[00:00:03] Speaker 02: Case number 141284 at all. [00:00:07] Speaker 02: Durham School Services LP Petitioner, the National Labor Relations Board. [00:00:12] Speaker 02: Ms. [00:00:13] Speaker 02: Sonneborn for the petitioner, Mr. Dross for the respondent. [00:00:20] Speaker 03: Good morning, Your Honor. [00:00:20] Speaker 03: May I please support? [00:00:21] Speaker 03: My name is Amanda Sonneborn and I'm here on behalf of Durham School Services. [00:00:25] Speaker 03: This is a case that arises out of an NLRB election and it's a somewhat unique set of circumstances in that we have no record [00:00:33] Speaker 03: in terms of a hearing or transcript or any evidentiary perspective to present to you. [00:00:38] Speaker 03: And that's because the regional director in this particular instance, following a board election, denied the petitioner's request for a hearing, an evidentiary hearing on the evidence that are presented. [00:00:49] Speaker 03: In terms of a brief factual background, there was an NLRB election at Durham School Services [00:00:56] Speaker 03: number of facilities in Florida. [00:00:59] Speaker 03: Following that election, the petitioner filed three objections to that election, two of which we're arguing about here today. [00:01:07] Speaker 03: During those objections, and at the issue that's particularly important from purposes of the union's conduct in the case, there were two issues that were raised. [00:01:16] Speaker 03: One of them related to the circulation of a flyer by the union the day before the election. [00:01:22] Speaker 03: which contained on it the image of the company's election observer. [00:01:28] Speaker 03: And on that fire, it indicated that the individual supported the union and was supporting the union's position there. [00:01:35] Speaker 03: Following the receipt of that flyer, which, like I said, came out only the day before the election, the individual notified the company that she had not, in fact, consented directly to the placement of her picture on that flyer and had not made the representations that it contained on that flyer. [00:01:52] Speaker 03: Based on that position alone, the company went forward to the regional director and argued that that conduct by the union, which clearly raised the question about whether or not the individual consented to her picture being placed on this fire that the union circulated, which was particular import given that she was the company's election observer at the election, gave rise to objectionable conduct that called into question the results of the election which the union had won. [00:02:18] Speaker 03: The company in support of its position had provided the regional director with an affidavit signed by that individual indicating that she had not expressly authorized the use of her likeness in that way, that she had also not articulated her support openly for the union and in fact had not wanted to do so. [00:02:36] Speaker 03: The regional director then, in considering the objections to the case, ultimately dismissed outright the statements of her and instead credited evidence submitted by the union in response to the objections submitted by the employer. [00:02:51] Speaker 03: And in doing so, the regional director denied the employer the right, and the petitioner here the right, to submit or offer evidence in contrary. [00:03:00] Speaker 03: Essentially, the regional director resolved that credibility dispute between the union's evidence in which it [00:03:05] Speaker 03: contended that the employers represented had in fact authorized the use of her likeness. [00:03:11] Speaker 03: And instead of giving an opportunity to have a hearing where evidence was heard at the position of Ms. [00:03:15] Speaker 03: Perez, who was the individual who appeared on the flyer, was heard, the regional director resolved that credibility dispute on the documents alone. [00:03:23] Speaker 03: That's expressly prohibited by case law, and quite frankly by logic, that the board should not be in the position of resolving those kind of credibility disputes. [00:03:33] Speaker 03: between one offered position by the employer and another offered position by the union on the papers alone. [00:03:40] Speaker 03: There's a long standing. [00:03:41] Speaker 04: The board is following Midland. [00:03:44] Speaker 04: You're trying to argue beyond Midland. [00:03:46] Speaker 04: You didn't raise the beyond Midland question below. [00:03:49] Speaker 04: Your exceptions fit right within the precedent that they're applying. [00:03:53] Speaker 04: Even the dissent is not contesting that Midland applies. [00:03:59] Speaker 04: The dissent just wants a different rule. [00:04:01] Speaker 03: Your Honor, and the dissent I think raises some very important issues. [00:04:05] Speaker 04: But the dissent agrees. [00:04:07] Speaker 04: Midland applies here, and the board applied Midland. [00:04:10] Speaker 03: And in many cases, the board has applied Midland in circumstances such as this and given rise to... Let me make sure you understand. [00:04:17] Speaker 04: You did not raise... There are different questions here. [00:04:21] Speaker 04: The right to cast the secret ballot is arguably a right. [00:04:25] Speaker 04: That is not what you were arguing. [00:04:28] Speaker 04: You try and argue it here, but that was not what was raised in your exception. [00:04:33] Speaker 03: I understand your position, Your Honor, but the basis, even under Midland, even under the Midland standard, there have been numerous cases such as this where the Board has gone forward in order to hearing whether or not the conduct, in fact, constituted objectionable conduct. [00:04:44] Speaker 03: Under the Midland standard, there are certainly enough circumstances here that, and in many other analogous situations, where the Board is awarded that evidentiary hearing to make that decision. [00:04:53] Speaker 04: The Board doesn't have to have an evidentiary hearing in all cases. [00:04:56] Speaker 04: In the Board's position, the Board took an alternative. [00:04:59] Speaker 04: approach here, and on their alternative, there was nothing to hear. [00:05:03] Speaker 03: Your Honor, given the factual disputes between the evidence submitted by the union and the evidence submitted by the company, there was sufficient grounds to give rise to a new issue. [00:05:13] Speaker 03: given that she had stated that she expressly did not sign the document as indicated by the union in the flyer that they circled. [00:05:20] Speaker 04: Why is that an issue under Midland? [00:05:22] Speaker 03: Because under Midland here, many of the cases cited by the board and relied on the regional director do not involve circumstances where the individual's likeness is put on it. [00:05:29] Speaker 03: Those that analyze even under the Midland standard where the individual's likeness is put on it are subject to additional factors and considerations above the sort of general Midland standard in which the court and the board often will just [00:05:42] Speaker 03: in many circumstances, allow the electioneering to go forward without consideration under that standard. [00:05:50] Speaker 04: I just don't see how you get out from the middle of the box to a straightforward application. [00:05:54] Speaker 04: Your exceptions didn't raise the more interesting question that looms there, and you're artfully trying to get it to us, but it wasn't raised below. [00:06:04] Speaker 04: And you knew exactly what you were doing, and I knew exactly what you were doing, but it's not here. [00:06:08] Speaker 04: So you stuck with the limited middling question, and the board followed the law. [00:06:13] Speaker 03: And your honor, even under the Midland standard, we would submit that this should have given rise because of the contradictory evidence and the fact that the board itself under its own rules has held that they're not allowed to resolve those kind of credibility disputes without a full hearing, even under Midland. [00:06:25] Speaker 00: I thought what the board said was, even if you take everything to be true, alleged to be true, there's just no claim or evidence of forgery. [00:06:34] Speaker 00: And that's Midland. [00:06:35] Speaker 00: And if there's no claim or evidence of forgery, then it just doesn't, this credibility issue that you're [00:06:39] Speaker 03: I don't know. [00:06:40] Speaker 03: I don't know. [00:06:41] Speaker 03: I don't know. [00:06:42] Speaker 03: I don't know. [00:06:44] Speaker 03: I don't know. [00:06:45] Speaker 03: I don't know. [00:06:47] Speaker 03: I don't know. [00:06:48] Speaker 03: I don't know. [00:06:49] Speaker 03: I don't know. [00:06:50] Speaker 03: I don't know. [00:06:52] Speaker 03: I don't know. [00:06:53] Speaker 03: I don't know. [00:06:55] Speaker 03: The regional director relied upon that finding that she had signed additional documents. [00:06:59] Speaker 00: But I never thought that the, I'm not aware of any, maybe you can point me to some case where forgery in an underlying document is what's at issue, because I thought the question under Midland is whether the propaganda is forged. [00:07:10] Speaker 00: And that's not the argument you're making now. [00:07:12] Speaker 00: You're talking about forgery in some underlying document, and I hadn't seen any case in which that was treated as a Midland problem. [00:07:19] Speaker 03: Correct, Your Honor, but in terms of analyzing the totality of the circumstances which the regional director relied upon in this particular circumstance to find that in fact the additional documents were relevant, the court there, the board there relied on those documents in reaching that conclusion. [00:07:35] Speaker 03: So in order to analyze the regional director's decision, they obviously considered that information as relevant in reaching the determination that a hearing wasn't appropriate. [00:07:44] Speaker 03: So you have to look at those additional documents beyond the one particular one that has the likeness on it. [00:07:49] Speaker 03: in order to reach that conclusion given that the regional director relied on it in reaching her conclusion that a hearing was not appropriate. [00:07:57] Speaker 00: But you don't have to look at it under Midland, because Midland talks about the document in which the pictures exist. [00:08:04] Speaker 00: The question is whether that's a forgery. [00:08:06] Speaker 03: In Midland, Your Honor, they talk about the entirety of the circumstances from a misrepresentation perspective. [00:08:11] Speaker 03: It doesn't actually involve a likeness in that particular case. [00:08:14] Speaker 03: It's more of the standard setting bar for which cases in which instances where the board will look beyond the language of what's on an actual campaign propaganda. [00:08:23] Speaker 03: So Midland didn't involve a case of likeness at all. [00:08:26] Speaker 03: There was no allegation in that case relating to that specific issue. [00:08:30] Speaker 03: It's an additional facet here. [00:08:32] Speaker 04: Enterprise did. [00:08:34] Speaker 04: I'm sorry, Your Honor. [00:08:35] Speaker 04: Enterprise did. [00:08:36] Speaker 03: You're correct, Your Honor. [00:08:38] Speaker 04: I thought. [00:08:39] Speaker 03: With that, I'd like to reserve the rest of my time for rebuttal. [00:08:42] Speaker 03: All right. [00:08:43] Speaker 03: Thank you. [00:08:53] Speaker 01: May it please the court, my name is Micah Jost for the NLRB. [00:08:57] Speaker 01: I'd like to begin by emphasizing that the board did not, in fact, resolve credibility or make any credibility determinations at Joint Appendix 138, excuse me, 139. [00:09:06] Speaker 01: The board assumed to be true Perez's representation that she did not support the union, and the board nonetheless found that this was a misrepresentation within the scope of the entire line of Midland cases which we cited. [00:09:20] Speaker 01: None of those cases have ever found the kind of flyer alleged here to be objectionable, either by the board or by this court. [00:09:30] Speaker 01: The exceptions that the company presented to the board did not argue for a new categorical standard, rather they tried to argue the facts, and the facts do not support them. [00:09:43] Speaker 01: I also want to emphasize that alleged forgeries in some sort of underlying document or even on the face of the document itself do not render the document itself, here a flyer, to be a forgery. [00:09:55] Speaker 01: That's the teaching of both this Court's decision in U-Haul and the Board's decision in Champaign Residential Services. [00:10:02] Speaker 01: In both of those cases, it was alleged that there was a forgery on the face of a petition which contained a number of people's signatures, and that document said, we're voting yes, or we support the union. [00:10:15] Speaker 01: And the board said the fact that there may be forged signatures, a few forged signatures, [00:10:22] Speaker 01: misrepresenting the extent of the union's support, that fact doesn't prevent employees from seeing. [00:10:29] Speaker 01: This is a union document, this is union propaganda, and we can treat it as such. [00:10:35] Speaker 01: Perez's affidavit makes clear that even she recognized that that's exactly what was at issue here. [00:10:41] Speaker 01: At Joint Appendix 49, she stated in her affidavit [00:10:44] Speaker 01: that the flyer was, quote, designed to give other employees the impression that a lot of employees supported the union. [00:10:51] Speaker 01: That's exactly right. [00:10:52] Speaker 01: Everyone could see that that's what it did. [00:10:55] Speaker 01: Returning to the actual facts or developing further the facts that were actually alleged here or supported by evidence in the affidavits, [00:11:03] Speaker 01: The employer offered to prove that one employee, April Perez, one of at least three election observers for the company spread across the three election locations. [00:11:14] Speaker 01: They alleged that she gave a union representative permission to photograph her, signed a form that the union rep gave her without reading it, [00:11:22] Speaker 01: And then the union used that photograph along with approximately 80 other employees in a unit of approximately 200 employees, giving the impression that she supported the union along with the others. [00:11:35] Speaker 01: The affidavit from another employee, Heidi Gurley, states that an unspecified number of employees discussed the fact that Perez was on this flyer, and what they said is entirely unspecified. [00:11:49] Speaker 01: Turning to the actual objections that the company made, they objected to a misrepresentation. [00:11:54] Speaker 01: If you look at Joint Appendix 16 and 17, their objections claim that the union attempted to deceive by using a misrepresentation about employees' support for the union and that it is that [00:12:10] Speaker 01: failure to fairly represent the quoted employees' views that represents a violation here. [00:12:16] Speaker 01: That is completely contrary to the unbroken chain of cases. [00:12:21] Speaker 01: In not holding a hearing here and resolving this case based on the inadequate facts and the clear law, the board did not depart from precedent, as the company claims. [00:12:31] Speaker 01: Rather, it applied its longstanding precedent. [00:12:35] Speaker 01: There is nothing in the employer's proffer which would justify departing from that case here. [00:12:40] Speaker 01: certainly there's no basis for departing based on principles that have been discussed in the enterprise case and rejected as a basis for going further. [00:12:51] Speaker 01: The court doesn't have to address the more [00:12:56] Speaker 01: academic or esoteric arguments about what exactly constitutes a prima facie case. [00:13:01] Speaker 01: But I want to note that under automated clothing workers, this court's decision, it is clear that the company's burden was to produce specific evidence which prima facie would warrant setting aside the election. [00:13:14] Speaker 01: There is also language in the swing staging case about, quoting from the board's regulations, which refer to a substantial and material issue of fact. [00:13:24] Speaker 01: And I'd like to note that the Clearwater Transport case from the Seventh Circuit provides what I think is the clearest explanation of the interaction between those two standards. [00:13:34] Speaker 01: The court there explained that material issues of fact only exist [00:13:39] Speaker 01: where the objecting party presents facts that are sufficient to support a prima facie showing of misconduct sufficient to set aside the election. [00:13:47] Speaker 01: So that's how you raise a fact that gets you a hearing before the board. [00:13:51] Speaker 01: And that hearing is intended to resolve matters of credibility and truth and falsity. [00:13:56] Speaker 04: The other side is lurking around something that wasn't raised, Paul, that is whether employees have a right to remain silent about their vote and avoid an allegating enterprise [00:14:06] Speaker 04: that's fooled around with that issue. [00:14:09] Speaker 04: But that's not what was raised below, is your point. [00:14:13] Speaker 01: I think that's right. [00:14:14] Speaker 04: So we're right squarely in Midland. [00:14:16] Speaker 01: We're exactly squarely in Midland, and the company hasn't properly preserved any legal argument for departing, and it hasn't presented any facts that could possibly justify doing so. [00:14:27] Speaker 01: I would be happy to discuss the company's second objection, if there are any questions along those lines. [00:14:35] Speaker 01: But if the court has no further questions, then for the reasons set forth in our brief, we would ask for enforcement in full. [00:14:41] Speaker 01: All right. [00:14:41] Speaker 01: Thank you. [00:14:46] Speaker 03: Council did have a minute remaining. [00:14:51] Speaker 03: Just very quickly, Your Honor, I think that the basis for overturning the election based on the first objection were clear enough to have warrant the petitioner receiving a hearing in this case. [00:15:03] Speaker 03: And really what we're talking about here is not whether or not the conduct presented was sufficient to actually constitute objectionable conduct, because that's not what we're required to show. [00:15:11] Speaker 03: The question is whether or not it was sufficient to get a hearing and have a board hearing. [00:15:15] Speaker 03: And the conduct presented in the affidavit submitted by Ms. [00:15:18] Speaker 03: Perez was more than sufficient to get that hearing. [00:15:22] Speaker 03: If there are no further questions. [00:15:24] Speaker 02: Thank you. [00:15:24] Speaker 02: No further questions. [00:15:25] Speaker 02: Thank you. [00:15:26] Speaker 03: The case will be submitted.