Heartland Plymouth Court MI, LLC v. National Labor Relations Board
D.C. Cir.9/30/2016
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United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT Decided September 30, 2016 No. 15-1034 HEARTLAND PLYMOUTH COURT MI, LLC, DOING BUSINESS AS HEARTLAND HEALTH CARE CENTER - PLYMOUTH COURT, PETITIONER/CROSS-RESPONDENT v. NATIONAL LABOR RELATIONS BOARD, RESPONDENT/CROSS-PETITIONER Consolidated with No. 15-1045 On Petitionerâs Motion for Attorney Fees Charles P. Roberts III, Constangy, Brooks, Smith & Prophete LLP, argued the case for Petitioner/Cross-Respondent. With him on the briefs was Clifford H. Nelson, Jr., Attorney. Paul A. Thomas, Trial Attorney, Contempt, Compliance, and Special Litigation Branch, National Labor Relations Board, argued the cause for Respondent/Cross-Petitioner. With him on the briefs were Dawn L. Goldstein, Deputy Assistant General Counsel and David H. Mori, Supervisory Attorney. 2 Before: BROWN and MILLETT, Circuit Judges, and GINSBURG, Senior Circuit Judge. Opinion for the Court filed by Circuit Judge BROWN. Dissenting opinion filed by Circuit Judge MILLETT. BROWN, Circuit Judge: Heartland Plymouth Court MI, LLC (âHeartlandâ) successfully petitioned this Court to review an Order of the National Labor Relations Board (âthe Boardâ or âNLRBâ). The Order found Heartland violated its collective-bargaining agreement by failing to bargain over the effects of reducing employee hours. In granting the petition, we also denied the Boardâs cross-application to enforce its Order. Neither outcome was a surprise. As we explained in our Judgment, and as this Court had explained over a decade earlier, we possess a âfundamental and long-running disagreementâ with the Board over âwhether an employer has violated section 8(a)(5) of the National Labor Relations Act [NLRA] when it refuses to bargain with its union over a subject allegedly contained in a collective[-]bargaining agreement.â See Enloe Med. Ctr. v. NLRB, 433 F.3d 834, 835 (D.C. Cir. 2005). Facts may be stubborn things, but the Boardâs longstanding ânonacquiescenceâ towards the law of any circuit diverging from the Boardâs preferred national labor policy takes obduracy to a new level. As this case shows, what the Board proffers as a sophisticated tool towards national uniformity can just as easily be an instrument of oppression, allowing the government to tell its citizens: âWe donât care what the law says, if you want to beat us, you will have to fight us.â Emphasizing the real-world consequences of forcing parties to waste time and resources litigating, Heartland moves 3 here for an award of attorney fees. In response, the Board provided a sweepingâand startlingâdefense of its nonacquiescence policy. The Board said it would be justified in refusing to apply the law of any circuit. The Boardâs logic makes no exception for the scenario in Heartlandâs case, where the Board knew that it would end up in a circuit with adverse law. Nor does the Board reject nonacquiescence when any presentation would be a putschâi.e., when no circuit at all supports the Boardâs legal position. See NLRB Atty Fee Resp. Br. at 13 & n.8. Because the Boardâs actions go beyond whatever limited justification nonacquiescence may have, we agree with Heartland that the Board is guilty of bad faith, grant Heartlandâs motion for attorney fees, and award it $17,649.00. I. Factual Summary Our Judgment already details the facts giving rise to the Boardâs NLRA suit against Heartland, and we need not repeat them here. See Dkt. No. 1611466 (hereinafter âJudgmentâ). For purposes of nomenclature, however, it is worth noting the Boardâs suit was predicated upon its view that the employerâs refusal to bargain on a matter allegedly within a collective-bargaining agreement requires a âclear and unmistakableâ waiver. Our precedent, in contrast, consistently rejects that view; considering the contents of a collective-bargaining agreement is a question of âcontract coverage.â This difference will manifest itself in the Boardâs conduct before our Court, which informs Heartlandâs motion for attorney fees. Heartland first appealed the Boardâs adverse Order to our Court in 2013. See Case No. 13-1227. Due to the Supreme Courtâs pending decision in NLRB v. Noel Canning, 134 S. Ct. 4 2550 (2014), Heartlandâs appeal was held in abeyance. When the Supreme Court found the recess appointments of two Board members unconstitutional, the Board set aside its Order against Heartland, and moved to dismiss Heartlandâs appeal. We granted the Boardâs motion; the Board reassigned Heartlandâs case to a new panelânow properly comprised of Senate-confirmed Board membersâand readopted its prior Order. See JA 533â34. Unsurprisingly, Heartland appealed the Order here again. The Board, too, knew that this was Heartlandâs second appeal to the D.C. Circuit. See NLRB Merits Br. Cert. as to Parties, Rulings, and Related Cases (âThe ruling under review has previously been before the Court.â); NLRB Atty Fee Resp. Br. at 4 (âOn January 29, 2015, a panel of the reconstituted Board issued a new Decision and Order incorporating its earlier decision by reference.â) (emphasis added). Given our well-established âcontract coverageâ precedent, Heartlandâs second appeal was pre-ordained. 1 1 Indeed, our rejection of the Boardâs âclear and unmistakableâ waiver policy dates back more than two decades. See NLRB v. U.S. Postal Serv., 8 F.3d 832 (D.C. Cir. 1993). In Postal Service, we explained why âthe âcovered byâ and âwaiverâ inquiries are analytically distinct: A waiver occurs when a union knowingly and voluntarily relinquishes its right to bargain about a matter; but where the matter is covered by the [contract], the union has exercised its bargaining right and the question of waiver is irrelevant.â Id. at 836; see also Regal Cinemas, Inc. v. NLRB, 317 F.3d 300, 312 (D.C. Cir. 2003). Despite the Boardâs insistence that its âclear and unmistakableâ waiver analysis âhas been approved by the Supreme Court,â see NLRB Atty Fee Resp. Br. at 10, there is no conflict between the Supreme Courtâs pronouncements and ours. Both Metro. Edison Co. v. NLRB, 460 U.S. 693 (1983) and Mastro Plastics Corp. v. NLRB, 350 U.S. 270 (1956) recognize that the question of contractual coverage, one of contractual interpretation, is antecedent to the waiver question. See 460 U.S. at 706â10; 350 5 Accordingly, Heartlandâs petition was granted, and the Boardâs cross-petition to enforce its Order denied, in an unpublished Judgment without oral argument. See FED. R. APP. 34(a)(2); D.C. CIR. R. 34(j); D.C. CIR. R. 36(d). As we said, â[t]he Boardâs refusal to adhere to our precedent dooms its decision before this court.â Judgment at 2. While our Court previously recognized the Boardâs right of nonacquiescence, see Enloe, 433 F.3d at 838, we did so with a certain end in mind. See Judgment at 2. Namely, we presumed the Board would recognize a stalemate with our case law, one resolvable by seeking certiorari to the Supreme Court. See Enloe, 433 F.3d at 838. In this case, the Board neither confessed the error of the Order against Heartland under our law, nor sought to preserve its argument against our precedent for certiorari (or even en banc reconsideration). The Board did not seek a transfer to the Sixth Circuit either. The Sixth Circuit embraces the Boardâs âclear and unmistakableâ waiver policy. See, e.g., U.S. at 279 (âThe answer turns upon the proper interpretation of the particular contract before us.â). Curiously enough, the Board used to recognize this. See, e.g., Bath Marine Draftsmenâs Assân v. NLRB, 475 F.3d 14, 22 (1st Cir. 2007) (âAt times, however, the Board has determined, without much explanation, that the dispute was solely one of contract interpretation and that it was not compelled to endorse either of the[] two equally plausible interpretations.â) (internal quotation marks omitted). By collapsing the contractual coverage question with the waiver questionâas the Boardâs approach doesââan artificially high burdenâ is imposed on the employer. See Enloe, 433 F.3d at 837; cf. Depât of Navy v. FLRA, 962 F.2d 48, 57 (D.C. Cir. 1992) (âThe result . . . is the addition of a novel âspecificityâ requirement to the . . . âcovered byâ testâi.e., unless the [contract] specifically addresses the precise matter at issue, then that matter is not âcovered byâ the agreement . . . .â). 6 Beverly Health and Rehab. Servs., Inc. v. NLRB, 297 F.3d 468, 480 (6th Cir. 2002). Further, Michigan, covered by the Sixth Circuit, is where Heartlandâs operations exist and where the conduct underlying the Boardâs dispute occurred. See Judgment at 1â2. It is thus the only other jurisdiction in which the NLRA permits an appeal on these facts. See 29 U.S.C. § 160(f) (permitting petitions to review the Boardâs decisions to be filed âin the circuit wherein the unfair labor practice in question was alleged to have been engaged in or wherein [any aggrieved] person resides or transacts business, or in the United States Court of Appeals for the District of Columbiaâ). 2 In lieu of its legitimate options, the Board chose obstinacy. The Board cross-petitioned our Court to enforce its Order. In its responsive brief, the Board spent several pages asking us to uphold its âclear and unmistakableâ waiver policy here. See NLRB Merits Br. at 17â20. Our adverse precedent made only a cameo appearance, where the Board spent a few sentences on an illusory distinction. See id. at 21â 22 (stating Enloe does not apply â[b]ecause the effects of the change in hours are not matters that were covered by the partiesâ agreement,â so, to the Board, âthe contract coverage doctrine does not play a roleâ). The Boardâs tactics forced Heartland to waste resources in replying. See Heartland Merits Reply Br. at 2â3, 8â10. Given the Boardâs behavior, it is little wonder that when Heartland moved for attorney fees, it sought fees under both 2 The fact that Heartlandâs parent company âtransacts businessâ outside the Sixth Circuit is irrelevant. See, e.g., Ballyâs Park Place, Inc. v. NLRB, 546 F.3d 318, 320 (5th Cir. 2008) (noting this view among multiple circuits, holding âa parent corporation who is not a named party in the NLRBâs final order may not seek review in the court of appeals because the parent corporation is not an âaggrieved partyâ under the Actâ). 7 the ânot-substantially-justifiedâ and âbad faithâ provisions of the Equal Access to Justice Act. See 28 U.S.C. § 2412(b) (allowing âbad faithâ attorney fee awards against the United States government); § 2412(d)(1)(A) (allowing attorney fee awards against the United States government âunless the court finds . . . the position of the United States was substantially justified . . . .â). 3 Though Heartland also argues for attorney fees related to the Boardâs conduct at the administrative level, our award applies only to the Boardâs conduct before our Court. Replying to Heartlandâs motion, the Board referenced its general policy of flouting any circuitâs NLRA interpretation with which the Board disagreesâa policy described colloquially as ânonacquiescence.â The Boardâs rationale for nonacquiescence is two-fold: (1) the NLRAâs multi-venue provision, see 29 U.S.C. § 160(f), renders the Board clueless as to what circuit will govern the enforcement of its orders on appeal; and (2) the Boardâs âuniform and nationwideâ jurisdiction over labor policy gives it the right to disagree with any circuit, whenever it wants. See NLRB Atty Fee Resp. Br. at 13â14. The Board ignores the fact that these two rationales invoke different forms of nonacquiescence. But, the breadth of the Boardâs argument reveals the first reason is largely delusory. The second reasonâa species of nonacquiescence known as âintracircuit nonacquiescenceââprovides the Boardâs overarching rationale. The Board thinks its right to disagree extends beyond preferring one circuitâs position to another in a split, but also includes âstak[ing] out its own position contraryâ to any circuit. See id. at 13. The Board 3 As we find that the Boardâs conduct before our Court warrants an attorney fee award for bad faith, we do not address whether Heartland is also entitled to attorney fees under the ânot-substantially-justifiedâ provision. 8 identifies no limit to its nonacquiescence. Neither the Boardâs abusive tactics nor the extremism asserted in opposition to Heartlandâs motion for attorney fees are justified. II. The Propriety of Nonacquiescence We begin first with the goal of nonacquiescence, as stated by the Board itself over sixty years ago: to âachieve[]â âa uniform and orderly administration of a national act, such as the [NLRA].â See Ins. Agents Intâl Union, 119 NLRB 768, 773 (1957). By âdetermin[ing]â âwhether to acquiesce in the contrary views of a circuit court of appeals or whether, with due deference to the courtâs opinion, to adhere to its previous holding until the Supreme Court . . . has ruled otherwise,â id. (emphasis added), the Board claims to ensure a nationally uniform labor policy. Understood in the most charitable light, not acquiescing to a given circuitâs diverging legal interpretation until the Supreme Court has the last word puts two roles in harmonyâthe Boardâs role of national say in what labor law should be, and âthe judicial department[âs]â âemphatic[]â âprovince and duty . . . to say what the law is.â Marbury v. Madison, 5 U.S. (1 Cranch) 137, 177 (1803). Our approval of nonacquiescence presumed its stated virtue: opposing adverse circuit decisions permits the Board to bring national labor law questions to Supreme Court resolution. See, e.g., Enloe, 433 F.3d at 838 (âThe Board is, of course, always free to seek certiorari.â); Yellow Taxi Co. v. NLRB, 721 F.2d 366, 385 (D.C. Cir. 1983) (Wright, J., concurring) (observing, in our circuitâs first embrace of nonacquiescence, it would be âunwiseâ to oppose it, âparticularly in light of the instances in which positions taken by the Board were first repeatedly rejected by a large number 9 of circuits, then accepted by others, and later accepted by the Supreme Courtâ). Indeed, when our Court discussed different forms of agency nonacquiescence in Johnson v. United States Railroad Retirement Board., 969 F.2d 1082 (D.C. Cir. 1992), it predicated the methodâs acceptability upon the agency redressing a circuitâs conflicting interpretation, not defying it ad infinitum. See id. at 1092 (âWhen an agency honestly believes a circuit court has misinterpreted the law, there are two places it can go to correct the error: Congress or the Supreme Court.â). To that end, nonacquiescence allows for an issueâs âpercolationâ among the circuits; generating a circuit split that can improve the likelihood of certiorari being granted. See id. at 1093; see also id. at 1097 (Buckley, J., concurring in part and dissenting in part) (âCatching Congressâs ear . . . is more easily said than done; and given the huge volume of petitions for certiorari that flood the Supreme Court, it is often [more] necessary to establish a split among the circuits before the Court will examine [the] issue.â); see also SUPREME CT. R. 10(a) (Noting circuit splits as indicative of âthe reasons the Court considersâ to grant certiorari). But, nonacquiescence is justifiable only as a means to judicial finality, not agency aggrandizement. As we said in Johnson, nonacquiescence is divorced from its purpose when an agency asserts it with no stated intention of seeking certiorari. 4 See 969 F.2d at 1092. 4 The seminal academic discussion of agency nonacquiescence adds an important point to the insistence on seeking Supreme Court review: Of course, agencies generally cannot directly petition the Supreme Court but must obtain the clearance of the Solicitor General, . . . . We do not mean to authorize 10 Achieving judicial finality through national uniformity requires nonacquiescence to rest on certain conditions. First, as explained above, any nonacquiescence depends upon the agency actually seeking Supreme Court review of adverse decisions. 5 Second, nonacquiescence requires candor in its application. See Estreicher & Revesz, Nonacquiescence, supra n.4, at 755. The agency should clearly assert its nonacquiescence, specifying its arguments against adverse precedent to preserve them for Supreme Court review. These two conditions characterize proper nonacquiescence. In cases where the appeal implicates a statuteâs multi-venue provision, the reviewing Court must assess a third judicial review of the delicate negotiations and deliberative processes that inform the Solicitor Generalâs decision whether or not to petition for certiorari. Nevertheless, the government cannot defend continued nonacquiescence without seeking Supreme Court intervention merely because it has chosen to divide petitioning authority in this way. Samuel Estreicher & Richard Revesz, Nonacquiescence by Federal Administrative Agencies, 98 YALE L.J. 679, 756â57 (1989) (emphasis added). 5 An agency may also petition a circuit to reconsider its adverse precedent via en banc review, but this is subject to even more limits. If there is little or no reason for the agency to conclude the circuit is open to revisiting its precedentâas is the case where a precedent has been reaffirmed multiple timesâthe agency should not irritate the Court with an en banc rehearing petition. Cf. FED. R. APP. P. 35(a)(1). 11 condition: venue uncertainty. When an agencyâs assertion of venue uncertainty is plausible on the facts and proper nonacquiescence is otherwise pursued, the agency acts in good faith. But, when an agencyâs assertion of venue uncertainty is implausible on the facts, the situation is no different than intracircuit nonacquiescenceâwhere the agencyâs conduct would constitute bad faith if its nonacquiescence is not clearly asserted and accompanied by a preservation of arguments for Supreme Court or en banc review. Cf. Johnson, 969 F.2d at 1091â92 (rejecting the agencyâs assertion of nonacquiescence when â[t]here [was], of course, some venue uncertainty under the . . . statute . . . . But the Board has never attempted to invoke venue uncertainty to justify its actions, and it seems to be asserting a right of nonacquiescence in its most sweeping sense.â). Given the facts here, this third condition requires some elaboration. Intracircuit nonacquiescence is not the same as refusing to apply an adverse circuitâs law due to the underlying statuteâs multi-venue provision. For example, when a party appeals an adverse NLRB order under the NLRA, the statute provides the appealing party with multiple venue options. See 29 U.S.C. § 160(f). This uncertainty means, in some circumstances, the Board may have issued its order âwithout knowing which circuit court ultimately will review its actions.â Johnson, 969 F.2d at 1091. In those circumstances, the Boardâs nonacquiescence to an adverse circuitâs law is a function of ignorance, not defiance. There are, however, multiple instances when an agencyâs assertion of venue uncertainty is implausible, i.e., it knows that its order will be subjected to an adverse circuitâs law on appeal. Estreicher & Revesz point out two examples: (1) when âall courts of proper venue have adopted positions contrary to the agencyâs policyâ; and (2) when an order has been issued by an 12 agency on remand from an adverse circuit court which retained jurisdiction over the action. See Estreicher & Revesz, Nonacquiescence, supra n.4, at 687 & n.34. In these cases, any nonacquiescence is necessarily intentional and, thus, of the intracircuit variety. These are just âexample[s],â however, see id. at 687, and there are others. When a caseâs facts result in only two venue choices for the party appealing the adverse order, and one circuitâs precedent is in agreement with the agencyâs legal interpretation while the other is adverse to it, the agency knows any appeal will be to the adverse circuit. See Ithaca Coll. v. NLRB, 623 F.2d 224, 227 (2d Cir. 1980) (âCertainly the College was not going to seek review in the D.C. Circuit when it had a favorable precedent in the Second Circuit.â). Furthermore, âfor [NLRB] purposes, which circuitâs law should apply is readily ascertainableâ when it cross-petitions to enforce its order before an adverse court, instead of invoking its transfer rights to enforce the order in a favorable venue. Cf. Donald L. Dotson & Charles M. Williamson, NLRB v. The Courts: The Need for an Acquiescence Policy at the NLRB, 22 WAKE FOREST L. REV. 739, 739 n.1 (1987) (noting the âBoardâs [historic] policy [was] to seek enforcement of its orders in the circuit in which the unfair labor practice arose. Therefore, for Board purposes, which circuitâs law . . . is readily ascertainableâ). Under any of these scenarios, the multi-venue provision provides no plausible stumbling block to the agency knowing where it will have to defend its order. In any event, venue uncertainty cannot license improper nonacquiescence. Nothing about venue uncertainty excuses: (1) a less-than-candid representation of the agencyâs disagreement with adverse circuit law; (2) the failure to indicate the preservation of opposing arguments for Supreme Court review; or (3) the failure to seek certiorari of adverse decisions to achieve a national resolution. Letting the mere 13 possibility of venue uncertainty excuse those conditions not only makes nonacquiescence unboundedâit also would be a failure. Distinguishing, case-by-case, plausible venue uncertainty from intracircuit nonacquiescence is critical to avoid ânonacquiescence in its most sweeping sense,â i.e., a form divorced from the end of judicial finality and the requirement of candor. See Johnson, 969 F.2d at 1091â92; see also NLRB v. Ashkenazy Prop. Mgmt. Corp., 817 F.2d 74, 75 (9th Cir. 1987) (âAny future act of ânonacquiescenceâ should be dealt with by this court in the specific context in which it occurs so that we may address the agencyâs particular violation of the rule of law and fashion a remedy that is appropriate in light of all of the relevant circumstances.â). Unfortunately, the NLRBâs history with nonacquiescence reveals âits primary goal is . . . to see its interpretation of the federal labor laws prevail in as many cases as possible, rather than to change contrary law in particular circuits or . . . serve as a percolator for the Supreme Court.â See Ross E. Davies, Remedial Nonacquiescence, 89 IOWA L. REV. 65, 100 (2003); cf. NLRB v. Gibson Prods. Co., 494 F.2d 762, 766 (5th Cir. 1974) (âIt is apparent from the foregoing chronology of this case that the Board, disagreeing with [the Supreme Courtâs] requirement of contemporary necessity for a bargaining order in second category cases, has simply sought to avoid it . . . .â). Indeed, in the only instances we can find where the NLRB ever addressed the âcontract coverageâââclear and unmistakableâ circuit split before the Supreme Court, the Board was opposing certiorari. None of the reasons the Board set forth in these briefs would prohibit seeking certiorari in an appropriate case. 6 Moreover, we are unmoved by the coincidence of the 6 See NLRB Br. in Opposition to Petition for a Writ of Certiorari, Road Sprinkler Fitters Local Union No. 699, etc. v. âAutomaticâ Sprinkler Corp. of Am., No. 97-1249, 1998 WL 3112646, pp.12â13 14 Board opposing certiorari in cases where certiorari was denied. See Davies, Remedial Nonacquiescence, 89 IOWA L. REV. at 78 & n.43 (citing a 1997 letter from the acting NLRB solicitor to the clerk of the Fourth Circuit, which described the Boardâs âenviable record in the Supreme Courtâ as âpersuasive evidence that the Board has exercised good judgment in deciding when it is appropriate to continue to insist that intermediate courts have overstepped their authorityâ in disagreeing with the Board). After all, there is a difference between theory and practice. See id. at n.45 (noting that, as of the articleâs 2003 publication, â[t]he Board has not been the prevailing party on the merits in a case before the Supreme Court since 1996.â). It is difficult to see the Boardâs steadfast refusal to seek certiorari on the âcontract coverageâ question as something other than an evasion of finality in the name of hegemony. (opposing the Courtâs review of this circuit split because â[t]he [circuit] courtâs broader interpretation of the subcontracting clause does not, therefore, appear to turn on the legal standard,â and â[i]n any event, the court of appealsâ opinion can be readâ to render the Section 8(a)(5) issue irrelevant); NLRB Br. in Opposition to Petition for a Writ of Certiorari, General Power Comp. v. NLRB, No. 99-419, 1999 WL 33640169, pp. 13â14 & n.8 (rejecting Supreme Court review because the petitioner was âjurisdictionally barredâ from raising the contract coverage issue, âthe Union did not relinquish its bargaining rightsâ âin any event,â and âprior Board decisions that have applied [the] âcontract analysisââ that result in âany inconsistencyâ âshould [be] resolve[d]â by the Board ârather than this Courtâ); NLRB Br. in Opposition to Petition for a Writ of Certiorari, Rochester Gas and Elec. Corp. v. NLRB, No. 12-1178, 2013 WL 3959892, pp. 16â17 (âAlthough certain aspects of Enloeâs analysis are in tension with the court of appealsâ analysis here, Enloe does not support the per se rule that petitioner advocates . . . . Certiorari therefore is not warranted . . . .â). 15 As a former NLRB Chairman and Chief Counsel, respectively, explained: In fact, rather than promoting uniformity, the Boardâs policy of nonacquiescence has fostered a bifurcated system in which litigants willing to pursue their case to the appellate level are able to avoid [the] Board[âs] orders. Thus, the Boardâs policy has had the effect of needlessly protracting litigation, establishing a two-tiered system of labor law in the same jurisdiction, encouraging disrespect for [the] Board[âs] orders, and antagonizing the courts . . . Even worse, it compels litigants to expend resources in litigating cases in which it is clear that the appropriate circuit will not enforce the Boardâs order. Dotson & Williamson, NLRB v. The Courts, 22 WAKE FOREST L. REV. at 745 (emphasis added). Our Court shares these concerns. We noted in Johnson that nonacquiescence allows agencies to work their will on not only the courts, but on the American people too. See 969 F.2d at 1092 (âThe Board, in the end, can hardly defend its policy of selective nonacquiescence by invoking national uniformity. The policy has precisely the opposite effect, since it results in very different treatment for those who seek and who do not seek judicial review.â). For these reasons, and others, our sister circuits have spilled much ink admonishing the NLRBâs nonacquiescence. See id. at 1091 (âIntracircuit nonacquiescence has been condemned by almost every circuit court of appeals that has confronted it.â); Dotson & Williamson, NLRB v. The Courts, 22 WAKE FOREST L. REV. at 739â40 n.3 (finding instances of circuit courts rejecting the Boardâs nonacquiescence dating 16 back as early as 1953). We also think âthe Board should reconsider its single-minded pursuit of its policy goals without regard for the supervisory role of the Third Branch.â See, e.g., Glenmark Assocs. Inc. v. NLRB, 147 F.3d 333, 339 n.8 (4th Cir. 1998). In Yellow Taxi, we warned the NLRB that sweeping nonacquiescence âmay . . . require[] [us] to secure adherence to the rule of law by measures more direct than refusing to enforce its orders.â 721 F.2d at 383. At least one other circuit has already awarded attorney fees against the NLRB for relitigating, via nonacquiescence, an issue the Court already decided. See Enerhaul, Inc. v. NLRB, 710 F.2d 748, 751 (11th Cir. 1983). More than a decade ago, we told the NLRB that our positions on the âcontract coverageâ analysis were âstalematedâ absent the Board seeking certiorari. See Enloe, 433 F.3d at 838. Not only has the Board refused to do so over the ensuing decade, its theory in support of nonacquiescence grows even more sweeping. In short, as we said of the Rail Road Retirement Board in Johnson: âAfter ten years of percolation, it is time for the Board to smell the coffee.â 969 F.2d at 1093. III. The Boardâs Nonacquiescence Against Heartland Amounts To Bad Faith The legal dispute in Heartlandâs case demonstrates persistent nonacquiescence without either candor or the pursuit of judicial finality. As we mentioned, our âcontract coverageâ case law has diverged from the Boardâs âclear and unmistakableâ waiver policy for almost a quarter century. Now, seven of the twelve geographic circuits take a side in that 17 debate. 7 With a split engulfing most circuits, there is no serious argument for nonacquiescence in the name of percolation. Cf. Johnson, 969 F.2d at 1093 (âBut now that three circuits have rejected the Boardâs position, and not one has accepted it, further resistance would show contempt for the rule of law.â); id. at 1097 (Buckley, J., concurring in part and dissenting in part) (â[G]iven the huge volume of petitions for certiorari that flood the Supreme Court, it is often necessary to establish a split among the circuits before the Court will examine an issueâ) (emphasis added). And yet here, the Board gave us no indication at all that it intends to seek certiorari of any adverse ruling, or en banc reconsideration of our precedent. Indeed, the Board did not even invoke nonacquiescence by name until it replied to Heartlandâs motion for attorney fees. Worse still, the Boardâs lack of candor is evident in its handling of our âcontract coverageâ precedent. Rather than confess the error of its Order against Heartland under our law, the Boardâs merits brief, in relevant part, urges us to embrace the âreasonablenessâ of its âclear and unmistakableâ waiver analysis. See NLRB Merits Br. at 17â20. Then, as a brief aside, it pretends there is no conflict between its Order and our law. See id. at 21 (â[B]ecause the effects in the change in hours are not matters that were covered by the partiesâ agreement, the contract coverage doctrine does not play a 7 Compare Bath Marine Draftsmenâs Assân, 475 F.3d at 25 (â[W]e adopt the District of Columbia Circuitâs contract coverage test . . . .â); U.S. Postal Serv., 8 F.3d at 836 (same); Chicago Tribune Co. v. NLRB, 974 F.2d 933 (7th Cir. 1992) (same) with Local Union 36, Intâl Bhd. of Elec. Workers AFL-CIO v. NLRB, 706 F.3d 81 (2d Cir. 2013) (âclear and unmistakableâ waiver); Local Joint Exec. Bd. of Las Vegas v. NLRB, 540 F.3d 1072 (9th Cir. 2008) (same); Beverly Health and Rehab Servs., Inc., 297 F.3d at 481â82 (same); Capitol Steel & Iron Co. v. NLRB, 89 F.3d 692 (10th Cir. 1996) (same). 18 roleâ). The Boardâs reasoning is nonsensical because, if a subject is not covered by a contract, then the contract certainly does not clearly and unmistakably waive bargaining over that matter. â[D]isguis[ing] its disagreement by means of a disingenuous distinction of adverse circuit precedentâ is yet another indication of improper nonacquiescence. See Estreicher & Revesz, Nonacquiescence, supra n.4, at 755. On these facts, nothing about the NLRAâs multi-venue provision sanitizes the Boardâs eleventh-hour nonacquiescence plea. The Board knew ruling against Heartland would prompt an appeal to our circuit. Why? It already did. Recall that Heartland previously appealed the same ruling to our Court before the case was held in abeyance due to Noel Canning. See NLRB Merits Br. Cert. as to Parties, Rulings, and Related Cases (âThe ruling under review has previously been before the Court.â). When the Board readopted its prior Order against Heartlandâwith the only material difference being that the Board panel was now comprised of Senate-confirmed membersâit had every reason to think Heartland would appeal here again. For another matter, Heartlandâs appellate options were twofold: (1) our circuit, to which it previously appealed the same substantive Order and which has favorable law; or (2) the Sixth Circuit, which embraces the Boardâs âclear and unmistakableâ waiver policy. There is no reason to think Heartland would seek appellate review in a circuit where it would almost certainly lose. See Ithaca Coll., 623 F.2d at 227 (âCertainly the College was not going to seek review in the D.C. Circuit when it had a favorable precedent in the Second Circuit.â). On these facts, it requires a willful suspension of disbelief to think: (1) Heartland would not appeal again; and (2) would not appeal again here. 19 If the Board did not want to sacrifice its Order against Heartland or defend nonacquiescence before us, it still had a viable option: transfer the case to the Sixth Circuit. As we noted above, the facts favored a transfer, and the Boardâs Order would have almost assuredly been enforced in that jurisdiction. The Sixth Circuit accepts the Boardâs âclear and unmistakableâ waiver position; the NLRA allows the Sixth Circuit jurisdiction over Heartlandâs appeal; Heartlandâs operations are within the Sixth Circuit; and the underlying conduct took place within the Sixth Circuit. 8 Instead, the Board cross-petitioned for enforcement here. This was punitive. The Board chose to put its Order on a suicide mission with our precedent simply to lock horns with Heartland. The Board was the perpetrator here, not venue uncertainty. 9 8 If the Board moved for enforcement in the Sixth Circuit first, 28 U.S.C. § 2112(a)(1) and (5) would have allowed the Board to file a motion to transfer venue once Heartland filed its petition for review here. Alternatively, the Board could have moved to transfer venue after Heartland filed here, regardless of whether the Board had filed in the Sixth Circuit first. See Eastern Air Lines, Inc. v. Civil Aeronautics Bd., 354 F.2d 507, 510 (D.C. Cir. 1965) (âWithout regard to the authority provided by 28 U.S.C. § 2112, a court of appeals having venue may exercise an inherent discretionary power to transfer the proceeding to another circuit in the interest of justice and sound judicial administration.â); see also 28 U.S.C. § 2112(a)(5) (âFor the convenience of the parties in the interest of justice, the court in which the record is filed may thereafter transfer all the proceedings with respect to that order to any other court of appeals.â). 9 Perhaps Heartland could have moved for summary disposition at the appealâs outset, see D.C. Circuit Handbook of Practice & Internal Procedures, § VIII.G, but this does not absolve the Board from paying Heartlandâs attorney fees. âSummary reversal is rarely granted,â id., and requires establishing that âno benefit will be gained from further briefing and argument of the issues presented,â Taxpayers Watchdog, Inc. v. Stanley, 819 F.2d 294, 298 (D.C. Cir. 20 There is one other indication that venue uncertainty is not the real reason behind the Boardâs behavior. The Boardâs response to Heartlandâs attorney fee motion offers an extreme and unbounded view of nonacquiescence. This position, combined with the Boardâs conduct on the merits, embraces the following nonacquiescence standard: the Board can employ nonacquiescence: (1) without ever saying so to the Court until after judgment is entered; (2) without ever seeking certiorari to resolve the disputed issue; (3) even when it knows what law will apply in advance of the appeal; and (4) even when every circuit in the country disagrees with it. See NLRB Atty Fee Resp. Br. at 13â14. In sum, the Boardâs candor-free approach to nonacquiescence asks this Court to let the Board do what no private litigant ever could: make legal contentions not warranted by existing law and supported by no argument 1987). To meet this standard, Heartland would have had to do more than just file the two-page Petition for Review and the three-page Statement of Issues it filed to appeal here; it would have had to file a full-fledged brief in support of its motion for summary reversal, while likely still filing the Petition and Issues Statement in the alternative. Then, when the Board filed its inevitable response, Heartland would presumably file a reply brief. It is not at all clear this motions practice would have meaningfully reduced Heartlandâs attorney fees. Moreover, Heartlandâs argument for attorney fees is not a rejection of the Boardâs right to properly engage in nonacquiescence. See, e.g., Heartland Reply Br. in Support of Mot. for Atty Fees, at 3â4. Had the Board replied to Heartlandâs motion for summary dismissal with an indication that it was preserving its argument against our precedent for Supreme Court review or en banc reconsideration, it is not clear this would be a case where âno benefit will be gained from further briefing and argument on the issues presented,â Stanley, 819 F.2d at 298. In short, even if Heartland did not make perfect litigation choices, only the Board made choices in bad faith. 21 for modifying, reversing, or establishing new law. This is intolerable. See, e.g., FED. R. CIV. P. 11(b)(2). We are under no obligation to bless the desire of âfederal agencies [to] be subject to no law at allâas, indeed, it appears [the NLRB] believe[s] to be the case.â See U.S. Depât of Energy v. FLRA, 106 F.3d 1158, 1164â67 (4th Cir. 1997) (Luttig, J., concurring). Had Heartlandâs case been one where the Board carefully applied nonacquiescence towards national uniformity, it would have proceeded differently. Where, as here, the Board âassert[s] a right of nonacquiescence in its most sweeping sense,â and where its âsincerityâ towards national uniformity is doubtful on the caseâs facts, the theoretical possibility of âsome venue uncertaintyâ is rendered an implausible justification. See Johnson, 969 F.2d at 1091â 92. Taken together, the Boardâs conduct before our Court makes out a clear case of bad faith litigation. The standard for an award of attorney fees for bad faith is met âwhere the party receiving the award has been the victim of unwarranted, oppressive, or vexatious conduct on the part of his opponent and has been forced to sue to enforce a plain legal right.â Am. Hosp. Assân v. Sullivan, 938 F.2d 216, 222 (D.C. Cir. 1991). Contrary to the out-of-circuit cases the Board cites, â[t]his principle is no less applicableâ to conduct occurring within litigation itself. Id. To be sure, â[b]ad faith by a litigant is serious business, and the standard for finding it is, appropriately, âstringent.ââ Id. at 223 (D.H. Ginsburg, J., dissenting). But the Boardâs conduct before us manifests a stubborn refusal to recognize any law. The Boardâs obstinacy forced Heartland to waste time and resources fighting for a freedom the Board knew our precedent would provide. The Board did nothing to employ permissible nonacquiescence; it just saved the concept as a 22 post-hoc rationalization in case Heartland had the temerity to ask us not to make it pay for the Boardâs hubris. And worse, when it did finally mention nonacquiescence in response to Heartlandâs attorney fee motion, the Board proposed an exasperatingly expansive rationale. It is clear enough that the Boardâs conduct was intended to send a chilling message to Heartland, as well as others caught in the Boardâs crosshairs: âEven if we think you will win, we will still make you pay.â This roguish form of nonacquiescence assures the Boardâs gambit is virtually cost-freeâthe Board either enjoys the fruits of a settlement, or it dares a party to employ âthe money and power [needed] to pay for and survive the process of fighting with an agency through its administrative processes and into the federal courts of appeals.â Davies, Remedial Nonacquiescence, 89 IOWA L. REV. at 79. With seeking certiorari or en banc reconsideration in its hands, the Board can decide it is worth losing a few battles to still win the war. The Board can thus continue its adherence to the âclear and unmistakableâ waiver policy without the Supreme Court ever telling it to stop, even with the occasional defeat in an adverse circuit. This bald attempt at a litigation advantage is bad faith. See Sullivan, 938 F.2d at 222; cf. id. at 223â24 (D.H. Ginsburg, J., dissenting) (arguing against a finding of bad faith because, unlike here, âI am aware of no reason for believing that the Secretary thought or could reasonably have thought he would gain any advantageâ from perpetuating confusion about the law and âchillingâ private parties âin the assertion of their rightsâ). A few words in response to our dissenting colleague. The dissent acknowledges the propriety of awarding Heartland fees based on the Boardâs âfailure to candidly acknowledge binding circuit precedent in its answering brief and for pressing only a 23 gossamer-thin argument for distinguishing Enloe.â Dissent Op. 8. We also agree that âan agencyâs persistent defiance of uniform and settled circuit precedent could ignite a separation-of-powers firestorm.â See id. at 1. The Board should take note of these conclusions. We are at a loss to understand, however, how either of these conclusions is consistent with the rest of the dissent. If the Boardâs reply brief merits a fee award, was it not âthumbing its nose at settled decisional law?â But see id. at 1. If âHeartland had to file a petition for judicial review in this circuit,â id. at 4, where else could the Board expect to be? But see id. As the Board cross-petitioned to enforce its own Order hereâasking us to bless its âclear and unmistakableâ waiver policy in the processâdid it not do more than simply âlitigat[e] [Heartlandâs] appeal?â But see id. at 3. Is the Boardâs refusal to seek certiorari on the âcontract coverageâ issue, even after it has percolated among the circuits, something other than âpersistent defianceâ of judicial finality? But see id. at 1. The Boardâs entire litigation conduct before us consisted of: (1) a reply brief that every member of this Panel finds susceptible to the bad faith label; (2) a cross-petition the Board knew our precedent would not permit, but would force Heartland to respond; and (3) labeling all of this ânonacquiescenceâ only after the fact, and with the most sweeping logic. The bad faith speaks for itself. Granting Heartlandâs motion for attorney fees âserve[s] the dual purpose of vindicating judicial authority . . . and making the prevailing party whole for expenses caused by his opponentâs obstinacy.â See Chambers v. NASCO, Inc., 501 U.S. 32, 46 (1991). We recognize the Boardâs unimpeded access to the public fisc means these modest fees can be dismissed as chump change. But money does not explain the Boardâs bad faith; âthe pleasure of being above the restâ does. 24 See C.S. Lewis, MERE CHRISTIANITY 122 (Harper Collins 2001). Let the word go forth: for however much the judiciary has emboldened the administrative state, we âsay what the law is.â Marbury, 5 U.S. (1 Cranch) at 177. In other words, administrative hubris does not get the last word under our Constitution. And citizens can count on it. IV. For the foregoing reasons, we grant Heartlandâs motion for attorney fees and award it $17,649.00 for the Boardâs bad faith litigation. So ordered. MILLETT, Circuit Judge, dissenting: I certainly understand my colleaguesâ concern that an agencyâs persistent defiance of uniform and settled circuit precedent could ignite a separation-of-powers firestorm. But this case is nothing like that, and I strongly disagree that a bad-faith award of all the fees that Heartland incurred in this appeal is warranted. Awarding fees for bad faith is an exceptional sanction that should only be employed âwhen extraordinary circumstances or dominating reasons of fairness so demand.â Nepera Chem., Inc. v. Sea-Land Serv., Inc., 794 F.2d 688, 702 (D.C. Cir. 1986). The standards for bad faith âare necessarily stringent,â Lipsig v. National Student Mktg. Corp., 663 F.2d 178, 180 (D.C. Cir. 1980) (quotation marks and citation omitted), requiring a factual finding that âthe losing party has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.â Alyeska Pipeline Serv. Co. v. Wilderness Socây, 421 U.S. 240, 258 (1975) (internal quotation marks omitted). Moreover, â[b]ecause inherent powersâ like an attorneysâ fees sanction for bad faith âare shielded from direct democratic concerns, they must be exercised with restraint and discretion.â Roadway Exp., Inc. v. Piper, 447 U.S. 752, 764 (1980). That especially demanding standard is not met in this case, for four reasons. First, for all of the majority opinionâs concerns about an agency thumbing its nose at settled decisional law, this case involves an issue on which there is an inter-circuit conflict and on which the Boardâs position accords with the majority view. Compare Local Union 36, Intâl Bhd. of Elec. Workers, AFL-CIO v. NLRB, 706 F.3d 73, 81â82 (2d Cir. 2013) (adopting the Boardâs âclear and unmistakable waiverâ test); Local Joint Exec. Bd. of Las Vegas v. NLRB, 540 F.3d 1072, 1079â1080 & n.11 (9th Cir. 2008) (same); Beverly Health & Rehab. Servs., Inc. v. NLRB, 297 F.3d 468, 481-482 (6th Cir. 2 2002) (same); Capitol Steel & Iron Co. v. NLRB, 89 F.3d 692, 697 (10th Cir. 1996) (same), with Bath Marine Draftsmenâs Assân v. NLRB, 475 F.3d 14, 25 (1st Cir. 2007) (adopting contract-coverage rule); NLRB v. United States Postal Serv., 8 F.3d 832, 836 (D.C. Cir. 1993) (same); Chicago Tribune Co. v. NLRB, 974 F.2d 933, 937 (7th Cir. 1992) (same). See also Mississippi Power Co. v. NLRB, 284 F.3d 605, 612â613 (5th Cir. 2002) (describing the competing standards). So there has been no âputschâ here (Majority Op. 3). This case, by its terms, does not implicate at all the majority opinionâs concerns about a Board refusal to acquiesce in the face of uniformly adverse circuit precedent. To be sure, the Board discussed a potentially sweeping realm for non- acquiescence in its brief. See NLRB Oppân to Mot. for Attây Fees at 13. But the bad faith for which we can authorize fees must have occurred in the Boardâs actual conduct of its appellate litigation in the case at hand, not in a later overstatement in its opposition to attorneysâ fees concerning hypothetical facts not before us. Second, the last time the Board was before this court on this very same issue, this court unanimously assured the Board that it had âevery rightâ to ârefuse[] to acquiesce in our analysisâ of when and under what circumstances the terms of a collective bargaining agreement may discharge an employerâs collective-bargaining duties. Enloe Med. Ctr. v. NLRB, 433 F.3d 834, 838 (D.C. Cir. 2005). See generally, e.g., Independent Petroleum Assân v. Babbitt, 92 F.3d 1248, 1261 (D.C. Cir. 1996) (â[I]ntercircuit nonacquiescence is permissible, especially when the law is unsettled.â); American Tel. & Tel. Co. v. FCC, 978 F.2d 727, 737 (D.C. Cir. 1992) (acknowledging the agencyâs âright to refuse to acquiesce in one (or more) court of appealsâ interpretation of its statuteâ); Johnson v. United States R.R. Ret. Bd., 969 F.2d 1082, 1093 3 (D.C. Cir. 1992) (noting the general right of an agency to engage in inter-circuit nonacquiescence, at least where its position has not been rejected by every circuit to address the question). The Board should not be labeled a âbad faithâ actor for taking this court at its word and litigating the appeal at all, which is what the comprehensive award of attorneysâ fees for the entire appeal does. In particular, I see nothing remotely approaching bad faith in requiring Heartland to file its petition for review and to prosecute its appeal by filing either an opening brief or, easier still, a motion for summary reversal, see D.C. Cir. Handbook of Practice and Internal Procedures VII.G. 1 That is because Heartland is located within the jurisdiction of the Sixth Circuit, and the law of that circuit is on all fours with the Boardâs âclear and unmistakable waiverâ rule. See, e.g., Beverly Health, 297 F.3d at 480 (âA management-rights clause is a waiver of the unionâs right to bargain over [mandatory subjects].â); id. (âA union can waive its statutory right to bargain [in a collective bargaining agreement], but such a waiver must be âclear and unmistakable.ââ) (quoting Metropolitan Edison Co. v. NLRB, 460 U.S. 693, 708 (1983)); Uforma/Shelby Bus. Forms, Inc. v. NLRB, 111 F.3d 1284, 1290 (6th Cir. 1997) (similar). Accordingly, as the majority opinion acknowledges (at 5â6, 19), there was nothing remotely bad faith about the Boardâs application and enforcement of its âclear and unmistakable waiverâ rule in the agency proceedings. And 1 See also Cascade Broad. Grp. v. FCC, 822 F.2d 1172, 1174 (D.C. Cir. 1987) (per curiam) (âWe take this occasion to inform the bar that henceforth we will treat motions for summary disposition in appeals and petitions for review of agency action as we treat such motions in appeals from judgments of the district court.â). 4 given the Boardâs decision, Heartland was destined to lose unless and until it sought judicial review in this circuit rather than the Sixth Circuit. Had the Board filed first in the Sixth Circuit, Heartlandâs petition for review would have been doomed. In short, having lost before the Board in a proceeding that quite properly applied the âclear and unmistakable waiverâ rule, Heartland had to file a petition for judicial review in this circuit and had to affirmatively prosecute its appeal by filing an opening brief or motion for summary disposition raising the contract-coverage issue to have a legal leg to stand on. I do not understand how it could be bad faith for the Board to require that Heartland do so. The majority opinion says (at 18) that the Board should have known the case was destined for this circuit after remand, and thus apparently should have given up before Heartland even filed its petition. But as the circuit conflict attests, plenty of losing litigants before the Board have chosen to litigate in their home jurisdictions long after this court first adopted the âcontract coverageâ rule in 1993, see United States Postal Service, supra, and even after our reaffirmation of that rule in Enloe in 2005, see Bath Marine, supra, Local Union 36, supra, and Local Joint Exec. Bd., supra. Moreover, this court did not retain jurisdiction after granting the Boardâs motion to dismiss the case in the wake of NLRB v. Noel Canning, 134 S. Ct. 2550 (2014). See Heartland Plymouth Court MI, LLC v. NLRB, No. 13-1227 (D.C. Cir. Aug. 26, 2014). There thus was no guarantee that the second round of review would land here just because the first one did. Compare Starbucks Corp. v. NLRB, No. 09-1273 (D.C. Cir. Aug. 19, 2010) (dismissing petition for review on Board motion to reconsider in light of New Process Steel v. NLRB, 560 U.S. 674 (2010)), with NLRB v. Starbucks Corp., 679 F.3d 70 (2d Cir. 2012) (second petition for review filed in and adjudicated by the Second Circuit). 5 To be sure, the Board could have beaten Heartland to the punch by petitioning the Sixth Circuit for enforcement or moving to transfer the case to the Sixth Circuit. But the Boardâs failure to deprive an employer of its chosen forum for review or to forgo imposing on the employer the additional costs of litigating a transfer motion cannot by itself meet the âstringentâ requirement for bad faith, Nepera Chem., 794 F.2d at 702. Third, the majority opinion (at 17) decries the Boardâs failure to have sought certiorari to resolve the circuit conflict in an earlier case. But, again, the question is whether the Board litigated this appeal in bad faith, not whether it should have taken an additional procedural step in some other case. Sanctioning the Board for failing to seek certiorari is doubly inappropriate because the questions of whether and when Supreme Court review should be sought to eliminate the conflict and establish a single, uniform federal rule rest exclusively with the Solicitor General in the Department of Justice and not with the Board. 28 U.S.C. § 518(a); see also 28 C.F.R. § 0.20 (Solicitor General is assigned duty of â[c]onducting, or assigning and supervising, all Supreme Court cases, including * * * petitions for and in opposition to certiorariâ). Surely we cannot sanction as âbad faithâ the Boardâs failure to make a decision Congress has said it cannot make. It also bears noting that cases in which the Board ends up at loggerheads with this courtâs contract-coverage rule do not appear to arise with significant frequency. Since we first adopted the contract-coverage rule for Board cases in 1993 in United States Postal Serv., only Enloe and this case have arisen in which the Board found itself directly at odds with circuit precedent. That is only two cases in 23 years. The Board, moreover, has won more than it has lost in circuit 6 court decisions generally, and in this circuit has argued in other cases that its order can be sustained under either standard. See BP Amoco Corp. v. NLRB, 217 F.3d 869, 873 (D.C. Cir. 2000) (âHere, the Board acknowledges the force of the âcovered byâ principle but contends it does not apply because the Boardâs decision expressly found that the collective bargaining agreement did not incorporate the reservation of rights clauses.â). The frequency with which a conflict is joined and whether a Supreme Court decision in the particular case would have any practical effect on the outcome of the caseâwhether the dispute over the standard of review is outcome determinativeâare among the traditional factors that the Solicitor General could reasonably consider in selecting the issues it chooses to present to the Supreme Court each year for certiorari review. See Johnson, 969 F.2d at 1097 (Buckley, J., concurring in part and dissenting in part) (discussing legitimate governmental considerations that may result in agency non-acquiescence in conflicting circuit decisions enduring for some time); see generally Margaret Meriweather Cordray & Richard Cordray, The Solicitor Generalâs Changing Role in Supreme Court Litigation, 51 B.C. L. REV. 1323, 1328â1330 (2010) (discussing certiorari factors considered by Solicitors General). Fourth, the award of fees for bad faith is an equitable exercise of the courtâs inherent power to control litigation before it. See, e.g., Copeland v. Martinez, 603 F.2d 981, 984 (D.C. Cir. 1979) (award of fees serves to âprotect[] the integrity of the judicial processâ). And in this case, Heartland bears responsibility for a not insignificant amount of the fees it incurred. To begin with, given the clarity of our precedent, Heartland could have short-circuited this litigation by moving 7 for summary reversal. To be sure, a party seeking summary disposition bears âthe heavy burden of establishing that the merits of his case are so clear that expedited action is justified.â Taxpayers Watchdog, Inc. v. Stanley, 819 F.2d 294, 297 (D.C. Cir. 1987) (per curiam). But for many of the reasons the majority opinion discusses (at 4â5 & n.1), the law in this circuit was just that clear and plainly adverse to the Boardâs position, making this a signature case for such summary disposition. Contrary to the majority opinionâs suggestion (at 19 n.9), an opposition by the Board preserving its arguments for review en banc or by the Supreme Court would not have altered the straightforward task of panel disposition since the law of the circuit would have controlled. See, e.g., LaShawn A. v. Barry, 87 F.3d 1389, 1393 (D.C. Cir. 1996) (en banc) (â[T]he same issue presented in a later case in the same court should lead to the same result.â) (emphasis in original). Heartland chose instead to initiate the ordinary briefing process and to then file a full-throated opening brief that raised additional issues for our review beyond the contract- coverage dispute. Heartlandâs failure to reasonably mitigate the fees it incurred should factor into the courtâs decision to award fees for bad faith. See Wright v. Jackson, 522 F.2d 955, 958 (4th Cir. 1975) (âAn award [of fees] for obstinacy, although a penalty, is only for the unnecessary efforts occasioned by the obstinacy.â); cf. Leffler v. Meer, 936 F.2d 981, 987 (7th Cir. 1991) (noting âthe duty to mitigate legal fees by promptly, where possible, disposing of baseless claims through summary proceduresâ); Thomas v. Capital Sec. Servs., Inc., 836 F.2d 866, 879 (5th Cir. 1988) (factoring into fee award âthe extent to which the nonviolating partyâs expenses and fees could have been avoided or were self- imposedâ). 8 Worse still, Heartland itself filed a vastly overblown application for fees that unjustifiably included the agency litigation that the Board had every right to pursue under the Sixth Circuitâs âclear and unmistakable waiverâ precedent. Heartland thus has not exhibited the care and calibration that equity desires in those who themselves seek equity. Having said that, the majority opinion (at 17-18) quite fairly calls the Board out for its failure to candidly acknowledge binding circuit precedent in its answering brief and for pressing only a gossamer-thin argument for distinguishing Enloe. Indeed, I might well have been persuaded that a small amount of fees should be awarded only for the portion of Heartlandâs reply brief that was dedicated to rebutting the Boardâs frail argument. But that is not the course that the majority opinion takes or that Heartland sought. For the foregoing reasons, I respectfully dissent.
[by Brown]
Dissenting opinion filed by Circuit Judge MILLETT. BROWN, Circuit Judge: Heartland Plymouth Court MI, LLC (âHeartlandâ) successfully petitioned this Court to review an Order of the National Labor Relations Board (âthe Boardâ or âNLRBâ). The Order found Heartland violated its collective-bargaining agreement by failing to bargain over the effects of reducing employee hours. In granting the petition, we also denied the Boardâs cross-application to enforce its Order. Neither outcome was a surprise. As we explained in our Judgment, and as this Court had explained over a decade earlier, we possess a âfundamental and long-running disagreementâ with the Board over âwhether an employer has violated section 8(a)(5) of the National Labor Relations Act [NLRA] when it refuses to bargain with its union over a subject allegedly contained in a colleetive[-]bargaining agreement.â See Enloe Med. Ctr. v. NLRB, 433 F.3d 834, 835 (D.C. Cir. 2005). Facts may be stubborn things, but the Boardâs longstanding ânonacquiescenceâ towards the law of any circuit diverging from the Boardâs preferred national labor policy takes obduracy to a new level. As this case shows, what the Board proffers as a sophisticated tool towards national uniformity can just as easily be an instrument of oppression, allowing the government to tell its citizens: âWe donât care what the law says, if you want to beat us, you will have to fight us.â Emphasizing the real-world consequences of forcing parties to waste time and resources litigating, Heartland moves here for an award of attorney fees. In response, the Board provided a sweepingâand startlingâdefense of its nonac-quiescence policy. The Board said it would be justified in refusing to apply the law of any circuit. The Boardâs logic makes no exception for the scenario in Heartlandâs case, where the Board knew that it would end up in a circuit with adverse law. Nor does the Board reject nonacquiescence when any presentation would be a putschâie., when no circuit at all supports the Boardâs legal position. See NLRB Atty Fee Resp. Br. at 13 & n.8. Because the Boardâs actions go beyond whatever limited justification nonacquies-cence may have, we agree with Heartland that the Board is guilty of bad faith, grant Heartlandâs motion for attorney fees, and award it $17,649.00. I. Factual Summary Our Judgment already details the facts giving rise to the Boardâs NLRA suit *19 against Heartland, and we need not repeat them here. See Dkt. No. 1611466 (hereinafter âJudgmentâ). For purposes of nomenclature, however, it is worth noting the Boardâs suit was predicated upon its view that the employerâs refusal to bargain on a matter allegedly within a collective-bargaining agreement requires a âclear and unmistakableâ waiver. Our precedent, in contrast, consistently rejects that view; considering the contents of a collective-bargaining agreement is a question of âcontract coverage.â This difference will manifest itself in the Boardâs conduct before our Court, which informs Heartlandâs motion for attorney fees. Heartland first appealed the Boardâs adverse Order to our Court in 2018. See Case No. 13-1227. Due to the Supreme Courtâs pending decision in NLRB v. Noel Canning, â U.S. -, 134 S.Ct. 2550 , 189 L.Ed.2d 538 (2014), Heartlandâs appeal was-held in abeyance. When the Supreme Court found the recess appointments . of two Board members unconstitutional, the Board set aside its Order against Heartland, and moved to dismiss Heartlandâs appeal. .We granted the Boardâs motion; the Board reassigned Heartlandâs case to a new panelânow properly comprised of Senate-confirmed Board membersâand readopted its prior Order. See JA 533-34. Unsurprisingly, -Heartland appealed the Order here again. The Board, too, knew that this was Heartlandâs second appeal to the D.C. Circuit. See NLRB Merits Br. Cert, as to Parties, Rulings, and Related Cases (âThe ruling under review has previously been before the Court.â); NLRB Atty Fee Resp. Br. at 4 (âOn January 29, 2015, a panel of the reconstituted Board issued a new Decision and Order incorporating its earlier decision by reference.â) (emphasis added). Given our well-established âcontract coverageâ precedent, Heartlandâs second appeal was pre-ordained. 1 Accordingly, Heartlandâs petition was granted, and the Boardâs cross-petition to enforce its Order denied, in an unpublished Judgment without, oral argument. See Fed. R. App. *20 34(a)(2); D.C. Cir. R. 84(j); D.C. Cir. R. 36(d). As we said, â[t]he Boardâs refusal to adhere to our precedent dooms its decision before this court.â Judgment at>2i: While our Court previously recognized the Boardâs right of nonacquiescence, see Enloe, 433 F.3d at 838 , we did so with a certain end in mind. See Judgment at 2. Namely, we presumed the Board would recognize a stalemate with our case law, one resolvable by seeking certiorari to the Supreme Court. See Enloe, 433 F.3d at 838 . In .this case, the Board neither confessed the error of the Order against Heartland under our law, nor sought to preserve its argument against our precedent for certio-rari (or even en banc reconsideration). The Board did not seek a transfer to'the Sixth Circuit either. The- Sixth Circuit embraces the Boardâs âclear and unmistakableâ waiver-policy. See, e.g.] Beverly Health and Rehab. Servs., Inc. v. NLRB, 297 F.3d 468, 480 (6th Cir. 2002). Further, Michigan, covered by the Sixth Circuit, is where Heartlandâs operations exist and where the conduct underlying the Boardâs dispute occurred. See Judgment at 1-2. It is thus the only other jurisdiction in which the NLRA permits an appeal on these facts. See 29 U.S.C. § 160 (f) (permitting petitions to review the Boardâs decisions to be filed âin the circuit wherein the unfair labor practice in question was alleged to have been engaged in or wherein [any aggrieved] person resides or transacts business, or in the United States Court of Appeals for the District of Columbiaâ). 2 In lieu of its legitimate options, the Board chose obstinacy. The Board cross-petitioned our Court to enforce its Order. In its responsive brief, the Board spent several pages asking us to uphold its âclear and unmistakableâ waiver policy here. See NLRB Merits Br. at 17-20. Our adverse precedent made only a cameo appearance, where the Board spent a few sentences on an illusory distinction. See id. at 21-22 (stating Enloe does not apply â[b]ecause the effects of the change in hours are not matters that were covered by the partiesâ agreement,â so, to the Board, âthe contract coverage doctrine does not play a roleâ). The Boardâs tactics forced Heartland to waste resources in replying. See Heartland Merits Reply Br. at 2-3, 8-10. Given the Boardâs behavior, it is little wonder that when Heartland moved for attorney fees, it sought fĂ©es under both the ânot-substantially-justifiedâ and âbad faithâ provisions of the Equal Access to Justice Act. See 28 U.S.C. § 2412 (b) (allowing âbad faithâ attorney fee awards against the United States government); § 2412(d)(1)(A) (allowing attorney fee awards against the United States government âunless the court finds ... the position of the United States was substantially justified.... â). 3 Though Heartland also argues for attorney fees related to the Boardâs conduct at the administrative level, our award applies only to the Boardâs conduct before our Court. Replying to' Heartlandâs motion, the Board referenced its general policy of flouting any circuitâs NLRA interpretation *21 with which the Board disagreesâa policy described colloquially as ânonacquies-cence.â The Boardâs rationale for nonac-quiescence is two-fold: (1) the NLRAâs multi-venue provision, see 29 U.S.C. § 160 (f), renders the Board clueless as to what circuit will govern the enforcement of its orders on appeal; and (2) the Boardâs âuniform and nationwideâ jurisdiction over labor policy gives it the right to disagree with any circuit, whenever it wants. See NLRB Atty Fee Resp. Br. at 13-14. The Board ignores the fact that these two rationales invoke different forms of nonac-quiescence. But, the breadth of the Boardâs argument reveals the first reason is largely delusory. The second reasonâa species of .nonacquiescence known as âin-tracircuit nonacquiescenceââprovides the Boardâs overarching rationale. The Board thinks its right to disagree extends beyond preferring one circuitâs position to another in a split, but also includes âstaking] out its own position contraryâ to any circuit. See id. at 13 . The Board identifies no limit to its nonacquiescence. Neither the Boardâs abusive tactics nor the extremism asserted in opposition to Heartlandâs motion for attorney fees are justified. II. The Propriety of Nonacquiescence., We begin first with the goal of nonac-quiescence, as stated by the Board itself over sixty years ago: to âachieve[]â âa uniform and orderly administration of a national act, such as the [NLRA].â See Ins. Agents Int'l Union, 119 NLRB 768 , 773 (1957). By âdetermining]â âwhether to acquiesce in the contrary views of a circuit court of appeals or whether, with due deference to the courtâs opinion, to adhere to its previous holding until the Supreme Court ... has ruled otherwise,â id. (emphasis added), the Board claims to ensure a nationally uniform labor policy. Understood in the most charitable light, not acquiescing to a given circuitâs diverging legal interpretation until the Supreme Court has the last word puts two roles in harmonyâthe Boardâs role of national say in what labor law should be, and âthe judicial department^]â âemphatic[ ]â âprovince and duty ... to say what the law is.â Marbury v. Madison, 5 U.S. (1 Cranch) 137, 177 , 2 L.Ed. 60 (1803). Our approval' of nonacquiescence presumed its stated virtue: opposing adverse circuit decisions permits the Board to bring national labor law questions to Supreme Court resolution. See, e.g., Enloe, 433 F.3d at 838 (âThe Board is, of course, always free to seek certiorari.â); Yellow Taxi Co. v. NLRB, 721 F.2d 366, 385 (D.C. Cir. 1983) (Wright, J., concurring) (observing, in our circuitâs first embrace of nonac-quiescence, it would be âunwiseâ to oppose it, âparticularly in light of the instances in which positions taken by the Board were first repeatedly rejected by a large number of circuits, then accepted by others, and later accepted by the Supreme Courtâ).. Indeed, when .our Court discussed different forms of agency nonacquiescence in Johnson v. United States Railroad Retirement Board., 969 F.2d 1082 (D.C. Cir. 1992), it predicated the methodâs acceptability upon the agency redressing a circuitâs conflicting interpretation, not defying it ad infinitum. See id. at 1092 (âWhen an agency honestly believes a circuit court has misinterpreted the law, there are two places it can go to correct the error: Congress or the. Supreme Courtâ). To that end, nonacquiescence allows for an issueâs âpercolationâ among the circuits; generating a circuit split that can improve the likelihood of certiorari being granted. See id. at 1093 ; see also id. at 1097 (Buckley, J., concurring in part and dissenting in part) (âCatching Congressâs ear ... is more easily said than done; and *22 given the huge volume of petitions for certiorari that flood the Supreme Court, it is often [more] necessary to establish a split among the circuits before the Court will examine [the] issue.â); see also SuPREME Ct. R. 10(a) (Noting circuit splits as indicative of âthe reasons the Court considersâ to grant certiorari). But, nonaequies-eence is justifiable only as a means to judicial finality, not agency "aggrandizement. As we said in, Johnson , nonacquies-cence is divorced from its purpose when an agency asserts it with no stated intention of seeking certiorari. 4 See 969 F.2d at 1092 . Achieving judicial finality through national uniformity requires nonacquies-cence to rest on certain conditions. First, as explained above, any nonacquiescence depends upon the agency actually seeking Supreme Court review of adverse decisions. 5 Second, nonacquiescence requires candor in its application. See Estreicher & Revesz, Nonacquiescence, supra "n.4, at 756. The agency should clearly assert its nonacquieseence, specifying its arguments against adverse precedent to preserve them for Supreme Court review. These two conditions characterize proper nonac-quiescence. In cases where the appeal implicates a statuteâs multi-venue provision, the reviewing Court must assess a third condition: venue uncertainty. When an agencyâs assertion of .venue uncertainty is plausible on the facts and proper nonacquiescence is otherwise pursued, the agency acts in good faith. But, when an agencyâs assertion of venue uncertainty is implausible on the facts, the situation is no different than intracircuit nonacquiescenceâwhere the agencyâs conduct would constitute bad faith if its nonacquiescence is- not clearly asserted and accompanied by a preservation of arguments for Supreme Court or en banc review. Cf. Johnson, 969 F.2d at 1091-92 (rejecting the agencyâs assertion of nonacquiescence when â[t]here [was], of course, some venue uncertainty under the ... statute.... But the Board has never attempted to invoke venue uncertainty to justify its actions, and it seems to be asserting a right of nonacquiescence in its most sweeping sense.â). Given the facts here, this third condition requires some elaboration. Intracircuit nonacquiescence is not the same as refusing to apply an adverse circuitâs law due to the underlying statuteâs multi-venue provision. For example, when a party appeals an adverse NLRB order under the NLRA, the statute provides the appealing party with multiple venue options. See 29 U.S.C. § 160 (f). This uncer *23 tainty means, in some circumstances, the Board may have issued its order âwithout knowing which circuit court ultimately will review its actions.â Johnson, 969 F.2d at 1091 . In those circumstances, the Boardâs nonacquiescence to an adverse circuitâs law is a function of ignorance, not defiance. There are, however, multiple instances when an agencyâs assertion of venue uncertainty is implausible, ie., it knows that its order will be subjected to an adverse circuitâs law on appeal. Estreicher & Revesz point out two examples: (1) when âall courts of proper venue have adopted positions contrary to the agencyâs policyâ; and (2) when an order has been issued by an agency on remand from an adverse circuit court which retained jurisdiction over the action. See Estreicher & Revesz, Nonac-qwiescence, supra n.4, at 687 & n.34. In these cases, any nonacquiescence is necessarily intentional and, thus, of the intracir-cuit variety. These are just âexample[s],â however, see id. at 687, and there are others. When a caseâs facts result in only two venue choices for the party appealing the adverse order, and one circuitâs precedent is in agreement with the agencyâs legal interpretation while the other is adverse to it, the agency knows any appeal will be to the adverse circuit. See Ithaca Coll. v. NLRB, 623 F.2d 224 , 227 (2d Cir. 1980) (âCertainly the College was not going to seek review in the D.C. Circuit when it had a favorable precedent in the Second Circuit.â). Furthermore, âfor [NLRB] purposes, which circuitâs law should apply is readily ascertainableâ when it cross-petitions to enforce its order before an adverse court, instead of invoking its transfer rights to enforce the order in a favorable venue. Cf. Donald L. Dotson & Charles M. Williamson, NLRB v. The Courts: The Need for an Acquiescence Policy at the NLRB, 22 Wake FOREST L. Rev. 739, 739 n.1 (1987) (noting the âBoardâs [historic] policy [was] to seek enforcement of its orders in the circuit in which the unfair labor practice arose. Therefore, for Board purposes, which circuitâs law ... is readily ascertainableâ). Under any of these scenarios, the multi-venue provision provides no plausible stumbling block to the agency knowing where it will have to defend its order. In any event, venue uncertainty cannot license improper nonacquiescence. Nothing about venue uncertainty excuses: (1) a less-than-candid representation of the agencyâs disagreement with adverse circuit law; (2) the failure to indicate the preservation of opposing arguments for Supreme Court review; or (3) the failure to seek certiorari of adverse decisions to achieve a national resolution. Letting the mere possibility of venue uncertainty excuse those conditions not only makes nonacquiescence unboundedâit also would be a failure. Distinguishing, case-by-case, plausible venue uncertainty from intracircuit nonacquies-cence is critical to avoid ânonacquiescence in its most sweeping sense,â ie., a form divorced from the end of judicial finality and the requirement of candor. See Johnson, 969 F.2d at 1091-92 ; see also NLRB v. Ashkenazy Prop. Mgmt. Corp., 817 F.2d 74, 76 (9th Cir. 1987) (âAny future act of ânonacquiescenceâ should be dealt with by this court in the specific context in which it occurs so that we may address the agencyâs particular violation of the rule of law and fashion a remedy that is appropriate in light of all of the relevant circumstances.â). Unfortunately, the NLRBâs history with nonacquiescence reveals âits primary goal is ... to see its interpretation of the federal labor laws prevail in as many cases as possible, rather than to change contrary law in particular circuits or ... serve as a percolator for the Supreme Court.â See Ross E. Davies, Remedial Nonacquiescence, 89 Iowa L. Rev, 65, 100 (2003); cf. *24 NLRB v. Gibson Prods. Co., 494 F.2d 762, 766 (6th Cir. 1974) (âIt is apparent from the foregoing chronology of this case that the Board, disagreeing with [the Supreme Courtâs] requirement of contemporary necessity for a bargaining order in second category cases, has simply sought to avoid it_â). Indeed, in the only instances we can find where the NLRB ever addressed the âcontract coverageâââclear and unmistakableâ circuit split before the Supreme Court, the Board was opposing cer-tiorari. None of the reasons the Board set forth in these briefs would prohibit seeking certiorari in an appropriate case. 6 Moreover, we are unmoved by the coincidence of the Board opposing certiorari in cases where certiorari was denied. See Davies, Remedial Nonacquiescence, 89 Iowa L. Rev. at 78 & n.43 (citing a 1997 letter from the acting NLRB solicitor to the clerk of the Fourth Circuit, which described the Boardâs âenviable record in the Supreme Courtâ as âpersuasive evidence that the Board has exercised good judgment in deciding when it is appropriate to continue to insist that intermediate courts have overstepped their authorityâ in disagreeing with the Board). After all, there is a difference between theory and practice. See id. at n.45 (noting that, as of the articleâs 2003 publication, â[t]he Board has not been the prevailing party on the merits in a case before the Supreme Court since 1996.â). It is difficult to see the Boardâs steadfast refusal to seek certiorari on the âcontract coverageâ question as something other than an evasion of finality in the name of hegemony. As a former NLRB Chairman and Chief Counsel, respectively, explained; In fact, rather than promoting uniformity, the Boardâs policy of nonacquiescence has fostered a bifurcated system in which litigants willing to pursue their case to the appellate level are able to avoid [the] Board[âs] orders. Thus, the Boardâs policy has had the effect of needlessly protracting litigation, establishing a two-tiered system of labor law in the same jurisdiction, encouraging disrespect for [the] Board[âs] orders, and antagonizing the courts ... Even worse, it compels litigants to expend resources in litigating cases in which it is clear that the appropriate circuit will not enforce the Boardâs order. Dotson & Williamson, NLRB v. The Courts, 22 Wake Forest L. Rev. at 745 (emphasis added). Our Court shares these concerns. We noted in Johnson that nonac-quiescence allows agencies to work their will on not only the courts, but on the American people too. See 969 F.2d at 1092 (âThe Board, in the end, can hardly defend *25 its policy of selective nonacquiescence by invoking national uniformity. The policy has precisely the opposite effect, since it results in very different treatment for those who seek and who do not seek judicial review.â). For these reasons, and others, our sister circuits have spilled much ink admonishing the NLRBâs nonacquiescence. See id. at 1091 (âIntracircuit nonacquiescence has been condemned by almost every circuit court of appeals that has confronted it.â); Dotson & Williamson, NLRB v. The Courts, 22 Wake Forest L. Rev. at 739-40 n.3 (finding instances of circuit courts rejecting the Boardâs nonacquiescence dating back as early as 1953). We also think âthe Board should reconsider its single-minded pursuit of its policy goals without regard for the supervisory role of the Third Branch.â See, e.g., Glenmark Assocs. Inc. v. NLRB, 147 F.3d 333 , 339 n.8 (4th Cir. 1998). In Yelloio Taxi, we warned the NLRB that sweeping nonacquiescence âmay ... require[ ] [us]' to secure adherence to the rule of law by measures more direct than refusing to enforce its orders.â 721 F.2d at 383 . At least one other circuit has already awarded attorney fees against the NLRB for relitigating, via nonacquiescence, an issue the Court already decided. See Enerhaul, Inc. v. NLRB, 710 F.2d 748, 751 (11th Cir. 1983). More than a decade ago, we told the NLRB that our positions on the âcontract coverageâ analysis were âstalematedâ absent the Board seeking certiorari. See Enloe, 433 F.3d at 838 . Not only has the Board refused to do so over the ensuing decade, its theory in support of nonacquiescence grows even more sweeping. In short, as we said of the Rail Road Retirement Board in Johnson-, âAfter ten years of percolation, it is time for the Board to smell the coffee.â 969 F.2d at 1093 .- III. The. Boardâs Nonacquiesoence Against Heartland Amounts To Bad Faith The legal dispute in Heartlandâs case demonstrates persistent nonacquies-cence without either candor or the pursuit of judicial finality. As we mentioned, our âcontract coverageâ case law has diverged from the Boardâs âclear and unmistakableâ waiver policy for almost a quarter century. Now, seven of the twelve geographic circuits take a side in That debate. 7 With a split engulfing most circuits, there is no serious' argument for nonacquiescence in the name of percolation. Cf. Johnson, 969 F.2d at 1093 (âBut now that three circuits have rejected the Boardâs position, and not one has accepted it, further resistance would show contempt for the rule of law.â); id. at 1097 .(Buckley, J., concurring in part and dissenting in part) (â[G]iven the huge volume of petitions for certiorari that flood the Supreme Court, it is often necessary to establish a split among the circuits before the Court will examine an issueâ) (emphasis added). And yet here, the Board gave us no indication at' all that it intends to seek certiorari of any adverse ruling, or en banc reconsideration of our precedent. Indeed, the Board did not even invoke nonac- *26 quiescence by name until it replied to Heartlandâs motion for attorney fees. Worse still, the Boardâs lack of candor is evident in its handling of our âcontract coverageâ precedent. Rather than confess the error of its Order against Heartland under our law, the Boardâs merits brief, in relevant part, urges us to embrace the âreasonablenessâ of its âclear and unmistakableâ waiver analysis. See NLRB Merits Br. at 17-20. Then, as a brief aside, it pretends there is no conflict between its Order and our law. See id. at 21 (â[Because the effects in the change in hours are not matters that were covered by the partiesâ agreement, the contract coverage doctrine does not play a roleâ). The Boardâs reasoning is nonsensical because, if a subject is not covered by a contract, then the contract certainly does not clearly and unmistakably waive bargaining over that matter. â[D]isguis[ing] its disagreement by means of a disingenuous distinction of adverse circuit precedentâ is yet another indication of improper nonacquies-cence. See Estreicher & Revesz, Nonac-quiescence, supra n.4, at 755. On these facts, nothing about the NLRAâs multi-venue provision sanitizes the Boardâs eleventh-hour nonacquiescence plea. The Board knew ruling against Heartland would prompt an appeal to our circuit. Why? It already did. Recall that Heartland previously appealed the same ruling to our Court before the case was held in abeyance due to Noel Canning. See NLRB Merits Br. Cert, as to Parties, Rulings, and Related Cases (âThe ruling under review has previously been before the Court.â). When the Board readopted its prior Order against Heartlandâwith the only material difference being that the Board panel was now comprised of Senate-confirmed membersâit had every reason to think Heartland would appeal here again. For another matter, Heartlandâs appellate options were twofold: (1) our circuit, to which it previously appealed the same substantive Order and which has favorable law; or (2) the Sixth Circuit, which embraces the Boardâs âclear and unmistakableâ waiver policy. There is no reason to think Heartland would seek appellate review in a circuit where it would almost certainly lose. See Ithaca Coll., 623 F.2d at 227 (âCertainly the College was not going to seek review in the D.C. Circuit when it had a favorable precedent in the Second Circuit.â). On these facts, it requires a willful suspension of disbelief to think: (1) Heartland would not appeal again; and (2) would not appeal again here. If the Board did not want to sacrifice its Order against Heartland or defend nonacquiescence before us, it still had a viable option: transfer the case to the Sixth Circuit. As we noted above, the facts favored a transfer, and the Boardâs Order would have almost assuredly been enforced in that jurisdiction. The Sixth Circuit accepts the Boardâs âclear and unmistakableâ waiver position; the NLRA allows the Sixth Circuit jurisdiction over Heartlandâs appeal; Heartlandâs operations are within the Sixth Circuit; and the underlying conduct took place within the Sixth Circuit. 8 Instead, the Board cross-peti *27 tioned for enforcement here. This was punitive. The Board chose to put its Order on a suicide mission with our precedent simply to lock horns with Heartland. The Board was the perpetrator here, not venue uncertainty. 9 There is one other indication that venue uncertainty is not the real reason behind the Boardâs behavior. The Boardâs response to Heartlandâs attorney fee motion offers an extreme and unbounded view of nonacquiescence. This position, combined with the Boardâs conduct on the merits, embraces the following nonacquiescence standard: the Board can employ nonac-quiescence: (1) without ever saying so to the Court until after judgment is entered; (2) without ever seeking certiorari to resolve the disputed issue; (3) even when it knows what law will apply in advance of the appeal; and (4) even when every circuit in the country disagrees with it. See NLRB Atty Fee Resp. Br. at 13-14. In sum, the Boardâs candor-free approach to nonacquiescence asks this Court to let the Board do what no private litigant ever could: make legal contentions not warranted by existing law and supported by no argument for modifying, reversing, or establishing new law. This is intolerable. See, e.g., Fed. R. Civ. P. 11(b)(2). We are under no obligation to bless the desire of âfederal agencies [to] be subject to no law at allâ as, indeed, it appears [the NLRB] believe[s] to be the case.â See U.S. Depât of Energy v. FLRA, 106 F.3d 1158 , 1164-67 (4th Cir. 1997) (Luttig, J., concurring). Had Heartlandâs case been one where the Board carefully applied nonacquiescence towards national uniformity, it would have proceeded differently. Where, as here, the Board âassert[s] a right of nonacquies-cence in its most sweeping sense,â and where its âsincerityâ towards national uniformity is doubtful on the caseâs facts, the theoretical possibility of âsome venue uncertaintyâ is rendered an implausible justification. See Johnson, 969 F.2d at 1091-92 . Taken together, the Boardâs conduct before our Court makes out a clear case of bad faith litigation. The standard for an award of attorney fees for bad faith is met âwhere the party receiving thĂ© award has been the victim of unwarranted, oppressive, or vexatious conduct on the *28 part of his opponent and has been forced to sue to enforce a plain legal right.â Am. Hosp. Assân v. Sullivan, 938 F.2d 216, 222 (D.C. Cir. 1991). Contrary to the out-of-circuit-cases the Board cites, â[t]his principle is no less applicableâ to conduct occurring within litigation itself. Id. To be sure, â[b]ad faith by a litigant is serious business, and the standard for finding it is, appropriately, âstringent.â â Id. at 223 (D.H. Ginsburg, J., dissenting). But the Boardâs conduct before us manifests a stubborn refusal to recognize any law. The Boardâs' obstinacy forced Heartland to waste time and resources fighting for a freedom the Board knew our precedent would provide. The Board did nothing to employ permissible nonacquiescence; it just saved the concept as a post-hoc rationalization in case Heartland had the temerity to ask us not to make it pay for the Boardâs hubris. And worse, when it did finally mention nonacquiescence in response to Heartlandâs attorney fee motion, the Board proposed an exasperatingly expansive rationale. It is clear enough that the Boardâs conduct was intended to send a chilling message to Heartland, as well as others caught in the Boardâs crosshairs: âEven if we think you will win, we will still make you pay.â This roguish form of nonacquies-cence assures the Boardâs gambit is virtually cost-freeâthe Board either enjoys the fruits of a settlement, or it dares a party to employ âthe money and power [needed] to pay-for and survive the process of fighting with an agency through its administrative processes and into the federal courts of appeals.â Davies, Remedial Nonacquies-cence, 89 Iowa L. Rev. at 79. With seeking certiorari or en banc reconsideration in its hands, the Board can decide it is worth losing a few battles to still win the war. The Board can thus continue its adherence to the âclear and unmistakableâ waiver policy without the Supreme Court ever telling it to stop, even with the occasional defeat in an adverse circuit. This bald attempt at a litigation advantage is bad faith. See Sullivan, 938.F.2d at 222; cf. id. at 223-24 (D.H. Ginsburg, J., dissenting) (arguing against a finding- of bad faith because-, unlike here, âI am aware of no reason for believing that the Secretary thought or could reasonably have thought he would gain any advantageâ from perpetuating confusion about the law and âchillingâ private parties âin the assertion of their rightsâ). A few words in response to our dissenting colleague. The dissent acknowledges the propriety of awarding Heartland fees based on the Boardâs âfailure to candidly acknowledge binding circuit precedent in its answering brief and for pressing only a gossamer-thin argument for distinguishing Enloe.â Dissent Op. 33. We also agree that âan agencyâs persistent defiance of uniform and settled circuit precedent could ignite a separation-of-powers firestorm.â See id. at 29. The Board should take note of these conclusions. We are at a loss to understand, however, how either of theseâ conclusions is consistent with the rest of the dissent. If the Boardâs reply brief merits a fee award, was it not âthumbing its nose at settled decisional law?â But see id. at 29. If âHeartland had to file a petition for judicial review in this circuit,â id. at 31, where else could the Board expect to be? But see id. As the Board cross-petitioned to enforce its own Order hereâasking us to bless itsâ âclear and unmistakableâ waiver policy in the processâdid it not do more than simply âlitigat[e] [Heartlandâs] appeal?â But see id. at 30. Is the Boardâs refusal to seek certiorari on the âcontract coverageâ issue, even after it has percolated among the circuits, something other than âpersistent defianceâ of judicial finali *29 ty? But see id. at 29. The Boardâs- entire litigation conduct before us consisted of: (1) a reply brief that every member of this Panel finds susceptible to the bad faith label; (2) a cross-petition the Board knew our precedent would not permit, but would force Heartland to respond; and (3) labeling all of this ânonacquiesceneeâ only after the fact, and with the most sweeping logic. The bad faith speaks for itself. Granting Heartlandâs motion for attorney fees âserve[s] the dual purpose of vindicating judicial authority ... and making the prevailing party whole for expenses caused by his opponentâs obstinacy.â See Chambers v. NASCO, Inc., 501 U.S. 32, 46 , 111 S.Ct. 2123 , 115 L.Ed.2d 27 (1991). We recognize the Boardâs unimpeded access to the public fisc means these modest fees can be dismissed as chump change. But money does not explain the Boardâs bad faith; âthe pleasure' of being above the restâ does. See C.S. Lewis, Mere' Christianity 122 (Harper Collins 2001). Let -the word go forth: for however much the judiciary has emboldened the administrative state, we âsay what the law is.â Marbury , 5 U.S. (1 Craneh) at 177. In other words, administrative hubris does not get the last word under our Constitution. And citizens can count on it. IV. For the foregoing reasons, .we grant Heartlandâs motion for attorney fees and award it $17,649.00 for the Boardâs bad faith litigation. So ordered. . The fact that Heartlandâs parent company "transacts businessâ outside the Sixth Circuit is irrelevant. See, e.g., Ballyâs Park Place, Inc. v. NLRB, 546 F.3d 318, 320 (5th Cir. 2008) (noting this view among multiple circuits, holding "a parent corporation who is not a named party in the NLRBâs - final order may not seek review in the court of appeals because.the parent corporation is not an âaggrieved partyâ under the Actâ). . As we find that the Boardâs conduct before our Court warrants an attorney fee award for bad faith, we do not address whether Heartland is also entitled to attorney fees under the "not-substantially-justified" provision. . The seminal academic discussion of agency nonacquiescence adds an important point to the insistence on seeking Supreme Court review: Of course, agencies generally cĂĄnnot directly petition the Supreme Court but must obtain the clearance of the Solicitor General,.... We do not mean to authorize judicial review of-the delicate negotiations and deliberative processes that inform the Solicitor Generalâs decision whether or not to petition for certiorari. Nevertheless,. the government cannot defend continued nonac-qtĂiescence- without seeking Supreme Court intervention merely because it has chosen to divide petitioning authority in this way. Samuel Estreicher & Richard Revesz, Nonac-quiescence by Federal Administrative Agencies, 98 Yale L.J. 679, 756-57 (1989) (emphasis added). . An agency may also petition a circuit to reconsider its adverse precedent via en banc review, but this is subject to even more limits. If there is little or no reason for the agency to conclude the circuit is open to revisiting its precedentâas is the case where a precedent has been reaffirmed multiple timesâthe agency should not irritate the Court with an en banc rehearing petition. Cf. Fed. R. App. P. 35(a)(1). . ' See NLRB Br, in Opposition to Petition for ' a Writ of Certiorari, Road Sprinkler Fitters Local Union No. 699, etc. v. "Automaticâ Sprinkler Corp. of Am., No. 97-1249, 1998 WL 3112646 , pp. 12-13 (opposing the Courtâs review of this circuit split because â[t]he [circuit] courtâs broader interpretation of the subT contracting clause does not, therefore, appear to turn on the legal standard,â and ââ[i]n any event, the court of appealsâ opinion can be readâ to render the Section 8(a)(5) issue irrelevant); NLRB Br. in Opposition to Petition for a Writ of Certiorari, General Power Comp. v. NLRB, No. 99-419, 1999 WL 33640169 , pp. .13-14 & n.8 (rejecting Supreme Court review because the petitioner was "jurisdictionally barredâ from raising the contract coverage issue, âthe Union did not relinquish its bargaining rightsâ "in any event,â and "prior Board decisions that have applied [the] 'contract analysis' " that result in "any inconsistencyâ "should [be] resolve[d]â by the Board "rather than this Courtâ); NLRB Br. in Opposition to Petition for a Writ of Certiorari, Rochester Gas and Elec. Corp. v. NLRB, No. 12-1178, 2013 WL 3959892 , pp. 16-17 ("Although certain aspects of Enloe's analysis are in tension with the court of appealsâ analysis here, Enloe does not support the per se rule that petitioner advocates_Certiorari therefore is not warranted.... â). . Compare Bath Marine Draftsmenâs Assn, 475 F.3d at 25 ("[W]e adopt the District of Columbia Circuitâs contract coverage test..."); U.S. Postal Serv., 8 F.3d at 836 (same); Chicago Tribune Co. v. NLRB, 974 F.2d 933 (7th Cir. 1992) (same) with Local Union 36, Intâl Bhd. of Elec. Workers AFL-CIO v. NLRB, 706 F.3d 73 (2d Cir. 2013) (ââclear and unmistakableâ waiver); Local Joint Exec. Bd. of Las Vegas v. NLRB, 540 F.3d 1072 (9th Cir. 2008) (same); Beverly Health and Rehab Servs., Inc., 297 F.3d at 481-82 (same); Capitol Steel & Iron Co. v. NLRB, 89 F.3d 692 (10th Cir. 1996) (same). . If the Board moved for enforcement in the Sixth Circuit first, 28 U.S.C. § 2112 (a)(1) and (5) would have allowed the Board to file a motion to transfer venue once Heartland filed its petition for review here. Alternatively, the Board could have moved to transfer venue after Heartland filed here, regardless of whether the Board had filed in the Sixth Circuit first See Eastern Air Lines, Inc. v. Civil Aeronautics Bd., 354 F.2d 507, 510 (D.C. Cir. 1965) ("Without regard to the authority provided by 28 U.S.C. § 2112 , a court of appeals having venue may exercise an inherent discretionary power to transfer the proceeding to another circuit in the interest of justice and sound judicial administration.â); see also 28 *27 U.S.C. § 2112 (a)(5) ("For the convenience of the parties in the interest of justice, the court in which the record is filed may thereafter transfer all the proceedings with respect to that order to any other court of appeals.â). . Perhaps Heartland could have moved for summary disposition at the appealâs outset, see D.C. Circuit Handbook of Practice & Internal Procedures, § VIII.G, but this does not absolve the Board from paying Heartlandâs attorney fees. "Summary reversal is rarely granted,â id., and requires establishing that "no benefit will be gained from further briefing and argument of the issues presented,â Taxpayers Watchdog, Inc. v. Stanley, 819 F.2d 294, 298 (D.C. Cir. 1987). To meet this standard, Heartland would have had to do more than just file the two-page Petition for Review and the three-page Statement of Issues it filed to appeal here; it would have had to file a full-fledged brief in support of its motion for summary reversal, while likely still filing the Petition and Issues Statement in the alternative. Then, when the Board filed its inevitable response, Heartland would presumably file a reply brief. It is not at all clear this motions practice would have meaningfully reduced Heartlandâs attorney fees. Moreover, Heartlandâs argument for attorney fees is not a rejection of the Boardâs right to properly engage in nonacquiescence. See, e.g., Heartland Reply Br. in Support of Mot. for Atty Fees, at 3-4. Had the Board replied to Heartlandâs motion for summary dismissal with an indication that it was preserving its argument against our precedent for Supreme Court review or en banc reconsideration, it is not clear this would be a case where "no benefit will be gained from further briefing and argument on the issues presented," Stanley, 819 F.2d at 298 . In short, even if Heartland did not make perfect litigation choices, only the Board made choices in bad faith.
[Dissent by Millett]
MILLETT, Circuit Judge, dissenting: I certainly understand my colleaguesâ concern that an agencyâs persistent defiance of uniform-and settled circuit precedent could ignite a separatiĂłn-of-powers firestorm. But this case is nothing like that, and I strongly disagree that a bad-faith award of all the fees that Heartland incurred in this appeal is warranted. Awarding fees for bad faith is an exceptional sanction that should only be employed âwhen extraordinary circumstances or dominating reasons of fairness so demand.â Nepera Chem., Inc. v. Sea-Land Serv., Inc., 794 F.2d 688, 702 (D.C. Cir. 1986). The standards for bad faith âare necessarily stringent,â Lipsig v. National Student Mktg. Corp., 663 F.2d 178 , 180 (D.C. Cir. 1980) (quotation marks and citation omitted), requiring a factual finding that âthe losing party has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.â Alyeska Pipeline Serv. Co. v. Wilderness Socây, 421 U.S. 240, 258 , 95 S.Ct. 1612 , 44 L.Ed.2d 141 (1975) (internal quotation marks, omitted). Moreover, â[b]e-cause inherent powersâ like an attorneysâ fees sanction for bad faith âare shielded from direct democratic concerns, they must be exercised with restraint and discretion.â Roadway Exp., Inc. v. Piper, 447 U.S. 752, 764 , 100 S.Ct. 2455 , 65 L.Ed.2d 488 (1980). That especially demanding standard is not met in this case, for four reasons. â First, for all of the majority opinionâs concerns about an agency thumbing its nose at settled decisional law, this case involves an issue on which there is an inter-circuit conflict and on which the Boardâs position accords with the majority view. Compare Local Union 36, Int'l Bhd. of Elec. Workers, AFL-CIO v. NLRB, 706 F.3d 73, 81-82 (2d Cir. 2013) (adopting the Boardâs âclear and unmistakable waiverâ test); Local Joint Exec. Bd. of Las Vegas v. NLRB, 540 F.3d 1072 , 1079-1080 & n.11 (9th Cir. 2008) (same); Beverly Health & Rehab. Servs., Inc. v. NLRB, 297 F.3d 468, 481-482 (6th Cir. 2002) (same); Capitol Steel & Iron Co. v. NLRB, 89 F.3d 692, 697 (10th Cir. 1996) (same), with Bath *30 Marine Draftsmenâs Assân v. NLRB, 475 F.3d 14, 25 (1st Cir. 2007) (adopting contract-coverage rule); NLRB v. United States Postal Serv., 8 F.3d 832, 836 (D.C. Cir. 1993) (same); Chicago Tribune Co. v. NLRB, 974 F.2d 933, 937 (7th Cir. 1992) (same). See also Mississippi Power Co. v. NLRB, 284 F.3d 605, 612-613 (5th Cir. 2002) (describing the competing standards). So there has been no âputschâ here (Majority Op. 18). This case, by its terms, does not implicate at all the majority opinionâs concerns about a Board refusal to acquiesce in the face of .uniformly adverse circuit precedent. To be sure; the Board discussed a potentially sweeping realm for â nonacquiescence in its brief. See NLRB Oppân to Mot. for Attây Fees at 13. But the bad faith for which we can authorize fees must have occurred in the Boardâs actual conduct of its appellate litigation in the case at hand, not in a later overstatement in its opposition to attorneysâ fees concerning hypothetical facts not before us. Second, the last time the Board was before this court 'on this very same issue, this court unanimously assured the Board that it had âevery rightâ to ârefuse[] to acquiesce in our analysisâ of when and under what circumstances the terms of a collective bargaining agreement may discharge an employerâs collective-bargaining duties. Enloe Med. Ctr. v. NLRB, 433 F.3d 834, 838 (D.C. Cir. 2005). See generally, e.g., Independent Petroleum Assân v. Babbitt, 92 F.3d 1248, 1261 (D.C. Cir. 1996) (â[Ijntercircuit nonaequiescence is permissible, especially when the law is unsettled.â); American Tel. & Tel. Co. v. FCC, 978 F.2d 727, 737 (D.C. Cir. 1992) (acknowledging the agencyâs'- âright to refuse to acquiesce in one (or more) court of appealsâ interpretation of its statuteâ); Johnson v. United States R.R. Ret. Bd., 969 F.2d 1082, 1093 (D.C. Cir. 1992) (noting the general right of an agency to engage in inter-circuit nonacquiescence, at least where its position has not been rejected. by' every circuit to address the question). The Board should not be labeled a âbad faithâ actor for taking this court at its word and litigating the appeal at all, which is what the comprehensive award of attorneysâ fees for the entire appeal does. In particular, I see nothing remotely approaching bad faith in requiring Heartland to file its petition for review and to prosecute its appeal by filing either an opening brief or, easier still, a motion for summary reversal, see D.C. Cir. Handbook of Practice and Internal Procedures VII.G. 1 That is because Heartland is located within the jurisdiction of .the Sixth Circuit, and the law of that circuit is on all fours with the Boardâs âclear and unmistakable waiverâ rule. See, e.g., Beverly Health, 297 F.3d at 480 (âA management-rights clause is a waiver of the unionâs right to bargain over [mandatory subjects].â); id. (âA union can waive its statutory right to bargain [in a collective bargaining agreement], but such a waiver must be âclear and unmistakable.â â) (quoting Metropolitan Edison Co. v. NLRB, 460 U.S. 693, 708 (1983)); Uforma/Shelby Bus. Forms, Inc. v. NLRB, 111 F.3d 1284 , 1290 (6th Cir. 1997) (similar). Accordingly, as the majority opinion acknowledges (at 19-20, 26-27), there was nothing remotely bad faith about the Boardâs application and enforcement of its âclear and unmistakable waiverâ rule in the agency proceedings. And given the *31 Boardâs decision, Heartland was destined to lose unless and until it sought judicial review- in this circuit rather than the Sixth Circuit. Had the Board filed first in the Sixth Circuit, Heartlandâs petition for review would have been doomed. In short, having lost before the Board in a proceeding that quite properly applied the âclear and unmistakable waiverâ rule, Heartland had to file a petition for judicial review in this circuit and had to affirmatively prosecute its appeal by filing an opening brief -or motion for summary disposition raising the contract-coverage issue to have a legal leg to stand on. I do not understand how it could be bad faith for the Board to require that Heartland do so. The majority opinion says (at 26) that the Board should have known the case was destined for this circuit after remand, and thus apparently should have given up before Heartland even filed its petition. But as the circuit conflict attests, plenty of losing litigants before the Board have chosen to litigate in their home jurisdictions long after this court first adopted the âcontract coverageâ rule in 1993, see United States Postal Service, supra, and even after our reaffirmation of that rule in Enloe in 2005, see Bath Marine, supra, Local Union 86, supra, and Local Joint Exec. Bd., supra. Moreover, this court did not retain jurisdiction after granting the Boardâs motion to dismiss the case in the wake of NLRB v. Noel Canning, 134 S. Ct. 2550 (2014). See Heartland Plymouth Court MI, LLC v. NLRB, No. 13-1227, 2014 WL 4627817 (D.C. Cir. Aug. 26, 2014). There thus was no guarantee that the second round of review would land here just because the first one did. Compare Starbucks Corp. v. NLRB, No. 09-1273 (D.C. Cir. Aug. 19, 2010) (dismissing petition for review on Board motion to reconsider in light of New Process Steel v. NLRB, 560 U.S. 674 , 130 S.Ct. 2635 , 177 L.Ed.2d 162 (2010)), with NLRB v. Starbucks Corp., 679 F.3d 70 (2d Cir. 2012) (second petition for review filed in and adjudicated by the Second Circuit).- To be sure, the Board could have beaten Heartland to the punch by petitioning the Sixth Circuit for enforcement or moving to transfer the case to the Sixth Circuit. But the Boardâs failure to deprive an employer of its chosen forum for review or to forgo imposing on the employer the additional costs of litigating a transfer motion cannot by itself meet the âstringentâ requirement for bad faith, Nepera Chem., 794 F.2d at 702 . Third, the majority opinion (at 25-26) decries the Boardâs failure to have sought certiorari to resolve the circuit conflict in an earlier case. But, again, the question is whether the Board litigated this appeal in bad faith, not whether it should have taken an additional procedural step in some other case. Sanctioning the Board for failing to seek certiorari is 'doubly inappropriate because the questions of whether and when-Supreme Court review should be sought to eliminate the conflict and establish a single, uniform federal rule rest exclusively with the Solicitor General in the Department of Justice and not with the Board. 28 U.S.C. § 518 (a); see also 28 C.F.R. § 0.20 (Solicitor General is assigned duty of â[cjonducting, or assigning and supervising, all Supreme Court cases, including * * * petitions for and in opposition to certiorariâ). Surely we cannot sanction as âbad faithâ the Boardâs failure to make a decision Congress has said it cannot make. It also bears noting that cases in which the Board ends up at loggerheads with this courtâs contract-coverage rule do not appear to arise with significant frequency. Since we first adopted the contract-coverage rule for Board cases in 1993 in United States Postal Serv., only Enloe and this *32 case have arisen in which the Board found itself directly at odds with circuit precedent. That is only two cases in 23 years. The Board, moreover, has won more than it has lost in circuit court decisions generally, and in this circuit has argued in other cases that its order can be sustained under either standard. See BP Amoco Corp. v. NLRB, 217 F.3d 869, 873 (D.C. Cir. 2000) (âHere, the Board acknowledges the force of the âcovered byâ principle but contends it does not apply because the Boardâs decision expressly found that the collective bargaining agreement did not incorporate the reservation of rights clauses.â). The frequency with which a conflict is joined and whether a Supreme Court decision in the particular case would have any practical effect on the outcome of the caseâ whether the dispute over the standard of review is outcome determinativeâare among the traditional factors that the Solicitor General. could reasonably consider in selecting .the issues it chooses to present to the Supreme Court each year for certio-rari review. See Johnsonf 969 F.2d at 1097 (Buckley, J., concurring in part and dissenting in part) (discussing legitimate governmental considerations that may result in agency non-acquiescence in conflicting circuit decisions enduring for some time); see generallyâ Margaret Meriweather Cor-dray & Richard Cordray, The Solicitor Generalâs Changing Role in Supreme Court Litigation, 61 B.C. L. Rev. 1323 , 1328-1330 (2010) (discussing certiorari factors considered by Solicitors General). Fourth, the award of fees for bad faith is an equitable exercise of the courtâs inherent power to control litigation before it. See, e.g., Copeland v. Martinez, 603 F.2d 981, 984 (D.C. Cir. 1979) (award of fees seiwes. to âprotect[ ] the integrity of the judicial processâ). And in this case, Heartland bears responsibility for a not insignificant amount of the fees it incurred. To begin with, given the clarity of our precedent, Heartland could have short-circuited this litigation by moving for summary reversal. To be sure, a party seeking summary disposition bears âthe heavy burden of establishing that the merits of his case are so clear that expedited action is justified.â Taxpayers Watchdog, Inc. v. Stanley, 819 F.2d 294, 297 (D.C. Cir. 1987) (per curiam). But for many of the reasons the majority opinion discusses (at 19-20 & n.l), the law in this circuit was just that clear and plainly adverse to the Boardâs position, making this a signature case for such summary disposition. Contrary to the majority opinionâs suggestion (at 27 n.9), an opposition by the Board preserving its arguments for review en banc or by the Supreme Court would not have altered the straightforward task of panel disposition since the law of the circuit would have controlled. See, e.g., La-Shawn A. v. Barry, 87 F.3d 1389, 1393 (D.C. Cir, 1996) (en banc) (â[T]he same issue presented in' a later case in theâsame court should lead to the same result.â) (emphasis in original). Heartland chose instead to initiate the ordinary briefing process and to then file a full-throated opening brief that raised additional issues for our review beyond the contract-coverage dispute. Heartlandâs failure to reasonably mitigate the fees it incurred should factor into the courtâs decision to award fees for bad faith. See Wright v. Jackson, 522 F.2d 955, 958 (4th Cir. 1975) (âAn award [of fees] for obstinacy, although a penalty, is only for the unnecessary efforts occasioned by the obstinacy.â); cf. Leffler v. Meer, 936 F.2d 981, 987 (7th Cir. 1991) (noting âthe duty to mitigate legal fees by promptly, where possible, disposing of baseless claims through summary proceduresâ); Thomas v. Capital Sec. Servs., Inc., 836 F.2d 866, 879 (5th Cir. 1988) (factoring into fee award *33 âthe extent to which the nonviolating partyâs expenses and fees could have been avoided or were self-imposedâ). Worse still, Heartland itself filed a vastly overblown application for fees that unjustifiably included the agency litigation that the Board had every right to pursue under the Sixth Circuitâs âclear and unmistakable waiverâ precedent. Heartland thus has not exhibited the care and calibration that equity desires in those who themselves seek equity. Having said that, the majority opinion (at 25-26) quite fairly calls the Board out for its failure to candidly acknowledge binding circuit precedent in its answering brief and for pressing only a gossamer-thin argument for distinguishing Enloe. Indeed, I might well have been persuaded that a small amount of fees should be awarded only for the portion of Heartlandâs reply brief that was dedicated to rebutting the Boardâs frail argument. But that is not the course that the majority opinion takes or that Heartland sought. For the foregoing reasons, I respectfully dissent. . See also Cascade Broad. Grp. v. FCC, 822 F.2d 1172, 1174 (D.C. Cir. 1987) (per curiam) ("We take this occasion to inform the bar that henceforth we will treat motions for summary disposition in appeals and petitions for review of agency action as we treat such motions in appeals from judgments of the district court:â). Case Information
- Court
- D.C. Cir.
- Decision Date
- September 30, 2016
- Status
- Precedential