Opinion ID: 543073
Heading Depth: 1
Heading Rank: 1

Heading: District Court Jurisdiction to Enjoin NLRB Proceedings

Text: 3 The NLRB has exclusive jurisdiction to determine the merits of an unfair labor practice complaint under 29 U.S.C. Sec. 160. Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 48, 58 S.Ct. 459, 462, 82 L.Ed. 638 (1938); San Diego Building Trades Council v. Garmon, 359 U.S. 236, 245, 79 S.Ct. 773, 779, 3 L.Ed.2d 775 (1959); NLRB v. Baldwin Locomotive Works, 128 F.2d 39, 44 (3d Cir.1942); Brada Miller Freight Systems, Inc., 16 B.R. 1002, 1010 (N.D.Ala.1981), vacated and remanded on other grounds, 702 F.2d 890 (11th Cir.1983); In re S.T.R. Corp., 66 B.R. 49, 52 (Bankr.N.D.Ohio 1986). 4 At the compliance stage, where backpay liability of a bankrupt employer is about to be determined by the NLRB, the bankruptcy court normally should stay its hand pending an administrative decision. Nathanson v. NLRB, 344 U.S. 25, 30, 73 S.Ct. 80, 83, 97 L.Ed. 23 (1952). 5 It is a general rule that NLRB proceedings are not automatically stayed by bankruptcy and should not be enjoined by a bankruptcy court, absent special circumstances. In re Shippers Interstate Serv. Inc., 618 F.2d 9, 13 (7th Cir.1980); In re Bel Air Chateau Hospital Inc., 611 F.2d 1248, 1250-51 (9th Cir.1979); Seeburg Corp. v. NLRB, 11 B.R. 121 (N.D.Ill.1980); Brada Miller, 16 B.R. at 1012-13; In re S.T.R., 66 B.R. at 51; In re Lakes Drywall, Inc., No. 86-33908 (Bankr.W.D.Wash. May 20, 1987). Those decisions which support a discretionary stay require as a predicate that the NLRB proceedings will threaten estate assets. In re Shippers, supra; In re Bel Air, supra; Seeburg, supra; Brada Miller, supra; In re Lakes Drywall, Inc., supra. The NLRB complaint in this case is directed solely at Horizons and seeks no remedy against the bankrupt estate. The required predicate clearly does not exist. 6 What has already been said may be an adequate reason to affirm. We proceed, however, to address the particular facets of the situation on which Horizons based its contention that an injunction would be appropriate. 7