8/20/09 - Oral Argument & Case Management Hearing
Plaintiffs represented by Kelly Flood & Andrew Jacob
Defendant represented by Nicholas Grannath & Lucas Middlebrook
The Court immediately questioned USAPA counsel Grannath regarding how close the company and USAPA were to a CBA since the defendant had argued that the injunction could impair negotiations and possibly a labor settlement in its motion. Grannath responded that negotiations were slow due to the limited schedule and mediator availability. He said that there was “substantial work to be done.â€
Grannath also stated that USAPA categorically denies that it intends to negotiate separate CBA’s for East and West. He continues to assert that the injunction casts a “pall†over negotiations. The Court expressed the feeling that the “cloud†over negotiations exists due to the judgment, not the injunction.
Grannath stated that the company was unwilling to expedite negotiations. What was not specifically said, but danced around, was whether the company’s unwillingness to expedite negotiations was simply to cause the negotiations to go long enough for a resolution of the case, including appeals.
The Court did express concern about the practicality of lifting the injunction in light of the vehemence of the arguments made by USAPA post-trial and during the final portions of the trial itself.
The plaintiffs agreed with the Court’s reading of events and the current position of the case.
The Court took the Motion for Stay under advisement, but left a distinct impression that the motion would be denied.
On the issues of the scheduling of further proceedings both sides agreed that the current trial date of January is unworkable under the present circumstances, namely the pendency of the appeal. However they differed on how to proceed.
The plaintiffs need to still file an Amended Complaint and it will be filed by the end of August. The defendant stated that it intends to file a Rule 12( b )(6) motion to dismiss the complaint once it is amended.
The Court stated that while the rush is off this case because the injunction has issued and that the case should be placed on a closer to normal schedule, the case should not go inactive for an extended period of time. The Court did feel it appropriate to not schedule any proceedings while counsel was working on the drafting of the appeal.
USAPA argued that the Court should take the approach that trial court did in the Ramey case where the trial court in that case held off on all further proceedings during the pendency of the appeal. The Court said that the filing of an interlocutory appeal is not a reason to suspend all litigation. However, as has been stated, the Court was openly discussing suspending any proceedings during the time when counsel would be actively preparing appellate briefs.
After some further short discussion the Court set the following deadlines:
Plaintiffs’ Amended Complaint to be filed by 8/31/09
Plaintiffs’ Motion for Attorneys Fees to be supplemented by 8/31/09
Defendant’s Rule 12( b )(6) Motion to Dismiss to be filed by 10/23/09
Plaintiffs’ Response to the 12( b )(6) motion due approximately 11/10/09
No oral argument is being set on the Rule 12( b )(6) motion. The Court indicated that it will probably not require oral argument, but it would request one if it was felt that the filed documents left any question(s) in its mind.
The question of ongoing discovery was discussed. The Plaintiffs wanted ongoing, but slow, discovery to continue around counsels’ schedules during the next four months. However the Defendant opposed that in part because of the appeal, but also because of issue of legal fees and costs. The Court primarily agreed with the Defendant and ordered discovery to not begin until after it decides the Rule 12( b )(6) motion, which will be mid-November at least and because of the oral argument and the holidays likely means no discovery will be due until January 2010.
The parties than discussed the Plaintiffs motion for attorneys’ fees and the legal theory of recovery. The Plaintiffs contend that the questions will be questions of law, not of fact and therefore the Plaintiffs do not expect that an evidentiary hearing will be required to decide the over-riding questions. The Court was somewhat skeptical that there would not need to be an evidentiary hearing, but decided that the Defendant would need to respond to that by 10/26/09 and that if the Defendant made a substantial argument that an evidentiary hearing would be required that the schedule would be modified.