Oct 14 (Reuters) - An auto parts maker on Monday urged
the U.S. Supreme Court to block a National Labor Relations Board
administrative case from proceeding against it while the company
pursues claims that the agency's structure violates the U.S.
Constitution.
The emergency application by Yapp USA Automotive Systems,
which is accused of illegally interfering with a union election
at a Michigan plant, marks what is likely the first time the
high court has been asked to consider claims being made in a
mounting number of lawsuits that the NLRB's in-house enforcement
proceedings are illegal.
Yapp asked the Supreme Court to rule on its application by
Tuesday, when the company is scheduled to face a hearing before
an NLRB administrative law judge.
The application will be handled by conservative Justice
Brett Kavanaugh, who oversees requests arising from states
covered by the Cincinnati-based 6th U.S. Circuit Court of
Appeals, including Michigan. Kavanaugh could deny the
application, request additional briefing or refer it to the full
court for further action.
A federal judge in Michigan last month refused to block the
NLRB case against Yapp from proceeding, ruling that the company
was unlikely to prevail on its claims that the board's
administrative judges and its five members are improperly
shielded from at-will removal by the president. Yapp says that
because those officials wield executive power, the U.S.
Constitution requires that they be held accountable to the
president.
Yapp is appealing to the 6th Circuit, which on Sunday denied
the company's motion to stay the administrative case pending the
appeal.
An NLRB spokeswoman and lawyers for Yapp did not immediately
respond to requests for comment.
Nearly 20 other companies including Amazon.com ( AMZN ), Elon Musk's
SpaceX and pipeline operator Energy Transfer ( ET ) have filed similar
lawsuits attacking the NLRB's structure. Three judges in Texas
have temporarily blocked board cases from moving forward, while
at least four judges in other states have refused to do so.
The Texas judges, who are all appointees of Republican
former President Donald Trump, said they were bound by a 2022
5th U.S. Circuit Court of Appeals ruling in Jarkesy v. U.S.
Securities and Exchange Commission that said SEC administrative
judges were unconstitutionally insulated from removal. They said
that SEC judges are comparable to judges at the NLRB.
The Supreme Court affirmed the Jarkesy ruling on other
grounds in June and did not reach the issue of restrictions on
removal.
But the 6th Circuit, which is hearing Yapp's appeal, in a
separate 2022 case upheld removal protections for administrative
judges with the Federal Deposit Insurance Corporation.
U.S. District Judge Laurie Michelson in ruling against Yapp
last month said that the 6th Circuit decision made clear that
administrative judges can be shielded from at-will removal if
they only make non-final recommendations to agencies rather than
issuing final, binding decisions.
The case is Yapp USA Automotive Systems v. NLRB, U.S.
Supreme Court, No. 24A348.
For Yapp: Timothy Garrett of Bass, Berry & Sims; Matthew
Nelson of Warner Norcross + Judd
For the NLRB: Michael Dale
Read more:
US judge rejects auto parts maker's challenge to NLRB
structure
Amazon ( AMZN ) challenges US labor board's structure in lawsuit over
union election
NLRB, Macy's duel over US Supreme Court ruling's impact on
agency powers
US judge unlikely to block NLRB case pending challenge to
agency's powers
SpaceX wins block on US labor board case over severance
agreements
US judge blocks NLRB case against energy firm challenging
agency's structure
NLRB's Abruzzo hits back at 'low-road' companies challenging
agency's structure
SEC in-house judges violate right to jury trial, appeals
court rules
(Reporting by Daniel Wiessner in Albany, New York)