New York City Employees' Retirement System v. Dole Food Co.
The New York City Employees’ Retirement System (NYCERS) sought a preliminary injunction to compel Dole Food Company, Inc. (Dole) to include NYCERS’ shareholder proposal regarding a health care committee in its proxy materials. Dole argued the proposal fell under exceptions for ordinary business operations, insignificant relationship, and being beyond its power to effectuate, as per SEC Rule 14a-8(c). The court, presided over by District Judge Conboy, analyzed each of Dole's arguments. The court found that Dole failed to prove the proposal related to ordinary business operations or had an insignificant relationship to its business, especially considering the potentially large financial implications of health care costs. Furthermore, the court disagreed that the proposal was beyond Dole's power to effectuate, as it merely requested a study. Concluding that NYCERS demonstrated a substantial likelihood of success on the merits and irreparable harm, the court granted the injunction, ordering Dole to include the proposal.