Fuerza Unida v. Levi Strauss & Company

986 F.2d 970, 8 I.E.R. Cas. (BNA) 601, 16 Employee Benefits Cas. (BNA) 1833, 1993 U.S. App. LEXIS 6179, 1993 WL 67291
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 29, 1993
Docket92-5544
StatusPublished
Cited by62 cases

This text of 986 F.2d 970 (Fuerza Unida v. Levi Strauss & Company) 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
Fuerza Unida v. Levi Strauss & Company, 986 F.2d 970, 8 I.E.R. Cas. (BNA) 601, 16 Employee Benefits Cas. (BNA) 1833, 1993 U.S. App. LEXIS 6179, 1993 WL 67291 (5th Cir. 1993).

Opinion

KING, Circuit Judge:

Former employees of Levi Strauss & Company filed this class action lawsuit in Texas state court. They alleged that Levi Strauss, by closing its plant in San Antonio, Texas, violated state and federal laws. Levi Strauss removed the case to federal district court. The district court entered summary judgment in favor of Levi Strauss on all of the former employees’ claims, and the employees appealed. Finding no error, we affirm the district court’s judgment in favor of Levi Strauss.

I. BACKGROUND

The undisputed facts in this case reveal that, in September 1981, Levi Strauss & Company acquired a plant in San Antonio, Texas (“the San Antonio plant”) for the purpose of manufacturing sports coats. Levi Strauss attempted to continue the production of sports coats, but over time, production steadily declined. Accordingly, in *973 1987, Levi Strauss converted the San Antonio plant to the production of “Dockers” pants.

In the fall of 1989, Levi Strauss’ projected production requirements for Dockers pants decreased significantly. As a result of this projected decrease, Levi Strauss decided to close one of its plants. After comparing the costs of producing Dockers pants among the various locations where such clothing was produced, Levi Strauss announced that it planned to close its plant in San Antonio. This lawsuit arose from the closing of that plant.

On April 20,1990, certain employees who were terminated upon the closing of the San Antonio plant (“the Plaintiffs”) filed a class action lawsuit against Levi Strauss in Texas state court. In their state law petition, the Plaintiffs asserted one state law claim 1 and three ERISA claims. One of the Plaintiffs’ ERISA claims charged Levi Strauss with closing the San Antonio plant for the purpose of depriving the Plaintiffs of employment benefits, including pension, severance, and disability benefits, in violation of section 510 of ERISA, 29 U.S.C. § 1140. Levi Strauss subsequently removed the case to federal district court on both diversity of citizenship and federal question grounds.

After the case was removed to federal court, the Plaintiffs reshaped their lawsuit against Levi Strauss. First, the Plaintiffs amended their federal complaint to add three new claims, including one based on the nondiscrimination provision of the Texas workers’ compensation statute, Tex.Rev. Civ.Stat.Ann. art. 8307c (“the article 8307c claim”). The Plaintiffs then moved to dismiss three of their seven claims, and the district court obliged, dismissing the specified claims. The Plaintiffs thus settled on asserting four claims against Levi Strauss. Specifically, the Plaintiffs alleged that: (1) they were wrongfully discharged under section 510 of ERISA; (2) Levi Strauss had improperly calculated pension benefits and severance pay, in violation of section 204 of ERISA; (3) the closure of the San Antonio plant discriminated against the subclass of plant employees who had filed workers’ compensation claims or who had otherwise taken steps to obtain workers’ compensation benefits, in violation of Tex.Rev.Civ.StatAnn. art. 8307c; and (4) Levi Strauss had breached an agreement to pay them profit-sharing or a bonus of $500. 2

Levi Strauss moved for summary judgment on all of the Plaintiffs’ remaining, claims. The motion was referred to a magistrate judge, who recommended that the motion be granted in its entirety. With respect to the Plaintiffs’ claim under section 510 of ERISA, the magistrate judge concluded that the Plaintiffs had failed to raise a genuine issue of material fact on an essential element of their claim—namely, that Levi Strauss had specific intent to interfere with the Plaintiffs’ employment benefit rights. Moving to the Plaintiffs’ second remaining claim, the magistrate judge determined that no genuine issues of material fact existed with respect to Levi Strauss’ alleged miscalculation of benefits and severance pay. As for the Plaintiffs’ article 8307c claim, the magistrate judge *974 determined: (1) that much of the evidence presented by the Plaintiffs was not probative or relevant on the issue of whether members of the subclass were being discriminated against for filing or initiating claims for workers’ compensation benefits, and (2) that the Texas statutory provision being relied on by the Plaintiffs does not prohibit an employer from closing an entire plant based on costs that include workers’ compensation costs. Finally, with respect to the Plaintiffs' claim that Levi Strauss had breached an agreement to pay them profit-sharing or a bonus of $500, the magistrate judge concluded that the Plaintiffs “neither presented evidence on this point nor made any argument with regard to it.”

The district court, after reviewing de novo the magistrate judge’s conclusions and recommendations and considering the Plaintiffs’ objections to his evaluation of evidence, adopted the magistrate judge’s findings and legal conclusions. Accordingly, the district court granted Levi Strauss’ motion for summary judgment and dismissed with prejudice all four of the Plaintiffs’ remaining claims. The Plaintiffs now appeal from the district court’s order granting summary judgment in favor of Levi Strauss.

II. ANALYSIS

The Plaintiffs essentially raise two arguments on appeal. First, they argue that the district court erred in refusing to dismiss their ERISA claims and remand the case to state court. They also contend that the district court erred in granting summary judgment on their article 8307c claim and their ERISA section 510 claim. We address each of these contentions in turn.

A. The District Court's Refusal to Dismiss the Plaintiffs’ ERISA Claims and Remand the Case to State Court

After Levi Strauss moved for summary judgment, the Plaintiffs filed a motion requesting the district court to dismiss their federal claims under ERISA and remand the case to state court. In that motion, the Plaintiffs reasoned:

The provision of 28 U.S.C. Section 1445(c) expresses a public policy favoring the litigation of a civil action arising under the workers’ compensation laws of the state in state court. Where an action removed to federal court on the grounds of diversity is reduced by dismissal of other causes of action to workers’ compensation retaliation only, then a remand is proper. Dombrowski v. Continental Can. Co., 711 F.Supp. 433 (N.D.Ill.1989).

Although the district court did not expressly deny the Plaintiffs’ motion to dismiss and remand, by entering summary judgment on all of the Plaintiffs’ claims, the district court impliedly denied the motion. See Addington v. Farmer’s Elevator Mut. Ins. Co., 650 F.2d 663, 666 (5th Cir.), cert. denied, 454 U.S. 1098, 102 S.Ct. 672, 70 L.Ed.2d 640 (1981).

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986 F.2d 970, 8 I.E.R. Cas. (BNA) 601, 16 Employee Benefits Cas. (BNA) 1833, 1993 U.S. App. LEXIS 6179, 1993 WL 67291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuerza-unida-v-levi-strauss-company-ca5-1993.