Deceived v. Local S6

Court of Appeals for the First Circuit·Decided January 8, 1998·No. 96-2311·Published

Opinion

UNITED STATES COURT OF APPEALS UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT FOR THE FIRST CIRCUIT

No. 96-2311

BIW DECEIVED, ET AL.,

Plaintiffs, Appellants,

v.

LOCAL S6, INDUSTRIAL UNION OF MARINE AND SHIPBUILDING WORKERS OF AMERICA, IAMAW DISTRICT LODGE 4,

Defendant, Appellee.

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MAINE

[Hon. Gene Carter, U.S. District Judge]

Before

Selya, Circuit Judge,

Aldrich, Senior Circuit Judge,

and Lynch, Circuit Judge.

Jed Davis, with whom Linda Christ, Jim Mitchell and Jed

Davis, P.A. were on brief, for appellants.

Ralph L. Tucker, with whom James W. Case and McTeague,

Higbee, McAdam, Case, Watson and Cohen were on brief, for

appellee.

December 30, 1997

SELYA, Circuit Judge. In this procedural motley, a SELYA, Circuit Judge.

band of plaintiffs the eponymous BIW Deceived locks horns

with Local S6 of the Industrial Union of Marine and Shipbuilding

Workers (the Union) over issues pertaining to removal and remand.

The peculiarities of this engagement impel us to adumbrate our

necessarily circuitous decisional path. After delineating the

relevant facts and procedural history, we address whether the

plaintiffs have waived their right to appeal either by inviting

the judgment or by failing to seek our intervention at an earlier

date. Finding no default, we proceed to the merits a journey

that requires us to touch upon doctrinal aspects of preemption

under federal labor law and to explore a question of first

impression concerning the exercise of federal question

jurisdiction in the context of the artful pleading doctrine. At

journey's end, we conclude that the plaintiffs' complaint

presents a colorable federal question and that, therefore, the

district court did not err when it refused to return the case to

a state venue.

I. BACKGROUND I. BACKGROUND

Because this action stumbled near the starting gate,

the record is stunted and the facts before us are sparse. We

present them as best they present themselves.

In the fall of 1995, Bath Iron Works (Bath or BIW)

hired a number of electricians and pipefitters. The Union

participated in the job interviews pursuant to the terms of an

existing collective bargaining agreement (the CBA). The

plaintiffs allege that during these interviews the Union told

them that they would "be employed at least until the expiration

of the current Union contract [August 1997]" and "probably until

the end of the decade;" that Bath "had more work for

electricians and pipefitters than it could handle;" and that Bath

"was hiring fewer electricians and pipefitters than it needed, so

that the employees would be assured of continuing employment."

The plaintiffs further allege that they relied on these

blandishments, accepted offers of employment, and left other jobs

to move to Maine and work for Bath. But, the plaintiffs say, the

Union had led them down a primrose path; they were laid off early

in 1996.

II. PROCEDURAL HISTORY II. PROCEDURAL HISTORY

Angered by this fecklessness, the former employees

joined together to form "BIW Deceived" and sue the Union in a

Maine state court.1 Their complaint alleged negligence,

fraudulent misrepresentation, fraud in the inducement, infliction

of emotional distress, loss of consortium, intentional

nondisclosure, and unjust enrichment. The Union promptly removed

the action to the federal district court. When the plaintiffs

sought remand on the ground that their suit involved only state-

law claims, the Union responded by asserting that all the

plaintiffs' claims were subject to preemption under the National

1Two of the plaintiffs are former employees' spouses. Since their claims for loss of consortium are derivative, we refer to the informal plaintiff class as if it were composed solely of ex- employees.

Labor Relations Act (NLRA), 29 U.S.C. 151 et seq., and/or the

Labor Management Relations Act (LMRA), 29 U.S.C. 185 et seq.

Judge Carter resolved the removal/remand dispute in the

Union's favor. He denied the plaintiffs' motion, asserting in a

two-page order that "the claims for relief set forth in the

Complaint are all derivative from and dependent for their

resolution upon duties defined and imposed by federal law, which

law occupies the field and, by mandate of Congress, closes the

field to state regulation."

That order produced a strange reaction: the plaintiffs

moved for entry of final judgment in the defendant's favor. They

reasoned that, in refusing to remand, the district court had

"conclu[ded] that federal law preempts all state claims," and

that this conclusion "le[ft] nothing more to be litigated" in

that court. Judge Carter denied this motion without elaboration.

Shortly thereafter, Magistrate Judge Cohen presided

over a status conference during which the plaintiffs represented

that they had "no interest in [pressing] any federal-law claims"

and that they desired the entry of final judgment in order to

"appeal the [district court's] preemption ruling." The Union

agreed not to oppose the entry of judgment in its favor. The

next day, the plaintiffs moved for reconsideration and for entry

of final judgment, specifically "abandon[ing] any and all federal

claims." This time Judge Carter granted their motion and entered

final judgment, without prejudice to the plaintiffs' right to

seek review. This appeal followed.

III. APPELLATE JURISDICTION III. APPELLATE JURISDICTION

It is a federal court's obligation to assure itself of

the existence of subject matter jurisdiction even if no party

presses the question. See American Policyholders Ins. Co. v.

Nyacol Prods., Inc., 989 F.2d 1256, 1258 (1st Cir. 1993).

Consequently, we consider whether the odd procedural posture of

this case undermines our appellate jurisdiction.

In several circuits a party who consents to the entry

of judgment forfeits any right to appeal from that judgment.

See, e.g., Tel-Phonic Servs., Inc. v. TBS Int'l, Inc., 975 F.2d

1134, 1137 (5th Cir. 1992); Clapp v. Commissioner, 875 F.2d 1396,

1398 (9th Cir. 1989). We have taken a slightly more

latitudinarian approach: while acknowledging that, with few

exceptions, "a party to a consent judgment is thereby deemed to

waive any objections it has to matters within the scope of the

judgment," Coughlin v. Regan, 768 F.2d 468, 469-70 (1st Cir.

1985),2 we nevertheless have suggested that "it is possible for a

party to consent to a judgment and still preserve [its] right to

appeal" a previous ruling on a contested matter in the case, as

long as it "reserve[s] that right unequivocally." Id. at 470.

Such a reservation occurred here. The record makes manifest that

the plaintiffs sought the entry of final judgment solely to

facilitate an appeal of the district court's refusal to remand

2The specific exceptions mentioned by the Coughlin court

involve "a showing of either lack of actual consent, fraud in obtaining consent, lack of federal jurisdiction, or mistake." 768 F.2d at 470.

the suit.

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