Associated Builders & Contractors v. Michigan Department of Labor & Economic Growth

543 F.3d 275, 71 Fed. R. Serv. 3d 899, 44 Employee Benefits Cas. (BNA) 2582, 2008 U.S. App. LEXIS 19569
Court of Appeals for the Sixth Circuit·Decided September 16, 2008·No. 07-1639, 07-1649, 07-1654·Published·Cited by 29 cases

Opinion

OPINION

SUTTON, Circuit Judge.

“This is another Employee Retirement Income Security Act of 1974 (ERISA) preemption case,” De Buono v. NYSA-ILA Med. & Clinical Servs. Fund, 520 U.S. 806, 808, 117 S.Ct. 1747, 138 L.Ed.2d 21 (1997), one that asks whether ERISA preempts two provisions of a Michigan law governing the training of apprentice electricians. Because “the substantive standards to be applied to apprenticeship training programs are ... quite remote from the areas with which ERISA is expressly concerned,” and because of “the paucity of indication in ERISA and its legislative history of any intent on the part of Congress to pre-empt state apprenticeship training standards,” Cal. Div. of Labor Standards Enforcement v. Dillingham Constr., N.A., Inc., 519 U.S. 316, 330-31, 117 S.Ct. 832, 136 L.Ed.2d 791 (1997), we hold that ERISA does not preempt the provisions.

I.

In 1990, the Michigan legislature imposed two requirements on the training and supervision of apprentice electricians. It required there to be a one-to-one ratio between trained electricians and apprentice electricians at all work sites. See Mich. Comp. Laws § 338.883e(3). And it established an “equivalency requirement” for the Michigan Electrical Administrative Board, which meant that individuals could be certified in an apprenticeship training program only if the program met the apprentice-training requirements imposed by the U.S. Department of Labor Bureau of Apprenticeship and Training. See id. § 338.883e(2).

In 1991, Associated Builders & Contractors, a trade organization, together with three of its members (collectively, “Associated Builders”) filed this action against a state agency and its director (collectively, the “State”), claiming that ERISA preempted the ratio and equivalency requirements. The district court agreed and ordered the State to refrain from enforcing the requirements. Associated Builders & Contractors v. Perry, 817 F.Supp. 49, 54 (E.D.Mich.1992). The State did not appeal the decision. (When an intervening trade association appealed the decision, we dismissed the appeal for lack of standing. See Associated Builders & Contractors v. Perry, 16 F.3d 688, 689 (6th Cir.1994).)

Fourteen years later, in 2006, Michigan filed a motion under Rule 60(b)(5) of the Federal Rules of Civil Procedure to dissolve the 1992 injunction, claiming that intervening Supreme Court decisions had swept away the legal premises of the order. Associated Builders responded that the motion was untimely and lacked merit to boot. The district court concluded that *278 the State had filed the motion within a reasonable time and revisited the merits of the 1992 decision. But it ultimately denied the State’s request for relief, concluding that, even though the relevant case law had changed in the intervening years, ERISA continues to preempt each of the two apprentice-training requirements.

II.

Associated Builders, as an initial point of dispute, argues that the State’s Rule 60(b)(5) motion was untimely and thus should never have been considered on the merits in the first place. This aspect of the district court’s decision receives abuse-of-discretion review. See Days Inns Worldwide, Inc. v. Patel, 445 F.3d 899, 905 (6th Cir.2006).

Under Rule 60(b)(5) of the Federal Rules of Civil Procedure, a court may dissolve an injunction if it “is based on an earlier judgment that has been reversed or vacated” or if applying the injunction prospectively “is no longer equitable.” One predicate for altering an injunction or consent decree under the rule is a change in law — new court decisions or statutes that make legal what once had been illegal. See Rufo v. Inmates of Suffolk County Jail, 502 U.S. 367, 388, 112 S.Ct. 748, 116 L.Ed.2d 867 (1992); Sys. Fed’n No. 91, Ry. Employes’ Dept., AFL-CIO v. Wright, 364 U.S. 642, 647, 81 S.Ct. 368, 5 L.Ed.2d 349 (1961); Sweeton v. Brown, 27 F.3d 1162, 1166 (6th Cir.1994) (en banc).

A party bringing a Rule 60(b)(5) motion must do so “within a reasonable time,” Fed.R.Civ.P. 60(c)(1), a requirement that turns on the length of the delay, the explanations for the delay, the prejudice to the opposing party caused by the delay and the circumstances warranting relief. See In re G.A.D., Inc., 340 F.3d 331, 334 (6th Cir.2003). Also relevant is the nature of the dispute and whether it involves a purely private disagreement or a matter of public interest. “[T]he public interest is a particularly significant reason for applying a flexible modification standard” because injunctions often “reach beyond the parties involved directly in the suit and impact the public’s right to the sound and efficient operation of its [government].” Rufo, 502 U.S. at 381, 112 S.Ct. 748 (internal quotation marks omitted).

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Associated Builders & Contractors v. Michigan Department of Labor & Economic Growth, 543 F.3d 275, 71 Fed. R. Serv. 3d 899, 44 Employee Benefits Cas. (BNA) 2582, 2008 U.S. App. LEXIS 19569 (6th Cir. 2008).

543 F.3d 275 (Associated Builders & Contractors v. Michigan Department of Labor & Economic Growth) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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