This case involves an enforcement action by the National Labor Relations Board against RadNet Management, Inc., which operates as the San Fernando Valley Advanced Imaging Center. The dispute originated from an underlying refusal-to-bargain case where the Board had previously prevailed. As part of resolving that dispute, RadNet entered into a Settlement Agreement with the Board, under which the company agreed to reinstate a former employee, Veronica Atwater, and provide her with backpay. This obligation was triggered specifically upon the issuance of a court mandate in favor of the Board in the refusal-to-bargain case. The mandate was issued on August 10, 2020; however, RadNet failed to reinstate Atwater or pay the required backpay. Consequently, the Board's Regional Director set aside the Settlement Agreement, and the Board issued an order finding that RadNet violated Section 8(a)(1) and (5) of the National Labor Relations Act by breaching the agreement. RadNet cross-petitioned for review of this order and also sought to reopen the record to introduce new evidence regarding Atwater's alleged misconduct.
The Ninth Circuit applied a deferential standard of review, upholding the Board's decision if it correctly applied the law and its factual findings were supported by substantial evidence. Regarding the set-aside of the Settlement Agreement, the court found that the agreement's sole condition for reinstatement was the issuance of the mandate in the Board's favor, which had occurred. RadNet's failure to reinstate Atwater constituted a clear breach of the agreement. The court rejected RadNet's argument that partial performance, such as posting remedial notices, excused the breach, noting that RadNet presented no evidence that it had actually complied with those obligations. The court clarified that the agreement's language regarding the determination of backpay amounts by the Regional Director merely recognized the Board's standard practice of bifurcating liability and compliance proceedings, not a condition precedent to the reinstatement obligation itself. Regarding the motion to reopen the record, the court held that the Board did not abuse its discretion in denying RadNet's request to introduce evidence of Atwater's alleged misconduct. The court reasoned that such evidence pertains to the appropriate remedy, not the underlying liability for the breach, and is therefore more appropriately addressed in a subsequent compliance proceeding rather than at the enforcement stage.
The decision enforces the NLRB's order, requiring RadNet to comply with the original settlement terms by reinstating Veronica Atwater and paying backpay, now that the agreement has been set aside due to breach. The ruling limits RadNet's ability to delay enforcement by introducing new evidence regarding the employee's conduct, reserving such issues for the compliance phase. The case remains open for the Board to determine the specific backpay amount through its standard compliance investigation and hearing process.
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