Hernandez v. Afscme Cal.
Hernandez v. Afscme Cal.
Opinion of the Court
Nine employees of the State of California brought this putative class action against various affiliates of the American Federation of State, County, and Municipal Employees ("AFSCME") (collectively "the union defendants"), various officials of the State of California, the Public Transportation Services Corporation, and the Los Angeles County Metropolitan Transportation Authority. Plaintiffs allege that these defendants have unconstitutionally compelled payments from plaintiffs to the union defendants and that they have not allowed public employees to resign their union membership. The union defendants move for partial dismissal of plaintiffs' complaint. (Docket No. 70.)
I. Background
Plaintiffs are employees of the state of California who reside throughout the state, and an AFSCME affiliate represents each plaintiff as their exclusive collective bargaining representative. (Second Am. Compl. ("SAC") ¶¶ 3-16 & 27-34 (Docket No. 67).) Every plaintiff except for Emin Gharibian became a member of their respective AFSCME affiliate. (See id. ¶ 39.)
Prior to the Supreme Court's decision in Janus v. American Federation of State, County, & Municipal Employees, --- U.S. ----,
In the wake of the Supreme Court's decision in Janus, plaintiffs filed this representative action challenging various practices connected with defendants' collection of union dues and agency fees. The union defendants request that this court dismiss (1) the American Federation of State, County, and Municipal Employees ("AFSCME International")
II. Motion to Dismiss
A. Plaintiffs' Refund Claim
Plaintiffs' complaint alleges, inter alia, that plaintiffs and putative class members are entitled to a full refund of all agency fees, or the equivalent amount in union dues, paid to the union defendants before Janus. (SAC ¶ 44.)
For the purposes of this order, the court assumes without deciding that Janus is entitled to full retroactive effect. See Harper v. Virginia Dep't of Taxation,
Plaintiffs bring their claim for refund under
However, the union defendants argue that that they are not liable because they relied in good faith on existing law that authorized the collection of agency fees. At the hearing on this motion, plaintiffs' counsel agreed in part, conceding that the union defendants' good-faith reliance bars any legal claim for damages. This court concurs. The Ninth Circuit has held that private parties may be entitled to a good-faith defense to a claim under Section 1983 where they "did [their] best follow the law and had no reason to suspect that there would be a constitutional challenge to [their] actions." See Clement v. City of Glendale,
Faced with this good-faith defense, plaintiffs seek to avoid it by characterizing their demand for a refund as an equitable claim for restitution rather than a legal claim for damages. (See SAC ¶ 141.) They argue that defenses like qualified immunity and good faith are categorically inapplicable to claims for equitable relief. See Wood v. Strickland,
First, plaintiffs cannot simply plead around defenses by labeling the proposed remedy as equitable rather than legal. Instead, this court must look to "the substance of the remedy sought rather than the label placed on that remedy." Depot, Inc. v. Caring for Montanans, Inc.,
Plaintiffs do not allege that the union defendants intentionally comingled agency fees with general funds to avoid claims for restitution. Further, unions dissipated any agency fees on nontraceable items. See Montanile,
Second, the court would reach the same conclusion in a suit in equity. "The essence of equity jurisdiction" is that federal courts have the flexibility "to mould each decree to the necessities of the particular case." Hecht Co. v. Bowles,
*1306Lemon v. Kurtzman,
The reliance interests here are quite compelling. The union defendants relied on Supreme Court precedent and a state statute that explicitly authorized the challenged practice. See
Moreover, these plaintiffs presumably received some benefits from the fees they paid, through the representation provided by the unions. While the Supreme Court held in Janus that those benefits could not withstand First Amendment scrutiny, the majority did not deny the fact that nonunion members received such benefits. See
Nevertheless, plaintiffs argue that a defendant is never allowed to enrich itself by keeping property it took in violation of another's constitutional rights. See, e.g., United States v. Windsor,
Accordingly, the court will dismiss plaintiffs' claim for a refund in the amount of agency fees paid prior to Janus.
B. Plaintiff Timothy Porter's Claims
Plaintiff Timothy Porter is employed by the Public Transportation Services Corporation and is a member of AFSCME Local 3634. (SAC ¶¶ 35, 39.) Since the Supreme Court issued its ruling in Janus, Porter has pondered whether to resign his union membership and is concerned that he will be forced to continue to pay union dues after he relinquishes his membership. (Id. ¶ 120.) He is also worried that he will lose his "classification seniority" if he quits the union. (Id. ¶ 134.) On June 27, 2018, he *1307informed his employer that he had not signed a union card or opted into fees, and asked whether dues would be taken from his paycheck. (Id. ¶ 121.) Porter's employer told him to contact his union. (Id. ¶ 122.) Porter wishes, however, to terminate payroll deductions immediately upon resigning his union membership. (Id. ¶ 123.) He seeks a declaratory judgment that California Government Code §§ 1152 and 1157.12(b) are unconstitutional, as well as an injunction against their enforcement, because they allegedly prevent him from halting payroll deductions unless and until the union instructs his employer to do so. (Id. ¶¶ 123, 125.) The union defendants contend that these claims fail because Porter lacks Article III standing.
Under Article III of the U.S. Constitution, the judicial power is limited to "Cases" and "Controversies." That a plaintiff must have standing to sue is "rooted in the traditional understanding of a case or controversy." Spokeo, Inc. v. Robins, --- U.S. ----,
Porter argues that he has standing to seek declaratory and injunctive relief because the challenged provisions of the California Government Code prevent him from instructing his employer to terminate payroll deductions. This alleged harm by itself is insufficient to confer standing. Even if Porter has a right to instruct his employer to terminate payroll deductions, Porter would not satisfy Article III's injury-in-fact requirement with an injury "divorced from any concrete harm." See Spokeo, 136 S. Ct. at 1549 ; see also Bassett v. ABM Parking Servs., Inc.,
To the extent Porter believes that the union defendants would not honor his request to discontinue dues payments once he resigns, that injury is too speculative to confer standing. Porter has not asked Local 3634 whether dues payments would be halted immediately if he resigns. Until he does so and receives an answer that they would not be, this court cannot conclude that any threatened harm from continued dues payments after resignation *1308is "certainly impending," and thus imminent for the purposes of Article III standing. See Clapper,
Accordingly, Porter does not have standing to bring his claims for declaratory and injunctive relief.
IT IS THEREFORE ORDERED THAT the union defendants' Partial Motion to Dismiss (Docket No. 70) be, and the same hereby is, GRANTED IN PART as follows:
1. Plaintiffs' claims against AFSCME International are DISMISSED WITH PREJUDICE;
2. Plaintiffs' claim for the refund of agency fees, or the equivalent portion in union dues, paid prior to Janus is DISMISSED WITH PREJUDICE; and
3. Plaintiff Timothy Porter's claims for declaratory and injunctive relief are DISMISSED for LACK OF STANDING.
The union defendants argue that the SAC makes no factual allegations of wrongdoing against AFSCME International. Plaintiffs do not oppose dismissal of AFSCME International, admitting that they named this defendant "out of an abundance of caution." (Resp. to Mot. to Dismiss ("Resp.") at 26 (Docket No. 76).) Accordingly, the court will dismiss AFSCME International from this action.
Even though these cases are in the context of ERISA, the Supreme Court has acknowledged that ERISA's reference to equitable relief refers to "what equitable relief was typically available in premerger equity courts." See Montanile, 136 S. Ct. at 657 (citation omitted); see also id. at 658 (relying on "standard equity treatises" to identify whether the proposed remedy was equitable or legal).
While the opinion in Janus referred to this money as a "considerable windfall," it did not "appear to contemplate the 'windfall' being disgorged, nor the potential that some unions might face an existential threat from lawsuits such as the present one." See Mooney v. Ill. Educ. Ass'n,
Reference
- Full Case Name
- Liliana HERNANDEZ, Miranda Alexander, Natasha Joffe, Maria Isabel Holtrop, Marco Fekrat, Emin Gharibian, Rohit Sharma, Hector Arroyo, and Timothy Porter, on behalf of themselves and others similarly situated v. AFSCME CALIFORNIA American Federation of State, County, and Municipal Employees AFSCME Local 3299, AFSCME Local 2620, and AFSCME Local 3634, as individual and as representatives of the class of all chapters and affiliates of the American Federation of State, County, and Municipal Employees Xavier Becerra, in his official capacity as Attorney General of the State of California Adria Jenkins-Jones, in her official capacity as Acting Director of the California Department of Human Resources Ralph Diaz, in his official capacity as Acting Secretary of the California Department of Corrections and Rehabilitation Betty Yee, in her official capacity as State Controller of California Public Transportation Services Corporation Los Angeles County Metropolitan Transportation Authority
- Cited By
- 8 cases
- Status
- Published