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Liberty Natural Products, Inc. v. National Labor Relations Board, National Labor Relations Board v. Liberty Natural Products, Inc.

Citations: 73 F.3d 369; 158 L.R.R.M. (BNA) 2192; 1995 U.S. App. LEXIS 40776Docket: 94-70489

Court: Court of Appeals for the Ninth Circuit; December 19, 1995; Federal Appellate Court

Narrative Opinion Summary

This case concerns a dispute between Liberty Natural Products, Inc. and the National Labor Relations Board (NLRB) regarding the discharge of two employees, Crumbaker and Cunningham, after they participated in a petition criticizing Liberty's wage and paycheck distribution practices. The Ninth Circuit held that the petitioning activity was protected under Section 7 of the National Labor Relations Act (NLRA), and the subsequent discharge of these employees was a prima facie violation of Section 8(a)(1) of the NLRA. The NLRB determined that Liberty's justification for the discharges was pretextual, as other employees who signed the petition were not terminated but received raises after apologizing. The court confirmed that Crumbaker did not possess supervisory authority, making her discharge unlawful under the Act. Additionally, the court found that Smith was unlawfully discharged for failing to report inappropriate activity. The court also addressed the coercive nature of Dierking's interrogations regarding the petition, which violated Section 8 of the NLRA. Ultimately, the court denied Liberty's petition for review and granted the NLRB's petition for enforcement, supported by substantial evidence. This decision was rendered without oral argument and is not to be cited except under limited circumstances in compliance with Ninth Circuit Rule 36-3.

Legal Issues Addressed

Coercive Interrogation as Unfair Labor Practice

Application: Dierking's interrogations of employees about the petition were considered coercive and intimidating, violating Section 8 of the NLRA.

Reasoning: Additionally, the court addressed Dierking's interrogations of employees about the petition, which were deemed coercive and intimidating, violating Section 8 of the NLRA.

Judicial Review and Enforcement of NLRB Orders

Application: The court denied Liberty's petition for review and granted the NLRB's petition for enforcement, indicating substantial evidence supported the NLRB's findings.

Reasoning: The court ultimately denied Liberty's petition for review and granted the NLRB's petition for enforcement of its order, concluding that substantial evidence supported the NLRB's findings.

Pretextual Discharge as Retaliation

Application: The NLRB found that the discharges of Crumbaker and Cunningham were retaliatory, as other employees who signed the petition were not terminated but rather received pay raises after apologizing.

Reasoning: The NLRB found Liberty's reasons for the discharges to be pretextual, noting that of all employees who signed the petition, only Crumbaker and Cunningham were terminated. Other petition signers received pay raises after apologizing to management, supporting the conclusion that the discharges were retaliatory.

Protection of Employee Petitioning under NLRA Section 7

Application: The employees' petitioning activity regarding wages and paycheck distribution was deemed protected under Section 7 of the NLRA, leading to a finding that their discharge constituted a violation of their rights.

Reasoning: The Ninth Circuit determined that this petitioning activity was protected under Section 7 of the National Labor Relations Act (NLRA), and Liberty's discharge of these employees constituted a prima facie violation of Section 8(a)(1) of the NLRA.

Supervisory Status and NLRA Protections

Application: The court upheld the finding that Crumbaker was not a supervisor under the Act, emphasizing that her discharge was unlawful as it interfered with the rights of other employees.

Reasoning: Regarding Crumbaker's status, the court upheld the NLRB's finding that she lacked supervisory authority as defined under the Act, as her duties were not beyond routine or clerical.

Unlawful Discharge Related to Employee Rights

Application: Smith's discharge for failing to report inappropriate activity was found unlawful, as it was not supported by substantial evidence and interfered with employee rights under the Act.

Reasoning: Smith, another employee, was also found to have been unlawfully discharged for failing to report inappropriate activity, as the Board's determination was supported by substantial evidence.