NFIB Advocates for Small Business Owners in Two Major Court Cases

February 2, 2023

The cases involve the right to arbitrate and recover for property damages during unionized strikes

NFIB Advocates for Small Business Owners in Two Major Court Cases

Across the country, the NFIB Small Business Legal Center is involved in dozens of court cases to protect the rights of small businesses. In January, there was movement in two of the Legal Center’s cases—one involving the right to settle disputes through arbitration and one involving the right to sue labor unions for intentional destruction of employer property.

Coinbase v Abraham Bielski

On Jan. 27, the Small Business Legal Center filed an amicus brief before the U.S. Supreme Court, disagreeing with the decision made by the Ninth Circuit. The lower court’s decision held that if a trial court denies a motion to compel arbitration and the filing party appeals, the filing party must simultaneously litigate the case before the trial court and litigate the arbitration appeal before the Court of Appeals. In other words, the party that filed for arbitration would be forced to argue two cases at the same time in front of two different courts. “Small businesses benefit from arbitration as an alternative to litigation, as arbitration allows owners to resolve disputes promptly and efficiently,” said Small Business Legal Center Executive Director Beth Milito. “Arbitration is often used by small business owners because it is a more cost-effective option compared to costly litigation. We are hopeful that the Supreme Court will agree and reverse the lower court’s ruling.”

Glacier Northwest, Inc. v International Brotherhood of Teamsters

On Jan. 10, the U.S. Supreme Court heard oral arguments in a case where NFIB previously filed an amicus brief. This case originated when employees from a building company, Glacier Northwest, went on strike after negotiations over a new union contract hit a stalemate. Because of the strike, Glacier lost 16 loads of concrete that was already loaded into the trucks when the strike was called. Glacier sued The International Brotherhood of Teamsters over the wasted concrete, but the Washington Supreme Court concluded that the National Labor Relations Act (NLRA) preempts suits of this nature. Glacier has now asked the Supreme Court to reverse the Washington Supreme Court’s harmful decision. NFIB’s brief argues that the NLRA does not preempt suits similar to this one, and the Supreme Court’s precedent is clear that the NLRA does not immunize unions from the intentional destruction of an employer’s property. NFIB filed the brief with seven different trade associations. “This decision could create a significant imbalance of power between unions and employers and would leave small business owners with no course of action should their property be destroyed,” said Beth Milito. “NFIB urges the Supreme Court to adhere to its previous precedents and protect small businesses across the nation.”

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Topics:

Legal

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More