Ahearn v. International Longshore & Warehouse Union, Locals 21 & 4 , 721 F.3d 1122 ( 2013 )


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  •                  FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    RICHARD L. AHEARN, Regional                 No. 11-35848
    Director of the Nineteenth Region of
    the National Labor Relations Board,           D.C. No.
    for and on behalf of the National          3:11-CV-05684-
    Labor Relations Board,                          RBL
    Petitioner-Appellee,
    v.                          OPINION
    INTERNATIONAL LONGSHORE AND
    WAREHOUSE UNION, LOCALS 21
    AND 4,
    Respondents-Appellants.
    Appeal from the United States District Court
    for the Western District of Washington
    Ronald B. Leighton, District Judge, Presiding
    Argued and Submitted
    April 10, 2013—Seattle, Washington
    Filed July 5, 2013
    2 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    Before: Dorothy W. Nelson and Consuelo M. Callahan,
    Circuit Judges, and Raner C. Collins, District Judge.*
    Opinion by Judge Collins
    SUMMARY**
    Labor Law
    The panel affirmed in part, and reversed in part, the
    district court’s orders finding Locals 21 and 4 of the
    International Longshore and Warehouse Union in contempt
    and ordering it to pay compensatory damages, arising when
    the Union engaged in protest activities at a grain terminal
    operated by Export Grain Terminal, LLC, and Export Grain
    filed charges against the Union with the National Labor
    Relations Board.
    The panel held that Section 303 of the Labor Management
    Relations Act was not Export Grain’s sole remedy for
    obtaining damages resulting from unlawful labor activities.
    The panel further held that the district court did not abuse its
    discretion when it awarded compensatory damages to Export
    Grain, and that the record supported the amount of damages
    awarded to Export Grain and the NLRB. In addition, the
    panel held that Export Grain’s participation in the civil
    *
    The Honorable Raner C. Collins, United States District Judge for the
    District of Arizona, sitting by designation.
    **
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 3
    contempt proceedings did not exceed the statutorily limited
    role under Section 160(l) of the National Labor Relations Act
    given to charging parties in an action before the NLRB. The
    panel also held that the district court abused its discretion
    when it awarded compensatory damages to Burlington
    Northern Sante Fe and the various law enforcement agencies
    that responded to the scenes of the Union’s protests, because
    those entities were not parties to the underlying NLRB
    actions.
    COUNSEL
    Emily M. Maglio (argued), Robert S. Remar, and Eleanor I.
    Morton, Leonard Carder, LLP, San Francisco, California;
    Robert H. Lavitt, Schwerin, Campbell, Barnard, Iglitzin &
    Lavitt, LLP, Seattle, Washington, for Respondents-
    Appellants.
    Kayce R. Compton (argued), Lafe E. Solomon, Acting
    General Counsel, Elinor L. Merberg, Assistant General
    Counsel, Celeste J. Mattina, Deputy General Counsel, Laura
    T. Vazquez, Deputy Assistant General Counsel, and Barry J.
    Kearney, Associate General Counsel, National Labor
    Relations Board, Washington, D.C., for Petitioner-Appellee.
    Richard J. Pautler, Thompson Coburn LLP, St. Louis,
    Missouri, for Amicus Curiae EGT, LLC.
    4 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    OPINION
    COLLINS, District Judge:
    Appellants Locals 21 and 4 of the International Longshore
    and Warehouse Union (“Union”) engaged in protest activities
    at the site of a grain terminal operated by Export Grain
    Terminal, LLC (“EGT”). EGT filed charges against the
    Union with Appellee, the National Labor Relations Board
    (“NLRB”).
    While the NLRB action was pending, the NLRB sought
    injunctive relief against the Union pursuant to Sections 10(j)
    and 10(l)1 of the National Labor Relations Act (“NLRA”),
    1
    Section 10(j), 
    29 U.S.C. § 160
    (j), provides:
    The [NLRB] shall have power, upon issuance of a
    complaint [that a person or entity is engaging in an
    unfair labor practice], to petition any United States
    district court . . . for appropriate temporary relief or
    restraining order.”
    Section 10(l), 
    29 U.S.C. § 160
    (l), provides:
    Whenever it is charged that any person has engaged in
    unfair labor practice . . . the preliminary investigation
    of such charge shall be made forthwith and given
    priority over all other cases except cases of like
    character in the office where it is filed or to which it is
    referred. If, after such investigation, the officer or
    regional attorney to whom the matter may be referred
    has reasonable cause to believe such charge is true and
    that a complaint should issue, he shall, on behalf of the
    [NLRB], petition any United States district court . . . for
    appropriate injunctive relief pending the final
    adjudication of the [NLRB] with respect to such matter.
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 5
    
    29 U.S.C. §§ 151
    –169. The district court issued both a
    temporary restraining order and a preliminary injunction
    prohibiting the Union from engaging in certain protest
    activities. The Union continued to engage in these activities,
    so the district court found the Union in contempt and ordered
    it to pay compensatory damages to the NLRB, EGT, various
    law enforcement agencies, and Burlington Northern Santa Fe
    (“BNSF”).
    On appeal, the Union argues that the district court’s
    contempt awards should be vacated because the court did not
    have discretion to award compensatory damages to third
    parties, or to award damages to the charging party in an
    underlying labor action where Section 303 of the Labor
    Management Relations Act (“LMRA”), 
    29 U.S.C. §§ 141
    –187, allegedly provided the sole remedy. The Union
    also argues that it was entitled to heightened procedural
    protections during the civil contempt proceedings because the
    damages were criminal, not civil, sanctions.
    We conclude that the district court did not abuse its
    discretion when it awarded compensatory damages to EGT,
    and that the record supported the amount of damages awarded
    to EGT. However, we conclude that the district abused its
    discretion when it awarded compensatory damages to BNSF
    and the various law enforcement agencies that responded to
    the scenes of the Union’s protests, because these entities were
    not parties to the underlying NLRB action. We therefore
    affirm in part and reverse in part.
    I.
    The events underlying this appeal arose out of a dispute
    between the Union and EGT concerning whether Union
    6 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    members would operate an EGT grain terminal located on
    land that EGT was leasing from the Port of Washington
    (“Port”). The Union claimed that under the terms of a
    collective bargaining agreement between the Union and the
    Port, EGT was required to hire Union members. EGT
    rejected the Union’s attempts to enforce the collective
    bargaining agreement, and informed the Union that it was
    going to hire non-Union members to operate the grain
    terminal.
    Beginning in June 2011, Union members began picketing
    at EGT’s terminal site. EGT filed charges against the Union
    with the NLRB, which pursued injunctive relief against the
    Union pursuant to Sections 10(l) and 10(j) of the NLRA.
    Specifically, the NLRB petitioned for a temporary restraining
    order and preliminary injunction, alleging that, starting in
    June 2011, Union members picketed at the EGT facility with
    signs. The NLRB claimed that Union members coerced
    people into refusing to perform services for EGT through
    threats and harassment.
    According to the petition, the Union’s picketing and
    trespassing resulted in the destruction of EGT property and
    the harassment of its employees and contractors, including
    but not limited to: breaking and/or stealing signs; tearing
    down gates; pushing rail cars out of their respective rail
    sheds; verbally and physically assaulting EGT employees and
    contractors; impeding ingress and egress to and from the EGT
    facility; harassing and threatening bodily harm and/or death
    to EGT employees and other individuals who crossed the
    picket lines; blocking the rail lines so that railway cars were
    unable to make scheduled deliveries to EGT; damaging
    vehicles, including throwing eggs at, pushing, spitting on, and
    keying vehicles driven by EGT employees; placing plastic
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 7
    bags filled with feces outside of the EGT administration
    building; following EGT employees and contractors as they
    left the facility; dropping a black trash bag filled with manure
    from an aircraft onto EGT property; and dropping nails on the
    road leading to the entrances to the facility.
    On September 1, 2011, after a hearing on the merits, the
    district court issued a temporary restraining order (“TRO”),
    prohibiting the unions from engaging in “picket line violence,
    threats and property damages, mass picketing and blocking of
    ingress and egress at the [EGT facility]” and from
    “restraining or coercing employees of EGT, General
    [Construction], or any other person doing business in relation
    to the EGT facility. . . .”
    The NLRB alleges that on September 7, 2011, “several
    hundred people acting in concert with the Unions” picketed
    on the railroad tracks in Vancouver, Washington, blocking a
    BNSF train that was headed for the EGT facility with a corn
    delivery. The picketers allowed the train to pass seven hours
    later. However, the train was stopped again by Union
    picketers outside of the Port of Longview. The picketers
    refused to allow the train to make its delivery to EGT’s
    facility. The train was able to deliver the corn only after
    police officers from the Cowlitz County Police Department,
    the Cowlitz County Sherriff’s Department, and the Kelso
    County Police Department arrested several picketers and
    cleared the tracks.
    The NLRB also alleges that at approximately 4:00 a.m.
    the next day, “over 100 cars converged on EGT’s facility,”
    and that picketers “armed with gardening shears, baseball
    bats, broken broom sticks, and metal pipes” approached
    EGT’s facility. According to the NLRB, the picketers broke
    8 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    windows, threatened the on-duty security guards, and threw
    rocks at the guards. One security guard was pulled from his
    car by the protestors and threatened with a metal pipe. His
    car was then driven into a drainage ditch. At some point
    during this demonstration, the picketers dumped the corn load
    from the BNSF train onto the railroad tracks, cut the air hoses
    and broke the metal couplings that connected the train cars,
    knocked down a portion of the fence surrounding the EGT
    facility, and damaged the lights on the EGT conveyor system.
    Later that same day, the district court granted the NLRB’s
    petition for preliminary injunction, enjoining the same
    conduct described in the September 1, 2011, TRO.
    On September 15, 2011, after taking testimony and
    hearing arguments from both parties, the district court found
    the Union in contempt of the TRO. On September 30, 2011,
    after reviewing the exhibits submitted by the NLRB, the
    district court awarded the NLRB $250,000 to be apportioned
    pro rata between the NLRB, EGT, BNSF, Longview Police
    Department, Kelso Police Department, Cowlitz County
    Sheriff’s Office, and Washington State Patrol.2 The Court
    awarded pro-rata compensatory damages in the following
    amounts: NLRB: $56,601.06; BNSF: $11,189.02; EGT:
    $117,112.70; Longview Police: $17,024.65; Kelso Police:
    $3,022.39; Cowlitz County Sheriff: $34,520.74; Washington
    State Patrol: $10,529.44.
    2
    The NLRB originally asked the Court for $292,697.65. The Union
    objected, arguing that some of the documents provided by the NLRB as
    proof of its damages either pre-dated or post-dated the contumacious
    behavior. Noting this, the district court deducted $42,000 from the
    NLRB’s requested damages: “I reviewed the attorney fees, I reviewed the
    times that they are accounting for them. I did not do a detailed evaluation,
    but took $50,000 . . . $42,000 off the top.”
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 9
    The Court subsequently set a prospective fine schedule:
    (1) $25,000 for any future violations of the preliminary
    injunction by the Union; (2) $5,000 for any violations by
    Union officers; and (3) $2,500, per person, for any violations
    by individuals.
    Approximately one week later, on September 21, 2011,
    the NLRB alleges that several Union officers and members
    blocked the railroad tracks leading to the EGT facility, which
    prevented another BNSF train from making a delivery.
    Nearly 100 law enforcement officers from several
    departments responded to the scene and arrested several
    picketers.
    The district court held the Union in contempt of the
    preliminary injunction for this incident. After briefing, the
    court awarded the NLRB $64,764.38 in compensatory
    damages. The NLRB originally sought $71,960.38.
    On appeal, we must determine whether Section 303 of the
    LMRA was EGT’s sole remedy for collecting damages. If
    Section 303 is not EGT’s sole remedy, then we must
    determine whether the record supports the amount of
    compensatory damages awarded to EGT. We must also
    decide whether EGT’s participation in the contempt
    proceedings exceeded the statutorily limited role given to
    charging parties in an action before the NLRB. Finally, we
    must consider whether the law enforcement agencies and
    BNSF were entitled to compensatory damages even though
    they were not parties to the underlying NLRB action.
    10 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    II.
    We first consider whether Section 303 of the LMRA is
    EGT’s sole remedy for obtaining damages resulting from
    unlawful labor activities. We conclude that it is not.
    Section 303(b) provides:
    Whoever shall be injured in his business or
    property by reason [of] any violation of
    subsection (a) . . . may sue therefor in any
    district court of the United States . . . and shall
    recover the damages by him sustained and the
    cost of the suit.
    
    29 U.S.C. § 187
    (b). Subsection (a) allows private employers
    to recover damages caused by secondary picketing, as defined
    by Section 8(b)(4), 
    29 U.S.C. § 158
    (b)(4). Section 8(b)(4),
    commonly referred to as the “secondary boycott” provision,
    prohibits labor organizations from “picketing against an
    employer with whom it does not have a dispute, with an
    object of forcing that secondary employer to cease doing
    business with a primary employer.” NLRB v. Local 3, Int’l
    Bhd. of Elec. Workers, 
    471 F.3d 399
    , 402 (2d Cir. 2006)
    (“Local 3”) (quotation marks omitted).
    In the underlying NLRB action in this case, EGT alleged
    that the Union picketed outside of its facility for the purpose
    of getting EGT, the secondary employer, to cease doing
    business with the Port of Longview, the primary employer.
    The district court declined the NLRB’s petition to enjoin
    secondary picketing, and the parties have since entered into
    a settlement agreement that addresses EGT’s allegations. The
    district court did not award relief for secondary picketing
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 11
    under Section 8(b)(4), and the district court did not cite
    Section 8(b)(4) or Section 303 in awarding compensatory
    damages to EGT.
    The Union nonetheless urges us to follow the Second
    Circuit’s holding in Local 3, where the Second Circuit
    declined to award civil contempt damages to third-party
    employers when the employers were not complainants in the
    underlying Section 303 action and had not brought their own
    Section 303 claims against the union. 
    471 F.3d at 408
    . In
    reaching this conclusion, the Second Circuit cited the lack of
    any authority to the contrary and its prior decision in New
    York v. Operation Rescue National, 
    80 F.3d 64
    , 71 (2d Cir.
    1996), where the court vacated the award of compensatory
    damages to third-party abortion clinics that had been injured
    by anti-abortion protestors’ violation of an injunction. Local
    3, 
    471 F.3d at 408
    .
    We reach a different conclusion, for several reasons.
    First, civil contempt proceedings serve two purposes: (1)
    coercing compliance with a court order; and (2) compensating
    the prevailing party. McComb v. Jacksonville Paper Co.,
    
    336 U.S. 187
    , 191 (1949); Whittaker Corp. v. Execuair Corp.,
    
    953 F.2d 510
    , 517 (9th Cir. 1992). As the charging party,
    EGT is a “prevailing party” for purposes of the NLRA and
    therefore is entitled to compensation for its actual damages.
    
    29 C.F.R. § 102.8
     (“The term party . . . shall mean . . . any
    person filing a charge or petition under the act . . . .”); cf.
    EEOC v. Guardian Pools, Inc., 
    828 F.2d 1507
    , 1514–15 (11th
    Cir. 1987) (female victims of sex discrimination who were
    represented by the EEOC in the underlying action were
    “parties” to that action).
    12 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    Second, we are not convinced that Local 3 stands for the
    broad proposition that employers who are eligible to seek
    remedies under Section 303 are never entitled to civil
    contempt damages for injuries related to secondary protest
    activities. No case has ever cited Local 3 for such a broad
    proposition and Local 3’s reasoning does not suggest such an
    expansive holding.
    Third, Section 303 states only that private employers
    “may sue” for damages caused by unfair labor practices, not
    that they must do so. 
    29 U.S.C. § 187
    (b). Nothing in the
    LMRA or the NLRA suggests otherwise. As for Operation
    Rescue, that case is inapposite because it did not involve
    private employers who were eligible for Section 303 relief.
    
    80 F.3d at 64
    . Finally, it is not clear that EGT could seek
    relief under Section 303 in this case, as the district court did
    not award injunctive relief under Section 8(b)(4).
    III.
    We now turn to whether the record supports the amount
    of compensatory damages awarded to EGT. A party moving
    for civil contempt must prove that the non-moving party has
    violated a court order by clear and convincing evidence. FTC
    v. Enforma Natural Prods., Inc., 
    362 F.3d 1204
    , 1211 (9th
    Cir. 2004). The Union does not dispute the district court’s
    finding of contempt, but rather argues that there was
    insufficient proof of the injured parties’ alleged damages to
    support the amount of the compensatory damages.
    The Union argues that a clear and convincing standard
    should apply, while the NLRB advocates for a preponderance
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 13
    of the evidence standard.3 We need not resolve which
    standard applies, since the district court’s award meets both
    standards. Specifically, the record shows that the district
    court reviewed the various affidavits, declarations, and photos
    submitted by the NLRB before awarding damages. The court
    heard testimony from witnesses who were present at the
    demonstrations. The Union had an opportunity to cross-
    examine these witnesses and respond to the evidence
    submitted by the NLRB. The Union was given the chance to
    submit its own evidence in opposition to the award. The
    district court considered the Union’s objections to the
    NLRB’s proposed damages and overruled them. The Union
    made the court aware that some of the dates on the NLRB’s
    proof of damages pre-dated or post-dated the contumacious
    conduct and objected to the inclusion of these costs in the
    final contempt award. The court took this into account and
    adjusted the final damages by deducting nearly $50,000 from
    the NLRB’s requested damages. These procedures, as well
    as the evidence itself, support the district court’s contempt
    award.
    These facts also show why the district court’s contempt
    award is civil, not criminal, and therefore did not require the
    heightened procedural protections that attach to criminal
    contempt proceedings. Whether a contempt sanction is civil
    3
    Every circuit to have considered this issue has adopted a
    preponderance standard. See FTC v. Kuykendall, 
    371 F.3d 745
    , 751 (10th
    Cir. 2004) (en banc); McGregor v. Chierico, 
    206 F.3d 1378
    , 1387 (11th
    Cir. 2000); In re Gen. Motors Corp., 
    110 F.3d 1003
    , 1018 (4th Cir. 1997);
    Graves v. Kemsco Grp., Inc., 
    864 F.2d 754
    , 755 (Fed. Cir. 1988) (citing
    Seventh Circuit standard). But see Gregory v. Depte, 
    896 F.2d 31
    , 40 (3d
    Cir. 1990) (Becker, J., concurring and dissenting) (“[C]ivil contempt
    awards . . . must be vacated if they appear to us excessive, or unsupported
    by clear and convincing evidence.”).
    14 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    or criminal is determined by examining “the character of the
    relief itself.” Int’l Union, United Mine Workers of Am. v.
    Bagwell, 
    512 U.S. 821
    , 828 (1994) (quotation marks and
    citation omitted). In Bagwell, the Supreme Court explained
    that a sanction generally is civil if it coerces compliance with
    a court order or is a remedial sanction meant to compensate
    the complainant for actual losses. 
    Id. at 829
    . A criminal
    sanction, in contrast, generally seeks to punish a “completed
    act of disobedience.” 
    Id. at 828
     (quotation marks and citation
    omitted). The Supreme Court recognized that the line
    between civil and criminal contempt is blurred where
    “[c]ontempts involving out-of-court disobedience to complex
    injunctions” are at issue. 
    Id.
     at 833–34. As a result, non-
    compensatory sanctions for violations of complex injunctions
    required heightened procedural protections including a jury
    trial and a beyond reasonable doubt burden of proof. 
    Id.
    However, the Court made it clear that Bagwell “leaves
    unaltered the longstanding authority of judges . . . to enter
    broad compensatory awards for all contempts through civil
    proceedings.” 
    Id. at 838
    .
    Here, the district court’s contempt awards are civil, not
    criminal, because they sought to coerce the Union and its
    members to comply with the court’s injunctions and to
    compensate injured parties for actual losses caused by the
    Union’s and its members’ contumacious conduct. See FTC
    v. Kuykendall, 
    371 F.3d 745
    , 752 (10th Cir. 2004) (“[W]here
    the sanctions sought in contempt proceedings are solely to be
    used to compensate injured [parties], the proceedings are civil
    in nature.”). The contempt awards, in other words, are
    “justified by other considerations central to the contempt
    power” and did not “take on a punitive character.” Bagwell,
    
    512 U.S. at 831
    . Moreover, the damages were paid directly
    to the harmed parties, not the court. See Hicks on Behalf of
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 15
    Feiock v. Feiock, 
    485 U.S. 624
    , 632 (1988) (“If the relief
    provided is a fine, it is remedial when it is paid to the
    complainant, and punitive when it is paid to the court . . .”).
    Thus, the Union was not entitled to a jury trial or a
    heightened burden of proof.
    Finally, the Union argues that the court abused its
    discretion in denying its request for discovery. It is true that
    the contempt proceedings occurred within a short timeframe.
    However, “courts in civil contempt proceedings may proceed
    in a ‘more summary fashion’ than in an ‘independent civil
    action.’” Kuykendall, 
    371 F.3d at 756
     (citation omitted).
    Moreover, in this case, the Union did not give the “district
    court or this court any reason to believe they would have
    found any significant evidence had they been given more
    time or discretion to conduct discovery.” 
    Id.
    For the foregoing reasons we uphold the amount of
    compensatory damages awarded to the NLRB and EGT.
    IV.
    We next determine whether EGT’s participation in the
    civil contempt proceedings exceeded the limited role given to
    a charging party under the NLRA. Section 160(l) of the
    NLRA provides that only the NLRB can pursue an injunction
    against unfair labor practices. 
    29 U.S.C. § 160
    (l). However,
    the statute allows a charging party “an opportunity to appear
    by counsel and present any relevant testimony.” 
    Id.
    The Union claims that EGT’s statements of attorneys’
    fees include legal research and analysis and do not specify
    “whether the fees were incurred in order to present evidence
    or to make prohibited legal arguments concerning the
    16 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    contempt findings.” However, the record shows that EGT’s
    participation in the contempt hearings was limited to
    questioning witnesses regarding the damage caused by the
    Union at the EGT facility and entering exhibits into evidence.
    EGT did not “petition the court independently,” nor did it
    seek “relief different than that sought by [the NLRB].” Retail
    Clerks Union v. Food Emp’rs Council, Inc., 
    351 F.2d 525
    ,
    529 (9th Cir. 1965). Where the charging party “merely
    supported the original petition for injunctive relief,” 
    id.,
     by
    presenting evidence of contumacious behavior and the
    resulting damages, such participation does not violate
    § 160(l).
    V.
    The Union argues that the district court abused its
    discretion by awarding compensatory damages to BNSF and
    the various law enforcement agencies that responded to the
    protests, on the ground that these entities were not parties to
    the underlying NLRB action. We agree.
    As discussed above, a court may impose civil contempt
    sanctions to (1) compel or coerce obedience to a court order,
    and/or (2) compensate the contemnor’s adversary for injuries
    resulting from the contemnor’s noncompliance. Whittaker
    Corp., 
    953 F.2d at 517
    . The key is that contempt sanctions
    are available as compensation when they are awarded to the
    prevailing party in the litigation. See Gompers v. Buck’s
    Stove & Range Co., 
    221 U.S. 418
    , 444–45 (1911)
    (“Proceedings for civil contempt are between the original
    parties, and are instituted and tried as a part of the main
    cause.”); Northside Realty Assocs., Inc. v. United States,
    
    605 F.2d 1348
    , 1356 (5th Cir. 1979), superseded by statute as
    recognized in United States v. City of Jackson, 
    359 F.3d 727
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 17
    (5th Cir. 2004) (explaining that civil contempt sanctions seek
    “to compensate the prevailing party for losses or damages
    caused by the other’s noncompliance”) (footnote omitted). In
    this case, neither the law enforcement agencies who
    responded to the picketers nor BNSF were parties to the
    litigation.
    Nor does the district court’s award serve the first purpose
    of civil contempt sanctions—to compel compliance with a
    court order. As with compensation, typically a contempt
    order seeks to compel compliance by parties to a litigation.
    See Northside Realty Assocs., 
    605 F.2d at 1356
     (civil
    contempt sanctions seek “to coerce the derelict party into
    compliance with the original injunction”) (emphasis added).
    However, in limited circumstances courts have allowed civil
    contempt sanctions to be awarded to non-parties where doing
    so was directly necessary to enforce an injunction. For
    example, in the principal case upon which the NLRB relies,
    McComb, the Supreme Court held that the district court had
    the power to award back pay to employees of the defendant
    company, because doing so was necessary to enforce the
    district court’s injunction against the company to pay its
    employees a minimum wage and overtime. 
    336 U.S. at
    193–94. That is, the award to third parties was necessary to
    enforce the injunction against a party to the litigation.
    The same has been true in other cases in which courts
    have allowed contempt sanctions to be awarded to third
    parties.4 In contrast, courts have refused to allow non-parties
    4
    For example, courts regularly order employers to pay amounts due
    employees under earlier injunctions. But as the Third Circuit has noted,
    “[t]hese opinions speak primarily in terms of purging the employers of
    their contempt, not of making the injured employees whole.” Roe v.
    18 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    to be awarded contempt sanctions when doing so would not
    directly serve to enforce an injunction. See, e.g., Operation
    Rescue, 
    80 F.3d at
    71–72 (state lacked standing to seek civil
    contempt sanctions on behalf of abortion clinics disrupted by
    protestors; “[t]he damages award in this case was designed
    solely to reimburse the [clinics] for harm to their interests,”
    not enforce the injunction against the protestors or
    compensate the state); Roe, 919 F.2d at 873–74 (district court
    lacked power to award contempt sanctions to non-party
    abortion clinic disrupted by enjoined protestors; “[a] court
    should only deviate from th[e] rule [that contempt
    proceedings are between the parties to a case] and award
    damages to non-parties when such an order directly compels
    adherence to a prior decree”); Northside Realty Assocs.,
    
    605 F.2d at
    1350–51 (district court lacked power to award
    contempt sanctions to minority purchasers who were denied
    mortgages by real estate agency enjoined from engaging in
    discriminatory practices). Indeed, this case is very much like
    Operation Rescue; in both cases, the plaintiff (New York or
    the NLRB) lacks standing to seek contempt sanctions on
    behalf of third parties (abortion clinics or law enforcement
    agencies or BNSF) aggrieved by the defendants’ (abortion
    protestors’ or Union members’) violations of a court
    injunction.
    In this case, the district court enjoined the unions from
    engaging in “picket line violence, threats and property
    damages, mass picketing and blocking of ingress and egress
    at the [EGT facility],” and from “restraining or coercing
    Operation Rescue, 
    919 F.2d 857
    , 872 (3d Cir. 1990) (citing Usery v.
    Fisher, 
    565 F.2d 137
    , 139–40 (10th Cir. 1977); Hodgson v. A–1
    Ambulance Service, Inc., 
    455 F.2d 372
    , 374–75 (8th Cir. 1972); Fleming
    v. Warshawsky & Co., 
    123 F.2d 622
    , 626 (7th Cir. 1941)).
    AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION 19
    employees of EGT, General [Construction], or any other
    person doing business in relation to the EGT facility.” The
    district court’s compensatory damages awards to the law
    enforcement agencies who responded to the picketers and to
    BNSF did not and could not help enforce this injunction.
    Rather, those awards were entirely retrospective and
    compensatory.
    The NLRB points out that contempt sanctions may be
    awarded to non-parties where a statute expressly permits it.
    See, e.g., City of Jackson, 
    359 F.3d at 737
     (allowing contempt
    sanctions to third party victims of housing discrimination
    because the Fair Housing Amendments Act (“FHAA”),
    
    42 U.S.C. § 3614
    (d)(1)(B), provides that courts “may award
    such other relief as the court deems appropriate, including
    monetary damages to persons aggrieved”). However, no such
    statutory provision exists in the NLRA. The NLRB suggests
    that an award to the law enforcement agencies and BNSF is
    consistent with NLRA’s purpose to deter violations of its
    provisions, and cites Kuykendall, 
    371 F.3d at 764
     (“[N]o
    reason exists to believe Congress intended to withhold [in the
    FTC Act] the traditional remedy of compensation to those
    consumers victimized by the defendants’ violations of the
    Permanent Injunction.”). But the NLRB’s reasoning would
    apply to any statute, and, unlike the sanctions awarded to
    consumers in the FHAA and FTC Act cases above, the
    sanctions in dispute in this case were awarded to law
    enforcement agencies and a railway, not to the unions and
    workers the NLRA seeks to protect. See NLRB v. Nash-Finch
    Co., 
    404 U.S. 138
    , 144 (1971) (discussing NLRA’s purpose).
    In short, we find no authority for, and therefore vacate,
    the district court’s award of contempt sanctions to the law
    enforcement agencies and BNSF.
    20 AHEARN V. INT’L LONGSHORE & WAREHOUSE UNION
    VI.
    For the foregoing reasons, we AFFIRM the district
    court’s award of compensatory damages to EGT and
    VACATE the award of compensatory damages to BNSF,
    Longview Police Department, Kelso Police Department,
    Cowlitz County Sheriff’s Office, and the Washington State
    Patrol.5 Each side shall bear its own fees and costs on appeal.
    AFFIRMED IN PART, REVERSED IN PART.
    5
    EGT’s amicus motion and Appellant’s request for judicial notice are
    granted.
    

Document Info

Docket Number: 11-35848

Citation Numbers: 721 F.3d 1122

Judges: Callahan, Collins, Consuelo, Dorothy, Nelson, Raner

Filed Date: 7/5/2013

Precedential Status: Precedential

Modified Date: 8/7/2023

Authorities (22)

W. J. Usery, Jr., Secretary of Labor, United States ... , 565 F.2d 137 ( 1977 )

federal-trade-commission-v-hg-kuykendall-sr-individually-and-as-an , 371 F.3d 745 ( 2004 )

National Labor Relations Board v. Local 3, International ... , 471 F.3d 399 ( 2006 )

Equal Employment Opportunity Commission, Cross-Appellee v. ... , 828 F.2d 1507 ( 1987 )

stuart-j-mcgregor-receiver-appellee-united-states-federal-trade , 206 F.3d 1378 ( 2000 )

people-of-the-state-of-new-york-by-dennis-c-vacco-attorney-general-of , 80 F.3d 64 ( 1996 )

Federal Trade Commission v. Enforma Natural Products, Inc. , 362 F.3d 1204 ( 2004 )

James D. Hodgson, Secretary of Labor, United States ... , 455 F.2d 372 ( 1972 )

northside-realty-associates-inc-ed-a-isakson-and-thomas-b-ray , 605 F.2d 1348 ( 1979 )

In Re General Motors Corporation , 110 F.3d 1003 ( 1997 )

Dick Gregory v. Larry D. Depte, Sandra L. Henderson and ... , 896 F.2d 31 ( 1990 )

United States v. City of Jackson MS , 359 F.3d 727 ( 2004 )

Fleming v. Warshawsky & Co. , 123 F.2d 622 ( 1941 )

roe-jane-moe-mary-national-abortion-rights-action-league-of , 919 F.2d 857 ( 1990 )

Whittaker Corporation Whittaker Controls, Inc. v. Execuair ... , 953 F.2d 510 ( 1992 )

donald-j-graves-and-graves-body-crusher-inc-graves-auto-salvage-inc , 864 F.2d 754 ( 1988 )

No. 20201 , 351 F.2d 525 ( 1965 )

Gompers v. Bucks Stove & Range Co. , 31 S. Ct. 492 ( 1911 )

McComb v. Jacksonville Paper Co. , 69 S. Ct. 497 ( 1949 )

National Labor Relations Board v. Nash-Finch Co. , 92 S. Ct. 373 ( 1971 )

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