Cramer v. Consolidated Freightways, Inc.

209 F.3d 1122
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 26, 2000
DocketNos. 98-55657, 98-56041 and 98-56154
StatusPublished
Cited by3 cases

This text of 209 F.3d 1122 (Cramer v. Consolidated Freightways, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cramer v. Consolidated Freightways, Inc., 209 F.3d 1122 (9th Cir. 2000).

Opinions

RYMER, Circuit Judge:

These appeals raise the familiar issue of when state law claims by employees covered by a collective bargaining agreement are preempted.1 They all arise out of the surreptitious videotaping of restrooms through two-way mirrors, an activity that is arguably criminal in California. Employees at the trucking terminal where this happened filed related actions seeking recovery from their employer, Consolidated Freightways Corporation of Delaware, for invasion of privacy (Cramer and Alfaro); emotional distress (Alfaro); and discharge in retaliation for their own conduct related to the surveillance (Hoffman). The district court held that all the claims in each action are preempted by Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185,2 because determining whether privacy rights have been violated re[1127]*1127quires an interpretation and application of the collective bargaining agreement. The employees contend otherwise, primarily for the reason that parties to a collective bargaining agreement cannot negotiate for considerations that violate criminal statutes. Following a long line of authority in this circuit, we agree with the district court in Cramer and Alfaro that adjudication of these civil claims based on privacy rights depends on the reasonableness of the employees’ expectations and this, in turn, depends on the extent to which they may have bargained away their privacy interests. Therefore these claims are preempted, whether or not the specific conduct at issue may also be subject to criminal prosecution. The same is true of Alfaro’s claims for emotional distress; the employer’s conduct is not outrageous just because a statutory prohibition may have been violated, rather it depends upon the relationship between the parties. Thus, we affirm both Cramer and Alfaro.

However, claims based upon retaliatory discharge in violation of public policy are different. Under California law, they turn on the employer’s motivation — not the employees’ expectations. Accordingly, we reverse Hoffman.

I

Consolidated Freightways is a large trucking company whose drivers and non-supervisory employees at the Mira Loma, California trucking terminal are subject to a collective bargaining agreement between Consolidated and the International Brotherhood of Teamsters, Local No. 63. Article 26, Section 2 of the Master Agreement provides that “[t]he Employer may not use video cameras to discipline or discharge an employee for reasons other than theft of property or dishonesty” and stipulates to a procedure to be followed if video tapes are used to support discipline or discharge. Other provisions acknowledge concern about substance abuse, prescribe drug testing procedures, and establish a process for grieving disputes arising under the agreement.

Evidently as part of an effort to detect and deter the use of drugs by its drivers, Consolidated installed video cameras and audio listening devices behind two-way mirrors in the restrooms at the Mira Loma terminal.3 Employees discovered the surveillance equipment in September 1997.

Local 63 filed a grievance on September 22, 1997, and on September 27 Lloyd Cramer, a truck driver employed at the Mira Loma terminal, brought a class action in the Superior Court for the State of California in Riverside County alleging invasion of privacy on behalf of all “individuals lawfully on the premises ... who had a reasonable expectation of privacy while using defendants’ restrooms.” Another suit was filed in state court by Guillermo Alfaro (joined by 281 others), seeking damages for invasion of privacy as well as for infliction of emotional distress, and an injunction to stop Consolidated’s use of the allegedly illegal devices. Consolidated removed both actions to federal district court, asserting that the claims fall within the preemptive reach of § 301.

Consolidated moved in both actions to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure; conversely, Alfa-ro filed a motion to remand for lack of federal jurisdiction, in which Cramer joined. Various motions were filed with respect to class certification in Cramer, but the district court considered the remand and dismissal motions first. The court denied the motions to remand; granted Consolidated’s motion to dismiss in Cramer and denied the request for certification as moot; and granted the motion to dismiss in Alfaro as to the 273 employees and remanded the claims of nine non-employees to state court.

Meanwhile, Theresa Hoffman and Ma-sao Shobe also filed an action in state court. Hoffman claimed that while at work, she witnessed installation of some of the surveillance devices and that she was [1128]*1128fired as part of a cover-up. As a “casual employee” under the collective bargaining agreement, Shobe regularly worked, short stints for Consolidated at the Mira Loma terminal. Although he was not working at the time, he joined as a party in the Alfaro action. Thereafter, Shobe applied to be rehired but alleges that he was rejected because of his participation in the Alfaro suit. Both claim that installation of the secret cameras violated California Penal Code §§ 632, 635, 647k and 653n as well as their constitutional rights of privacy under Article 1, Section 1 of the California Constitution, and that Consolidated’s job actions were taken to conceal the existence of crimes in Hoffman’s case, and in Shobe’s, to punish him for filing a lawsuit to protect and enforce his constitutional privacy rights. Consolidated removed and moved to dismiss on grounds of preemption; Hoffman and Shobe in turn sought a remand. The district court found both claims preempted, and dismissed the action.

All parties have timely appealed.

II

Invasion of Privacy

(Hoffman and Alfaro)

Cramer4 and Alfaro argue that the LMRA cannot preempt a lawsuit by union employees who claim they are victims of illegal surveillance and eavesdropping activities by their employers. They point out that the LMRA only preempts state lawsuits which are “substantially dependent” on a CBA, see Caterpillar, Inc. v. Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987), and that employees covered by a collective bargaining agreement may assert legal rights “independent” of the agreement. Id. at 396, 107 S.Ct. 2425. “Independent” means that “resolution of the state-law claim does not require construing the collective bargaining agreement.” See Lingle v. Norge Division of Magic Chef, 486 U.S. 399, 407, 108 S.Ct. 1877, 100 L.Ed.2d 410 (1988). Specifically relying on Allis-Chalmers, and Miller v. AT & T Network Sys., 850 F.2d 543 (9th Cir.1988), Cramer and Alfaro submit that their state law claims are independent of the CBA because the collective bargaining agreement cannot, as a matter of law, authorize conduct that is illegal under state law.

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Bluebook (online)
209 F.3d 1122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cramer-v-consolidated-freightways-inc-ca9-2000.