Grand Trunk Western R.R. v. Brotherhood
| Decision Date | 31 July 2009 |
| Docket Number | Case No. 3:06 CV 1749. |
| Parties | GRAND TRUNK WESTERN RAILROAD INC., Plaintiff, v. BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYEES DIVISION, Defendant. |
| Court | U.S. District Court — Northern District of Ohio |
Gregory A. Clifton, Joseph J. McDonnell, Durkin, McDonnell, Clifton & O'Donnell, Detroit, MI, Jessamyne M. Simon, Robert S. Hawkins, Vincent J. Pentima, Buchanan, Ingersoll & Rooney, Philadelphia, PA, for Plaintiff.
Richard S. Edelman, O'Donnell, Schwartz & Anderson, Washington, DC, William H. Webster, Amy L. Zawacki, Allotta, Farley & Widman, Toledo, OH, William
A. Bon, Brotherhood of Maintenance of Way Employees, Southfield, MI, for Defendant.
This case comes before the Court on two motions. First, Intervening-Plaintiff National Mediation Board ("NMB" or "Board") has filed a motion to be dismissed from the case (Doc. 76) to which Defendant Brotherhood of Maintenance of Way Employees Division ("BMWED" or "Union") has filed an opposition (Doc. 79), and NMB has filed a reply (Doc. 85). Plaintiff Grand Trunk Railroad ("GTW") responded to NMB's motion to be dismissed and BMWED's opposition (Doc. 88) and BMWED replied to GTW's response (Doc. 90).
Second, NMB has filed a motion to dismiss or in the alternative, a motion for summary judgment (Doc. 98) in response to BMWED's cross-claim against NMB (Doc. 84). BMWED has filed an opposition (Doc. 104) and NMB has filed a reply (Doc. 120).
For the reasons stated below, the Court concludes it lacks subject-matter jurisdiction over BMWED's cross-claim. The Court grants NMB's motion to dismiss it from the case and NMB's motion to dismiss BMWED's cross-claim.
The origin of the current action is a dispute between GTW and BMWED, which led GTW to file a Complaint for declaratory judgment and injunctive relief under the Railway Labor Act ("RLA"). (Doc. 1). GTW's Amended Complaint remains before this Court and seeks a permanent injunction requiring BMWED to give GTW a ten-day notice of any intent to strike, and damages for BMWED's illegal strike on July 19, 2006. (Doc. 10).
The dispute between GTW and BMWED began on December 3, 2004, when BMWED served notice on GTW that it sought changes in the Collective Bargaining Agreement ("CBA") between the parties. The two parties met and negotiated directly but negotiations failed to lead to an agreement.
On September 3, 2005, GTW applied for mediation with the NMB and the following day the NMB accepted GTW's application, docketed the dispute, and thereafter exercised jurisdiction over the dispute. Once the NMB gains jurisdiction, the RLA governs the dispute resolution process and prevents both parties from exercising self-help methods such as initiating a strike until the RLA statutory processes are completed. The RLA requires the NMB to use its "best efforts" to bring the parties to agreement and if the NMB determines that mediation is unsuccessful, then the NMB must induce the parties to submit to voluntary arbitration. If either party turns down the arbitration, then the NMB should release the parties from mediation. After the NMB releases the parties, a mandatory thirty-day "cooling off" period begins that requires the parties to maintain the status quo. After the "cooling off period ends, provided the President does not create an Emergency Board, the parties are able to resort to economic self-help. Here, the parties met with the NMB mediator on several occasions between November 2005 and March 2006 without reaching an agreement. After the mediation in March, the NMB recessed the negotiations. According to the NMB, a recess in mediation is a mediation tool designed to persuade the parties to reach an agreement. During the recess, the NMB discourages meetings between the parties without NMB's approval.
During the recess, BMWED sent a series of letters to NMB requesting NMB to schedule mediation. On June 15, 2006, NMB responded to BMWED's second letter stating that "no additional mediation sessions would be scheduled," and that the parties should "review their respective positions if they intended to reach agreement" and "if the parties have reviewed their positions and are now prepared to engage in meaningful negotiations that they advise the Mediator, in writing, including how they have modified their position." In response to NMB recessing mediation, BMWED demanded that GTW directly negotiate with BMWED. GTW declined to meet without the NMB's mediator. After again requesting NMB to schedule mediation and GTW's continued refusal to meet without a mediator, BMWED initiated a strike against GTW on July 19, 2006.
Also on July 19, 2006, and in response to the strike, GTW filed its Complaint and a motion for a Temporary Restraining Order ("TRO"). The Court denied GTW's motion for a TRO because the evidence at the time indicated that GTW, by failing to meet directly with BMWED, was ineligible for an injunction under the Norris La-Guardia Act ("NLGA") because GTW had not made "every reasonable effort" to negotiate a new labor contract as required by the NLGA. (Doc. 4, Order).
After the Court denied the TRO, BMWED and GTW negotiated directly but again failed to reach agreement. The parties also unsuccessfully attempted mediation with the NMB on August 26-28, 2006. On August 28, 2006, NMB filed a motion to intervene as of right (Doc. 15) in this case as a Plaintiff and the Court granted NMB's motion on August 29, 2006. (Doc. 16). According to NMB, the Board intervened to request that the Court maintain NMB's statutory authority under the RLA to mediate the dispute between GTW and BMWED. NMB believed that BMWED had taken the position that BMWED had a right to strike because GTW refused to negotiate outside of mediation. On August 29, 2006, the NMB advised the parties that it recessed the mediation until further notice and again informed the parties that if the parties reassess their positions and are ready to negotiate productively, then they should notify the mediator.
After initially denying the TRO, the Court held a hearing on GTW's motion for a preliminary injunction. The Court granted GTW's motion and issued a preliminary injunction finding that, contrary to BMWED's position, the law did not require GTW to negotiate directly with BMWED during the mediation process to fulfill the "every reasonable effort" requirement. (Doc. 47). The Court found that the RLA's "status quo" requirement controlled the dispute between GTW and BMWED. BMWED appealed the decision granting a preliminary injunction and the Sixth Circuit Court of Appeals affirmed the judgment in Grand Trunk West. RR. v. Brotherhood of Maint. of Way Employees Div., 497 F.3d 568, 573 (6th Cir.2007).
Currently, BMWED and GTW have reached agreement on the CBA dispute through direct negotiations and NMB has closed its file on the matter. As part of its defense to GTW's remaining claims, BMWED argues that NMB acted ultra vires and therefore, BMWED's strike did not violate the RLA.
On December 4, 2008, NMB filed a motion to be dismissed from the case because, it argues, the Court has already resolved the legal issue of interest to NMB and no legal justification exists for NMB to remain a party. (Doc. 76). BMWED filed an opposition to the dismissal arguing that NMB should remain in the case as a necessary party or should remain under permissive joinder principles (Doc. 79), to which NMB has filed a reply (Doc. 85). Additionally, GTW has filed a response in support of NMB's motion (Doc. 88), and BMWED has replied to GTW's response (Doc. 90).
BMWED also filed a cross-claim against NMB seeking a declaratory judgment that NMB acted ultra vires. (Doc. 84). NMB filed a motion to dismiss or in the alternative, a motion for summary judgment in response to BMWED's cross-claims based on several grounds: (1) the Court lacks subject-matter jurisdiction because no actual controversy exists; (2) the Court should not exercise its discretion to grant a declaratory judgment; (3) BMWED is precluded from relitigating the issue; and (4) NMB did not violate the RLA. (Doc. 98). BMWED has filed an opposition to NMB's motion to dismiss (Doc. 104), and NMB has replied to BMWED's opposition (Doc. 120).
A defendant filing a Rule 12(b)(1) motion to dismiss can attack jurisdiction either facially or factually. See DLX, Inc. v. Kentucky, 381 F.3d 511, 516 (6th Cir. 2004) (citing RMI Titanium Co. v. Westinghouse Elec. Corp., 78 F.3d 1125, 1133-35 (6th Cir.1996); United States v. Ritchie, 15 F.3d 592, 598 (6th Cir.1994); Ohio Nat'l Life Ins. Co. v. United States, 922 F.2d 320, 325 (6th Cir.1990)). A facial attack requires a court to consider the plaintiff's allegations as true. Id. A factual attack, however, requires the court to weigh the evidence relating to subject-matter jurisdiction to support its determination as to jurisdiction. Id. Additionally, the plaintiff bears the burden of proving the existence of subject-matter jurisdiction. Id. Here, NMB factually challenges jurisdiction.
Summary judgment is appropriate where "the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." FED.R.CIV.P. 56(c). The Court views the evidence in the light most favorable to the non-moving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The moving party bears the initial responsibility of "informing the district court of the basis for its motion, and identifying those portions of `the pleadings, depositions, answers to interrogatories, and admissions on file, together `with the affidavits, if any,' which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp....
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