Opinion

Canning v. National Labor Relations Board

  • 823 F.3d 76
  • 422 U.S. App. D.C. 299
  • 206 L.R.R.M. (BNA) 3276
  • 2016 U.S. App. LEXIS 8959
  • 2016 WL 2865435
Court
Court of Appeals for the D.C. Circuit
Filed
May 17, 2016
Status
Published
Author
Sentelle
On the bench
Pillard, Rogers, Sentelle
Cited by
2 cases
Authority
More cited than 46.1%

The opinion

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Submitted March 24, 2016 Decided May 17, 2016

No. 15-1029

NOEL CANNING, A DIVISION OF THE NOEL CORPORATION,

PETITIONER

v.

NATIONAL LABOR RELATIONS BOARD,

RESPONDENT

Consolidated with 15-1046

On Petition for Review and Cross-Application

for Enforcement of an Order

of the National Labor Relations Board

Gary E. Lofland and Mark David Watson were on the

briefs for petitioner.

Richard F. Griffin, Jr., General Counsel, National Labor

Relations Board, John H. Ferguson, Associate General

Counsel, Linda Dreeben, Deputy Associate General Counsel,

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Elizabeth A. Heaney, Supervisory Attorney, and Heather S.

Beard, Attorney, were on the brief for respondent.

Before: ROGERS and PILLARD, Circuit Judges, and

SENTELLE, Senior Circuit Judge.

Opinion for the Court filed by Senior Circuit Judge

SENTELLE.

SENTELLE, Senior Circuit Judge: Noel Canning petitions

for review of a decision and order of the National Labor

Relations Board, which determined that the petitioner violated

the National Labor Relations Act and ordered relief against

petitioner. Petitioner argues that our disposition vacating a

prior order in the same dispute left no authority with the

Board to enter this further decision and order. The Board

cross-petitions for enforcement. Concluding that there is no

merit in petitioner’s claims, we deny the petition and grant the

cross-petition for enforcement.

BACKGROUND

This case comes to our Court for a second time. In 2012,

petitioner Noel Canning, a division of the Noel Corporation,

petitioned this Court to review a decision and order of the

National Labor Relations Board holding that Noel Canning

had violated the National Labor Relations Act (NLRA) by

failing to execute a collective bargaining agreement with its

employees. We vacated the Board’s decision on the ground

that three of the Board’s five members had been improperly

appointed under the Recess Appointments Clause. See Noel

Canning v. NLRB (Noel Canning I), 705 F.3d 490 (D.C. Cir.

2013). On certiorari, the Supreme Court affirmed this Court’s

decision concluding that the appointments were invalid, albeit

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on modified reasoning. See NLRB v. Noel Canning (Noel

Canning II), 134 S. Ct. 2550 (2014).

On December 16, 2014, a panel of the now properly

reconstituted Board issued a new decision and order

essentially adopting the Board’s 2012 decision and ordering

Noel Canning, inter alia, not to refuse to bargain with the

Teamsters Local 760 chosen by employees as their exclusive

representative. See Noel Canning, 361 NLRB No. 129 (Dec.

16, 2014). On February 2, 2015, Noel Canning filed a

petition for review of the Board’s 2014 decision and order

with this Court. One month later, the Board filed a cross-

application for enforcement. Petitioner offers no challenge to

the merits of the Board’s latest ruling. Instead, it argues that

the Board lacked jurisdiction to issue the 2014 decision and

order because this Court’s opinion in Noel Canning I only

vacated—never remanded—the Board’s 2012 decision and

order. Three of our sister circuits have already rejected

substantially identical challenges to other Board orders. See

Big Ridge, Inc. v. NLRB, 808 F.3d 705 (7th Cir. 2015);

Huntington Ingalls Inc. v. NLRB, 631 F. App’x 127 (4th Cir.

2015); NLRB v. Whitesell Corp., 638 F.3d 883 (8th Cir.

2011). We do the same today. Because this Court’s decision

and mandate in Noel Canning I are best interpreted as

allowing a properly reconstituted Board to reconsider the

merits, we deny Noel Canning’s petition for review. We

grant the Board’s cross-application for enforcement because

the 2014 decision and order, like the 2012 decision and order,

was supported by substantial evidence.

DISCUSSION

Noel Canning argues that this case is controlled by 29

U.S.C. § 160(e), which states that “[u]pon the filing of the

[Board] record with [the court of appeals] the jurisdiction of

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the court shall be exclusive and its judgment and decree shall

be final” except upon review by the Supreme Court. The

statute also provides that a court may “make and enter a

decree enforcing, modifying and enforcing as so modified, or

setting aside in whole or in part the order of the Board.” Id.

Notably, § 160(e) makes no mention of remand or, more

generally, when the Board may reassume jurisdiction after

vacatur. A court’s authority to remand comes instead from its

“equity powers.” Ford Motor Co. v. NLRB, 305 U.S. 364,

373 (1939). Therefore, this case is not about § 160(e) as Noel

Canning would have it, but rather the interpretation of our

mandate in Noel Canning I.

The question presented is whether our mandate in Noel

Canning I permits a properly reconstituted Board to

reconsider the merits of the case. Noel Canning argues that it

does not. Judicial mandates, Noel Canning claims, must be

read according to their “precise terms.” NLRB v. Donnelly

Garment Co., 330 U.S. 219, 226 (1947). Since the Noel

Canning I opinion and judgment stated only that Noel

Canning’s petition for review is granted, the Board’s order is

vacated, and the cross-application for enforcement is

denied—with no mention of remand—Noel Canning contends

it cannot be read as giving the Board, once properly

constituted, authority to take up the case again. See Noel

Canning I, 705 F.3d at 515; Judgment, Noel Canning I, No.

12-1115, Doc. No. 1417095 (D.C. Cir. Jan. 25, 2013).

Our sister circuits disagree. In NLRB v. Whitesell

Corporation, 638 F.3d 883, 888 (8th Cir. 2011), the Eighth

Circuit considered whether the Board had jurisdiction to

reissue an order that had been vacated for lack of a quorum in

light of New Process Steel, L.P. v. NLRB, 560 U.S. 674

(2010). Like this Court’s judgment in Noel Canning I, the

Eighth Circuit’s order denying the Board’s application for

5

enforcement did not remand the case. See NLRB v. Whitesell

Corp., 385 F. App’x 613, 614 (8th Cir. 2010) (unpublished

per curiam). Nonetheless, when considering the authority of a

properly constituted Board to reissue the order, the Eighth

Circuit stated that it had “expected that the Board would visit

the merits of th[e] case again” with a full complement of

members. Whitesell Corp., 638 F.3d at 889. Because the

denial of enforcement had been based on the lack of quorum,

not the merits, the Eighth Circuit held that its prior decision

on the New Process issue did “not preclude the Board, now

properly constituted, from considering [the merits] anew and

issuing its first valid decision.” Id. The Seventh and Fourth

Circuits have reached the same conclusions in the wake of

Noel Canning II. See Big Ridge, Inc., 808 F.3d at 711

(holding that when it vacated a Board decision without

remand because the Board lacked a proper quorum, it had

“expected the Board to consider the case anew once it

regained a quorum”); Huntington Ingalls Inc., 631 F. App’x at

131 (holding that “[a] decision finding the lack of a proper

quorum clearly contemplates further Board action”).

Petitioner provides no convincing reason for us to

interpret our Noel Canning I mandate differently than our

sister circuits have interpreted theirs. Noel Canning points to

several cases in which courts have rebuked the Board for

reopening a matter in the absence of a remand—most notably,

Int’l Union of Mine, Mill & Smelter Workers v. Eagle-Picher

Mining & Smelting Co., 325 U.S. 335 (1945); George Banta

Co. v. NLRB, 686 F.2d 10 (D.C. Cir. 1982); and NLRB v.

Lundy Packing Co., 81 F.3d 25 (4th Cir. 1996)—but, as the

Seventh Circuit observed when confronted with many of the

same precedents, “all of these cases can be distinguished

because they deal with appellate court rulings on the merits,

whereas . . . the case at hand involve[s] denial[] of

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enforcement due to lack of a quorum.” Big Ridge, Inc., 808

F.3d at 712. This is a distinction with a difference.

When a court affirms or rejects an agency’s decision on

the merits, parties to the litigation have important interests in

the finality of that decision. See Eagle-Picher, 325 U.S. at

340 (“The party adverse to the administrative body is entitled

to rely on the conclusiveness of a decree entered by a court to

the same extent that other litigants may rely on judgments for

or against them.”). Those interests are absent when a court

rules only that an administrative body never had a quorum to

issue a decision in the first place. See Huntington Ingalls,

Inc., 631 F. App’x at 130-31. In fact, far from promoting

finality, Noel Canning’s interpretation of this Court’s mandate

in Noel Canning I actually “deprives the employees” and the

company itself “from having [the case] resolved on the merits

once and for all by this court.” Id.

After the Supreme Court issued its ruling in Noel

Canning II, this Court remanded more than a dozen pending

cases to the Board, which by then had five validly appointed

members, so that properly constituted panels could issue new

rulings on the merits. Cf. Nguyen v. United States, 539 U.S.

69, 83 (2003) (finding remand to court of appeals

“appropriate” after a case was decided by an improperly

constituted panel). By contrast, when this Court decided Noel

Canning I, we did not remand: indeed, “at that time, there

was no properly constituted Board to which [this Court] could

remand the proceedings.” Big Ridge, Inc., 808 F.3d at 711.

Noel Canning’s attempt to exploit these circumstances in

order to prevent the Board from resolving its case contradicts

the principle that a “mandate is to be interpreted reasonably

and not in a manner to do injustice.” Bailey v. Henslee, 309

F.2d 840, 844 (8th Cir. 1962) (internal quotation marks and

citation omitted). Here, the Board’s decision to reconsider the

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merits of the case and issue a new decision and order was not

only consistent with this Court’s Noel Canning I mandate, but

also reasonable and in furtherance of justice.

We offer one further thought with respect to Noel

Canning’s petition. We recently observed in a different

context that “common sense sometimes matters in resolving

legal disputes.” Southern New England Telephone Co. v.

NLRB, 793 F.3d 93, 94 (D.C. Cir. 2015). It is not totally

consistent with common sense to suggest that when a petition

has been filed with an administrative agency and that agency

reached a decision but a court vacated the decision for reasons

unrelated to the merits of the petition, the merits issues in the

case must remain forever undecided. In other words, it seems

to us highly unlikely that the law would establish that a

question properly presented to the labor board must pend

forever if the board for procedural or quorum-related reasons

invalidly entered its first order.

Turning to the Board’s cross-application for enforcement,

we note that, in its opening brief, Noel Canning does not

contest the Board’s findings that it violated Section 8(a)(1)

and (5) of the NLRA by refusing to reduce to writing and

execute a collective bargaining agreement arrived at through

collective bargaining with the Teamsters Local 760.

Therefore, we may summarily enforce the 2014 decision and

order. See, e.g., Allied Mech. Servs., Inc. v. NLRB, 668 F.3d

758, 765 (D.C. Cir. 2012) (uncontested Board findings may

be summarily enforced). See also Fox v. Gov’t of D.C., 794

F.3d 25, 29 (D.C. Cir. 2015) (argument not raised in an

opening brief is forfeited). Moreover, in Noel Canning I, this

Court concluded that the findings in the Board’s 2012

decision and order, which were adopted by reference in its

2014 decision and order, were supported by substantial

evidence. See 705 F.3d at 493-96. After reviewing the record

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and the parties’ briefing, we see no reason to depart from that

conclusion here.

CONCLUSION

For the foregoing reasons, we deny Noel Canning’s

petition for review and grant the Board’s cross-application for

enforcement.

So ordered.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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