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- Subject: AMERICAN HOSPITAL ASSN. v. NLRB, Syllabus
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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as
- is being done in connection with this case, at the time the opinion is
- issued. The syllabus constitutes no part of the opinion of the Court but
- has been prepared by the Reporter of Decisions for the convenience of the
- reader. See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
- SUPREME COURT OF THE UNITED STATES
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- Syllabus
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- AMERICAN HOSPITAL ASSOCIATION v. NATIONAL LABOR RELATIONS BOARD et al.
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- certiorari to the united states court of appeals for the seventh circuit
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- No. 90-97. Argued February 25, 1991 -- Decided April 23, 1991
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- The National Labor Relations Board has promulgated a rule providing that,
- with exceptions for, inter alia, cases presenting "extraordinary
- circumstances," eight, and only eight, defined employee units are
- appropriate for collective bargaining in acute care hospitals. Petitioner,
- American Hospital Association, brought this action challenging the rule's
- facial validity on the grounds that (1) MDRV 9(b) of the National Labor
- Relations Act (NLRA) requires the Board to make a separate bargaining unit
- determination "in each case" and therefore prohibits the Board from using
- general rules to define bargaining units; (2) the rule violates a
- congressional admonition to the Board to avoid the undue proliferation of
- bargaining units in the health care industry; and (3) the rule is arbitrary
- and capricious. The District Court agreed with petitioner's second
- argument and enjoined the rule's enforcement, but the Court of Appeals
- found no merit in any of the three arguments and reversed.
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- Held: The Board's rule is not facially invalid. Pp. 2-13.
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- (a) The Board's broad rulemaking powers under MDRV 6 of the NLRA
- authorize the rule and are not limited by MDRV 9(b)'s mandate that the
- Board decide the appropriate bargaining unit "in each case." Contrary to
- petitioner's reading, the clear and more natural meaning of the "in each
- case" requirement is simply to indicate that whenever there is a
- disagreement between employers and employees about the appropriateness of a
- bargaining unit, the Board shall resolve the dispute. In doing so, the
- Board is entitled to rely on rules that it has developed to resolve certain
- issues of general applicability. See, e. g., United States v. Storer
- Broadcasting Co., 351 U. S. 192, 205. The rule at issue does not differ
- significantly from the Board's many prior rules establishing general
- principles for the adjudication of bargaining unit disputes. This
- interpretation is reinforced by the NLRA's structure and policy. Nor is
- petitioner aided by MDRV 9(b)'s sparse legislative history. Even if any
- ambiguity could be found in MDRV 9(b) after application of the traditional
- tools of statutory construction, this Court would still defer to the
- Board's reasonable interpretation of the statutory text. Pp. 2-7.
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- (b) The rule is not rendered invalid by the admonition, contained in
- congressional Reports accompanying the 1974 extension of NLRA coverage to
- all acute care hospitals, that the Board should give "[d]ue consideration .
- . . to preventing proliferation of bargaining units in the health care
- industry." The argument that the admonition -- when coupled with Congress'
- 1973 rejection of a bill that would have placed a general limit of five on
- the number of hospital bargaining units -- evinces an intent to emphasize
- the importance of MDRV 9(b)'s "in each case" requirement is no more
- persuasive than petitioner's reliance on MDRV 9(b) itself. Moreover, even
- if this Court accepted petitioner's further suggestion that the admonition
- is an authoritative statement of what Congress intended by the 1974
- legislation, the admonition must be read to express the desire that the
- Board consider the special problems that proliferation might create in
- acute care hospitals. An examination of the rulemaking record reveals that
- the Board gave extensive consideration to this very issue. In any event,
- the admonition is best understood as a congressional warning to the Board,
- and Congress is free to fashion a remedy for noncompliance if it believes
- that the Board has not given "due consideration" to the problem of
- proliferation in this industry. Pp. 8-10.
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- (c) The rule is not, as petitioner contends, arbitrary and capricious
- because it ignores critical differences among the many acute care hospitals
- in the country. The Board's conclusion that, absent extraordinary
- circumstances, such hospitals do not differ in substantial, significant
- ways relating to the appropriateness of units was based on a "reasoned
- analysis" of an extensive rulemaking record and on the Board's years of
- experience in the adjudication of health care cases. Pp. 10-12.
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- 899 F. 2d 651, affirmed.
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- Stevens, J., delivered the opinion for a unanimous Court.
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