Espinoza v. Cargill Meat Solutions Corp.

622 F.3d 432, 31 I.E.R. Cas. (BNA) 596, 189 L.R.R.M. (BNA) 2353, 2010 U.S. App. LEXIS 20544, 2010 WL 3859692
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 5, 2010
Docket09-11170
StatusPublished
Cited by15 cases

This text of 622 F.3d 432 (Espinoza v. Cargill Meat Solutions Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Espinoza v. Cargill Meat Solutions Corp., 622 F.3d 432, 31 I.E.R. Cas. (BNA) 596, 189 L.R.R.M. (BNA) 2353, 2010 U.S. App. LEXIS 20544, 2010 WL 3859692 (5th Cir. 2010).

Opinion

PRADO, Circuit Judge:

Tina Espinoza appeals the district court’s grant of summary judgment in favor of Cargill Meat Solutions Corporation (“Cargill”) on her negligence and gross negligence claims, stemming from an injury she incurred while working at Cargill’s meat packing plant. The district court found that (1) Espinoza waived her right to *436 sue Cargill under Texas tort law by electing to participate in the Cargill Meat Solutions Corporation Texas Occupational Temporary Disability Plan (the “Plan”); (2) § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185(a), preempted her suit; and (3) Espinoza failed to exhaust the claims, grievance, and arbitration procedure (the “Claims Procedure”) in the Plan and in Cargill's collective bargaining agreement (“CBA”). On appeal, Espinoza argues that (1) under Texas Labor Code (“TLC”) § 406.033(e), her waiver was “void and unenforceable”; (2) § 301 of the LMRA does not preempt her suit because her negligence claim is not “inextricably intertwined” with any provision of Cargill’s CBA; and (3) because she retained her right to sue, she need not follow the Claims Procedure.

Because Cargill offered its employees Workers’ Compensation coverage, and TLC § 406.033(e)’s prohibition against waiver of an employee’s right to sue only applies to an employer who does not offer coverage, Espinoza’s waiver was valid and enforceable. Additionally, § 301 of the LMRA preempts Espinoza’s suit because a sufficient nexus exists between the terms of the CBA and the elements of Espinoza’s negligence cause of action for purposes of preemption. Finally, because Espinoza’s waiver of her rights was enforceable, her failure to follow the Claims Procedure bars her suit. We therefore affirm the district court’s grant of summary judgment in favor of Cargill.

I. FACTUAL AND PROCEDURAL BACKGROUND

Since 2002, Cargill, a corporation operating a meat packing plant in Friona, Texas, has provided Workers’ Compensation insurance for its employees. In addition to the Workers’ Compensation insurance policy, Cargill instituted the Plan, which provides medical benefits so long as the injured claimant remains employed with Cargill. Upon commencement of employment, Cargill employees may: (1) receive protection under Cargill’s Workers’ Compensation insurance policy; (2) waive Workers’ Compensation protection and retain the right to sue in tort; or (3) waive both Workers’ Compensation protection and the right to sue in tort, and instead participate in the Plan.

On September 14, 2006, Cargill hired Espinoza. On September 15, 2006 — the day after her hiring — Espinoza signed a written waiver of Workers’ Compensation insurance and an election to participate in the Plan. The waiver states:

I have reviewed (1) the [CBA] between Excel 1 and the United Food and Commercial Workers Local No. 540, AFL-CIO, as amended ..., (2) a summary of the [Plan], and (3) the written Notice dated APRIL 15, 2002, that Excel now provides Workers’ Compensation Insurance under the Texas Workers’ Compensation Act (the Act), and I understand that I may make a choice as to the coverage I desire.
Therefore, I hereby WAIVE Workers’ Compensation Insurance and make the election checked as follows:

Under the bolded sentence, the waiver provides two options:

In lieu of Workers’ Compensation Insurance, I elect to be covered by the [Plan], and I understand that the exclusive and mandatory procedure for enforcing my rights will be the [Claims Procedure] under the Plan and the CBA.
In lieu of Workers’ Compensation Insurance and in lieu of coverage under the [Plan], I elect to retain my rights of *437 action under common and statutory law. I understand such rights will be subject to all defenses available to Excel under the common and statutory law. I further understand and agree that the exclusive and mandatory procedure for enforcing my rights will be the claim procedure provided in the CBA, including final and binding arbitration under the Federal Arbitration Act, 9 U.S.C. §§ 2-13.

Espinoza initialed the first option.

Cargill also entered into a CBA with the United Food and Commercial Workers CLC Local #540, AFL-CIO (the “Union”), which governs the relationship between Cargill and its employees, including Espinoza. The CBA dictates that the Plan is the sole mechanism for addressing workplace injuries, and states that the Union “waive[s] on behalf of itself and all bargaining unit employees, and [sic] any and all other causes of action which it or such employees possess outside said Disability Plan which may in any way relate to or arise out of an on the job accident, illness, or injury.” If a claim is not resolved by the Plan’s administrative procedures, an employee may then proceed to arbitration pursuant to the CBA, which is “final and binding upon all parties.” The Plan also states that “there shall be no right to appeal.”

On February 15, 2007, Espinoza injured her hand while operating a “butt bone” saw. After her injury, Espinoza began receiving medical and wage replacement benefits through the Plan. Although she received Plan benefits, she did not miss any time from work. She did not seek administrative review of her benefits through the Claims Procedure. On August 29, 2007, Cargill fired Espinoza, which also terminated her eligibility for Plan benefits. Espinoza subsequently filed this action against Cargill, alleging gross negligence and negligence for failing to properly train and supervise her, failing to adopt proper polices and procedures regarding operation of machinery, failing to provide safe equipment, and failing to provide a safe place of work.

Cargill filed a motion for summary judgment, which the district court granted. The district court found that Espinoza had waived her causes of action for torts when she elected to participate in the Plan, and that TLC § 406.033(e) did not render her waiver void and unenforceable because Cargill provided its employees with the option to retain coverage through Workers’ Compensation insurance, thus remaining a “subscriber.” The district court also held that § 301 of the LMRA preempted Espinoza’s suit because the scope of Car-gill’s duties and Espinoza’s remedies under the CBA were inextricably intertwined with the scope of Cargill’s legal duty for purposes of Espinoza’s negligence claim. Finally, the district court found that Espinoza’s failure to follow the Claims Procedure precluded her negligence action. Espinoza timely appealed.

II. JURISDICTION AND STANDARD OF REVIEW

We have jurisdiction under 28 U.S.C. § 1291, and review “the district court’s grant of summary judgment de novo, applying the same standard as the district court.” Chaney v. Dreyfus Serv. Corp., 595 F.3d 219, 228-29 (5th Cir.2010) (citing Golden Bridge Tech., Inc. v.

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Bluebook (online)
622 F.3d 432, 31 I.E.R. Cas. (BNA) 596, 189 L.R.R.M. (BNA) 2353, 2010 U.S. App. LEXIS 20544, 2010 WL 3859692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/espinoza-v-cargill-meat-solutions-corp-ca5-2010.