Chatman v. Saks Fifth Avenue of Texas, Inc.

762 F. Supp. 152, 6 I.E.R. Cas. (BNA) 602, 1991 U.S. Dist. LEXIS 5138, 1991 WL 57889
CourtDistrict Court, S.D. Texas
DecidedApril 11, 1991
DocketCiv. A. H-90-1438
StatusPublished
Cited by7 cases

This text of 762 F. Supp. 152 (Chatman v. Saks Fifth Avenue of Texas, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chatman v. Saks Fifth Avenue of Texas, Inc., 762 F. Supp. 152, 6 I.E.R. Cas. (BNA) 602, 1991 U.S. Dist. LEXIS 5138, 1991 WL 57889 (S.D. Tex. 1991).

Opinion

OPINION ON DENIAL OF REMAND

HUGHES, District Judge.

Discharging an employee in retaliation for filing a workers’ compensation claim violates art 8307c of the Texas Revised Civil Statutes. Federal law prohibits removal of a claim to federal district court when the claim arises under the workers’ compensation laws of a state. 28 U.S.C. § 1445(c). Because the court finds that a claim for retaliatory discharge does not arise under the workers’ compensation laws of Texas, removal of the claim to this court is proper, and remand will be denied.

1. Background

Angela Chatman was a detective at Saks Fifth Avenue. She was injured on the job and filed a workers’ compensation claim. After 26 weeks on disability leave, Chat-man was terminated by Saks on her return to work.

The Saks employee disability benefits plan provides disabled employees these salary and security benefits:

a. Employees on disability for less than 4 weeks receive full salary (the Plan pays full salary less workers’ compensation benefits received by the employee) and are guaranteed a return to their former position and salary and original service date;
b. Employees on disability for 4-26 weeks receive full salary and are guaranteed a return to a position of same type as their former position, their former salary, and their original service date; and
c. Employees on disability for 26 consecutive weeks or for 26 weeks in any 52 week period are terminated.

Chatman sued Saks in state court under a state law that prohibits employers from discharging an employee in retaliation for the employee’s filing of a workers’ compensation claim. Tex.Rev.Civ.Stat. art. 8307c. Saks removed the case to this court, alleging that Chatman’s claim is governed by ERISA because she was discharged under the terms of the plan. Saks also alleges that Chatman’s claim does not arise under the workers’ compensation laws of Texas, so the federal law that prohibits removal of claims arising under a state’s workers’ compensation laws does not apply, and removal is proper because the parties are diverse. 28 U.S.C. § 1445(c).

2. ERISA is not implicated.

This is not an ERISA claim. It is a claim for retaliatory discharge. Chatman’s claim is for being fired by Saks, and Saks is the proper defendant for that claim. While the Saks plan prescribes the benefits to be received by employees, this is not a dispute about benefits. Chatman received disability benefits under the plan. Termination of disability benefits, which also was prescribed by the plan, does not equal being fired. The plan may define termination, but it is Saks, Chatman’s employer, and not the plan, that fired Chatman.

*154 3. Removal under 28 U.S.C. § 1445(c).

Chatman and Saks are diverse. Chat-man is a Texas resident. Saks is a New Jersey corporation with its principal place of business in New York.

“A civil action in any State court arising under the workmen’s compensation laws of such State may not be removed to any district court of the United States.” 28 U.S.C. § 1445(c). This law prohibits removal of the case to this court if a claim under art. 8307c for retaliatory discharge arises under the Texas workers’ compensation laws. If a retaliatory discharge claim does not arise under the Texas workers’ compensation laws, Chatman’s claim belongs in this court because she and Saks are diverse.

4. Article 8307c is not part of the Texas workers’ compensation laws.

Federal courts are divided over whether to characterize a retaliatory discharge claim as falling under the workers’ compensation laws of the state. This court has previously assumed, without deciding, that “[t]he court has diversity jurisdiction over plaintiff’s art. 8307c claim, ...” Benton v. Kroger, 640 F.Supp. 1317, 1321 (S.D.Tex.1986). The Western District of Texas also has held that retaliatory discharge claims do not arise under the workers’ compensation laws of Texas, and they are, therefore, removable. Gillis v. U.S. Natural Resources, Inc., 1989 WL 132312 (W.D.Tex.1989); Richardson v. Owens-Illinois Glass Container, Inc., 698 F.Supp. 673, 674 (W.D.Tex.1988).

Two Texas courts of appeal have also found retaliatory discharge claims to be separable from claims for compensation for injuries. Fidelity & Casualty Company of New York v. Gaedcke Equipment Co., 716 S.W.2d 542, 543 (Tex.App.-Houston [1st Dist.] 1986, writ ref’d n.r.e.); Artco-Bell Corp. v. Liberty Mutual Insurance Co., 649 S.W.2d 722, 724 (Tex.App.-Texarkana [1983], no writ) (workers’ compensation laws are enacted “for the purpose of providing compensation and medical expenses, or death benefits, for workers who experience physical injuries while in the scope of their employment,” citing Woolsey v. Panhandle Refining Co., 131 Tex. 449, 116 S.W.2d 675 (1935)).

Other courts have held that similar retaliatory discharge statutes are not part of the workers’ compensation laws of their states. Smith v. Union Carbide Corp., 664 F.Supp. 290, 292 (E.D.Tenn.1987) (wrongful discharge claim is an independent tort action); Powers v. Travelers Insurance Co., 664 F.Supp. 252, 254 (S.D. Miss.1987); Waycaster v. AT & T Technologies, Inc., 636 F.Supp. 1052, 1054 (N.D.Ill.1986) af f'd 822 F.2d 1091 (7th Cir.1987) (wrongful discharge claim is an independent tort action, and does not arise under the workers’ compensation laws of Illinois).

In contrast, some district courts in Texas have held that art. 8307c claims fall under the Texas workers’ compensation laws, and, therefore, are not removable. Fernandez v. Reynolds Metals Co., 384 F.Supp. 1281, 1283 (S.D.Tex.1974) (Federal courts should not strain to allow removal of workers’ compensation suits, and courts should remand when federal jurisdiction is doubtful.); Soto v. Tonka Corp., 716 F.Supp. 977, 978 (W.D.Tex.1989); Chavez v. Farah Manufacturing Company, Inc., 715 F.Supp. 177, 178 (W.D.Tex.1989); Santos v. P*I*E Nationwide, Inc., 1986 WL 15587 (W.D.Tex.1986) (“... art. 8307c is a vital part of the Texas Workers’ Compensation Act_”); Olivarez v. Utica Mutual Insurance Co., 710 F.Supp. 642, 643 (N.D.Tex.1989); Wallace v. Ryan-Walsh Stevedoring Company, Inc., 708 F.Supp. 144, 1490 (E.D.Tex.1989); Nabors v.

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762 F. Supp. 152, 6 I.E.R. Cas. (BNA) 602, 1991 U.S. Dist. LEXIS 5138, 1991 WL 57889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chatman-v-saks-fifth-avenue-of-texas-inc-txsd-1991.