Canedo v. Pac. Bell Tel. Co.

341 F. Supp. 3d 1116
CourtDistrict Court, S.D. California
DecidedSeptember 17, 2018
DocketCase No.: 17cv1879-LAB (KSC)
StatusPublished

This text of 341 F. Supp. 3d 1116 (Canedo v. Pac. Bell Tel. Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canedo v. Pac. Bell Tel. Co., 341 F. Supp. 3d 1116 (S.D. Cal. 2018).

Opinion

*1123Milne Employees Ass'n v. Sun Carriers, Inc. , 960 F.2d 1401, 1410 (9th Cir. 1992). "A provision in a collective bargaining agreement will not trigger preemption when it is only potentially relevant to the resolution of state law claims." Soremekun v. Thrifty Payless, Inc. , 509 F.3d 978, 990-91 (9th Cir. 2007) (citing Humble v. Boeing Co. , 305 F.3d 1004, 1010 (9th Cir. 2002) (other citation omitted) ). The possibility that the Court might be required to or might choose to interpret the collective bargaining agreement to resolve the claim does not counsel against remand. Nor would it interfere with adjudication of any claims. See United Steelworkers of Am., AFL-CIO-CLC v. Rawson , 495 U.S. 362, 368, 110 S.Ct. 1904, 109 L.Ed.2d 362 (1990) (holding that state courts have concurrent jurisdiction over controversies involving collective bargaining agreements, and apply federal law when deciding those claims).

"[W]hen resolution of a state-law claim is substantially dependent upon analysis of the terms of an agreement made between the parties in a labor contract, that claim must be either treated as a § 301 claim, or dismissed as pre-empted by federal labor-contract law." Allis-Chalmers Corp. v. Lueck , 471 U.S. 202, 220, 105 S.Ct. 1904, 85 L.Ed.2d 206 (1985) (internal citation omitted). Importantly, under the well-pleaded complaint rule, the claim itself, not any defenses to that claim, must arise under the CBA. Federal defenses, including the defense of preemption, are not enough. Caterpillar , 482 U.S. at 392-93, 107 S.Ct. 2425. "Preempted" is not synonymous with "removable" and the fact that a claim is preempted does not necessarily mean it is removable. "[T]o remove a state law claim to federal court under the complete preemption doctrine, federal law must both completely preempt the state law claim and supplant it with a federal claim." Young , 830 F.2d at 997. In other words, if the claim is to be treated as a § 301 claim, it is removable. But if it is merely subject to dismissal because of the defense of federal preemption, it is not.

A number of older Ninth Circuit decisions take an expansive and sometimes apparently inconsistent view of § 301 preemption and resulting federal question jurisdiction. But the Ninth Circuit has narrowed some of those holdings in light of intervening Supreme Court precedent. See Cramer v. Consolidated Freightways, Inc. , 255 F.3d 683, 692-93 (9th Cir. 2001), as amended (Aug. 27, 2001) (en banc ). See Green v. Bimbo Bakeries USA , 77 F.Supp.3d 980, 986-87 (N.D. Cal. 2015) (reasoning that Cramer and Lingle narrowed the scope of certain older Ninth Circuit decisions).

Section 301 "is not designed to trump substantive and mandatory state law regulation of the employee-employer relationship...." Valles v. Ivy Hill Corp. , 410 F.3d 1071, 1076 (9th Cir. 2005) (citation omitted). Thus, a claim brought on the basis of a mandatory state law is not preempted, even if an identical claim could be brought under Section 301. Id. (citing Livadas v. Bradshaw , 512 U.S. 107, 123, 114 S.Ct. 2068, 129 L.Ed.2d 93 (1994) ). Section 301 "cannot be read broadly to pre-empt nonnegotiable rights conferred on individual employees as a matter of state law." Id.

Discussion of Claims

Plaintiffs bring seven claims: 1) breach of contract; 2) misrepresentation (fraud); 3) restitution for unfair business practices ( Cal. Bus. & Prof. Code § 17200 ); 4) wrongful termination in violation of public policy; 5) failure to reimburse business expenses ( Cal. Lab. Code § 2802 ); 6) failure to produce personnel records ( Cal. Lab. Code § 226(b) ); and 7) promissory estoppel.

*1124Claims 5 and 6

Plaintiffs argue that claims based on the California Labor Code are not preempted, and Defendants have not argued otherwise.

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Related

Allis-Chalmers Corp. v. Lueck
471 U.S. 202 (Supreme Court, 1985)
Caterpillar Inc. v. Williams
482 U.S. 386 (Supreme Court, 1987)
Lingle v. Norge Division of Magic Chef, Inc.
486 U.S. 399 (Supreme Court, 1988)
Livadas v. Bradshaw
512 U.S. 107 (Supreme Court, 1994)
Milne Employees Association v. Sun Carriers, Inc.
960 F.2d 1401 (Ninth Circuit, 1992)
Su Humble v. Boeing Company, a Delaware Corporation
305 F.3d 1004 (Ninth Circuit, 2002)
Oasis West Realty v. Goldman
250 P.3d 1115 (California Supreme Court, 2011)
Green v. Ralee Engineering Co.
960 P.2d 1046 (California Supreme Court, 1998)
Soremekun v. Thrifty Payless, Inc.
509 F.3d 978 (Ninth Circuit, 2007)
Contemporary Investments, Inc. v. Safeco Title Insurance
145 Cal. App. 3d 999 (California Court of Appeal, 1983)
Stewart v. Preston Pipeline Inc.
36 Cal. Rptr. 3d 901 (California Court of Appeal, 2005)
Walton v. UTV of San Francisco, Inc.
776 F. Supp. 1399 (N.D. California, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
341 F. Supp. 3d 1116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canedo-v-pac-bell-tel-co-casd-2018.