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On the tech coverage podcast Moderated Content material, Stanford Professors Evelyn Douek and Alex Stamos incessantly joke that Elon Musk is his personal legislation faculty curriculum. And it’s true! From contracts, to torts, to the First Modification, to SLAPP fits, the person is a one-man, 1L textbook on wheels.
At present’s Elon Lesson involves us in CivPro, and is entitled “Why Do My PACER Alerts — Okay, High quality, Court docket Listener — Look Like That?”
As traditional, this scorching, scorching mess arises from the Boy Genius’s skinny, skinny pores and skin. To wit, 5 SpaceX workers circulated an open letter in June of 2022 by way of SpaceX’s inner Microsoft Groups channel. Within the letter, which was later revealed by The Verge, the staff referred to as out the corporate for failing to assist range and inclusion, in addition to excoriating Musk for his fixed loutish conduct. (Spoiler Alert: It received quite a bit worse.)
House X instantly fired the staff, who responded by submitting a grievance with the Nationwide Labor Relations Board (NLRB) alleging that the corporate had interfered with their proper to prepare. The NLRB investigated, sustained the grievance, and set a March 5 listening to earlier than an administrative legislation choose in California, the place the staff work and House X is headquartered.
Naturally the corporate rotated and sued the NLRB claiming that ALJs are unlawful. And so they did it in Texas.
In a single sense, suing in Texas was totally logical. In 2022, the Fifth Circuit held in Jarkesy v. SEC that ALJs are unconstitutional. The case was argued at SCOTUS in November, however in the interim, there’s a reputable declare that ALJs are unlawful within the Fifth Circuit.
However in one other, extra correct sense, there’s no earthly cause {that a} California firm ought to be capable of discussion board store its means into Texas in a dispute over a ruling by ALJs in California pertaining to workers who’re additionally residents of California.
This was kind of the conclusion of Choose Rolando Olvera, within the Southern District of Texas, who transferred the case to the Central District of California on February 15. However earlier than Choose Consuelo Marshall might docket it in Los Angeles, House X petitioned the Fifth Circuit on February 16 for a writ of mandamus directing Choose Olveras to request that the case be returned.
With out opining on the deserves of House X’s declare that it could be grievously injured if compelled to undergo with the March 5 NLRB listening to, the Fifth Circuit administratively stayed the switch on February 19. However because the switch was already in course of, Choose Marshall docketed the case in California on February 23.
On the twenty sixth, the Fifth Circuit put out a testy order claiming that it nonetheless retained jurisdiction over the case, thanks very a lot.
Our courtroom has not been stripped of its jurisdiction till switch has been accomplished. Switch shouldn’t be full the second a case is electronically despatched to an out-of-circuit courtroom. Slightly, the case have to be each despatched and docketed for a switch to be full.
The appellate panel instructed Choose Olvera to request that Choose Marshall switch the case again, and each District judges complied forthwith. This explains the state of my PACER alerts, if not what the hell this case continues to be doing in Texas.
Because the NLRB’s legal professionals put it within the company’s response to the petition for mandamus:
The California workplace of a California firm fires eight workers, virtually all of them primarily based in California. The California regional workplace of the Nationwide Labor Relations Board (“NLRB”) engages in a year-long investigation, finds advantage to expenses alleging that the firings have been illegal, and points an administrative grievance setting the case for a California listening to. In response to Petitioner House Exploration Applied sciences Corp. (“SpaceX”), not solely might a problem to the NLRB’s continuing be heard in Texas, however it’s “clear and indeniable” that transferring such a problem from Texas to California is impermissible. This not solely sounds incorrect, it’s incorrect. SpaceX’s venue arguments are meritless. And that’s precisely what the district courtroom concluded earlier than correctly transferring the case to the Central District of California.
Which sounds fairly convincing. However that is the Fifth Circuit so, YMMV.
In re: House Exploration Applied sciences [Fifth Circuit Mandamus Docket, via Court Listener]House X v. NLRB [Central Dist. CA Docket, via Court Listener]House X v. NLRB [Southern Dist. TX Docket, via Court Listener]
Liz Dye lives in Baltimore the place she produces the Legislation and Chaos substack and podcast.
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