Fresh Intern. Corp. v. Agricultural Labor Relations Bd.
| Decision Date | 09 December 1986 |
| Docket Number | AFL-CI,D,No. 84-6351,84-6351 |
| Citation | 805 F.2d 1353 |
| Parties | 105 Lab.Cas. P 55,669 FRESH INTERNATIONAL CORP., Bruce Church, Inc.; Retirement Administrative Committee of the Fresh International Corp. Retirement Plan; and Retirement Administrative Committee of the Bruce Church, Inc. Retirement Plan, Plaintiffs-Appellees, v. AGRICULTURAL LABOR RELATIONS BOARD; Casimro U. Tolentino; Herbert A. Perry; John P. McCarthy; Ronald L. Ruiz; James Wolpman; United Farm Workers of America;efendants-Appellants. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Kenneth E. Ristau, Jr., Gibson, Dunn & Crutcher, Newport Beach, Cal., Paul J. Goldberg, Susan B. Kaufman, Goldenbock & Barell, New York City, for plaintiffs-appellees.
Daniel G. Stone, Nancy C. Smith, Dep. Sol., Cathy Christian, Agricultural Labor Relations Bd. Sacramento, Cal., for defendants-appellants.
Appeal from the United States District Court for the Southern District of California.
Before SCHROEDER and FLETCHER, Circuit Judges, and ROSENBLATT, * District Judge.
The Agricultural Labor Relations Board of the State of California (ALRB or the Board) appeals from the district court's summary judgment order, holding that California's Agricultural Labor Relations Act, Cal.Lab.Code Secs. 1140-1166.3 (West Supp.1986), is preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. Secs. 1001-1461 (1982) (ERISA), to the extent that it may be applied in a way that affects employee benefit plans. We hold that the district court should have abstained from hearing this action on the merits under the doctrine of Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971).
Bruce Church, Inc. (BCI), a subsidiary of Fresh International Corp., is a major farming and agricultural corporation, with its principal operations in California and Arizona. BCI's field workers have been represented by the United Farm Workers (UFW or the Union) since 1977.
BCI and UFW began negotiations for a new collective bargaining agreement in December 1978, to replace the agreement expiring on December 31. The negotiations went poorly, as did the UFW's negotiations with other employers in the industry. In February 1979, several of the other growers declared bargaining impasses and instituted unilateral wage increases. In July BCI implemented its wage proposal and put into effect its own medical plan, although no formal impasse had been declared in its negotiations with the UFW. Later, in February 1980, BCI implemented all of its pending economic proposals, including wages, cost-of-living adjustments, a retirement plan, and a pension plan.
Beginning in May 1979, the UFW filed a series of unfair labor practice charges against BCI with the Board, alleging bad faith bargaining under California's Agricultural Labor Relations Act, Cal.Lab.Code Sec. 1153 (West Supp.1986). One of the UFW's allegations was that BCI's unilateral inclusion of agricultural employees in its retirement, pension, and medical plans constituted an unfair labor practice. BCI responded that any allegations of unfair labor practices relating to its employee benefit plans were preempted by section 514(a) of ERISA, 29 U.S.C. Sec. 1144(a) (1982).
The Board's general counsel issued a complaint against BCI in July 1979. Between February 2 and June 15, 1981, a state administrative law judge (ALJ) conducted hearings. On May 12, 1982, the ALJ issued his recommended decision, finding that BCI had engaged in bad faith bargaining. He recommended an order requiring BCI to rescind the changes it had made in wages and employee benefits, if the UFW so requested, and to make whole any employees who suffered losses as a result of such changes.
While the hearings before the ALJ were taking place, on February 5, 1981, BCI filed this action in federal district court, seeking a declaration that the ALRA is preempted by ERISA and further seeking an injunction to prevent the Board from taking any action that related to BCI's employee benefit plans. The following day, BCI applied for a temporary restraining order to enjoin the Board from inquiring into the administration or maintenance of BCI's employee benefit plans and to prevent the Board from subpoenaing records relating to BCI's plans. On March 5, the district court denied the request for a temporary restraining order.
The district court action then lay dormant for almost three years. After the ALJ issued his recommended decision, BCI appealed that decision to the full Board. In November 1983, while the state agency appeal was still pending, BCI filed a motion for summary judgment in federal district court. The Board responded to BCI's summary judgment motion, and, in February 1984, filed its own cross-motion for summary judgment.
In the meantime, on December 27, 1983, the Board affirmed the findings and conclusions of the ALJ and adopted his recommended order. On January 24, 1984, BCI petitioned the California Court of Appeal for review of the ALRB's decision and order. See Cal.Lab.Code Sec. 1160.8 (West Supp.1986).
On March 3, 1984, the district court heard oral argument on the cross-motions for summary judgment. On July 6, the court issued its order, granting BCI's motion, denying the Board's, and permanently enjoining enforcement of the Board's decision with respect to any employee benefit plan. The ALRB timely appealed to this court.
In March 1986, while the case still was under submission in this court, the California Court of Appeal held that BCI had not engaged in bad faith bargaining up to February 5, 1980. The court annulled the Board's order, and remanded the case for a factual determination regarding whether the parties had reached impasse on February 27 and on September 1, 1980, when BCI unilaterally changed its employees' wages, hours, and working conditions. The appeals court considered this factual finding critical to a determination of whether BCI's actions constitute a per se violation of the ALRA, and evidence of bad faith bargaining. In June 1986, the California Supreme Court denied the UFW's petition for review of that decision.
We first inquire whether the district court should have abstained and dismissed the action under the principles of Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971), thereby giving precedence to the ongoing state enforcement proceeding.
Younger "and its progeny espouse a strong federal policy against federal-court interference with pending state judicial proceedings, absent extraordinary circumstances." Middlesex County Ethics Committee v. Garden State Bar Association, 457 U.S. 423, 431, 102 S.Ct. 2515, 2521, 73 L.Ed.2d 116 (1982). "The policy rests on notions of comity and respect for state functions and was born of the concern that federal court injunctions might unduly hamper state criminal prosecutions." Champion International Corp. v. Brown, 731 F.2d 1406, 1408 (9th Cir.1984) (citing Younger v. Harris, 401 U.S. at 44, 91 S.Ct. at 750). These considerations of comity and federalism dictate that "the normal thing to do when federal courts are asked to enjoin pending proceedings in state courts is not to issue such injunctions." Ohio Civil Rights Commission v. Dayton Christian Schools, Inc., --- U.S. ----, 106 S.Ct 2718, 2723, 91 L.Ed.2d 512 (1986) (quoting Younger, 401 U.S. at 45, 91 S.Ct. at 751) (emphasis in Dayton ).
When a case falls within the proscription of Younger, a district court must dismiss the federal action. See Juidice v. Vail, 430 U.S. 327, 337, 97 S.Ct. 1211, 1218, 51 L.Ed.2d 376 (1977). The Supreme Court has stated expressly that "[w]here a case is properly within [the Younger ] category of cases, there is no discretion to grant injunctive relief." Colorado River Water Conservation District v. United States, 424 U.S. 800, 816 n. 22, 96 S.Ct. 1236, 1246 n. 22, 47 L.Ed.2d 483 (1976). 1
Whether Younger abstention applies is a mixed question of fact and law. The inquiry primarily involves application of an established standard to a set of facts, but also implicates important considerations of federalism and comity. Thus, under United States v. McConney, 728 F.2d 1195, 1202 (9th Cir.), cert. denied, 469 U.S. 824, 105 S.Ct. 101, 83 L.Ed.2d 46 (1984), we review de novo a district court's refusal to abstain under Younger. See Goldie's Bookstore, Inc. v. Superior Court, 739 F.2d 466, 468 (9th Cir.1984); accord Traughber v. Beauchane, 760 F.2d 673, 675-76 (6th Cir.1985). 2
Although Younger involved criminal proceedings, the Supreme Court has stated clearly that concerns of comity and federalism counsel restraint in civil proceedings as well, when important state interests are at stake. Dayton, 106 S.Ct. at 2723; see also Moore v. Sims, 442 U.S. 415, 423, 99 S.Ct. 2371, 2377, 60 L.Ed.2d 994 (1979) (); Trainor v. Hernandez, 431 U.S. 434, 444, 97 S.Ct. 1911, 1918, 52 L.Ed.2d 486 (1977) (); Juidice v. Vail, 430 U.S. 327, 334, 97 S.Ct. 1211, 1217, 51 L.Ed.2d 376 (1977) () (quoting Huffman v. Pursue, Ltd., 420 U.S. 592, 601, 95 S.Ct. 1200, 1206, 43 L.Ed.2d 482 (1975)).
In Dayton, the Supreme Court confirmed that Younger principles also...
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