The Volokh Conspiracy
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Ten Thoughts on Starbucks, Corp. v. McKinney
Brief responses based on the second oral argument this morning:
- Starbucks wins.
- The Court will hold, as it should, that the four-factor test should be applied. The general principle here (see Weinberger v. Romero-Barcelo, Nken, e.g.) is that we presume all the traditional principles of equity apply unless there is a clear statement by Congress setting them aside.
- Note that the four factors do not exhaust the equitable considerations (there are maxims, defense, other equitable principles). In Justice Gorsuch's phrase, "the full considerations of equity."
- Note, too, that insisting on the four-factor test does show that equity is a developing tradition. The four-factor test did not exist in 1947. So the logic here has to be: the statute references equity, equity includes the considerations for a preliminary injunction, some of those traditional considerations have been crystallized in the four-factor test, and so courts should use the four-factor test for injunctions under the statute. That is correct: the right approach is not to apply 1947 equity to a 1947 statute, and 1952 equity to a 1952 statute.
- Good recognition that the preliminary injunction is just a "quick look" at the merits (Justice Gorsuch's term) and does not control the eventual determination of the merits.
- The Court should take into account and emphasize what is really the fundamental point of the preliminary injunction, which is preserving the trial court's ability to decide the case. Camenisch is a strong case on this, and it's a theme that doesn't come through in Winter (for reasons specific to the posture of that case)--it's an important theme about the preliminary injunction that the lower courts right now are losing sight of. Relatedly, it actually fits the context of this statute very nicely: the preliminary injunction should be given if needed to preserve the Board's ability to adjudicate the case (which fits with one of Lisa Blatt's answers about irreparable injury).
- Although the justices pressed the Board counsel about the "reasonable probability" formula instead of "likelihood of success on the merits," it's worth noting that both formulas and others have a long pedigree in equity. The latter doesn't start dominating until four-factor tests get developed in the 1970s. And there are actually good arguments for the former, because it reduces the intensity of the merits focus. But as a matter of current Supreme Court doctrine, it's not really tenable to have to this special carve-out of a lower standard for one statute, given the lack of a clear statement to that effect from Congress.
- There was some concern, especially from Justice Jackson, about the importance of the statutory context. Equity has a good way to deal with that. The usual test, and all of the usual principles not found in the test, can be applied, but in applying them, the court should be guided by the policies enacted in the statute. "Equity follows the law" is the maxim that expresses this willingness of the judge applying equitable powers to take cues from the statute.
- Note that "just and proper" is a hendiadys here, and that seems obvious and unobjectionable to everyone. As a hendiadys, it's a fitting way to refer to the traditional equitable analysis.
- There was repeated speculation about whether this will be a short opinion. It should be, and I think it will be. Combining points 2 and 8 in this list would bring together the concerns expressed by all the justices. But as critical guidance for the lower courts about what the preliminary injunction is for, reiteration of points 3, 5, and 6 would be very valuable.
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"preliminary injunction is just a "quick look" at the merits (Justice Gorsuch's term) and does not control the eventual determination of the merits"
Merely theoretical, no? Practice says otherwise, that is why the PI stage is so hotly contested.
That stuck out to me too. And it’s barely even theoretical under Fed. R. Civ. P. 65(a)(2) and state law analogs. In addition to letting the court consolidate the motion hearing with the trial on the merits before or after the hearing, the rule says everything at the hearing is part of the trial record. Kind of a big warning light to everyone that the PI stage is likely the whole case.
For those who don't immediately remember the context for Starbucks v Mckinney, here is the SCOTUSblog page with links to all the filings.
Got me curious as to what a woke company like Starbucks could be in court for that would attract the attention of a quintessential legal bureaucrat. Seems the workers in Memphis tried to unionize, the franchise fired seven of them for the usual trivial excuses that everyone violates every day, the union vote was held and they were a union shop.
* I was surprised that any Starbucks shop would be opposed to a union.
* I was surprised that the management thought firing union organizers before a unionization vote wouldn't attract attention.
* I bet part of he pro-union votes were inspired by the stupidity of firing the organizers.
* I bet the stupidity of firing the organizers is the same stupidity that inspired the unionization drive in the first place.
* Seems like a perfectly cromulent market reaction to stupid management, aside from the stupidity of unions (they can be monopolies, businesses can't; they can quit and the government will force their ex-employers to not hire replacements). Why the NLRB even has to get involved is beyond me, other than burrocrats wanting to throw their weight around.
I think you need to re-read the filings in this case. The seven employees were not fired for "trivial excuses that everyone violates every day". They broke into the store after hours, invited in a camera crew without authorization and even went so far as opening up the safe. All this was caught on security cameras. If that fits your company's definition of "acceptable violations", I want to have a chat with you insurance company about your security policies.
Subsequent to the firings, union protestors drove cars backwards through the drive-thru lane honking their horns. They also threatened the store manager.
Note that even the ALJudge working the case found that Starbucks law-fully terminated two of the employees for “serious” policy violations though he/she did find against Starbucks on the other five (for whom the case is still pending).
Note also that this Starbucks shop did unionize and Starbucks is not contesting that unionization. They are contesting only that they were forced to rehire seven (now five) people who committed serious violations of company policy.
I did not know about the breakins. I try not to read legal filings. All I had read of was dress code violations, and should have been more suspicious of what the media reports.
To Democrats, committing crimes is a prerequisite, not a disqualifier.
a woke company like Starbucks could be in court for that would attract the attention of a quintessential legal bureaucrat.
For fuck's sake not everything is some culture war bullshit.
The facts don't much matter at all, at this stage. It is about the fundamental standard for a preliminary injunction on Article III courts when come at via the ACA:
"The case here involves administrative proceedings under the National Labor Relations Act. Under the statutory framework, the NLRB files an administrative complaint, which launches an agency proceeding before an administrative law judge, whose decision is subject to review by the NLRB and then, in due course, in the federal courts of appeals. While those proceedings go forward, the NLRB can seek immediate relief by asking a federal district court to grant a preliminary injunction under Section 10(j) of the NLRA."
...
"The legal question for the justices is crisp and easy to explain. Specifically, how hard should it be for the NLRB to get an injunction in a case like this one? The statute doesn’t say much, it simply provides that the court should grant “such temporary relief … as it deems just and proper.” For its part, Starbucks points to a traditional four-part test courts have developed for deciding when to issue preliminary injunctions (sometimes called the Winter test). "
...
"Starbucks contends that the NLRB’s test, applied by the lower courts here, is much more lenient, because it considers only two factors, whether the NLRB can show “reasonable cause” to believe that unfair labor practices have occurred and that injunctive relief is “just and proper.” That might sound so vague as to be basically the same as the four-part test, but it is not. Most importantly, the reasonable cause standard...requires considerable deference to the NLRB, which need show only “some evidence” and a “not frivolous” legal theory, with all factual and legal uncertainty being resolved in favor of the NLRB’s administrative expertise."
https://www.scotusblog.com/2024/04/court-to-mull-injunction-in-starbucks-case-against-memphis-union-organizers/
Not the most exciting partisan issue, but it has it's charms. Yelling about wokeness isn't one of them though.
That's what upsets you? I'll guess that the actual factual errors noted by Rossami don't concern you, only someone noting wokeness.
Yes, I'm upset at your jerking knee, yeah. It has no place in this discussion and yet here it is jerking around.
And you jerk the knee for insults to wokeness.
That's some deep thinking there.
Saying don't bring partisan nonsense into every discussion is not actually a defense of partisan nonsense on the other side.
Good lord, man, is everything just dichromatic in your world?
It seems like a pretty simple issue to me.
If the statute provides that the court should grant “such temporary relief … as it deems just and proper[,]” does that statutory language provide a different standard for an injunction? Or is it simply (re)-stating that the court can grant a preliminary injunction, with the usual standards.
Regardless of how you feel about the outcome of the issue, the issue itself seems fairly simple in terms of framing.
Well, first, because I never took remedies, can you statutorily change the court's standard to grant an injunction?
If there is a separation of powers issue there, then Constitutional avoidance mitigates towards Starbucks as well.
If not, then how vague would imply they're incorporating existing legal standards, presumably realizing they can change.
I don't know how much I buy Bray's reliance on equitable principles but that may just because I don't understand them enough.
A friend who works at NLRB told me that the outcome actually doesn't matter that much either.
Yeah, there doesn't seem to be much practical difference in the two different standards Circuit Courts were using.
a woke company like Starbucks
Starbucks is a business...a big business. Any wokeness they exhibit in public is just PR aimed at their customer base. At the end of the day they're a profit-driven entity, and unions are bad for the bottom line.
"Just and Proper" is not a hendiadys.
Guven the current pro-business composition of the Court, I would be very surprised if Starbucks didn't win. For one thing, it is absurd to have different standards for these NLRB injunctions depending on which circuit the case is in. I can't believe the proposition that there should be a lower standard for the government to get a preliminary injunction than a private party is a proposition this Court would remotely entertain. Though the government seems to argue the two-prong test used by the 6th Circuit (and some others) is not really a lower standard than the traditional four-part test for PIs used in some other circuits, I believe the facts suggest otherwise.
The four factor test (especially the reasonable probability of success on the merits) has turned the preliminary injunction stage into a contest on the merits. This has dragged out the stage into full considerations of the legal merits and generally decides the case in many of these issues. It also led to "administrative stays" as essentially a "preliminary preliminary injunction."
I would also argue the Supreme Court is of significant blame here. Courts used to just try to balance the equities and determine whether granting a preliminary injunction or not would minimize irreparable harm. It wasn't a fight over who would win, but what would be the best status quo until then. But the current test has thrown all that out the window. Gorsuch might reasonably want to dial it back, but it's a problem of the Court's own making.
I want to hear from Bored Lawyer, he is the Equity guy here, to me (along with Loki13).
Am I the only one who thinks we have had more than enough hendiadi around here lately?
Can I "flag" this comment as hilarious?