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Terrace Gardens Plaza, Inc. v. National Labor Relations Board

Citations: 91 F.3d 222; 319 U.S. App. D.C. 418; 153 L.R.R.M. (BNA) 2073; 1996 U.S. App. LEXIS 20025Docket: 95-1084

Court: Court of Appeals for the D.C. Circuit; August 9, 1996; Federal Appellate Court

Narrative Opinion Summary

This case involves Terrace Gardens Plaza, Inc. (TGP) and the National Labor Relations Board (NLRB) concerning TGP's alleged refusal to bargain with the certified union, Local 32B-32J of the Service Employees International Union (Local 32), in violation of NLRA Section 8(a)(5). After TGP's employees elected Local 32 as their bargaining representative, TGP agreed to negotiate a collective bargaining agreement while reserving the right to seek judicial review of the union's certification. The NLRB ruled that TGP's actions constituted a refusal to bargain in good faith. TGP challenged this ruling, arguing that its right to judicial review should not equate to a refusal to bargain and that a previously negotiated but unsigned contract with another union should bar Local 32’s certification. The U.S. Court of Appeals for the District of Columbia Circuit upheld the NLRB's decision, agreeing that TGP’s reservation of review rights amounted to bad faith bargaining and affirming that an unsigned contract does not bar a representation election. The court concluded that TGP could not simultaneously challenge the union's certification and refuse to negotiate, upholding the Board's enforcement order requiring TGP to bargain with Local 32.

Legal Issues Addressed

Contract Bar Rule under NLRA

Application: The court agreed with the Board's application of the contract bar rule, affirming that an unsigned contract does not prevent a representation election.

Reasoning: The court finds the Board's rule that an unsigned contract with one union does not prevent another union's election petition to be reasonable and in accordance with the NLRA.

Judicial Review of Union Certification

Application: The court clarified that an employer can contest union certification as a defense against an unfair labor practice charge upon a finding of Section 8(a)(5) violation.

Reasoning: The Board clarifies that orders for elections or union certifications are not final actions for judicial review under Section 10(f) until an employer is found to have violated Section 8(a)(5).

Refusal to Bargain in Good Faith under NLRA Section 8(a)(5)

Application: The court found that Terrace Gardens Plaza, Inc.'s insistence on reserving judicial review rights during negotiations constituted a refusal to bargain in good faith.

Reasoning: The court upheld the NLRB's findings, agreeing that TGP's insistence on reserving the right to challenge the union's certification during negotiations constituted a refusal to bargain in good faith.

Requirement of Signed Contracts for Election Bar

Application: The Board and court maintained that only signed contracts can serve as a bar to elections, moving away from recognizing unsigned agreements.

Reasoning: It also clarifies that only signed contracts serve as a bar to elections, having moved away from recognizing unsigned agreements to simplify administration and avoid protracted litigation.