# Opposition Brief — Foster v. Garcy

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386010_1521%3A2

## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 2002
- **Citation:** 535 U.S. 1112

## Text

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No.01-1307 | MAY y 22 |
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IN THE , CLERK
Supreme Court of the Gnited a

DIANNE FOSTER, MARK ALBRECHT, RICHARD
DIGIACOMO, and BARRY LEE PARKS,
Petitioners,
¥.

LORRAINE GARCY, in her official capacity as Superintendent,
Board of Education, Livermore Valley Joint School
District; KIM LOGAN, Superintendent, Ukiah Unified
School District; JOE Coto, Superintendent, East Side
Union High School District; RUTH MCKENNA, in her
official capacity as Superintendent, Board of Education,

New Haven Unified School District,
Respondents.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

OPPOSITION TO PETITION
FOR A WRIT OF CERTIORARI

STEPHEN P. BERZON *
JEFFREY B. DEMAIN
ALTSHULER, BERZON,
NUSSBAUM, RUBIN & DEMAIN
177 Post Street, Suite 300
San Francisco, California 94108
* Counsel of Record (415) 421-7151
May 2002 Attorneys for Respondents

ARE ARREARS i IRN ROI NOL LT OE TERE LI LINE ET TEL ET ELLIS TRAN AREIRET LE MSIL RII YSN AE
WILSON-EPES PRINTING Co., INC. — (202) 789-0096 — WASHINGTON, D. C. 20001

® <> 60

QUESTION PRESENTED

Whether the Court of Appeals properly held that a public
employer incurs no liability under 42 U.S.C. § 1983 for
failing to police the details of the union’s annual agency fee
notice issued pursuant to Chicago Teachers Union v. Hudson,
475 U.S. 292 (1986), unless the employer takes adverse
action against the fee payers beyond making routine payroll
deductions for agency fees.

(i)

TABLE OF CONTENTS

Page
QUESTION PRESENTED ..........::cssessesseesssereeeeeenennenens i
TABLE OF AUTHORITIES ............ccccscccsssseesereeeeeeenees iv
STATEMENT. .......0..cscccccsssssssccccsccsssesocsesscccssssssscosocsssees l
REASONS FOR DENYING THE WRIT ...........:0ee0000 l

I. CONTRARY TO PETITIONERS’ UNSUP-
PORTED ASSERTION, THE COURT OF
APPEALS’ DECISION WOULD NOT
PRECLUDE A DISTRICT COURT FROM
ISSUING AN INJUNCTION ENFORCE
ABLE AGAINST PUBLIC EMPLOYERS TO
RESTRAIN AN UNLAWFUL AGENCY FEE
COLLECTION .....cccccocssrccccrccsccsccssccscscsscsosscccsens 3

1. Agency Fee Payers Can Still Obtain
Injunctive Relief Against Unlawful Fee
Seizures Under the Court of Appeals’
BSCESIOM ...ccccecccrcsccccosceccccccenccoscccnscessessseoacess 3

2. Petitioners’ Argument that Public Employ-
ers Are Better Situated to Protect Fee
Payers’ Rights Than Are the Fee Payers
Themselves Is Erroneous and, in Any
Event, Does Not Present an Issue Worthy
OF CestiOr Ai ....eccccrerescsccccsscccccccccsesseccecveseesess 5

Il. THE COURT OF APPEALS’ DECISION
IS NOT CONTRARY TO THE STATE
ACTION DOCTRINE ...........ccccseccessssessseeeseeees 10

Ill. THERE IS NO SQUARE CONFLICT
BETWEEN THE CIRCUITS, OR BETWEEN
THE COURT OF APPEALS’ DECISION
AND THIS COURT’S DECISION IN
HUDSON ...1.0.secccsesssssccsscsssccenccceseeccesscsscsccossoesees 12

CONCLUSION ............sccccssssscssceeceessesesseecssnsesecseeesenes 17

|
iV
TABLE OF AUTHORITIES |
CASES Page |
Chicago Teachers Union v. Hudson, 475 U.S.
TE aE icecream hanes cian eet passim
Cramer v. Matish, Nos. 89-1885/2077, 1990 WL
ee Ge i iciniissiciestnensnibiiaiianeicintiaaisiiics 13
Friends of the Earth v. Laidlaw Environmental
Series, TA UT. WET CHD cssnresninsasirciscsncintas 9
Hohe v. Casey, 956 F.2d 399 (3rd Cir. 1992) ........ 14, 15
Hudson v. Teachers Local No. 1, 743 F.2d 1187

(7th Cir. 1984), aff d, 475 U.S. 292 (1986) ...13, 14, 16
Knight v. Kenai Peninsula Borough School

District, 131 F.3d 807 (9th Cir. 1997)............... 11,15
Lugar v. Edmondson Oil Co., 457 U.S. 922

CAI atD snsisnsesnnsdaipissbisenlitieehaicnininninicclnsatanppadandaniilatinntiansid 4,10, 14
Moncharsh vy. Heily & Blase, 3 Cal. 4th 1, 10

Cal. Rptr. 2d 183, 832 P.2d 899 (1992)............. 6
Nat'l Collegiate Athletic Ass’n v. Tarkanian, 488

ths er Cis inalibieitiicintcinbetitanennsiniininceantaisiasnanens 11
Prescott v. County of El Dorado, 177 F.3d 1102

CE aati: SS a i scccsitneintsenaibhcnicsebcnnintionnniinnennnneiaiianian 9
Prescott v. County of El Dorado, 204 F.3d 984

CR Sis I ccricenntiitinesithnsncaiiiiponincdenieniieninemioniens 9
Prescott v. County of El Dorado, 528 U.S. 1111

CIIIIIE TT scssinsscisinniissinsisssinaiddaipnnischeinasiniialeibiniduieiieaaine 9

San Ramon Valley Unified School District
(Abbot), PERB Decision No. 751, 13 P.E.R.C.
DF RE © RID scseicesnsncnsiitinansninsbeniianmeienatanacnnsieniib 8
Sweetwater Union High School District (Ger-
ber), PERB Decision No. 1417, 25 P.E.R.C.

| TNT UTES 8
Tierney v. City of Toledo, 824 F.2d 1497 (6th

ij rn rN 12, 15
Weaver v. University of Cincinnati, 970 F.2d

Ee Ce Se, Fr iicsceinsastessinnncictcnihanitichtinanindiainet 12

a ee NE ee NE ee |

Vv
TABLE OF AUTHORITIES—Continued

STATUTES, RULES AND REGULATIONS Page
GE UB. S Fie ciliates eee 2,4, 10

OP Fp a acosndicieisictoitdinaaisepeatisanieiatinanninitads 6

California Education Code § 45061..................0006. 1]
California Government Code § 3541 .............ccccc0e- 7
FL | | ee 7

Fae EE ttsatasnsanns 7

2 | | aor 10

8 California Code of Regulations § 32992 ............ 7
Federal Rules of Civil Procedure Rule 65(d)......... 4,5, 14

Sixth Circuit Rules Rule 206(c).............ccccesecseeeees 13

IN THE

Supreme Court of the Gnited States

No. 01-1307

DIANNE FOSTER, MARK ALBRECHT, RICHARD
DIGIACOMO, and BARRY LEE PARKS,
Petitioners,
.-

LORRAINE GARCY, in her official capacity as Superintendent,
Board of Education, Livermore Valley Joint School
District; KIM LOGAN, Superintendent, Ukiah Unified
School District; JoE Coto, Superintendent, East Side
Union High School District; RUTH MCKENNA, in her
official capacity as Superintendent, Board of Education,
New Haven Unified School District,

Respondents.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

OPPOSITION TO PETITION
FOR A WRIT OF CERTIORARI

STATEMENT

We do not take issue with the facts stated in Petition’s
Statement of the Case (Pet. at 3-9), although we disagree with
the characterizations and legal conclusions intertwined
therein.

REASONS FOR DENYING THE WRIT

The Petition should be denied because it presents no
important issue which requires the attention of this Court and,

2 cn
moreover, identifies no square conflict between the circuits

or between the Court of Appeals’ decision and a decision of
this Court:

First, the federal district courts retain the authority
under the Court of Appeals’ decision to issue temporary,
preliminary and permanent injunctive relief to restrain
the unlawful collection of agency fees, and such relief
will be enforceable against public employers. Moreover,
fee payers are better situated to assert and protect their
own rights than are their employers. See Section I.

Second, the Court of Appeals’ decision is not contrary
to the state action doctrine and does not accord a blanket
immunity to public employers from suit under 42 U.S.C.
§ 1983. Rather, it merely recognizes that the legal duties
owed by a public employer to its fee-payer employees
differ from those owed by the union that represents
them. See Section II.

Third, the Court of Appeals decision is not in conflict
with any of the decisions of the other circuits identified
by Petitioners, nor is it in conflict with this Court’s
decision in Chicago Teachers Union v. Hudson, 475
U.S. 292 (1986), which did not address, much less
resolve, the issue of the public employer’s liability, vel
non, for legal deficiencies in the union’s Hudson notice.
See Section IIL.

3

I. CONTRARY TO _ PETITIONERS’ UNSUP-
PORTED ASSERTION, THE COURT OF
APPEALS’ DECISION WOULD NOT PRE-
CLUDE A DISTRICT COURT FROM ISSUING
AN INJUNCTION ENFORCEABLE AGAINST
PUBLIC EMPLOYERS TO RESTRAIN AN
UNLAWFUL AGENCY FEE COLLECTION

1. Agency Fee Payers Can Still Obtain Injunctive Relief
Against Unlawful Fee Seizures Under the Court of Appeals’
Decision. Petitioners’ fundamental argument is that, under
the Court of Appeals’ decision, the federal courts will be
powerless to halt the collection of agency fees where the
union’s Hudson notice does nct comply with the requirements
this Court set forth in Chicago Teachers Union v. Hudson,
475 U.S. 292 (1986). As we show below, however, that
argument is meritless.

Petitioners assert, without citing any supporting authority,
that unless the courts impose upon public employers a legal
duty to police the union’s Hudson notice, “a court cannot
enjoin the employers from taking employees’ money and
paying it to the unions; even where, as here, the court has
found the unions are not lawfully entitled to the fees.” Pet.
at 3. Petitioners later continue that, because “[mJany states
with public-sector agency shop permit involuntary
withholding from payroll to enforce compliance with union
subsidy obligations,” the “panel’s decision has the practical
effect of extinguishing the First Amendment rights of large
numbers of nonunion public-sector employees.” Pet. at 22.

The well-established law, however, clearly provides to the
contrary that the federal courts have ample authority to enjoin
an unlawful agency fee collection even though (as the Court
of Appeals decided) public employers have no legal duty to
police the union’s compliance with the details of Hudson’s
requirements, absent some adverse action going beyond a
mere payroll deduction. First, as Petitioners admitted in the

4

Court of Appeals, the presence of the public employer as a
defendant in Section 1983 suits over allegedly deficient
Hudson notices is not necessary for suit to be brought against
the union. See Plaintiffs’/Appellees’ Opposition Brief
(hereinafter “Pls’ Opp. Brf.”), filed in the Ninth Circuit on or
about May 10, 2000, at 23-24.'

Second, Federal Rule of Civil Procedure 65(d) clearly
confers authority to the federal district courts to restrain an
unlawful fee collection, through temporary, preliminary and
permanent injunctive relief, regardless of the presence vel non
of the public employer as a defendant to the action. Rule
65(d) states, in its entirety, as follows:

Every order granting an injunction and every
restraining order shall set forth the reasons for its
issuance; shall be specific in terms; shall describe in
reasonable detail, and not by reference to the complaint
or other document, the act or acts sought to be
restrained; and is binding only upon the parties to the
action, their officers, agents, servants, employees, and
attorneys, and upon those persons in active concert or
participation with them who receive actual notice of the
order by personal service or otherwise.

Fed. R. Civ. P. 65(d) (emphasis added).

Rule 65(d) gives the federal district courts clear authority
to issue temporary, preliminary and/or permanent injunctive

' Petitioners’ admission is supported by clear law. Where a private
party acts “under color of” state law, it can be sued under 42 U.S.C.
§ 1983 without the presence of a public entity or employee as a defendant.
See, e.g., Lugar v. Edmondson Oil Co., 457 U.S. 922 (1982). Here, there
is no question that the “under color of” state law requirement of Section
1983 is satisfied by the state statutes permitting school districts to enter
- into and enforce agency fee agreements, the agency fee agreements
\ between the school districts and the unions in this case, and the actual
withholding of the fees from the plaintiffs’ paychecks. See, e.g., id., 457
U.S. at 941-42.

5

relief against a union to restrain the collection of agency fees
pursuant to a legally deficient Hudson notice.. Such relief
would also bind the non-party public employer which deducts
the fees from the employees’ paychecks, as long as it receives
actual notice of the order, because the employer undoubtedly
acts in “concert or participation” (Fed. R. Civ. P. 65(d)) with
the union in deducting agency fees pursuant to an agency fee
agreement. Thus, contrary *o the Petition, the federal courts
retain plenary power under the Court of Appeals’ decision to
restrain unlawful-agency fee collections.”

Since the district courts can enjoin unlawful fee collections
under the Court of Appeals’ decision, Petitioners’ request for
certiorari can have no practical effect in this case. As
Petitioners note, the district court did not grant nominal
damages against the public employers here (Pet. at 8 n.7), a
ruling that Petitioners did not appeal. As they also admit,
Petitioners dropped their claim against the public employers
for monetary relief, pursuant to the Eleventh Amendment. Jd.
Finally, review by this Court can have no practical effect
even on an award of attorneys’ fees to Petitioners. The
defendants are signatory to an agency fee indemnification
agreement whereby the unions promise to indemnify the
public employers against agency fee litigation (including
attorneys’ fees), and thus even a fee award would ultimately

be borne solely by the union defendants.”

2. Petitioners’ Argument that Public Employers Are Better
Situated to Protect Fee Payers’ Rights Than Are the Fee
Payers Themselves Is Erroneous and, in Any Event, Does Not

? Petitioners complain, “At no time prior to the district court’s ruling
did the school districts discontinue the collection of agency fees from the
teachers’ wages.” Pet. at 5. While that is true, Petitioners have no one to
blame but themselves, as they failed even to seek a temporary restraining
order or a preliminary injunction to halt the fee collection.

* Petitioners asserted no challenge to the indemnification agreement in
this action.

6

Present an Issue Worthy of Certiorari. To the extent that
Petitioners are seeking to argue that agency fee payers’ rights
will be infringed under the Court of Appeals’ decision,
notwithstanding the continued availability of injunctive relief
against unlawful fee collection, because they will have to go
to court to obtain such relief (see Petition at 22-25), that
argument is no more persuasive.

In essence, Petitioners’ argument is that public employers
are better situated than are their agency fee payer employees
to protect the fee payers’ Hudson rights, so that public policy
favors imposing on the employer a duty to evaluate the
union’s compliance with the details of Hudson’s requirements
and to cease deducting the agency fee if the employer
determines such compliance to be inadequate. This argument
is based upon a false premise. Petitioners apparently
contemplate the alternatives as litigation brought by the fee
payers, on the one hand, versus a cost-free refusal of the
public employer to continue collecting agency fees until the
union complies in all respects with the details of Hudson, on
the other hand. But a public employer’s refusal to collect
agency fees would invariably result in the union bringing a
breach of contract claim against the employer to enforce the
agency fee agreement, as to which each party would bear its
own costs and fees regardless of which side prevails.* The
fee payers, on the other hand, can recover their costs and fees
under 42 U.S.C. § 1988, if they prevail.

* Indeed, it is likely that such a claim would be subject to arbitration
under the collective bargaining agreement, in which the union would
prevail because arbitrators commonly refuse to look to external !aw but
instead enforce the parties’ agreement. See, e.g, Moncharsh v. Heily &
Blase, 3 Cal. 4th 1, 10-11, 10 Cal. Rptr. 2d 183, 832 P.2d 899 (1992)
(arbitrators need not apply external law). The union could then enforce
the arbitration award in state court, since California does not permit its
courts to refuse to enforce an arbitration award even where the arbitrator
has con.nitted patent legal error. See id., 3 Cal. 4th at 33.

7

Thus, only where the fee payers act on their own behalf
will the cost of vindicating their rights be borne by the union.
Fee payers are therefore in a better position to safeguard their
rights than is the public employer, since the threat of having
to reimburse the fee payers for their attorneys’ fees provides a
strong incentive for the union to fulfill its Hudson obligations.
Petitioners’ effort to drag the public employer into their
dispute with the union, and to saddle it with a Hobson’s
choice of either being sued by the fee payers if it continues to
deduct agency fees or being sued by the union if it refuses to
do so, is not supported by law, logic or public policy.

The public employer is also particularly ill-suited to
intervene in the dispute between the union and its agency fee
payers regarding the union’s Hudson notice because well-
established public policy prohibits it from interfering in
the internal affairs of the union and the employees whom
the union represents. See California Government Code
§ 3543.5(d) (prohibiting California public school districts
from interfering in the administration of the unions
representing their employees).

Consistent with this statutory mandate, the California
Public Employment Relations Board (“PERB”)—the state
agency charged with interpreting and enforcing public
employment bargaining laws including Government Code
§ 3543.5(d)°—has promulgated regulations specifying that
the union, not the public employer, is responsible for
informing the employees of the amount and basis for
calculating the agency fee, as well as of the procedure for
challenging it. 8 California Code of Regulations § 32992.
Moreover, PERB has also specifically held that imposing

°See California Government Code §§ 3541 (establishing PERB);
3541.3(g) (authorizing PERB “to adopt . . . rules and regulations to carry
out the provisions and effectuate the purposes and policies of this
chapter”).

8

such a duty on the employer would conflict with the statutory
prohibition on interference with the union’s affairs. San
Ramon Valley Unified School District (Abbot), PERB Deci-
sion No. 751, 13 P.E.R.C. ¥ 20201 at p. 732 (1989); accord
Sweetwater Union High School District (Gerber), PERB
Decision No. 1417, 25 P.E.R.C. 4 32024 (2001).

As PERB held in Abbot, the position espoused by
Petitioners here “is incompatible with the entire notion of
collective bargaining,” because “[t]he ‘arm’s length’
relationship required by collective bargaining recognizes that
the employer and the union have conflicting interests” which
“obviously render unworkable any scheme where the
employer must police the union’s actions, lest it be held liable
for them.” Abbot, 13 P.E.R.C. J 20201 at p. 732. Moreover,
as PERB also recognized, there are “practical reasons why
creating such a duty [as to the employer] makes little sense,”
such as the fact that “[a] public school employer simply does
not have the authority or resources to review union
procedures dnd determine if they are statutorily or
constitutionally adequate.” /d.

The reasoning of Abbot is compelling. The public
employer’s role in the agency fee context is limited to
deducting the fees and transmitting them to the unions; the
employers retain no more control over the fees than they do
over payroll deductions that they may make for the United
Way or for other charitable organizations. The unions act
alone and in their own interest in determining both the
purposes for which agency fees shall be spent and the form
and content of their Hudson notices. Moreover, public
employers lack the information and expertise to look over the
unions’ shoulders and review the legality of their agency fee
procedures. The Court of Appeals’ decision is thus eminently
reasonable, not only as a matter of law, but as a matter of
public policy as well.

9

Finally, the authorities on which Petitioners’ rely for their
argument (see Petition at 23-25) are inapposite, as they
concerned claims by fee payers that the indemnification
provisions of agency fee agreements, whereby the unions
promise to indemnify the public employers in the event of
litigation over the withholding of agency fees, should be
declared void as against public policy. In the present case,
however, the courts below rendered no decision as to any
indemnification provision for the simple reason that
Petitioners brought no such challenge in this case. See Pet.
App. A, B, C, D; Pls’ Opp. Brf. at 41-42. There is thus no
conflict between the Court of Appeals’ decision and those
relied on by Petitioners concerning the propriety of such
indemnification provisions. Indeed, the Ninth Circuit has not
yet ruled on that issue,° and thus there is no square conflict
between the indemnification decisions relied upon by
Petitioners and any decision of the Ninth Circuit.

° In Prescott v. County of El Dorado, 177 F.3d 1102, 1111-12 (9th Cir.
1999), the Ninth Circuit rejected a challenge by agency fee payers to an
agency fee indemnification provision, based upon lack of standing. This
Court reversed and remanded that decision for reconsideration in light of
its then-recent decision in Friends of the Earth v. Laidlaw Environmental
Services, 528 U.S. 167 (2000). See Prescott v. County of El Dorado, 528
U.S. 1111 (2000). On remand, the Ninth Circuit in turn remanded the
issue for reconsideration by the district court in the first instance,
reinstating the remainder of its decision. Prescott v. County of El Dorado,
204 F.3d 984 (9th Cir. 2000). On remand, the district court adhered to its
prior ruling that the fee payers lacked standing, after reconsideration of
the issue under Laidlaw. Plaintiffs’ appeal from that decision is currently
under submission to the Ninth Circuit, which heard oral argument
on April 9, 2002. See http://www.ca9.uscourts.gov/ca9/calendar.nsf/a970-
d6cd327cd7d1882564030063ce23/d3e08e463029 10ca88256b8f0063 1765
/$FILE/sf04_02.PDF

10

II. THE COURT OF APPEALS’ DECISION IS
NOT CONTRARY TO THE STATE ACTION
DOCTRINE

Petitioners argue that the Court of Appeals’ decision is
contrary to the state action doctrine. See Pet. at 18-22. The
crux of Petitioners’ argument is their assertion that “[b]ecause
the unions, unlike the school districts, are non-governmental
actors, there is no intellectually tenable way to hold the
unions, but not the school districts, liable for a constitutional
violation arising out of joint participation in the enforcement
of an agency fee agreement.” Petition at 18. This assertion
is incorrect.

To be sure, we do not dispute that the otherwise private
labor organizations which receive agency fees pursuant to the
state agency fee statutes are thereby suable under 42 U.S.C.
§ 1983 for violations of their Hudson obligations.’ Likewise,
Petitioners do not dispute that the public employer need not
be named in such an action in order to sue the union. See Pls’
Opp. Brf. at 23-24; accord Lugar, 457 U.S. at 941-42.

Petitioners’ conclusion that “there is no_ intellectually
tenable way to hold the unions, but not the school districts,
liable for a constitutional violation arising out of joint
participation in the enforcement of an agency fee agreement”
(Petition at 18) does not follow from this premise, however.
The public employer and the union are “joint[ly]

, participat[ing]” only in the sense that they are both operating
under the agency fee agreement between them; in fulfilling its
duties with regard to the notice, however, the union acts
separately and independently of the employer. As the Court

’ See discussion, supra, at Section I(1), n.1. At the time the agency fee
agreements at issue in this case were negotiated, California law permitted
public school districts to negotiate such agreements with the unions that
represent their employees. On January 1, 2001, that statute was amended
to require the school districts to adopt agency fee arrangements upon the
request of the union. See Cal. Gov’t Code § 3546(a).

eee

11

of Appeals held, each has separate and distinct legal duties
and the violation by the union of its legal duty does not render
the public employer vicariously liable therefor. There is
nothing “intellectually [un]tenable” about such a division of
duties, which corresponds to the aspects of the agency fee
system that each controls.

Nor does the Court of Appeals’ decision grant any “blanket
immunity for public employers that enforce illegal agency fee
demands.” Pet. at 17. To the contrary, public employers
remain liable to suit if they violate the legal duties they owe
to fee payers. Thus, under both the Court of Appeals’
decision (see Pet. App. A at 6a-9a & n.8) and the Ninth
Circuit’s prior decision in Knight v. Kenai Peninsula Borough
School District, 131 F.3d 807, 817 (9th Cir. 1997), the public
employer can incur liability if it takes affirmative action
against a public employee, e.g., discipline or discharge, going
beyond the mere routine deduction of fees, without making
sure that the union fulfilled its notice obligations under
Hudson.® For that reason, Nat’! Collegiate Athletic Ass'n v.
Tarkanian, 488 U.S. 179 (1988), a decision relied on by
Petitioners notwithstanding that it has nothing to do with
agency fees (see Pet. at 21-22 n.15), is of no help to them
since the public employer in that case in fact terminated the
plaintiff's employment at the behest of a private entity.”

® Plaintiffs are incorrect that because California law permits payment
of agency fees by a nonconsensual payroll deduction, California unions
will never need to seek disciplinary action against fee payers to enforce
their agency fee obligation. See Pet. at 17. Since California Education
Code § 45061 gives fee payers the option to pay agency fees directly to
the union, rather than through a payroll deduction, a California union may
need to request a public employer to take disciplinary action against a fee
payer who elects to pay agency fees directly but then fails to do so.

® Moreover, none of the authorities relied upon by Petitioners for their
“state action” argument (see Pet. at 18-22) are circuit court decisions, so
Petitioners have failed to identify a circuit conflict on this issue.

12

Ill. THERE IS NO SQUARE CONFLICT BETWEEN
THE CIRCUITS, OR BETWEEN THE COURT
OF APPEALS’ DECISION AND THIS COURT’S
DECISION IN HUDSON

Petitioners also have failed to identify a square conflict
between the circuits or between the Court of Appeals’
decision and a decision of this Court.

1. Despite Petitioners’ assertion, there is no conflict
between the Court of Appeals’ decision and prior decisions of
the Sixth, Seventh and Third Circuits. Pet. at 10-14.

First, although Petitioners cite the Sixth Circuit’s decision
in Tierney v. City of Toledo, 824 F.2d 1497 (6th Cir. 1987),
they concede that the Court of Appeals’ decision “interpreted
Tierney not to impose employer liability where the union put
in place a plan comporting with Hudson but a nonunion

employee nonetheless did not receive adequate notice ....
Pet. at 1 1 (emphasis in original).

Petitioners challenge the Court of Appeals’ reading of
Tierney on the ground that “Tierney requires not only that
constitutionally adequate procedures be established, but also
that these procedures be ‘operating.’” Pet. at 11 (quoting
Tierney, 824 F.2d at 1504, 1507). That observation does not
a conflict make, however. As the Court of Appeals’ decision
reflects, “a plan comporting with Hudson” (Pet. App. at 8a,
emphasis deleted) was not only in place but also operating
when the fees were deducted. The dispute in this case was
not that there was no “plan” in place and operating that
generally complied with Hudson, but rather about whether the
details of the plan or of the union’s implementation of the
plan complied with Hudson in every regard.

Second, there is no conflict with the Sixth Circuit’s
decision in Weaver v. University of Cincinnati, 970 F.2d 1523
(6th Cir. 1992). See Pet. at 12. Weaver involved, in rele-
vant part, a challenge brought by agency fee payers to

13

indemnification provisions of the agency fee agreements,
pursuant to which the unions pledged to indemnify the public
employers against liability in agency fee litigation. As noted
above, the Court of Appeals’ decision does not decide or even
address any challenge to an agency fee indemnification clause
for the simple reason that no such challenge was brought in
this case, and indeed the propriety of indemnification
provisions (and, for that matter, agency fee payers’ standing
to challenge them) is an open question in the Ninth Circuit.
See discussion, supra, at Section I(2) and n.6.'°

Third, there is no conflict with the Seventh Circuit’s
decision in Hudson v. Teachers Local No. 1, 743 F.2d 1187
(7th Cir. 1984), aff d, 475 U.S. 292 (1986). See Pet. at 12-13.
Petitioners quote that decision as follows: “[T]he public
employer must establish a procedure that will make
reasonably sure that the wages of nonunion employees will
not be used to support those of the union’s political and
ideological activities that are not germane to collective
bargaining.” Pet. at 12-13 (quoting Hudson, 743 F.2d at
1194). As we have already pointed out above with regard to
Tierney, there is no conflict here because the Court of
Appeals’ decision reflects that “a plan comporting with
Hudson” (Pet. App. at 8a, emphasis deleted) was in place and
operating when the fees were deducted. To the contrary, the
Seventh Circuit’s statement that the public employer merely
must “make reasonably sure” that the agency fees will not be
used to subsidize ideological activities that are not germane to
collective bargaining (Hudson, 743 F.2d at 1194 (emphasis

'0 For the same reason, there is no conflict with Cramer v. Matish, Nos.
89-1885/2077, 1990 WL 169640 (6th Cir. 1990), see Pet. at 12, which in
any event is an unpublished and therefore non-precedential decision. Cf.
Sixth Circuit Rule 206(c) (published decisions are binding on subsequent
panels).

14

added)), only underscores that it is not obligated to insure
that the details of the union’s plan or of the union’s
implementation of the plan are perfect.’

Fourth, there is no conflict with the Third Circuit’s deci-
sion in Hohe v. Casey, 956 F.2d 399 (3rd Cir. 1992). Pet. at
13-14. Petitioners quote Hohe to the effect that the public
employer “may be enjoined from imposing the fair share fees
on nonmembers when it is determined that the exclusive
representative has not complied with the constitutional
requirements.” Pet. at 14 (quoting Hohe, 956 F.2d at 411).
The same is true under the Court of Appeals’ decision. As
we have shown above, where it is determined that the union
has not complied with Hudson, it can be enjoined from
accepting agency fees until it has complied with Hudson and,
under Federal Rule of Civil Procedure 65(d), that injunction
will be binding upon a public employer which receives actual
notice thereof. Hohe did not decide whether the public em-
ployer must necessarily be a defendant to such a suit (which,
in any event, it need not, see Lugar, 457 U.S. at 941-42),
since the relevant discussion in Hohe arose in the context of
the fee payers’ challenge to the agency fee indemnification
clause, rather than a motion for dismissal or summary judg-
ment by the public employer. See Hohe, 956 F.2d at 411."

'' Petitioners also cite the Seventh Circuit’s discussion of the state
action issue in Hudson. Pet. at 13. As they concede, however, that issue
in Hudson revolved around whether the union could be considered a state
actor—an issue not raised in the present case. /d. The statement in the
Seventh Circuit's decision that “when a private entity such as a union acts
in concert with a public agency to deprive people of the federal
constitutional rights, it is liable under section 1983 along with the agency”
(id., emphasis in original; quoting Hudson, 743 F.2d at 1191), must be
understood in the larger context of the case itself, in which the court found
the plan itself to be invalid and not merely the details of the union’s
implementation of the plan.

'? Petitioners also quote Hohe to the effect that “the employer and the
union must have a constitutional procedure in place before deducting

meeeneiemmeinnmaemnnaiiiiiinaeiiiiaiiaial

15

Additionally, it is worth noting that all of the circuit court
decisions relied upon by Petitioners were rendered not only
prior to the Court of Appeals’ decision, but also prior to the
Ninth Circuit’s 1997 decision in Knight, on which the more
recent decision is based. Knight criticized the reasoning of
several prior decisions, including Tierney, for misreading
Hudson as imposing certain duties on the public employer
which Hudson did not. See Knight, 131 F.3d at 817. This
does not amount to a square conflict between the circuits, for
the reasons discussed above. But, to the extent that there is
some tension between the reasoning of Knight and that of
some of the decisions relied upon by Petitioners, it is worth
noting that Petitioners have not cited a single decision
rendered after Knight, much less one considering and
rejecting Knight’s reasoning. We submit that any tension
between these decisions (much less any asserted “conflict”)
should not be the basis for intervention by this Court until
such time (if ever) that it is more fully developed by
subsequent circuit decisions that have had an opportunity to
address Knight.

2. Finally, there is no conflict with this Court’s decision in
Hudson, which does not speak, expressly or impliedly, to the
potential liability of a public employer for legal deficiencies
in the union’s annual agency fee notice.

In Hudson, this Court affirmed in part the Seventh Circuit's

reversal of the district court’s judgment, rendered after a
bench trial, for the defendants upholding the agency fee

[agency] fees,” and that this requirement “means that if a court
subsequently ~determines that the procedures are constitutionally
inadequate, both the public employer and the [union] shall be accountable
for the constitutional violation.” Pet. at 14 (first substitution added,
second substitution in original; quoting Hohe, 956 F.2d at 405-06,
emphasis in original). Again, there is no conflict with the Court of
Appeals’ decision since such a plan was clearly in piace at all relevant
times, and the dispute was instead over the details of that plan or of the
union’s implementation of the plan.

16

procedure. See Hudson, 475 U.S. at 298-301; Hudson, 743
F.2d at 1190. This Court did not affirm any judgment of
liability against the public employer, since there was no such
judgment below. Rather, the Seventh Circuit, whose decision
this Court affirmed in part, had reversed the judgment of the
district court and remanded the case for further proceedings
consistent with its opinion. Hudson, 743 F.2d at 1197.

Further, there is no indication in this Court’s opinion that
the public employer ever raised the issue before this Court
that is implicated here—whether a public employer can incur
liability for the deficiencies in the union’s annual fee notice
merely by the routine deduction of agency fees. Nor does the
Court’s opinion in Hudson decide that issue, either explicitly
or implicitly. To be sure, as Petitioners point out, the Court
did recite that the public employer accepted the union’s
calculation of the fair share fee, made the requested fee
deductions, and did not provide fee payers with an
explanation of the union’s calculation or the agency fee
procedures. See Pet. at 15 (quoting Hudson, 475 U.S. at 296).
But the Court’s observations on this point were merely set
forth in its statement of the underlying facts Of the case. The
Court nowhere alluded to (much less relied on) these facts in
its discussion, nor did it draw any conclusions from them.

ater war <e ote:

In fact, there is virtually nothing in the Court’s discussion
that bears on the liability of the public employer at all, much
less in the context within which that issue is raised here—the
union’s annual fee notice. The Hudson Court’s discussion of
government responsibility arose in the context of its separate
discussion of the requirement of a reasonably prompt decision
by an impartial decisionmaker as to challenges to the union’s
calculation of the agency fee (i.e., the agency fee arbitration),
rather than in its discussion of the union’s annual fee notice.
See Hudson, 475 U.S. 307 & n.20. And, even as to its
discussion of the agency fee arbitration, the Hudson court did
not impose any liability upon the public employer. Rather,

NT Ts

17

the Court made clear that the union has the responsibility to
provide such an expedited procedure, if the government qua
government (not gua employer) chooses not to do so.

Id. at n.20.
CONCLUSION

For the foregoing reasons, the Petition for a Writ of
Certiorari should be denied.

Respectfully submitted,

STEPHEN P. BERZON *
JEFFREY B. DEMAIN
ALTSHULER, BERZON,
NUSSBAUM, RUBIN & DEMAIN
177 Post Street, Suite 300
San Francisco, California 94108
* Counsel of Record (415) 421-7151

May 2002. | Attorneys for Respondents

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386010_1521%3A2. Public record. Not legal advice.
