NLRB v. Food Store Employees Union, Local 347 (Heck’s)

Discount-store operator Heck’s Inc. had a history of labor disputes before the National Labor Relations Board (NLRB). When Local 347 of the Food Store Employees Union (the union) (plaintiff) began an organizational campaign for employees of Heck’s Clarksburg, West Virginia store, Heck’s threatened its employees and ultimately refused to recognize and bargain with the union after it won the election. The NLRB found that Heck’s conduct violated the National Labor Relations Act and entered an order directing Heck’s to bargain with the union. Although the union had asked for additional relief including reimbursement of litigation expenses and the union’s excess organizational costs, the NLRB denied the request. The NLRB found that awarding the reimbursement would be punitive instead of remedial and would not effectuate the policies of the act. Following the NLRB’s remedy decision in Heck’s case but before appellate review, the NLRB decided in Tiidee Products, Inc. that reimbursing a union’s litigation expenses was appropriate if an employer had engaged in frivolous litigation. When the appellate court reviewed the Heck’s decision, the court found based on Tiidee that the NLRB had abandoned its policy of declining to award litigation expenses and excess organizational costs. The court held that even though the NLRB had never described the litigation as frivolous, the repeated misconduct by Heck’s had unduly burdened the NLRB and the courts. The court thus ordered Heck’s to reimburse the union’s litigation expenses. The court further held that reimbursement of the union’s organizational costs was appropriate because there was a sufficient nexus between Heck’s misconduct and the additional costs. The United States Supreme Court granted certiorari to determine whether the appellate court had exceeded its authority to modify NLRB orders under the act.