Menorah Medical Center v. California Nurses' Association

CourtDistrict Court, D. Kansas
DecidedOctober 22, 2020
Docket2:20-cv-02372
StatusUnknown

This text of Menorah Medical Center v. California Nurses' Association (Menorah Medical Center v. California Nurses' Association) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Menorah Medical Center v. California Nurses' Association, (D. Kan. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

MIDWEST DIVISION-MMC, LLC, d/b/a MENORAH MEDICAL CENTER,

Plaintiff, Case No. 20-02372-JAR-TJJ v.

CALIFORNIA NURSES’ ASSOCIATION, d/b/a NNOC-MISSOURI & KANSAS NNU,

Defendant.

MEMORANDUM AND ORDER Plaintiff Midwest Division-MMC, LLC, doing business as Menorah Medical Center (“MMC”), brings this declaratory judgment action against Defendant California Nurses’ Association, doing business as NNOC-Missouri & Kansas NNU (“Union”), seeking a declaration that the Union’s grievance is not arbitrable and that the Union must withdraw its request for arbitration. This matter is before the Court on the Union’s Motion to Dismiss for Lack of Subject Matter Jurisdiction Pursuant to Fed. R. Civ. P. 12(b)(1) (Doc. 12). The motion is fully briefed and the Court is prepared to rule. For the reasons explained below, the Court grants the motion to dismiss. I. Background MMC operates a hospital in Overland Park, Kansas, and the Union represents a bargaining unit of Registered Nurses employed by MMC. MMC and the Union entered into a collective bargaining agreement (“Agreement”) on October 21, 2018, effective through May 31, 2021. The Agreement was in effect at the time of the grievance giving rise to this dispute. The Agreement sets forth the grievance and arbitration procedures for resolving certain disputes. Some, but not all disputes are subject to these procedures under the Agreement. Step one of the grievance procedure requires an authorized union representative to file a written grievance with the manager of the nursing unit. If the grievance is not resolved in a mutually satisfactory manner, the authorized union representative may proceed to step two by submitting the written grievance to the Chief Nursing Officer. “If a grievance affects more than one unit or department of [MMC], and relief is unavailable from the immediate supervisor, it may be

submitted immediately at Step Two.”1 If the grievance is not resolved at step two, the Union may advance the grievance to arbitration by submitting a written demand to the Chief Nursing Officer or previously authorized designee and by submitting a request to the Federal Mediation and Conciliation Service (“FMCS”) for a panel of arbitrators. Upon receipt of the list of arbitrators on the panel, “the arbitrator shall be selected by each party alternately striking a name until only one arbitrator remains. Either party may reject one (1) panel in its entirety.”2 The parties must flip a coin to determine which party strikes the first name. Under the Agreement, MMC provides certain benefits to its Registered Nurses, including a 401(k) plan. Article 5, which governs those benefits, addresses termination or amendment of

401(k) plans. In pertinent part, Article 5 provides: [MMC] may amend or terminate any of the plans referred to in this Article, subject to the conditions below. No termination or amendment of a plan or any issues relating to administration or application of such plans, shall be subject to the grievance and arbitration provisions of this Agreement. If [MMC] intends to change a plan . . . in a way that will result in a substantial decrease to any particular plan for bargaining unit Registered Nurses, management will give the Union six (6) months’ advance notice and will, upon request, engage in effects bargaining with the Union for no more than sixty (60) days. [MMC] will consider seriously any recommendations the Union may choose to make with respect to the intended change, but may implement the change after the expiration of the six (6) months.3

1 Doc. 1-1 at 12. 2 Id. at 2. 3 Id. at 4. On June 19, 2020, the Union filed a grievance alleging that MMC “unilaterally made changes to the 401(k) in a manner that was discriminatory to the bargaining unit members [and] in violation of the contract.”4 The Union requested that MMC “[r]estore 401(k) contribution to previous level [sic].”5 The following month, the Union submitted an arbitration request and requested a panel of arbitrators from the FMCS. On July 21, 2020, MMC sent the Union a letter

refusing its arbitration request. The letter argued that the grievance is neither grievable nor arbitrable and asked the Union to immediately withdraw the grievance with prejudice and to withdraw its request for a panel of arbitrators. Less than two weeks later, MMC filed this action, requesting that the Court enter a declaratory judgment that the Union’s grievance is not arbitrable and directing the Union to withdraw its demand for arbitration and request for a panel of arbitrators. The Union filed a motion to dismiss for lack of subject matter jurisdiction, arguing that MMC lacks standing to bring this declaratory judgment action because it suffers no injury in fact. Shortly thereafter, in an email dated September 21, 2020, MMC announced that it would not amend the Registered Nurses’ 401(k) plan after all.6 The Union has withdrawn the grievance

with prejudice and withdrawn its request for a panel of arbitrators from FMCS. In light of these recent developments, the Union argues that, even if MMC has standing, “the matter is now entirely moot.”7

4 Doc. 1-2. 5 Id. 6 Doc. 15-1. 7 Doc. 15 at 7. II. Rule 12(b)(1) Standard Defendant moves to dismiss under Fed. R. Civ. P. 12(b)(1) for lack of subject matter jurisdiction. Federal courts are courts of limited jurisdiction and, as such, there is a strong presumption against federal jurisdiction.8 A court lacking jurisdiction “must dismiss the cause at any stage of the proceedings in which it becomes apparent that jurisdiction is lacking.”9 The

burden of establishing a federal court’s subject matter jurisdiction falls on the plaintiff.10 Mere conclusory allegations of jurisdiction are insufficient.11 Under Rule 12(b)(1), dismissal for lack of subject matter jurisdiction comes in two forms: facial attacks and factual attacks. A facial attack challenges the sufficiency of the complaint. “In reviewing a facial attack on the complaint, a district court must accept the allegations in the complaint as true.”12 Here, Defendant presents a facial attack on the Complaint, to which several exhibits are attached. The Court therefore considers whether the allegations in the Complaint, if accepted as true, establish jurisdiction. III. Discussion

The Declaratory Judgment Act provides in pertinent part that, “[i]n a case of actual controversy within its jurisdiction, . . . any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party

8 Penteco Corp. v. Union Gas Sys., Inc., 929 F.2d 1519, 1521 (10th Cir. 1991); see also United States v. Hardage, 58 F.3d 569, 574 (10th Cir. 1995) (“Federal courts have limited jurisdiction, and they are not omnipotent. They draw their jurisdiction from the powers specifically granted by Congress, and the Constitution, Article III, Section 2, Clause 1.” (internal citations omitted)). 9 Pueblo of Jemez v. United States, 790 F.3d 1143, 1152 (10th Cir. 2015) (quoting Full Life Hospice, LLC v. Sebelius, 709 F.3d 1012, 1016 (10th Cir. 2013)). 10 Id. at 1151. 11 United States ex rel. Hafter, D.O. v. Spectrum Emergency Care, Inc., 190 F.3d 1156, 1160 (10th Cir. 1999). 12 Holt v. United States, 46 F.3d 1000, 1002 (10th Cir. 1995).

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Menorah Medical Center v. California Nurses' Association, Counsel Stack Legal Research, https://law.counselstack.com/opinion/menorah-medical-center-v-california-nurses-association-ksd-2020.