Cramer v. Consolidated Freightways Inc.

255 F.3d 683, 2001 WL 668923
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 15, 2001
DocketNos. 98-55657, 98-56041 and 98-56154
StatusPublished
Cited by80 cases

This text of 255 F.3d 683 (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., 255 F.3d 683, 2001 WL 668923 (9th Cir. 2001).

Opinions

Opinion by Judge FISHER; Concurrence by Judge RICHARD C. TALLMAN; Dissent by Judge O’SCANNLAIN.

FISHER, Circuit Judge:

This appeal requires us to decide whether a plaintiffs state law privacy claim, based on California’s penal code, is preempted under § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185. Resolution of this issue, in turn, leads us to clarify our Circuit’s approach to § 301 preemption. We hold that because plaintiffs’ privacy claims are not even arguably covered by the collective bargaining agreement (“CBA”), the claims are independent of the CBA and thus are not subject to § 301 preemption. Moreover, we hold that when an employer’s surreptitious surveillance constitutes a per se violation of established state privacy laws, the employees affected thereby may bring an action for invasion of privacy regardless of the terms of the collective bargaining agreement governing their employment.

I.

Consolidated Freightways (“Consolidated”), the defendant in this action, is a large trucking company.1 It concealed video cameras and audio listening devices behind two-way mirrors in the restrooms at its terminal in Mira Loma, California, ostensibly to detect and prevent drug use by its drivers. Employees at the terminal discovered the surveillance equipment when a mirror fell off the men’s restroom wall, exposing a camera with a wire leading out through a hole in the wall behind it. Subsequent investigation revealed a similar hole in the wall behind the mirror in the adjoining women’s restroom.

Under California Penal Code § 653n, “[a]ny person who installs or who maintains ... any two-way mirror permitting observation of any restroom, toilet, bathroom, washroom, shower, locker room, fitting room, motel room, or hotel room, is guilty of a misdemeanor.” Thus, Consolidated’s installation of the two-way mirror was a direct violation of California criminal law.

Soon after discovery of the camera, truck driver Lloyd Cramer, an employee at the Mira Loma terminal, brought a class action suit in state court alleging invasion of privacy on behalf of all “individuals lawfully on the premises ... who had a reasonable expectation of privacy while using [Consolidated’s] restrooms.” Guillermo Alfaro, another Consolidated employee, and 281 others brought a separate suit seeking damages for invasion of privacy and infliction of emotional distress. They also sought injunctive relief to end the use of the surveillance devices.

Consolidated removed both cases to federal court, contending that plaintiffs’ state claims were preempted under § 301 of the LMRA because the claims required interpretation of the CBA between Consolidated and its employees’ union to determine the employees’ reasonable expectations of privacy. The cases were consolidated in the district court (as they have been for purposes of appeal).

Consolidated then moved to dismiss both cases, arguing that they were preempted by § 301. Cramer moved for class certification, and Alfaro, joined by Cramer, filed a motion to remand for lack of jurisdiction. The district court denied Alfaro and Cram-er’s motion to remand, granted Consolidated’s motion to dismiss Cramer’s suit, [689]*689granted Consolidated’s motion to dismiss Alfaro’s suit as to all but nine plaintiffs who were not Consolidated employees, remanded the claims of the nine nonemploy-ees to state court and denied Cramer’s certification motion as moot. This appeal followed.

We have jurisdiction under 28 U.S.C. § 1291. We review a district court’s finding of preemption under § 301 de novo. Atidette v. ILWU, 195 F.3d 1107, 1111 (9th Cir.1999). We reverse.

II.

The history of § 301 preemption doctrine is well known, but worth summarizing again to explain how we have arrived at the current state of the law and to provide context for our discussion. As this court has noted, “[familiarity [with the subject matter] has not bred facility.” Galvez v. Kuhn, 933 F.2d 773, 774 (9th Cir.1991).

Section 301 is on its face a jurisdictional statute, under which “[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations, may be brought in any district court of the United States having jurisdiction of the parties.” 29 U.S.C. § 185(a). Soon after passage of the LMRA, the Supreme Court ruled that § 301 authorized the federal courts to develop a federal common law of CBA interpretation. Textile Workers Union v. Lincoln Mills, 353 U.S. 448, 451, 77 S.Ct. 912, 1 L.Ed.2d 972 (1957). The Court subsequently held that this federal common law preempts the use of state contract law in CBA interpretation and enforcement. Local 174 Teamsters of Am. v. Lucas Flour Co., 369 U.S. 95, 103-04, 82 S.Ct. 571, 7 L.Ed.2d 593 (1962).

In Allis-Chalmers Corp. v. Lueck, 471 U.S. 202, 105 S.Ct. 1904, 85 L.Ed.2d 206 (1985), the Court expanded application of § 301 preemption beyond cases specifically alleging contract violation to those whose resolution “is substantially dependent upon analysis of the terms of an agreement made between the parties in a labor contract.” Id. at 220, 105 S.Ct. 1904. Allis-Chalmers involved an employee’s suit alleging his employer had handled his claim for disability benefits in bad faith, thereby violating state tort law. Id. at 206, 105 S.Ct. 1904. Because the method of handling disability claims was specified in the CBA governing Lueck’s employment, the Court interpreted his claim as essentially a recharacterized action for breach of the CBA, and held that it was preempted under § 301. Id. at 215, 105 S.Ct. 1904 (“[I]t is a question of federal contract interpretation whether there was an obligation under this labor contract to provide the payments' in a timely manner, and, if so, whether Allis-Chalmers’ conduct breached that implied contract provision.”).

The Court reiterated its test for preemption in Caterpillar, Inc. v. Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). Although acknowledging that “the pre-emptive force of § 301 is so powerful as to displace entirely any state cause of action for violation of contracts between an employer and a labor organization,” the Court explained that § 301 preempts only “claims founded directly on rights created by collective-bargaining agreements, and also claims ‘substantially dependent on analysis of a collective-bargaining agreement.’ ” Id. at 394, 107 S.Ct. 2425 (quoting Franchise Tax Bd. v. Construction Laborers Vacation Trust, 463 U.S. 1, 23, 103 S.Ct.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
255 F.3d 683, 2001 WL 668923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cramer-v-consolidated-freightways-inc-ca9-2001.