Lawless v. Steward Health Care Sys., LLC
This text of 894 F.3d 9 (Lawless v. Steward Health Care Sys., LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
SELYA, Circuit Judge.
At its inception, this appeal seemed to present a single question-albeit a novel one-about how to interpret the Massachusetts Wage Act (the Wage Act).
See
I. BACKGROUND
The facts are, for all practical purposes, undisputed. Defendant-appellant Steward Health Care System, LLC owns and operates several medical facilities in Massachusetts, including Carney Hospital (Carney). Plaintiff-appellee Margaret Lawless worked as a nurse at Carney for many years. At the times relevant hereto, she was a member of the Massachusetts Nurses Association, a union that had a collective bargaining agreement (CBA) with the defendant. The CBA contained various provisions addressing members' compensation.
On March 5, 2016, the defendant terminated the plaintiff's employment. On March 7, the plaintiff sued the defendant in a Massachusetts state court, alleging failure to pay accrued wages by the date of her termination. Specifically, the plaintiff alleged that the defendant had failed to pay $20,154.30 in paid time off (PTO) and $21,191.11 in extended sick leave (ESL). These payment shortfalls, she alleged, were in breach of her employment contract
*16
and in violation of the Wage Act,
On March 10, the defendant made a direct deposit into the plaintiff's bank account in the amount of $12,754.33-a sum that was intended to compensate her for all of the PTO owed. Six days later, the plaintiff received a check from the defendant in the amount of $2,440.80-a sum that was intended to compensate her for all of the accrued ESL. On March 22, the Attorney General assented to the plaintiff's maintenance of her suit.
On May 23, the plaintiff amended her complaint and withdrew her claim for breach of contract. The amended complaint also revised the amounts that the plaintiff claimed were overdue: it alleged that, at the time of her discharge, she was owed $20,354.44 in PTO and $2,440.80 in ESL. The defendant removed the case to the federal district court the next day, pegging federal subject-matter jurisdiction on the basis of LMRA preemption.
See
Following the filing of briefs, the case came on for oral argument in this court on May 10, 2018. Although neither party had broached the existence of federal subject-matter jurisdiction, we raised doubts about jurisdiction at oral argument and ordered supplemental briefing. Those briefs having been submitted, the appeal is now ripe for resolution.
II. JURISDICTION
A court without jurisdiction is like a king without a kingdom: both are powerless to act. Since the existence of federal subject-matter jurisdiction implicates our power to hear and determine a case, we must address that issue before proceeding further.
See
Steel Co.
v.
Citizens for a Better Env't
,
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SELYA, Circuit Judge.
At its inception, this appeal seemed to present a single question-albeit a novel one-about how to interpret the Massachusetts Wage Act (the Wage Act).
See
I. BACKGROUND
The facts are, for all practical purposes, undisputed. Defendant-appellant Steward Health Care System, LLC owns and operates several medical facilities in Massachusetts, including Carney Hospital (Carney). Plaintiff-appellee Margaret Lawless worked as a nurse at Carney for many years. At the times relevant hereto, she was a member of the Massachusetts Nurses Association, a union that had a collective bargaining agreement (CBA) with the defendant. The CBA contained various provisions addressing members' compensation.
On March 5, 2016, the defendant terminated the plaintiff's employment. On March 7, the plaintiff sued the defendant in a Massachusetts state court, alleging failure to pay accrued wages by the date of her termination. Specifically, the plaintiff alleged that the defendant had failed to pay $20,154.30 in paid time off (PTO) and $21,191.11 in extended sick leave (ESL). These payment shortfalls, she alleged, were in breach of her employment contract
*16
and in violation of the Wage Act,
On March 10, the defendant made a direct deposit into the plaintiff's bank account in the amount of $12,754.33-a sum that was intended to compensate her for all of the PTO owed. Six days later, the plaintiff received a check from the defendant in the amount of $2,440.80-a sum that was intended to compensate her for all of the accrued ESL. On March 22, the Attorney General assented to the plaintiff's maintenance of her suit.
On May 23, the plaintiff amended her complaint and withdrew her claim for breach of contract. The amended complaint also revised the amounts that the plaintiff claimed were overdue: it alleged that, at the time of her discharge, she was owed $20,354.44 in PTO and $2,440.80 in ESL. The defendant removed the case to the federal district court the next day, pegging federal subject-matter jurisdiction on the basis of LMRA preemption.
See
Following the filing of briefs, the case came on for oral argument in this court on May 10, 2018. Although neither party had broached the existence of federal subject-matter jurisdiction, we raised doubts about jurisdiction at oral argument and ordered supplemental briefing. Those briefs having been submitted, the appeal is now ripe for resolution.
II. JURISDICTION
A court without jurisdiction is like a king without a kingdom: both are powerless to act. Since the existence of federal subject-matter jurisdiction implicates our power to hear and determine a case, we must address that issue before proceeding further.
See
Steel Co.
v.
Citizens for a Better Env't
,
This case, though originally filed in a Massachusetts state court, was removed to the federal district court. It is settled beyond peradventure that a state-court action is removable only if it "originally could have been filed in federal court."
Caterpillar, Inc.
v.
Williams
,
The parties see no jurisdictional problem. They jointly posit that this case was appropriately removed on the basis of federal-question jurisdiction, that is, they envision that this case arises "under the Constitution, laws, or treaties of the United States."
At first blush, the parties' shared claim of jurisdiction appears to run headlong into the well-pleaded complaint rule. The operative pleading (the amended complaint) contains a single cause of action claiming violations of the Wage Act and does not refer at all to federal law. But there may be more here than meets the eye: the parties argue that the amended complaint raises a colorable claim under the complete preemption doctrine (sometimes referred to as the artful pleading doctrine).
See
López-Muñoz
v.
Triple-S Salud, Inc.
,
We start with the doctrine of complete preemption: "Congress may so completely preempt a particular area that any civil complaint raising this select group of claims is necessarily federal in character."
Metro. Life Ins. Co.
v.
Taylor
,
Withall, the doctrine of complete preemption is "misleadingly named."
Rueli
v.
Baystate Health, Inc.
,
LMRA complete preemption has broad application in employment-related matters.
See
Lueck
,
Even so, LMRA complete preemption has its limits. "[N]ot every dispute concerning employment, or tangentially involving a provision of a collective-bargaining agreement, is preempted by [section] 301."
Lueck
,
The line between consultation and interpretation has proven difficult to plot.
See
Livadas
v.
Bradshaw
,
A court surveying its subject-matter jurisdiction "reviews a plaintiff's complaint not to judge the merits, but to determine whether [it] has the authority to proceed."
BIW
,
Applying these general principles to the section 301 setting, we do not focus on whether any of the plaintiff's claims were in fact completely preempted. Instead, we focus on whether the amended complaint, "taken in context, reveals a colorable federal question within a field in which state law is completely preempted."
BIW
,
We find this permissive standard satisfied here. The plaintiff alleged in her original complaint that the defendant failed to pay her PTO and ESL. There can *19 be no doubt that the CBA was potentially implicated in any dispute over the amounts of PTO and ESL owed by the defendant to the plaintiff. After all, the CBA contained provisions addressing the plaintiff's right to both PTO and ESL.
To be sure, the plaintiff amended her complaint prior to removal, dropping her breach of contract claim. The amended complaint, however, was less than pellucid as to whether the plaintiff was still seeking to recover any additional lost wages or was restricting her claim to penalties for failure to make timely payments under the Wage Act.
1
The fact that the plaintiff's amended complaint contained only a Wage Act count tells us very little in light of the fact that the Wage Act confers the right to sue for not just penalties, but for wages too.
See
Because the CBA addressed the plaintiff's rights to PTO and ESL, it was plausible at the time of removal that the district court would be required to interpret the CBA in order to determine what amounts, if any, were owed as lost wages.
Cf.
Cavallaro
,
There is a wrinkle. The plaintiff testified, during her pretrial deposition, that she had been paid her PTO and ESL in full, prior to the date on which her action was removed to the federal court. The effect of this testimony was to concede that her only remaining claim was for penalties under the Wage Act. For aught that appears, the claim for penalties-unlike the claim for lost wages-was based on an independent obligation under the Wage Act and did not brook any interpretation of the CBA.
See
Livadas
,
This circumstance, though, did not deprive the district court of jurisdiction.
See
*20
This is such a case. Because the plaintiff's claim for penalties under the Wage Act arose from the same nucleus of operative facts as her potentially preempted claim for lost wages, the district court had supplemental jurisdiction over the former claim.
See
BIW
,
Of course, the fact that the district court had discretion to hear and determine the plaintiff's Wage Act claim does not mean that its implicit exercise of that discretion was appropriate. When any and all federal claims have been dismissed prior to trial, "the balance of factors to be considered under the pendent jurisdiction doctrine-judicial economy, convenience, fairness, and comity" often will counsel in favor of declining jurisdiction over any remaining state-law claim.
Carnegie-Mellon Univ.
v.
Cohill
,
Here, however, the circumstances are not typical. After the plaintiff clarified the extent of her case through her deposition testimony, neither party objected to the district court's retention of jurisdiction over what was obviously a claim arising under state law. Unlike an objection to federal subject-matter jurisdiction, which is unwaivable, an objection to the district court's exercise of supplemental jurisdiction over a pendent state-law claim may be waived.
See
Acri
v.
Varian Assocs.
,
To sum up, the district court properly exercised jurisdiction over the plaintiff's complaint at the time of removal. At that point, jurisdiction was premised on a colorable federal question. When, thereafter, that colorable federal question evaporated during pretrial discovery, the district court opted, albeit implicitly, to retain supplemental jurisdiction over the remaining Wage Act claim. In the absence of any objection, that discretionary exercise of supplemental jurisdiction was sufficient to keep the Wage Act claim within the jurisdictional reach of the federal court. Hence, we have jurisdiction to review the district court's adjudication of the Wage Act claim.
III. THE MERITS
We begin our appraisal of the merits by rehearsing the familiar summary judgment standard. Summary judgment is warranted if the record, construed in the
*21
light most flattering to the nonmovant, "presents no genuine issue as to any material fact and reflects the movant's entitlement to judgment as a matter of law."
McKenney
v.
Mangino
,
Since the district court adjudicated the state-law claim under supplemental jurisdiction, federal law supplies the applicable procedural rules and state law supplies the substantive rules of decision.
See
Perry
v.
Blum
,
The focal point of this appeal is the plaintiff's claim under the Wage Act,
The Wage Act establishes a two-track system of enforcement. One track is rooted in the criminal law: section 150"authorizes, but does not require" the Attorney General of Massachusetts to charge violators criminally.
Depianti
v.
Jan-Pro Franchising Int'l, Inc.
,
*22
In an effort to ensure that the Wage Act's dual enforcement mechanisms work harmoniously, the statute requires that an aggrieved employee file a "complaint" with the Attorney General, notifying her of a claimed violation.
See
Depianti
,
In the case at hand, the plaintiff plainly failed to comply with the first alternative method for satisfying this notice requirement: she did not wait ninety days between filing her complaint with the Attorney General and commencing her action in state court. Instead, she filed both her administrative complaint and her state-court complaint on the same day. The plaintiff argues, however, that she did comply with the second alternative for satisfying the notice requirement: she obtained the Attorney General's assent to her suit, albeit several days after her suit was commenced. In her view, the fact that her action was already pending when the Attorney General assented was of no moment.
The defendant demurs. It insists that the plaintiff's action is foreclosed because she was paid in full before receiving the Attorney General's letter of assent. In other words, the defendant invites us to construe the alternative notice requirement as creating a grace period: it posits that an employer is exempt from liability in a suit brought under the Wage Act until one of two things happens-either the Attorney General assents or the 90-day period expires.
In resolving this interpretive dispute, our journey starts with the statutory text. When statutory terms are "'plain and unambiguous' in their meaning, we view them as 'conclusive as to legislative intent.' "
Dorrian
v.
LVNV Funding, LLC
,
Here, the plain language of the Wage Act provides a convincing rebuttal to the defendant's argument. Section 148 directs that an employee "shall be paid in full on the day of [her] discharge." We think that language says what it means and means what it says-and that conclusion is reinforced by the legislature's use of the word "shall." It is apodictic that, in the drafting of statutes, such usage customarily connotes a "mandatory or imperative obligation."
Commonwealth
v.
Guzman
,
The defendant resists this interpretation but does not point to any provision in the Wage Act that immunizes a dilatory employer based on the timing of the Attorney General's assent. Massachusetts
*23
courts generally "will not add language to a statute where the Legislature itself has not done so,"
Mui
v.
Mass. Port Auth.
,
Striving to derail this reasoning, the defendant argues that a plain-language construction of the statutory text would divest the notice requirement of any real meaning. We agree with the premise on which this argument rests: courts should try to avoid interpretations that render statutory language mere surplusage.
See
Narragansett Indian Tribe
v.
Rhode Island
,
Shifting gears, the defendant notes that, in 2014, the legislature amended the Wage Act to provide for tolling its three-year statute of limitations upon the filing of a complaint with the Attorney General.
See
The defendant also suggests that we should be guided by the SJC's construction of similar language in the Massachusetts anti-discrimination statute.
See
,
e.g.
,
Commonwealth
v.
Hamilton
,
The filing of a complaint with the MCAD triggers a "prompt investigation" by the Commission,
The Wage Act contains nothing that even remotely resembles this elaborate process. It "does not provide a comprehensive remedial scheme to resolve claims outside a judicial forum."
The short of it is that the defendant is attempting to compare plums to pomegranates. With respect to the operation of the statutory notice requirements and the timing of suits, the anti-discrimination statute and the Wage Act-despite their linguistic similarities-are not fair congeners.
Searching for more hospitable terrain, the defendant attacks the plain-language construction of the Wage Act on policy grounds. This attack features a parade of horribles. For example, the defendant complains that a refusal to recognize a grace period furnishes an unwholesome incentive for "employees to run to the courts immediately to assert claims under the Wage Act upon the slightest delay in payment." Similarly, the defendant laments that "[a] mere payroll glitch, coupled with a fast-acting plaintiff's lawyer waiting at the courthouse steps, would be enough to impose treble damages (and attorneys' fees) on an unwitting employer."
Hyperbole is not a reliable tool for statutory construction, and it is not for us to say whether (or to what extent) the defendant's fears are overblown. As a federal court, our task is "to apply state law, not rewrite it."
Bonney
v.
Can. Nat'l Ry.
,
There is one loose end. In its reply brief, the defendant calls attention to the SJC's recent holding that ESL payments are not "wages" within the meaning of the Wage Act.
See
Mui
,
We reject this exhortation. In the district court, the defendant never argued that ESL payments were outside the ambit of the Wage Act. Nor did it make this argument in its opening brief in this court. Consequently, the argument is doubly defaulted: once by the defendant's failure to raise it below,
see
Teamsters, Chauffeurs, Warehousemen & Helpers Union
v.
Superline Transp. Co.
,
Although there may be extraordinary circumstances that would warrant the relaxation of such procedural defaults, we discern none here. After all, a party generally may not "raise an entirely new argument that could have been articulated below or in the party's opening brief."
Learmonth
v.
Sears, Roebuck & Co.
,
We summarize succinctly. To prevail in a civil action, an employee aggrieved by a violation of the Wage Act must either wait 90 days after providing notice to the Attorney General or receive the Attorney General's assent. An employee who initiates such an action within the 90-day period and before the Attorney General has assented may still recover under the Wage Act as long as the Attorney General assents to the suit prior to the entry of judgment. Because the plaintiff received the Attorney General's assent while her suit was pending and well before the entry of judgment, we hold-as did the district court-that she was entitled to summary judgment.
IV. CONCLUSION
We need go no further. For the reasons elucidated above, the judgment is
Affirmed .
For example, the amended complaint alleged that the plaintiff had earned $20,354.44 in PTO prior to her discharge. At the same time, it acknowledged the defendant's March 10 payment of $12,754.33. These averments left some uncertainty as to whether the plaintiff was seeking to recover the difference.
The fact that the amended complaint did not explicitly refer to the CBA is not fatal to this analysis.
See
BIW
,
The fact that the district court exercised its discretion to allow the case to proceed under supplemental jurisdiction implicitly rather than explicitly does not invalidate its determination. A district court is not obliged to make findings about the propriety of supplemental jurisdiction under section 1367(c) sua sponte.
See
Acri
,
Related
Cite This Page — Counsel Stack
894 F.3d 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawless-v-steward-health-care-sys-llc-ca1-2018.