US court blocks transfer of SpaceX lawsuit against NLRB, for now
By Daniel Wiessner
Aug 12 (Reuters) -SpaceX's challenge to the structure of the National Labor Relations Board will remain in Texas federal court for now, after a U.S. appeals court overturned a decision that would have transferred the rocket maker's lawsuit to California.
A 5th U.S. Circuit Court of Appeals panel in a two-sentence order on Friday vacated a July decision by U.S. District Judge Rolando Olvera refusing to reconsider an earlier ruling transferring the case from his Brownsville, Texas, court to Los Angeles.
The appeals court issued its decision without prejudice, however, citing a related appeal that is still pending. That means the NLRB can again move to transfer the lawsuit to California, where SpaceX is based and the company is facing an administrative board case claiming it illegally fired engineers critical of CEO Elon Musk.
The 5th Circuit is considering SpaceX's separate claims that Olvera improperly failed to rule on the company's request to pause the NLRB case pending the outcome of the lawsuit. The court in May temporarily blocked the board case from proceeding while it considers SpaceX's appeal.
An NLRB spokeswoman declined to comment. SpaceX did not immediately respond to a request for comment.
The lawsuit filed in January was among the first in a growing number of challenges to the NLRB's in-house enforcement proceedings, in which administrative law judges and then the five-member board appointed by the president hear unfair labor practice claims brought by the board's general counsel, who acts as a prosecutor.
SpaceX says that administrative judges and board members are improperly insulated from at-will removal by the U.S. president and that NLRB proceedings violate the separation of powers and the company's right to a jury trial under the U.S. Constitution.
The board is facing similar claims in cases involving Amazon.com, Starbucks, Trader Joe's, pipeline operator Energy Transfer, a Michigan hospital operator, a small Missouri bank, and a film producer, among others.
SpaceX filed a second lawsuit in Texas federal court in April stemming from a separate NLRB complaint accusing the company of forcing laid-off workers to sign severance agreements that include illegal provisions. U.S. District Judge Alan Albright in Waco in July blocked the board case from moving forward pending the outcome of the lawsuit.
The NLRB has said the claims about its structure lack merit and that the companies bringing the challenges are attempting to distract from their violations of federal labor law.
The 5th Circuit panel includes Circuit Judges Jerry Smith and Andrew Oldham, who were appointed by Republican presidents, and Circuit Judge Carl Stewart, an appointee of Democratic former President Bill Clinton.
The case is SpaceX v. NLRB, 5th U.S. Circuit Court of Appeals, No. 24-40315.
For SpaceX: Catherine Eschbach, Harry Johnson and Michael Kenneally of Morgan Lewis & Bockius
For the NLRB: David Boehm
Read more:
SpaceX wins block on US labor board case over severance agreements
SpaceX seeks new Texas venue for challenge to NLRB after 5th Circuit ruling
SpaceX wins temporary block on NLRB case over fired engineers
SpaceX loses bid to keep challenge to NLRB structure in Texas court
NLRB defends 'zealous advocacy' of SpaceX case transfer
SpaceX faces hearing on engineers fired after criticizing Elon Musk over sexism
US judge blocks NLRB case against energy firm challenging agency's structure
US Supreme Court ruling curbing agency powers could hobble labor board
NLRB's Abruzzo hits back at 'low-road' companies challenging agency's structure
Reporting by Daniel Wiessner in Albany, New York
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