Amicus Curiae Brief — South Carolina State Ports Authority, et al., Petitioners v. National Labor Relations Board, et al.
Supreme Court briefOct 30, 2023
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No. 23-325
IN THE
Supreme Court of the United States
SOUTH CAROLINA STATE PORTS AUTHORITY, AND STATE
OF SOUTH CAROLINA,
Petitioners,
v.
NATIONAL LABOR RELATIONS BOARD, ET AL.,
Respondents.
On Petition for Writ of Certiorari to
the United States Court of Appeals
for the Fourth Circuit
BRIEF OF AMICI CURIAE SENATORS
LINDSEY GRAHAM AND TIM SCOTT IN
SUPPORT OF PETITION FOR CERTIORARI
ANTHONY R. JADICK
MICHAEL H. MCGINLEY
DECHERT LLP
Counsel of Record
Cira Centre
JUSTIN W. AIMONETTI
DECHERT LLP
2929 Arch Street
Philadelphia, PA 19104 1900 K Street, NW
Washington, DC 20006
(202) 261-3378
michael.mcginley@dechert.com
Counsel for Amici Curiae
October 30, 2023
i
TABLE OF CONTENTS
TABLE OF AUTHORITIES ....................................... ii
INTEREST OF AMICI CURIAE ................................ 1
INTRODUCTION
AND
SUMMARY
OF
ARGUMENT ................................................................ 3
ARGUMENT ................................................................ 5
I.
The Decision Below Undermines The Purpose
Behind The Secondary-Boycott Ban..................... 5
II. This Court Should Grant Review To Vindicate
The Plain Meaning Of The NLRA And To
Alleviate The Economic Harm The Decision
Below Has Unleashed ......................................... 10
CONCLUSION .......................................................... 16
ii
TABLE OF AUTHORITIES
Cases
Connell Constr. Co. v. Plumbers & Steamfitters
Loc. Union No. 100, 421 U.S. 616 (1975) ................. 7
Duplex Printing Press Co. v. Deering,
254 U.S. 443 (1921)............................................... 5, 6
Loc. 1976, United Brotherhood of Carpenters &
Joiners of Am., A.F.L. v. NLRB,
357 U.S. 93 (1958)..................................................... 7
Loewe v. Lawlor,
208 U.S. 274 (1908)................................................... 5
Nat’l Woodwork Mfrs. Ass’n v. NLRB,
386 U.S. 612 (1967)........................................... 5, 6, 7
NLRB v. Int’l Longshoremen’s Ass’n,
AFL-CIO, 447 U.S. 490 (1980) ............................. 8, 9
Statutes
29 U.S.C. § 158(b)(4)(ii)(A) .......................................... 6
29 U.S.C. § 158(b)(4)(ii)(B) .......................................... 6
29 U.S.C. § 158(3) ........................................................ 6
Other Authorities
Simeon Alder et al., Labor Market Conflict and the
Decline of the Rust Belt, J. OF POL. ECON.
(forthcoming 2023), https://bit.ly/3sbAQWs .... 11, 12
Brief of Amicus Curiae Governor Henry
McMaster at 5, South Carolina State Ports
Authority v. NLRB, 75 F.4th 368 (2023) (No. 231059) ........................................................................ 15
iii
James Chen, Rust Belt: Definition, Why It’s Called
That, List of States, INVESTOPEDIA (Nov. 9,
2022), https://bit.ly/3s5uXKm ................................ 11
Lloyd Kenward, The Decline of the US Steel
Industry: Why Competitiveness Fell Against
Foreign Steelmakers, IMF: FIN. & DEV.,
December 1987, https://bit.ly/4729Ya2 .................. 10
Press Release, South Carolina State Ports
Authority, Charleston Has The Deepest Harbor
On The East Coast at 52 Feet (Dec. 5, 2022),
https://bit.ly/3Fymr9E ............................................ 14
Press Release, South Carolina State Ports
Authority, Congress Authorizes Charleston
Harbor Deepening Project (Dec. 10, 2016),
https://bit.ly/3QvLWPj ............................................ 15
Press Release, South Carolina State Ports
Authority, SC Ports Opens State-of-the-Art Hugh
K. Leatherman Terminal (Apr. 9, 2021),
https://bit.ly/474hUaR ............................................ 14
South Carolina State Ports Authority Finance
Department, Annual Comprehensive Financial
Report: For Fiscal Years Ended June 30, 2022
and 2021 (S.C. Ports), https://bit.ly/497Gvx8 ........ 15
U.S. Army Corps of Engineers, Appendix C:
Charleston Harbor Post 45, Charleston, South
Carolina,
Economics
(May
2015),
https://bit.ly/45FGkGw ........................................... 16
Joseph C. Von Nessen, Economic Impact Of The
South Carolina Ports Authority, Statewide and
Regional
Analysis
(Oct.
2023),
https://bit.ly/3FQF7St ............................................. 13
1
INTEREST OF AMICI CURIAE 1
Senator Lindsey Graham is the Senior United
States Senator from the State of South Carolina.
Senator Graham has served South Carolina as an
elected official for over thirty years. He began his
career as a commissioned officer in the Judge
Advocate General “JAG” Corps of the U.S. Air Force,
later joining the South Carolina Air National Guard
and the U.S. Air Force Reserve. In 1992, Senator
Graham won election as a member of the South
Carolina State House. He was later elected to the U.S.
House of Representatives, and for the past twenty
years has served South Carolina in the U.S. Senate.
Senator Graham is currently the Ranking Member of
the Senate Judiciary Committee, following a term as
its Chairman during the 116th Congress.
Senator Tim Scott has served the people of South
Carolina in the United States Senate since 2013.
Following a career as a business owner and time as a
local elected official in Charleston County, Senator
Scott served in the South Carolina State House and
the U.S. House of Representatives. Following a 2013
appointment, Senator Scott won election to the United
States Senate in 2014. He currently serves as
Pursuant to Rule 37.6, amici curiae affirm that no counsel for
a party authored this brief in whole or in part and that no person
other than amici curiae or their counsel made a monetary
contribution to its preparation or submission. Amici curiae
further affirm that counsel of record for all parties received notice
of amici curiae’s intent to file this brief at least 10 days before its
due date.
1
2
Ranking Member of the United States Senate
Committee on Banking, Housing, and Urban Affairs.
Senator Graham and Senator Scott’s interest in
this case is twofold. First, and particularly in light of
Senator Graham’s leadership on the Judiciary
Committee, they are intent on ensuring that our
Article III courts protect the faithful execution of our
laws, consistent with their plain meaning. The courts
must serve as a bulwark against a bloated and often
activist administrative state. When administrative
agencies adopt strained or outright implausible legal
interpretations, our constitutional structure is
impeded. In such instances, the duty of the judicial
branch is to correct the overreach.
Second, in their role as elected officials, amici work
to promote the economic success of South Carolina and
the Nation. The South Carolina Ports, in conjunction
with the State’s manufacturing sector, contribute
significantly to the State and National economy.
Senator Graham has worked to secure federal funding
supportive of the South Carolina Ports, such as the
Army Corps of Engineers’ deepening of the Charleston
Harbor. The Ports act as an economic multiplier,
creating jobs and increasing wages. South Carolina is
a global competitor for industry, aided by its
geographic location and driven by its sound economic
policies.
The number of foreign manufacturers,
including BMW, Volvo, and Mercedes-Benz, who have
located plants in the State showcase South Carolina’s
economic prowess. Amici have a strong interest in
protecting and strengthening this success.
3
INTRODUCTION AND
SUMMARY OF ARGUMENT
In South Carolina, labor responsibilities at the
ports are handled by both unionized dockworkers and
State employees. A total of 270 State employees
operate the cranes, while over 2,000 laborers
represented by the International Longshoremen’s
Association (“ILA”) perform the other longshoreman
work, such as loading and unloading container ships.
This hybrid model has proven effective, efficient, and
economically efficacious.
The dockworkers’ union, however, is not satisfied
with having 88% of the work. It wants all of it. In its
attempt to seize the 270 crane operator positions, the
union cannot directly pressure the South Carolina
State Ports Authority (“Ports”). This is because the
union itself does not have a collective bargaining
agreement (or any contractual relationship) with the
Ports. Instead, unionized dockworkers are employees
of third-party companies, which are contracted to
perform longshoreman work.
With no direct
contractual relationship, the union has resorted to
what’s known as a secondary boycott. It has coerced
third-party employers to boycott the new Leatherman
Terminal.
The secondary boycott has had a
devastating effect, causing the Ports’ new $1.5 billion
Leatherman Terminal to sit largely idle.
The union’s actions are unlawful.
In 1947
Congress banned secondary boycotts. It did so to
prevent union power grabs like this one. Seeking to
vindicate its legal rights and put an end to the
economically devastating secondary boycott, the Ports
filed suit before the National Labor Relations Board
4
(“NLRB”). An administrative law judge held that the
union’s actions constituted a textbook (and therefore
unlawful) secondary boycott. But the NLRB then
overturned that ruling, relying upon a fundamentally
flawed expansion of what’s known as the workpreservation doctrine.
And the Fourth Circuit
affirmed.
The work-preservation doctrine operates as a
defense to the secondary-boycott ban. It permits
boycott activity that seeks to preserve existing union
work. Applying that defense here is facially incorrect.
Union laborers have never operated the cranes at the
South Carolina Ports. In fact, union laborers have
never operated cranes at any of the Southeastern
ports, to wit, those in North Carolina, South Carolina
and Georgia. Because the purpose of the union’s
boycott is to obtain new work—operating the cranes at
the Leatherman Terminal—it is unlawful. And that
unlawful activity has grounded work largely to a halt
at the Leatherman Terminal.
History speaks to the potentially devastating
consequences of such work stoppages. Economists
who have studied the decline of U.S. industry in the
latter-part of the 20th Century have concluded that
labor conflict—work stoppages, such as strikes or
boycotts—accounted for approximately half of the
decline in the Rust Belt’s manufacturing industry.
Quantitative data shows that more labor strife
corresponds with less job growth. And more union
overreach
corresponds
with
less
industrial
investment. Amici are thus concerned about the risks
that this unlawful boycott and the decision below pose
5
to economic growth and industrial investment in
South Carolina.
The Fourth Circuit failed to vindicate the
statutory directive banning secondary boycotts. And it
failed to protect the South Carolina Ports from an
aggressive and unlawful union power grab. This
Court should grant certiorari and reverse.
ARGUMENT
I.
The Decision Below Undermines The
Purpose Behind The Secondary-Boycott
Ban.
The secondary-boycott ban was born of experience
with different power balances between industry and
labor. In the early twentieth century, courts began
enjoining certain labor-related boycotts under the
Sherman Act. See Nat’l Woodwork Mfrs. Ass’n v.
NLRB, 386 U.S. 612, 620 & n.6 (1967) (citing inter alia
Loewe v. Lawlor, 208 U.S. 274 (1908)). Congress
became concerned that these injunctions were being
overused, stymying the rights of workers. It thus
enacted Section 20 of the Clayton Act in 1914, which
limited the use of Sherman Act injunctions in labor
disputes. Id. at 620–621.
Unfortunately, unions abused this legal protection.
In the years following the Clayton Act’s passage, the
International Association of Machinists embarked on
“an elaborate scheme to coerce and restrain neutral
customers” of its bargaining opponent. Id. at 621
(citing Duplex Printing Press Co. v. Deering, 254 U.S.
443, 461 (1921)). Litigation over the aggressive
behavior led this Court to hold that Section 20
protected only boycotts “directed against an employer
6
by his own employees.” Id. The Duplex decision was
the seed of the secondary-boycott ban: it held that
“‘primary’ but not ‘secondary’ pressures were excepted
from the antitrust laws.” Nat’l Woodwork, 386 U.S. at
622.
Following the 1921 Duplex decision, Congress
decided to do away with the primary/secondary
distinction in 1932, passing the Norris-LaGuardia Act.
But what resulted was a new series of union abuses of
Sherman Act immunity. See id. at 622–23. Therefore,
acting upon decades of data and experience, Congress
in 1947 enacted the Taft Hartley Act, which contained
the earliest form of the secondary-boycott ban that is
now codified in Section 8(b)(4) of the NLRA. 2 Id. at
623–24.
Senator Robert Taft, one of the Act’s
namesakes, stated that the provision’s purpose was to
“make[] it unlawful to resort to a secondary boycott to
injure the business of a third person who is wholly
unconcerned in the disagreement between an
2
The relevant portion of Section 8(b) provides:
It shall be 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 . . . .
29 U.S.C. § 158(b)(4)(ii)(B).
Section 8(e), which was added in 1959 by the Landrum-Griffin
Act, also prohibits both unions and employers from contracting
or agreeing to “cease doing business with any other person.” Id.
§ 158(e). The Act likewise prohibits unions from coercing
employers to execute such contracts. Id. § 158(b)(4)(ii)(A).
7
employer and his employees.”
omitted). 3
Id. at 624 (citation
More fine-tuning occurred over the following
decade, shoring up the secondary-boycott ban’s core
purpose. In 1958, this Court held that, as written,
Section 8(b) did not stop unions from using contractual
“hot cargo” provisions.
See Loc. 1976, United
Brotherhood of Carpenters & Joiners of Am., A.F.L. v.
NLRB, 357 U.S. 93 (1958). Hot cargo clauses are
contractual restrictions prohibiting third-party
employers from doing business with other entities that
either do not use union labor or that are under boycott.
These clauses had become a common tactic to
circumvent Section 8(b). Congress corrected this
defect through the Landrum-Griffin Act of 1959,
where it amended the secondary-boycott ban “to close
various loopholes,” including the addition of Section
8(e). See Nat’l Woodwork, 386 U.S. at 633–34.
Congress chose to ban secondary boycotts because
of their “significant adverse effects on the market and
on consumers.” Connell Constr. Co. v. Plumbers &
Steamfitters Loc. Union No. 100, 421 U.S. 616, 624
(1975) (explaining that). At every step, preventing
anticompetitive negotiating tactics, and the collateral
damage that flows therefrom, has been the purpose
A Senate committee report put a fine point on the purpose of
the legislation, stating that under the Taft Hartley Act, “it would
not be lawful for a union to engage in strike against employer A
for the purpose of forcing that employer to cease doing business
with employer B; nor would it be lawful for a union to boycott
employer A because employer A uses or otherwise deals in the
goods of or does business with employer B (with whom the union
has a dispute).” Id. at 625 (citation omitted).
3
8
and effect of the secondary-boycott ban. The NLRB
and the Fourth Circuit’s decisions below frustrate this
purpose by expanding what is known as the workpreservation
doctrine—a
judicially-engineered
exception to the ban.
Under longstanding precedent, to establish a workpreservation defense, a union must satisfy two
elements: First, the union’s activity “must have as its
objective the preservation of work traditionally
performed by employees represented by the union.”
NLRB v. Int’l Longshoremen’s Ass’n, AFL-CIO, 447
U.S. 490, 504 (1980).
“Second, the contracting
employer must have the power to give the employees
the work in question . . . .” Id. The defense is meant
to suss out the “object” of a union’s activities. The
NLRA “protect[s] . . . the purpose of preserving for the
contracting employees themselves work traditionally
done by them.” Id. (citation omitted). It follows that
a union can affect a secondary boycott if it can
demonstrate that the purpose of that boycott is to
preserve its own members’ work.
The panel below (channeling the NLRB)
misapplied each prong, stretching the defense beyond
recognition. First, it drastically mischaracterized the
relevant scope of the work. The panel majority
concluded that, because ILA workers typically
perform the relevant work “at East and Gulf ports,”
meaning across the entire East Coast, the ILA’s
boycott at the Leatherman Terminal was aimed at the
preservation of ILA members’ work, rather than at the
acquisition of new work. Pet.App.17a. But as Judge
Niemeyer wrote in dissent, this ignores that the
relevant bargaining unit is not the whole ILA but only
9
Local 1422. Indeed, while some East Coast ports, such
as the Port of Baltimore, utilize union labor for crane
operation, the Ports of Charleston, Wilmington, and
Savannah have instead always used the hybrid model.
Pet.App.34a–35a.
It is wrong to look at work
coastwide when several of the ports therein have
historically utilized a different model. A union is not
“preserving” work when it is attempting to obtain
work it has never done.
The second prong—sometimes called the “right of
control” test, Int’l Longshoremen’s Ass’n, 447 U.S. at
504—requires that the union’s efforts be “directed at
the employer with the right to control the work,”
Pet.App.42a (citations and emphasis omitted). Here,
the union targeted the Maritime Alliance and its
members. But those employers have no right to
control the work of the crane-operating employees of
the Ports. In holding otherwise, the Fourth Circuit
endorsed the union’s fanciful argument that the
carriers can effectively “control” work by choosing
where their ships call.
Pet.App.47a–48a.
Put
differently, this faulty legal fiction holds that a union’s
unlawful secondary boycott is shielded by the workpreservation defense because the targeted secondary
employer could choose to take its business elsewhere.
In summary, the panel stacked the deck by
selecting the entire East and Gulf Coast as the
relevant comparator to the local union’s work. Its
sweeping reliance on historical changes in the
industry, rather than concrete present-day examples,
has no principled boundaries. And the panel’s holding
that a third party “controls” the target employer’s
workforce by deciding whether to do business with the
10
employer risks swallowing the secondary-boycott rule
altogether. The object of a secondary boycott is to force
a third party to exercise its otherwise-free bargaining
power to harm the employer. How would a ban on
such boycotts accomplish anything if the very power to
harm the employer indirectly is a defense to the ban?
The NLRB and Fourth Circuit decisions thus
undermine the pro-competitive principles that
Congress designed the secondary-boycott ban to
protect. This Court should thus grant review of this
important question and reverse.
II.
This Court Should Grant Review To
Vindicate The Plain Meaning Of The NLRA
And To Alleviate The Economic Harm The
Decision Below Has Unleashed.
The history of twentieth century America is one of
boom and bust. Following the roaring 20s, the Great
Depression sent shockwaves throughout the Nation.
It took the manufacturing boom necessitated by World
War II to bring the Country’s economy back to life.
Economic expansion ensued, with the U.S. leading the
world in steel production through the end of the
1960s. 4 This manufacturing dominance did not last.
Rather, U.S. steel production accounted for a mere
11% of the world’s steel by 1985. Id. The 1970s and
1980s saw the rapid decline of manufacturing,
Lloyd Kenward, The Decline of the US Steel Industry: Why
Competitiveness Fell Against Foreign Steelmakers, IMF: FIN. &
DEV., December 1987 at 30, https://bit.ly/4729Ya2.
4
11
particularly in the Northeast and Midwest, earning
those regions the “Rust Belt” moniker. 5
Labor strife had much to do with this catastrophic
economic downturn. A forthcoming article from the
University of Chicago Press’ Journal of Political
Economy puts it bluntly: “Quantitatively, labor
conflict accounts for around half of the decline in the
Rust Belt’s share of manufacturing employment.” 6 In
their peer-reviewed article Labor Market Conflict and
the Decline of the Rust Belt, professors Simeon Alder,
David Lagakos, and Lee Ohanian explain that “the
Rust Belt’s decline was driven by labor market
conflict,” which “manifested itself in strikes and wage
premia.” Id. at 40 (emphasis added). Other factors,
such as the rise of foreign competition, played “a more
modest role quantitatively.” Id.
The strikes and wage premia, in turn, “reduced
investment in the region’s main industries” which “led
to the movement of manufacturing employment out of
the Rust Belt and into the rest of the country.” Id.
Labor conflict declined only “following several legal
and political shifts that substantially reduced union
bargaining power in the 1980s.” Id. (emphasis added).
That led to “higher rates of productivity growth and
the region’s stabilization, albeit at a much lower level
than before.” Id.
5 See James Chen, Rust Belt: Definition, Why It’s Called That,
(Nov.
9,
2022),
List
of
States,
INVESTOPEDIA
https://bit.ly/3s5uXKm.
Simeon Alder et al., Labor Market Conflict and the Decline of
the Rust Belt, J. OF POL. ECON. (forthcoming 2023) (manuscript at
1) (emphasis added), https://bit.ly/3sbAQWs.
6
12
The lesson drawn from that quantitative analysis
is that work stoppages restrain economic resilience
and job growth. As the authors explain, “there is a
strong negative association at the state industry level
between rates of work stoppages and employment
growth between 1950 and 2000.” Id. at 2. In
particular, outsized union bargaining power cripples
investment: “a higher union bargaining weight leads
to lower average rates of investment and productivity
growth by Rust Belt firms relative to firms in the rest
of the country.” Id. at 2.
As discussed above, Congress banned secondary
boycotts in 1947 to protect free trade. History
demonstrates the wisdom of that policy decision. Even
without recourse to secondary boycotts, strained
relations and vast union power contributed to
significant work stoppages resulting from primary
boycotts. Quantitative analysis established that these
work stoppages went a long way toward creating the
Rust Belt and the decline of investment in the region.
The intractable nature of the relationship between
management and union leaders—treating each other
as adversaries rather than as partners—harms the
economy. See Alder at 40. Yet, as explained, a balance
has existed in South Carolina and other southeastern
ports through the adoption of a hybrid model.
Petitioner SCSPA employs 270 state employees to
“operate state-owned lift equipment to load and
unload container ships that call at” the Port’s
Terminals. Pet.App.57a & 114a. ILA-represented
employees—over 2,000 to be exact—perform the
remainder of longshore work at the Ports. Id. This
13
hybrid model has worked well, balancing competing
interests and spurring economic growth.
But the union is not satisfied with this model. It
has therefore disrupted the Ports’ important work by
orchestrating this secondary boycott. As the Petition
explains, the southeastern ports “are in the crosshairs of the unions,” and “the assumptions on which
they have been doing business are threatened.”
Pet.30. Union aggressiveness to acquire new work
cannot be overstated. For example, ILWU—the west
coast counterpart of the ILA—“drove port operator
ICTSI out of business in Portland in order to acquire
just two reefer jobs there.” Pet.30 (emphasis added).
Congress struck a balance between labor and
industry with the passage of the Taft Hartley Act in
1947, and amendments thereto in 1959. A proper
application of that legal regime is necessary to protect
the economic success of South Carolina, especially its
export-oriented manufacturing industry, which has
been the linchpin of the State’s economic development
over the last decade. 7
As explained by other amici, the South Carolina
Ports represent an economic engine for all 46 counties
of the State, generating around $86.7 billion in
revenue each year. Id. This impact translates to
260,020 jobs and $17.6 billion in labor income. Id. As
a boon to local manufacturing and U.S. exports, up to
73.2% of all cargo exported through the South
Carolina Ports originates from companies located in
Joseph C. Von Nessen, Economic Impact Of The South
Carolina Ports Authority, Statewide and Regional Analysis at 4
(Oct. 2023), https://bit.ly/3FQF7St [hereinafter Impact Study].
7
14
South Carolina. Id. The direct and indirect economic
benefits to citizens of the State are indisputable. One
in nine jobs in the State are linked to the Ports. Id. In
turn, through direct and indirect economic activity,
the Ports bring in approximately $1.5 billion in tax
revenue for the State annually. Id. More state tax
revenue means more critical infrastructure, better
schools, and better hospitals. And the advanced
manufacturing jobs that correspond with the Ports
results in higher wages. In 2022, the annual wages in
the state manufacturing sector were about 22.2%
higher than the U.S. state average over the same
period. See id. at 26 ($67,514 compared to $55,254).
State and federal tax dollars have made
significant contributions to the success of the South
Carolina Ports. Planning started over twenty years
ago to develop the Leatherman Terminal, which
finally opened in March 2021. 8 South Carolina
invested over $1.5 billion in the terminal. See Pet.31.
Moreover, the Army Corps of Engineers recently
completed a $580 million harbor renovation project—
deepening the harbor and strengthening the area’s
cargo-processing abilities. 9
Indeed, at 52 feet,
Charleston now has the deepest harbor on the East
Coast. Id. This project moved forward after the
Senate passed the Water Infrastructure Improvement
8 Press Release, South Carolina State Ports Authority, SC
Ports Opens State-of-the-Art Hugh K. Leatherman Terminal (Apr.
9, 2021), https://bit.ly/474hUaR.
Press Release, South Carolina State Ports Authority,
Charleston Has The Deepest Harbor On The East Coast at 52 Feet
(Dec. 5, 2022), https://bit.ly/3Fymr9E.
9
15
for the Nation Act (“WIIN”) in 2016. 10 Following the
passage of WIIN, federal appropriations authorized
approximately $246 million in federal funds for the
project. 11 South Carolina fronted a significant portion
of money to speed completion of the harbor deepening
project, setting aside about $300 million. 12
These investments of taxpayer dollars have clear
intended benefits. As South Carolina Governor Henry
McMaster has explained, among the many benefits
specific to the Leatherman Terminal (which currently
sits largely idle) is that it provides “near-dock rail . . .
connecting the [Leatherman Terminal] to Class I
railroads operated by CSX Transportation and
Norfolk Southern.” 13 Corresponding infrastructure
improvements will also reduce highway congestion in
the area. Id. Likewise, as recognized in a 2015 Army
Corps of Engineers study, the deepening of the harbor
will enable carriers “to load Post-Panamax vessels
more efficiently and thereby reduce transiting costs.
In the future, these carriers are anticipated to replace
smaller less efficient vessels with the larger more
Press Release, South Carolina State Ports Authority,
Congress Authorizes Charleston Harbor Deepening Project (Dec.
10, 2016), https://bit.ly/3QvLWPj.
10
South Carolina State Ports Authority Finance
Department, Annual Comprehensive Financial Report: For
Fiscal Years Ended June 30, 2022 and 2021 at 6 (S.C. Ports),
https://bit.ly/497Gvx8.
11
12
Supra note 9.
Brief of Amicus Curiae Governor Henry McMaster at 5,
South Carolina State Ports Authority v. NLRB, 75 F.4th 368
(2023) (No. 23-1059).
13
16
efficient vessels on East Coast service lanes that will
call on Charleston Harbor.” 14
But these significant economic and environmental
benefits have not been realized. No new jobs have
been created, and no additional state tax revenue has
been generated, which limits investments into the
region’s infrastructure, schools, and hospitals. This
result is exactly what the secondary-boycott ban was
meant to stop, and it is the consequence of an Article
III court permitting an administrative agency to run
roughshod over Congress’ judgment.
There is no doubting this case’s importance. It is
important for the people of South Carolina. It is
important to ensure consistent application of the law
nationwide. And it is important to vindicate the
federal constitutional structure, so that the People
remain governed by a nation of laws, rather than ruled
by administrative fiat.
CONCLUSION
For the foregoing reasons, amici curiae respectfully
urge this Court to grant the petition for certiorari.
U.S. Army Corps of Engineers, Appendix C: Charleston
Harbor Post 45, Charleston, South Carolina, Economics at 55
(May 2015), https://bit.ly/45FGkGw.
14
17
Respectfully submitted,
ANTHONY R. JADICK
DECHERT LLP
Cira Centre
2929 Arch Street
Philadelphia, PA 19104
MICHAEL H. MCGINLEY
Counsel of Record
JUSTIN W. AIMONETTI
DECHERT LLP
1900 K Street, NW
Washington, DC 20006
(202) 261-3378
michael.mcginley@dechert.com
Counsel for Amici Curiae
October 30, 2023
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