Lake County judge denies stay in right-to-work case, law is unconstitutional

In a four-sentence order issued Aug. 13, but only listed on the court's docket Wednesday, Paras denied Zoeller's motion for a stay pending appeal to the Indiana Supreme Court.

That outcome is not surprising since Paras, in his July 17 decision, specifically declared his ruling — that the labor law is "null and void in its entirety" and the state is "permanently enjoined" from enforcing it — takes effect immediately.

Bryan Corbin, spokesman for the Republican attorney general, said Zoeller has not yet received a copy of Paras' latest order, but will ask the Indiana Supreme Court to issue a stay.

Zoeller already has filed an appeal with the high court seeking to overturn Paras' ruling that the right-to-work law is unconstitutional. The Supreme Court directly reviews all lower court decisions declaring state laws unconstitutional.

State agencies, including the Indiana Economic Development Corp., the state's commerce department, appeared to be ignoring Paras' decision by still promoting Indiana as a right-to-work state Wednesday.

Republican Gov. Mike Pence repeatedly has said right-to-work is a key component of his economic development strategy for luring companies to the state.

Paras' right-to-work ruling hinges on the "particular services clause" of the Indiana Constitution that declares, "No person's particular services shall be demanded, without just compensation."

The United Steelworkers union, which represents more than 5,000 steel mill employees in Northwest Indiana, argued the right-to-work law's requirement that the union provide bargaining and grievance services to nonmembers for free runs afoul of that constitutional provision.

Paras agreed.

In his strongly worded July decision, the judge said by denying Steelworkers the ability to collect fair-share fees from nonunion members, it is clear the right-to-work law deprives the union of compensation for services it is required by federal law to provide to all employees in a bargaining unit.

"But for the RTW (right-to-work) statute, plaintiffs would still be able to be compensated for such services," Paras said.

"Moreover, the state of Indiana has taken a central role in the denial of just compensation to plaintiffs, as any violation of the RTW statute by them would bring about their criminal prosecution by the state of Indiana or administrative proceedings against them by the Indiana Department of Labor."

Paras continued, "The RTW statute eviscerates the basic right that a person be compensated for the good and valuable services that a person provides in commercial endeavors and is the type of law that the particular-services clause was intended to bar."

Lake Superior Judge John Sedia reached an identical conclusion last year in a challenge to the right-to-work law brought by the International Union of Operating Engineers, Local 150.

The Indiana Supreme Court is set to hear oral arguments in Zoeller's appeal of that decision on Sept. 4.

The Operating Engineers last week requested the Supreme Court consolidate the two cases. Steelworkers attorney Jim Wieser, of Schererville, said he and his co-counsels are studying whether that is the best way to move forward.

"We're willing to explore all of the logical options here as to what can be done," Wieser said.

A key difference in the two cases is that Sedia's ruling came in response to Zoeller's motion to dismiss, and no evidence or trial record was established.

Paras' decision followed a request for summary judgment by the Steelworkers after written and oral arguments were made by both the union and the state, as well as outside groups interested in the case.

While it is generally uncommon for a judge to rule in a similar case to one that is pending before the Supreme Court, Paras said he suspects the high court will focus on procedural issues, and not constitutional questions, when it reviews Sedia's order striking down the right-to-work law.

As a result, Paras said it was appropriate to issue his decision, which is based on a complete trial record, that the right-to-work law is unconstitutional.