Buckley v. Gallo Sales Co.

949 F. Supp. 737, 7 Am. Disabilities Cas. (BNA) 175, 97 Daily Journal DAR 3627, 153 L.R.R.M. (BNA) 3012, 1996 U.S. Dist. LEXIS 18765, 1996 WL 718157
CourtDistrict Court, N.D. California
DecidedNovember 6, 1996
DocketC96-2383 TEH
StatusPublished
Cited by13 cases

This text of 949 F. Supp. 737 (Buckley v. Gallo Sales Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckley v. Gallo Sales Co., 949 F. Supp. 737, 7 Am. Disabilities Cas. (BNA) 175, 97 Daily Journal DAR 3627, 153 L.R.R.M. (BNA) 3012, 1996 U.S. Dist. LEXIS 18765, 1996 WL 718157 (N.D. Cal. 1996).

Opinion

ORDER

THELTON E. HENDERSON, Chief Judge.

This matter came on for oral argument before the Court on October 28, 1996, upon defendant’s “12(b) motion to stay court proceedings pending arbitration of plaintiffs first cause of action and to dismiss plaintiffs second cause of action.” For the reasons discussed below, this Court hereby DENIES defendant’s motion.

FACTUAL BACKGROUND

In November 1976, plaintiff, Jerry Buckley, was hired by the defendant, Gallo Sales Company, as a delivery truck driver. Plaintiffs employment was governed by the collective bargaining agreement (CBA) between Gallo and the Brotherhood of Teamsters and Auto Truck Drivers Local 85. The CBA provided for a detañed grievance and arbitration procedure applicable to all disagreements between Gallo and covered employees, including those involving suspensions and discharges.

During the period from 1993 to 1996, plaintiff sustained several work-related injuries which forced him to leave work on disability. In January 1996, plaintiff received clearance to return to work and requested reasonable accommodation by defendant, but was informed that he could not work until his back was stronger. On March 8, plaintiff was terminated from his employment. Several grievances were filed on plaintiffs behalf by the union. The union took each of the grievances through the first two steps of the CBA’s grievance procedure, but none was ever finally resolved. Plaintiff subsequently filed a charge with the EEOC and received a notice of right to sue. On July 1, plaintiff filed a complaint against Gallo Sales alleging violations of the Americans with Disabilities Act (ADA) and the California Fair Employment and Housing Act (FEHA).

LEGAL STANDARD

1. Defendant’s 12(b) Motion to Stay Court Proceedings Pending Arbitration of Plaintiff’s First Cause of Action.

The present issue has been raised as a “12(b) Motion to Stay Proceedings.” This Court has construed this to be a 12(b)(1) Motion to Dismiss or in the Alternative to Stay Proceedings.

a. Preclusion of Statutory Remedy

Defendant’s assertions first raise the question of whether the arbitration requirement in the CBA precludes the pursuit of any related federal statutory remedies. If the arbitration agreement at issue here prevents the plaintiff from seeking a federal statutory remedy, this Court would have no basis for jurisdiction, which is founded upon plaintiffs federal question claim under the ADA Consequently this argument is best presented as a 12(b)(1) motion for lack of subject matter jurisdiction.

Dismissal is appropriate under Rule 12(b)(1) when the district court lacks subject matter jurisdiction over the claim. Fed. R.Civ.P. 12(b)(1). Federal subject matter jurisdiction must exist at the time the action is commenced. Morongo Band of Mission Indians v. Calif. State Board of Equalization, 858 F.2d 1376 (9th Cir.1988). A 12(b)(1) motion may either attack the sufficiency of the pleadings to establish federal jurisdiction, or allege an actual lack of jurisdiction which exists despite the formal suffi *740 ciency of the complaint. Thornhill Publishing Co. v. General Tel. & Electronics, 594 F.2d 730, 733 (9th Cir.1979); Roberts v. Corrothers, 812 F.2d 1173, 1177 (9th Cir.1987).

Subject matter jurisdiction is a threshold issue which goes to the power of the court to hear the case. Therefore, a 12(b)(1) motion must be decided before other motions, as they will become moot if dismissal is granted. 5A Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure: Civil § 1350. Because the court’s power to hear the case is at stake, it is not limited to the allegations in the complaint but may also consider extrinsic evidence and, if that evidence is in dispute, it may weigh the evidence in order to satisfy itself that it has jurisdiction over the case. Roberts, 812 F.2d at 1177. However, if the jurisdictional issue is dependent upon the resolution of a factual dispute going to the merits of the case, the court may not decide those factual issues on a motion to dismiss. Id.

Although lack of subject matter jurisdiction is an affirmative defense, the burden of proof in a 12(b)(1) motion is on the party asserting jurisdiction. Stock West, Inc. v. Confederated Tribes, 873 F.2d 1221, 1225 (9th Cir.1989). Therefore, although the complaint is to be construed liberally, argumentative inferences favorable to the pleader will not be drawn, and the court will presume a lack of jurisdiction until the pleader proves otherwise. 5A Wright & Miller at § 1350; Stock West at 1225.

An action should be dismissed for lack of subject matter jurisdiction only if it is clear that the jurisdictional deficiency cannot be cured by amendment. May Dept. Store v. Graphic Process Co., 637 F.2d 1211, 1216 (9th Cir.1980). Whether a district court possessed subject matter jurisdiction is a question of law reviewed de novo by the Court of Appeals. Owner-Operators Ind. Drivers Ass’n v. Skinner, 931 F.2d 582, 584 (9th Cir.1991); Kruso v. International Tel. & Tel. Corp., 872 F.2d 1416, 1421 (9th Cir.1989), cert. denied, 496 U.S. 937, 110 S.Ct. 3217, 110 L.Ed.2d 664 (1990).

b. Exhaustion of Arbitration Remedy

Defendant’s second argument states that the plaintiff must exhaust his potential arbitration remedies before proceeding to federal court. This argument forms the basis for defendant’s claim that this court should stay proceedings pending arbitration. The defendant asserts that federal courts have created an exhaustion requirement when persons enter into contracts that require arbitration of claims.

‘Where there is no explicit statutory requirement of administrative remedies, the application of exhaustion rules is a matter committed to the discretion of the district court.” 1 Morrison-Knudsen Co., Inc. v. CHG Intern., Inc., 811 F.2d 1209, 1223 (9th Cir.1987), See, Brown v. Rison, 895 F.2d 533, 535 (9th Cir.1990). A judicially-created exhaustion doctrine “furnishes the district court with a method to exercise comity toward administrative agencies and to promote efficient use of judicial resources while protecting the rights of parties who have come before the court seeking relief.” Morrison-Knudsen, at 1223.

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949 F. Supp. 737, 7 Am. Disabilities Cas. (BNA) 175, 97 Daily Journal DAR 3627, 153 L.R.R.M. (BNA) 3012, 1996 U.S. Dist. LEXIS 18765, 1996 WL 718157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckley-v-gallo-sales-co-cand-1996.