James Powers v. Cottrell, Inc.

728 F.3d 509, 2013 U.S. App. LEXIS 17158, 2013 WL 4405693
Court of Appeals for the Sixth Circuit·Decided May 6, 2013·No. 12-5923·Unpublished·Cited by 20 cases

Opinion

OPINION

SUHRHEINRICH, Circuit Judge.

BACKGROUND

On September 18, 2006, Plaintiffs James and Linda Powers (collectively, “Plaintiffs”) filed this product-liability case in the Circuit Court for Rutherford County, Tennessee (the “state court”) against Cottrell, arising from a shoulder injury sustained by James Powers (“Powers”). The injury occurred in the course and scope of Powers’ employment by Jack Cooper Transport Company, Inc. (“JCTC”), 1 while he was tying down a Nissan vehicle-to an auto transport rig manufactured by Defendant Cottrell, Inc. (“Cottrell”). Plaintiffs, citizens of Tennessee, sued (1) Cottrell, a citizen of Georgia, (2) Nissan, a citizen of Tennessee, and (3) WWL Vehicle Services America, Inc. fik/a Distribution and Auto Service, Inc., a citizen of California and New Jersey. Powers alleged state law claims for product-liability, negligence, and breach of warranty, and Linda Powers alleged a claim for loss of consortium. The complaint asserted that the chain and ratchet system 2 of the auto transport rig was defectively designed and manufactured, and that Cottrell was negligent in its failure to analyze injury data or warn users. As part of their argument, Plaintiffs. assert that Cottrell had a multitude of different options besides the chain and ratchet system, including but not limited to straps and non-manual securement systems.

On November 8, 2006, Cottrell removed the case to the United States District Court for the Middle District of Tennessee (the “district court”) on the grounds that Plaintiffs. fraudulently joined non-diverse defendant Nissan. • The district court determined that Nissan was not fraudulently joined, and remanded the case back to the state court on January 17, 2007. Powers v. Cottrell, No. 3:06-cv-01094 (M.D.Tenn. 2007). The state court later granted summary judgment in favor of the only non-diverse defendant, Nissan.

On November 21, 2011, Cottrell apparently became aware of the argument 3 that removal was appropriate because resolution of Plaintiffs’ claims would require interpretation of a collective bargaining agreement (“CBA”) made between Powers, JCTC, and Powers’ union. This meant that the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 141, et seq. could potentially completely preempt Plaintiffs’ state law claims. Cottrell explained in its appellate brief that it did not *513 raise the LMRA argument sooner- because “[a]s a non-union employer and non-party to the CBA at issue here, Cottrell was unaware of the LMRA complete preemption grounds, the prior grievance decisions on the issues in the lawsuits, or even that there was such a doctrine as LMRA complete preemption.” As a response to this realization, Cottrell removed the case to the district court again on December 20, 2011, after it had been in the state court for more than four years. 4 Cottrell’s specific argument was that although it was not party to the collective bargaining agreement, resolution of Powers’ product-liability claims would nonetheless require interpretation of the CBA, and any state law claim “substantially dependent upon analysis of a [CBA]” is preempted by § 301 of the LMRA. Alongi v. Ford Motor Co., 386 F.3d 716, 724 (6th Cir.2004).

On April 23, 2012, the district court' remanded the case for the second time. Powers v. Cottrell, No. 3:11-cv-01209, 2012 WL 1393044 (M.D.Tenn.2012). The district court held that

Section 301 preempts state law claims that are substantially dependent upon analysis of a CBA, but it does not reach claims that only tangentially involve CBA provisions. By its very terms, this provision confers federal subject-matter jurisdiction only over suits for violations of contracts. Here, Plaintiffs’ claims are not dependent upon analysis of a CBA. Defendant’s duties to Plaintiffs arise under state law (products liability, negligence and breach of warranty), not under a CBA. Plaintiffs’ rights are created by state law, not by a CBA. The proof required to establish Plaintiffs’ state law claims does not involve a CBA, and this is not an action for violation of a contract. Moreover, Defendant Cottrell is not a party to the CBA at issue -and, thus, is not bound or restricted by it and has no' rights or obligations thereunder. Its duties exist independent of the CBA and are duties owed to members of the public as a matter of state law.

Id. (citations omitted). The district court did not rely on the timeliness of the removal as a basis for remanding, but did note that the case “had been proceeding more than four years in the state court” and also that this was Cottrell’s second attempt at removal.

On July 6, 2012, the district court awarded to Plaintiffs attorney fees incurred as a result of the removal. 28 U.S.C. § 1447(c). In its order awarding attorney fees, the district court explained that “the [district court], in its discretion, finds that Defendant’s attempted removal was not objectively reasonable under the facts and circumstances.”

Defendants now appeal, alleging that the district court abused its discretion in awarding attorney fees. Defendants do not appeal the order to remand.

STATEMENT OF FACTS

Powers was employed as an over-the-road truck driver with JCTC. As part of his job requirements in the course of his employment, Plaintiff routinely loaded automobiles, trucks, and sport utility vehicles onto his trailer for the purposes of transporting them to destinations throughout the United States.' JCTC did not manufacture its own auto transport rigs, but ordered them from Cottrell. The head of purchasing at JCTC, Gary Page, would provide the specifications for the rig to Cottrell. Page’s purchasing decisions are governed by the CBA. Cottrell is not an union employer, nor is it party to the CBA. *514 It is undisputed that the specifications Page provided to Cottrell did not reference the CBA, and also that Cottrell never consulted the CBA when it designed the rigs for JCTC.

Cottrell now alleges that several provisions from the CBA are implicated by Plaintiffs’ product liability claims. Specifically, Cottrell contends that the following provisions are relevant.

A. Equipment Safety

With regard to highway equipment safety, a Joint Health and Safety Committee (the “Committee”) is formed in Article 30 of the CBA. Article 30, Section 8 charges the Committee with the task of ensuring that equipment safety is in compliance with SAE 5 recommended practices for commercial vehicle equipment. Article 30, Section 8 also assigns the Committee the task of reviewing tie-down mechanical devices, chain safety, and other equipment issues.

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James Powers v. Cottrell, Inc., 728 F.3d 509, 2013 U.S. App. LEXIS 17158, 2013 WL 4405693 (6th Cir. 2013).

728 F.3d 509 (James Powers v. Cottrell, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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