Betancourt v. Storke Housing Investors

114 Cal. Rptr. 2d 551, 94 Cal. App. 4th 709
CourtCalifornia Court of Appeal
DecidedApril 10, 2002
DocketB145835
StatusPublished

This text of 114 Cal. Rptr. 2d 551 (Betancourt v. Storke Housing Investors) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Betancourt v. Storke Housing Investors, 114 Cal. Rptr. 2d 551, 94 Cal. App. 4th 709 (Cal. Ct. App. 2002).

Opinion

114 Cal.Rptr.2d 551 (2001)
94 Cal.App.4th 709

R. BETANCOURT et al., Plaintiffs and Appellants,
v.
STORKE HOUSING INVESTORS et al., Defendants and Respondents.

No. B145835.

Court of Appeal, Second District, Division Six.

December 18, 2001.
Review Granted April 10, 2002.

*552 Gilbert & Sackman, Kenneth J. Sackman, Steven M. Rehaut and Laurie A. Traktman, Los Angeles, for Plaintiffs and Appellants.

Mullen & Henzell, Derek B. Lipscombe, Los Angeles, and Rafael Gonzalez, for Defendants and Respondents.

PERREN, J.

Plaintiff laborers, relying upon Civil Code[1] section 3110, filed a mechanics' lien against the property upon which they had performed construction work. They and their union claimed that not all of their wages have been paid and sued to foreclose on the lien. The defendant owners of the property demurred, asserting that because the amounts allegedly due the laborers are pension trust fund contributions for benefits, the matter is subject to federal preemption under ERISA.[2]

The trial court, relying on our Supreme Court's decision in Carpenters So. Cal. Admin. Corp. v. El Capitan Development Co. *553 (1991) 53 Cal.3d 1041, 282 Cal.Rptr. 277, 811 P.2d 296 (El Capitan), sustained the demurrer without leave to amend and dismissed the action, finding that the state claim is preempted by ERISA.

R. Betancourt, together with other employees (laborers) and District Council No. 16 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada (Union), appeal from the judgment in favor of respondent property owners, Storke Housing Investors and BDC Storke Development (Storke).

Because decisions of the United States Supreme Court subsequent to El Capitan have dramatically narrowed the preemptive scope of ERISA, we hold that ERISA does not bar this action. We conclude that we are not bound by El Capitan. Accordingly, we reverse and direct the trial court to overrule the demurrer.

FACTS

Laborers are Union members who worked for R.P. Richards, a subcontractor of Trubucco & Associates, on a residential construction project owned by respondent Storke. Richards employed the laborers pursuant to a collective bargaining agreement (CBA) between Trubucco and Union. In accordance with the CBA, appellants were entitled to an hourly compensation package, including wages and benefits. Although the laborers received their cash wages, they were not paid the full value of their work because contributions to their benefit plans were not made.

The laborers recorded a mechanics' lien with the County of Santa Barbara in the amount of $33,236.56 against Storke's real property. The lien was for the unpaid contributions pursuant to section 3110. Section 3110 provides, in pertinent part, "... laborers ... performing labor ... contributing to a work of improvement shall have a lien upon the property upon which they have bestowed labor ... for the value of such labor done ... or furnished at the instance of the owner or of any person acting by his authority or under him as contractor or otherwise." The laborers and their Union filed the instant lawsuit to foreclose on the section 3110 lien. The laborers sued as individuals and as members of Union. The Union sued as a party to the CBA, and not as a trust fund.

DISCUSSION

Standard of Review

After a demurrer is sustained without leave to amend, we independently review the complaint to determine whether it alleges facts sufficient to state a cause of action under any legal theory. (McCall v. PacifiCare of Cal., Inc. (2001) 25 Cal.4th 412, 415, 106 Cal.Rptr.2d 271, 21 P.3d 1189; Quelimane Co. v. Stewart Title Guaranty Co. (1998) 19 Cal.4th 26, 38-39, 77 Cal.Rptr.2d 709, 960 P.2d 513.) We give the complaint a reasonable interpretation, reading it as a whole and assuming the truth of the facts pled. (McCall, supra, at p. 415, 106 Cal.Rptr.2d 271, 21 P.3d 1189; Quelimane, supra, at p. 38, 77 Cal. Rptr.2d 709, 960 P.2d 513.)

Allegations of Complaint

The complaint alleges: 1) plaintiff Union members worked as laborers on the Storke property for an hourly compensation package pursuant to a CBA, 2) laborers and Union were parties to the CBA, 3) $33,236.56 is due plaintiffs for their unpaid labor on the project, and 4) plaintiffs recorded a mechanics' lien on the Storke property pursuant to section 3110. Plaintiffs pray for judgment that the mechanics' lien be foreclosed in the amount of $33,236.56.

*554 ERISA

ERISA states, in pertinent part, "... the provisions of this subchapter ... shall supersede any and all State laws insofar as they may ... relate to any employee benefit plan described in section 1003(a) of this title...." (29 U.S.C. § 1144(a).) "The term `employee benefit plan' ... means an employee welfare benefit plan ..." which is established by an employer engaged in commerce or by an employee organization representing employees so engaged. (Id. at §§ 1002(3), 1003(a).) Pursuant to ERISA, welfare benefit plans are maintained by employers or employee organizations to provide fringe benefits such as insurance, vacation and training programs to their participants. (Id. at § 1002(1).) ERISA imposes certain substantive requirements upon such benefit plans for participation, funding and vesting of benefits and procedural requirements for reporting, disclosure and other fiduciary responsibilities concerning these benefits. (Metropolitan Life Ins. Co. v. Massachusetts (1985) 471 U.S. 724, 735, 105 S.Ct. 2380, 85 L.Ed.2d 728; accord, New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co. (1995) 514 U.S. 645, 651, 115 S.Ct. 1671, 131 L.Ed.2d 695 (Travelers).)

ERISA Preemption

The trial court found that ERISA preempts this lawsuit, relying on El Capitan. In El Capitan, our Supreme Court discussed prior holdings of the United States Supreme Court which broadly construed the phrase "relate to" contained within 29 United States Code section 1144(a). (El Capitan, supra, 53 Cal.3d at pp. 1048-1049, 282 Cal.Rptr. 277, 811 P.2d 296.) El Capitan noted that on several occasions the United States Supreme Court concluded that `"state laws which make "reference to" ERISA plans are laws that "relate to" those plans within the meaning of [§ 1144(a) ] [of ERISA].' [Citations.]" (El Capitan, supra, at p. 1049, 282 Cal.Rptr.

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114 Cal. Rptr. 2d 551, 94 Cal. App. 4th 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betancourt-v-storke-housing-investors-calctapp-2002.