 F.2d 1074, 1075 (2d Cir.1973). Here, respondents argue that defendants have violated 29 U.S.C. § 153(b), which states that a quorum of the NLRB requires three members, by taking certain actions in the absence of a lawful quorum resulting from President Obama's allegedly unconstitutional intrasession recess appointments to the NLRB. (Opp. at 8-14.) Respondents' arguments, however, fail for the reasons set forth in previous decisions by this court and by the Second Circuit in Kreisberg v. HealthBridge Management, LLC., 732 F.3d 131 (2d Cir.2013).
First, respondents argue that the acting general counsel and petitioner do not have the legal authority to prosecute this case because they were acting on behalf of the NLRB even though the NLRB did not have a quorum of three lawfully appointed members. (Opp. at 10-11.) But as explained in this court's Preliminary Injunction Order and the Order Denying Stay, this court agrees with the thorough and persuasive analysis of Judge Cogan in Paulsen v. Renaissance Equity Holdings, LLC, and consequently reaffirms its holding that Congress intended to permit the NLRB to delegate its section 10(j) powers to the general counsel based on the legislative history of the Taft-Hartley Act, that the NLRB lawfully delegated its section 10(j) powers, and that because "Congress created the post of General Counsel to ensure that certain prosecutorial functions operate without regard to the [NLRB][,] [t]he General Counsel's validly-delegated power to initiate § 10(j) petitions therefore does not vanish when the [NLRB] loses its quorum." 849 F.Supp.2d 335, 345, 350 (E.D.N.Y.2012). Thus, the acting general counsel and the regional director can exercise powers that have been lawfully delegated to them by the NLRB, which includes the ability to prosecute section 10(j) proceedings, even if the NLRB no longer has a lawful quorum.
Second, respondents argue that the NLRB did not have a lawful quorum when it delegated authority to initiate section 10(j) proceedings to the acting general counsel. (Opp. at 11-13.) As explained at length in the Order Denying Stay, however, this court has held that, regardless of whether President Obama's recess appointments or the 2011 delegation to the acting general counsel were valid, the
Third, respondents argue that the NLRB did not have a lawful quorum when petitioner was appointed regional director, and he therefore lacked the legal authority to issue the consolidated complaint. (Opp. at 13-14.) Respondents' argument, however, does not account for the fact that the NLRB's acting general counsel has ratified the issuance of the consolidated complaint, curing any alleged defect in its issuance resulting from the NLRB's alleged appointment of petitioner without a proper quorum. (ECF No. 26-5, Letter from Lafe E. Solomon to Peter Kirsanow, 7/12/13, at 3 (stating that "although Regional Director Paulsen has at all relevant times held the authority to issue the challenged complaint on my behalf, I also now expressly ratify the issuance of the complaint.").) Therefore, the consolidated complaint was validly issued regardless of the constitutionality of President Obama's recess appointments and this court need not "reach[] constitutional questions" argued by respondents because "they are unnecessary to the disposition of [this] case." Anobile, 303 F.3d at 123.
Because respondents have failed to demonstrate that "the NLRB has acted contrary to a specific mandate of the [Act]," this court lacks jurisdiction under Leedom. United Fed. of Coll. Teachers, 479 F.2d at 1075. The court also notes, for the reasons provided in Discussion section B.1, that respondents are not "wholly deprive[d]... of a meaningful and adequate means of vindicating [their] statutory rights" because they can still make their constitutional arguments before the Second Circuit. Bd. of Governors of the Fed. Reserve Sys. v. MCorp Fin., 502 U.S. 32, 43, 112 S.Ct. 459, 116 L.Ed.2d 358 (1991).
For the foregoing reasons, defendants' motion to dismiss the counterclaim and third-party complaint pursuant to Fed. R.Civ.P. 12(b)(1) for lack of subject matter jurisdiction is granted. The clerk of court is respectfully requested to enter judgment in favor of petitioner and counterclaim defendant James G. Paulsen, Regional Director of Region 29 of the NLRB, acting for and on behalf of the NLRB, and third-party defendants Sharon Block, Richard F. Griffin, Jr., and Lafe E. Solomon. The clerk of court is further respectfully requested to close this case.