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SCOTUS rules on Indiana steel plant case

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The Supreme Court of the United States has ruled on a case about a northern Indiana steel processing plant, overturning the 7th Circuit Court of Appeals and effectively limiting how a federal labor-relations board is able to conduct business regarding employee and union rights.

In a split 5-4 decision today in New Process Steel v. NLRB, No 08-1457, the nation’s justices overturned a 7th Circuit decision from last year and agreed that two of a total five-person National Labor Relations Board can’t effectively handle business when all members aren’t present or the spots are vacant.

The case involves a Butler-based steel-processing plant, which was involved in a collective bargaining agreement dispute in late 2007 that set the stage for this lawsuit. At the time, the five-person board was short three members so that only two were present to conduct business – about 600 case decisions in a 27-month period. New Process was involved in a dispute with the local AFL-CIO, which was negotiating a collective bargaining agreement on behalf of the company workers. The union filed an unfair labor practice charge against the plant, and an administrative law judge ruled in the union’s favor. New Steel appealed to the NLRB; the only two sitting NLRB members approved the ALJ decision and ordered the plant to accept the union contract.

On appeal, the sides disputed whether the board was able to affirm the decision of the ALJ because only two members of the five-member board voted. Statute allows a smaller, three-member panel to have authority to rule on issues, and it also allows for two members to constitute a quorum if the third person is unavailable. Due to the expiration of term limits and board vacancies, the vote was made only by the two-person quorum.

The 7th Circuit affirmed the ALJ and NLRB decisions, though other courts have ruled differently and the topic is one playing out in several Circuits throughout the country. The justices accepted the case to resolve that conflict and ruled against the government.

The majority reversed and remanded the case in favor of New Steel, holding that the National Labor Relations Act requires the NLRB to maintain at least three members as quorum in order to use the authority given to it by the full board. Justice John Paul Stevens authored the majority opinion, concluding “We are not insensitive to the Board’s understandable desire to keep its doors open despite vacancies. Nor are we unaware of the costs that delay imposes on the litigants. If Congress wishes to allow the Board to decide cases with only two members, it can easily do so. But until it does, Congress’ decision to require that the Board’s full power be delegated to no fewer than three members, and to provide for a Board quorum of three, must be given practical effect rather than be swept aside in the face of admittedly difficult circumstances.”

However, Justice Anthony Kennedy dissented with Justices Ruth Bader Ginsburg, Stephen Breyer, and Sonya Sotomayor joining in disagreement.

“It is not optimal for a two-member quorum to exercise the full powers of the Board for an extended period of time,” Justice Kennedy wrote. “The Court’s revisions leave the Board defunct for extended periods of time, a result that Congress surely did not intend. The Court’s assurance that its interpretation is designed to give practical effect to the statue should bring it to the opposite result from the one it reaches.”

This ruling will likely impact multiple cases already pending nationwide – five more cases are before the SCOTUS, with 69 pending before the appellate courts. Those will likely be remanded to the NLRB, which now has four members.
 

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  1. I'm not sure what's more depressing: the fact that people would pay $35,000 per year to attend an unaccredited law school, or the fact that the same people "are hanging in there and willing to follow the dean’s lead in going forward" after the same school fails to gain accreditation, rendering their $70,000 and counting education worthless. Maybe it's a good thing these people can't sit for the bar.

  2. Such is not uncommon on law school startups. Students and faculty should tap Bruce Green, city attorney of Lufkin, Texas. He led a group of studnets and faculty and sued the ABA as a law student. He knows the ropes, has advised other law school startups. Very astute and principled attorney of unpopular clients, at least in his past, before Lufkin tapped him to run their show.

  3. Not that having the appellate records on Odyssey won't be welcome or useful, but I would rather they first bring in the stray counties that aren't yet connected on the trial court level.

  4. Aristotle said 350 bc: "The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.

  5. Oh yes, lifetime tenure. The Founders gave that to the federal judges .... at that time no federal district courts existed .... so we are talking the Supreme Court justices only in context ....so that they could rule against traditional marriage and for the other pet projects of the sixties generation. Right. Hmmmm, but I must admit, there is something from that time frame that seems to recommend itself in this context ..... on yes, from a document the Founders penned in 1776: " He has refused his Assent to Laws, the most wholesome and necessary for the public good."

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