Federal Circuits, First Circuit (August 08, 1995)
Docket number: 95-1331
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U.S. Court of Appeals for the First Circuit - Fleet National v. HandD Entertainment (1st Cir. 1996)
Stephen R. Domesick, Boston, MA, for appellant.
Corinna L. Metcalf, Deputy Asst. Gen. Counsel, with whom Frederick Feinstein, Gen. Counsel, Ellen A. Farrell, Asst. Gen. Counsel, and Barry J. Kearney, Acting Asst. Gen. Counsel, Washington, DC, were on brief, for appellee.Before SELYA and CYR, Circuit Judges, and SCHWARZER,* Senior District Judge.SELYA, Circuit Judge.This appeal features an interlocutory injunction issued on the authority of section 10(l ) of the National Labor Relations Act (NLRA), barring a labor union's innovative practice of conducting "group shop-ins" at secondary businesses (retail liquor outlets) as an outgrowth of its grievance with a primary employer (a beer distributor).1 After carefully considering the parties' positions in light of the pertinent authorities, we affirm the district court's order in all respects.I. THE FACTS AND THE PROCEEDINGS BELOWThe facts are set out in the district court's opinion, see Pye v. Teamsters Local Union No. 122, 875 F.Supp. 921, 923-24 (D.Mass.1995), and it would serve no useful purpose to rehearse them here. We content ourselves with a decurtate summary, presented in a manner that recognizes the statutory edge enjoyed by petitioner-appellee, the Regional Director of the National Labor Relations Board (NLRB or Board), in connection with the resolution of disputed factual issues and the inferences that may be drawn therefrom.In November of 1994, respondent-appellant Teamsters Local Union No. 122 (the Union), then embroiled in a labor dispute with August A. Busch & Co. of Massachusetts, Inc. (Busch), organized three group shopping trips. During each outing, Union members descended, in droves and in concert, upon a designated retail establishment and engaged in multiple rounds of penny-ante purchasing, buying small, inexpensive items such as packs of chewing gum or bags of potato chips and paying for them (more often than not) with bills of large denomination. The sequelae were predictable: overcrowded parking lots, congested aisles, long checkout lines, and an exodus of regular customers. Although some of the group shoppers adorned themselves with Union symbols, the record contains virtually no proof of objectively expressive activity. More particularly, we can find no evidence suggesting that the Union, through group shopping, made any discernible attempt to communicate a defined message to the public.2The three shop-ins, each involving a different retailer engaged in commerce, occurred at different locations in Massachusetts. The first incident transpired on November 17, when a band of approximately 70 Union members invaded the premises of Kappy's Liquors. The group shopping (which respondent prefers to call "affinity group shopping" or "associational shopping") persisted for some 45 minutes. The record reflects that at least one customer, apparently discouraged by the crush of Union members, left without transacting any business. The second shop-in occurred on November 23 at Wollaston Wine. This event also lasted about 45 minutes. Approximately 125 Union members participated. The third incident took place on November 25 at the liquor department of Price Costco, a discount house. It involved 50 or so Union members. The record does not pinpoint its duration. All three episodes began late in the afternoon (a prime time in the package store trade), and the latter two incidents occurred on the days before and after the Thanksgiving holiday (days that customarily produce substantial sales for liquor retailers). The record reveals that on at least two of the occasions store managers complained to a Union official who was on the premises, deploring the disruptive effects of the practice on their business. On the third occasion, the store owner apparently took his concerns directly to Busch.Busch displayed little affinity for the Union's newly contrived stratagem. It complained to the Regional Director who, in turn, initiated an administrative adjudicatory process to examine whether the group shopping constituted an unfair labor practice prohibited by NLRA Sec. 8(b)(4)(ii)(B), 29 U.S.C. Sec . 158(b)(4)(ii)(B) (1988). The Regional Director theorized that, because the Union's actual labor dispute was with the primary employer, Busch, section 8(b)(4)(ii)(B) expressly prohibited it from trying to impair the relationships of secondary businesses (the retail stores) with Busch. Resisting this line of reasoning and denying any wrongdoing, the Union asseverated that these shop-ins were efforts to publicize its grievance with Busch, and were thus beyond the statute's proscriptive reach. The Union also asseverated that, in the end, the group shopping actually benefitted the retailers by generating hundreds of dollars in sales.The Regional Director refused to buy the Union's wares. On December 1, she invoked section 10(l ) and petitioned for temporary injunctive relief in the federal district court, asserting that she had reasonable cause to believe that the associational shopping amounted to an illegal secondary boycott because its real purpose was to force the retailers to cease purchasing beverages from Busch. The district court, perceiving no need for an evidentiary hearing,3 found for the Regional Director. See Pye, 875 F.Supp. at 925-28. In due course, the court entered a decree that constitutes the actual injunction. Its key provisions are set out in the margin.4 This appeal ensued.II. THE LAW AND ITS APPLICATIONThe so-called labor injunction has been among the most controversial landmarks dotting the historical landscape of American labor law. See generally Felix Frankfurter & Nathan Greene, The Labor Injunction (1930); Clarence E. Bonnet, The Origin of the Labor Injunction, 5 S.Cal.L.Rev. 105 (1931); Eileen Silverstein, Collective Action, Property Rights, and Law Reform: The Story of the Labor Injunction, 11 Hofstra Lab.L.J. 97 (1993). The section 10(l ) injunction is a special species of the labor injunction,5 designed to halt, inter alia, secondary activity that the Regional Director believes is in violation of NLRA Sec. 8(b)(4)(ii)(B) until the NLRB can consider the charges and reach a decision on the merits. The special nature of the section 10(l ) injunction informs our analysis of the case.A. Standards of Review.The standards of review applicable to appeals from district court decisions arising under section 10(l ), whether granting or denying the requested relief, are extremely deferential. We review the lower court's factual findings for clear error; we review its rulings of law de novo; and we review its ultimate conclusion, authorizing or withholding the requested relief, for abuse of discretion. See Hoeber v. Local 30, United Slate, Tile & Composition Roofers, Etc., 939 F.2d 118, 123 (3d Cir.1991); Union de Tronquistas de P.R., Local 901 v. Arlook, 586 F.2d 872, 876 (1st Cir.1978); see also Asseo v. Centro Medico Del Turabo, Inc., 900 F.2d 445, 450 (1st Cir.1990) (explicating identical standards under a corollary relief provision, NLRA Sec. 10(j), 29 U.S.C. Sec . 160(j)); Asseo v. Pan Am. Grain Co., 805 F.2d 23, 25 (1st Cir.1986) (same); see generally George Schatzki, Some Observations About the Standards Applied to Labor Injunction Litigation Under Sections 10(j) and 10(l) of the National Labor Relations Act, 59 Ind.L.J. 565, 575-76 (1983) (noting these standards of review and the striking pattern of appellate deference under section 10(l )).Our level of deference is heightened because we are perched on the second tier of review vis-a-vis the Regional Director's assertion of reasonable cause. The district court occupies the first tier, and just as that court must itself defer in significant measure to the evaluative judgments of the Regional Director, see, e.g., Union de Tronquistas, 586 F.2d at 876, so, too, must we defer to the district court.6 Thus, in this doubly sheltered enclave, the judicial task is generally confined to weeding out wholly arbitrary or thoroughly insupportable petitions for relief. See Squillacote v. Graphic Arts Int'l Union, 540 F.2d 853, 859 (7th Cir.1976).Of course, an important reason undergirding the deferential standard of judicial review in section 10(l ) cases is that neither the district court nor the court of appeals is adjudicating the merits, as such, to determine whether an unfair labor practice occurred. To the contrary, the courts' role at this stage is merely to supply a stopgap, that is, to palliate a likely violation detected by the Regional Director "pending the final adjudication of the Board with respect to such matter." 29 U.S.C. Sec . 160(l ). Consequently, a decision in a section 10(l ) proceeding is circumscribed in both time and scope, and any relief that may be granted is effective only while the related unfair labor practice charge is pending before the NLRB.7 See Sears, Roebuck & Co. v. Carpet, Linoleum, Soft Tile & Resilient Floor Covering Layers, 397 U.S. 655, 658-59, 90 S.Ct. 1299, 1301-02, 25 L.Ed.2d 637 (1970) (per curiam); Walsh v. International Longshoremen's Ass'n, 630 F.2d 864, 868 (1st Cir.1980). Given the design of the statute, the agency expertise involved, and the two-tiered structure of review, a party appealing from an order granting or refusing a temporary injunction pursuant to section 10(l ) confronts the sobering prospect that most battles over the appropriateness of such redress will be won or lost long before appellate review takes hold.B. Standard of Analysis.Congruent with these deferential standards of review, the analytic path to be traversed in a section 10(l ) case is narrower than that typically travelled in the course of reviewing the grant or denial of preliminary injunctive relief. Indeed, "in a section 10(l ) case the judicial inquiry is only, or at least primarily, whether there is reasonable cause to believe a section 10(l ) offense has been committed." Maram v. Universidad Interamericana de P.R., Inc., 722 F.2d 953, 958 (1st Cir.1983). Other factors that ordinarily inform district court actions in respect to temporary injunctions are, at most, of secondary interest. See id. (concluding that "the special importance that Congress attaches to section 10(l ) offenses indicates ... a strong presumption of irreparable harm, with the balance in favor of the charging party, and that the public interest favors the injunction"). Hence, the method of analysis that governs appellate review of the propriety and scope of a section 10(l ) injunction is best described as follows:First, the court must determine whether the Regional Director has reasonable cause to believe that the elements of an unfair labor practice are present. In this regard, the Director need only show the existence of credible evidence, even if disputed, together with reasonable inferences, which support [her] conclusions.... Second, the court must conclude that the legal theories relied upon by the Director are not without substance. Finally, it must find that temporary injunctive relief is "just and proper" in terms of effectuating the purposes of the Act.Union de Tronquistas, 586 F.2d at 876 (citations omitted).Having stated the bareboned test, we next flesh out its three constituent parts.1. Reasonable Cause. The centerpiece of the required analysis is the supportability vel non of the Regional Director's determination that there is reasonable cause to believe that an unfair labor practice has been, or is being, committed. The case law reveals two principles, in particular, that demarcate the meaning and the margins of this requirement.First, the Regional Director's evidentiary burden, whether measured quantitatively or qualitatively, is modest. Although courts phrase this principle in different ways, sometimes speaking in terms of the Regional Director's burden of proof, see, e.g., Hirsch v. Building & Constr. Trades Council, 530 F.2d 298, 302 (3d Cir.1976) (characterizing burden as "relatively insubstantial"), sometimes speaking in terms of the quantum of proof, see, e.g., Gottfried v. Sheet Metal Workers' Int'l Ass'n, Etc., 927 F.2d 926, 927 (6th Cir.1991) (requiring only that the Regional Director bring forth "some evidence" in support of her petition), and sometimes speaking in terms of the probative value of evidence as opposed to its raw quantity, see, e.g., Union de Tronquistas, 586 F.2d at 876 (requiring that the Regional Director "show the existence of credible evidence, ... together with reasonable inferences," to support her conclusions), the thrust of the decided cases is uniform: the Regional Director need not prove that the respondent has in fact violated the NLRA, but, rather, she need only make a minimal evidentiary showing of good reason to believe that the essential elements of an unfair labor practice are in view.The second principle that is germane to the reasonable cause inquiry is that genuinely disputed issues of material fact should be resolved at this early stage in favor of the Regional Director's exposition. See Maram, 722 F.2d at 958; Union de Tronquistas, 586 F.2d at 876; Kaynard v. Mego Corp., 633 F.2d 1026, 1031 (2d Cir.1980). Put another way, in proceedings under section 10(l ) the Regional Director must be given the benefit of every legitimate fact-based doubt. Thus, a reviewing court "need not concern itself with resolving conflicting evidence if facts exist which could support the [Regional Director's] theory of liability." Fleischut v. Nixon Detroit Diesel, Inc., 859 F.2d 26, 29 (6th Cir.1988).2. Legal Theory. The next segment of the tripartite analysis implicates the legal theory on which the Regional Director relies. The requirement is straightforward: the Regional Director's theory need not be irreproachable; it suffices if it "is not without merit." Union de Tronquistas, 586 F.2d at 877. In other words, the Regional Director need not persuade the court then and there of her theory's ultimate validity, but she must show that the theory is presentable. See Hirsch, 530 F.2d at 302 (explaining that the legal theory upon which the Regional Director proceeds must be "substantial and not frivolous"); see also Hoeber, 939 F.2d at 123-24 (quoting Hirsch with approval); see generally 8 Theodore Kheel, Labor Law Sec. 38.01, at 38-9 (1995).3. Just and Proper. Finally, injunctive relief granted pursuant to section 10(l ) must, by the terms of the statute itself, be "just and proper." Both the purpose and the contours of this imperative are relatively well-developed. "The purpose of the Sec. 10(l ) injunction is to preserve the status quo in order that the ultimate decision of the Board would not be negated or rendered moot by intervening events." Compton v. National Maritime Union of Am., 533 F.2d 1270, 1276 (1st Cir.1976). Thus, temporary injunctive relief, if otherwise warranted, passes the "just and proper" test as long as it comprises a reasonable means of ensuring the efficacy of the Board's final order, or preserving the status quo, or permitting administrative proceedings to go forward without undue hindrance, or preventing unjustified interruption of the free flow of commerce, or forestalling the repetition of unfair labor practices. See, e.g., Hoeber, 939 F.2d at 122; Gottfried, 927 F.2d at 927; Asseo, 900 F.2d at 455; Union de Tronquistas, 586 F.2d at 878. In this sense, the purpose of the section 10(l ) injunction is simply a narrower, more specific expression of the purpose underlying preliminary injunctions in general. See, e.g., CMM Cable Rep., Inc. v. Ocean Coast Props., Inc., 48 F.3d 618, 620 (1st Cir.1995) ("The purpose of a preliminary injunction is to preserve the status quo, freezing an existing situation so as to permit the [ultimate trier of the issues], upon full adjudication of the case's merits, more effectively to remedy discerned wrongs.").Since a section 10(l ) injunction "may enjoin only those unlawful labor practices specified in the [NLRA]," Hendrix v. International Union of Operating Eng'rs, Local 571, 592 F.2d 437, 445 (8th Cir.1979), the form of the injunction must dovetail with the statutory goals. However, less is often better than more, and the relief granted should be narrowly tailored to that which is reasonably necessary to stop mischief, prevent additional harm, and ensure effective final relief. See Gottfried, 927 F.2d at 928; Potter v. Houston Gulf Coast Bldg. Trades Council, 482 F.2d 837, 841 (5th Cir.1973).C. Applying the Standards.Applying these standards of review and analysis, we conclude that the instant decree passes muster.1. Reasonable Cause. The statutory proscription that triggered section 10(l ) in this case, namely, section 8(b)(4)(ii)(B), makes it "an unfair labor practice for a labor organization or its agents ... to threaten, coerce, or restrain any person engaged in commerce or in an industry affecting commerce, where ... an object thereof is ... forcing or requiring any person ... to cease doing business with any other person...." The question at this step of the analysis, therefore, reduces to the supportability of the district court's finding that the Regional Director had reasonable cause to believe (1) that the activity of group shopping might somehow threaten, coerce, or restrain a retail liquor outlet, and (2) that an object of the group shopping was to force or require such secondary businesses to sever relations with Busch. We conclude that this finding is not clearly erroneous.First and foremost, it is reasonable to regard the practice of group shopping as potentially coercive. The character of the conduct--including the use of all or virtually all of a store's parking lot, the occupation of much of the interior shopping area, the forbidding presence of a throng of people acting in unison, and the fostering of long checkout lines through repeated purchases of small items with large bills--tends by its very nature to disrupt normal commercial activity and, thus, to place economic pressure on a retail establishment to appease the Union by, say, cutting back on dealings with the primary employer.8 The Union counters that, even so, the evidence falls short. Insofar as this argument presumes that moderately obstructive conduct by a union is not alone sufficient either to trigger section 8(b)(4)(ii)(B) or to justify a section 10(l ) injunction, we accept the presumption. See National Maritime Union of Am. v. NLRB, 367 F.2d 171, 176 (8th Cir.1966), cert. denied,Try vLex for FREE for 3 days
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