Space X lawsuit: A U.S. appeals court has temporarily blocked the transfer of SpaceX’s lawsuit challenging the structure of the National Labor Relations Board (NLRB) from Texas to California. In a brief, two-sentence order issued Friday, the U.S. Court of Appeals for the Fifth Circuit vacated an earlier ruling that would have moved the case from Brownsville, Texas, to Los Angeles. The order leaves open the possibility of transfer since it was issued without prejudice, citing an ongoing related appeal.
SpaceX’s legal battle stems from claims that the NLRB’s administrative procedures violate the U.S. Constitution by improperly shielding administrative law judges and board members from removal by the president. The company maintains that this setup infringes on its right to a jury trial. The NLRB has rejected these claims as baseless and accused companies like SpaceX of trying to divert attention from their labor law violations.
The 5th Circuit’s order follows a series of related legal actions, including a temporary block on an NLRB case involving SpaceX engineers critical of CEO Elon Musk. The broader legal landscape includes similar challenges to the NLRB by companies including Amazon, Starbucks and Energy Transfer.
The lawsuit against SpaceX, initially filed in January, is one of the first in a growing wave of challenges to the NLRB’s enforcement practices. Another lawsuit, filed by SpaceX in April, has also led to a temporary block on an NLRB case involving the company.
The appeals court panel consisted of Judges Jerry Smith and Andrew Oldham, appointed by Republican presidents, and Judge Carl Stewart, appointed by former Democratic President Bill Clinton. The ongoing legal dispute continues to unfold as the 5th Circuit reviews SpaceX’s appeals and subsequent NLRB actions.
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