Mixer v. M.K.-Ferguson Co.

17 F. Supp. 2d 569, 1998 U.S. Dist. LEXIS 12801, 1998 WL 476193
CourtDistrict Court, S.D. West Virginia
DecidedAugust 12, 1998
DocketCivil Action 6:98-0326
StatusPublished
Cited by6 cases

This text of 17 F. Supp. 2d 569 (Mixer v. M.K.-Ferguson Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mixer v. M.K.-Ferguson Co., 17 F. Supp. 2d 569, 1998 U.S. Dist. LEXIS 12801, 1998 WL 476193 (S.D.W. Va. 1998).

Opinion

REMAND ORDER

GOODWIN, District Judge.

Pending before the Court is the plaintiffs motion to remand this state-law age discrimination case to the Circuit Court of Wood County, West Virginia, for lack of subject-matter jurisdiction. The defendants had removed the case to federal court based upon their assertion that § 301 of the Labor Management Relations Act (LMRA) pre-empts the plaintiffs claim, thereby creating federal subject-matter jurisdiction. As explained more fully below, § 301 pre-empts claims that arise out of a collective-bargaining agreement. The defendants here assert that all claims raised by employees covered by the collective-bargaining agreement are dependent on the agreement due to the mandatory arbitration clause contained therein. On that basis, the defendants claim that § 301 preempts this case and forms the basis for federal subject-matter jurisdiction. The plaintiff, however, moves for remand based upon his assertion that § 301 pre-empts only those claims which require interpretation of the collective-bargaining agreement to determine whether the elements of the state-law claim are met. He argues that his discrimination claim arises from state law and is independent on its face from any rights conferred upon employees by virtue of the collective-bargaining agreement. This, the plaintiff argues, is unaltered by the fact that the mandatory arbitration clause may ultimately prove to be a dispositive defense in state court. After careful consideration of both parties’ arguments, the Court FINDS as follows:

First, when faced with the question of whether § 301 pre-emption forms the basis of federal subject-matter jurisdiction, courts must resolve the pre-emption issue before delving into an interpretation of the collective-bargaining agreement to decide whether to dismiss the claim for failure to exhaust arbitral remedies. Federal courts are utterly without judicial power to dismiss a claim based upon a mandatory arbitration clause if independent federal subject-matter jurisdiction under Article III is not present. Thus, § 301 pre-emption must first be addressed.

Second, § 301 pre-empts only those state-law claims which are incapable of resolution without interpretation of a collective-bargaining agreement such that the claim may be fairly characterized as emanating from the agreement itself. The fact that a collective-bargaining agreement commits state-law claims to mandatory arbitration does not establish § 301 pre-emption. Rather, such an arbitration provision merely dictates the judicial or quasi-judicial forum in which the claim ultimately will be resolved. Section 301 pre-emption exists when, in deciphering the source of law from which a claim originates, the ultimate decision-maker cannot determine liability without reference to a collective-bargaining agreement. Such preemption does not exist when the ultimate de *571 cision-maker must simply refer to the agreement to decide whether a cause of action properly asserted in state court must be submitted to arbitration.

For these reasons and for reasons stated more fully herein, plaintiffs motion to remand is GRANTED.

Factual and Procedural Background

Plaintiff Robert Mixer worked as a tail-lift operator for defendant M.K. Ferguson Company, a construction contractor located in Wood County. West Virginia. During his employment with M.K. Ferguson, the plaintiff was covered by a collective-bargaining agreement known as the General Presidents’ Project Maintenance Agreement (CBA). M.K. Ferguson and the plaintiffs union, the International Brotherhood of Teamsters, were both signatories to the CBA.

On January 9, 1998, the plaintiff was laid off. At the time of his layoff, he was 59 years old. According to the plaintiff, M.K. Ferguson chose to retain employees who were younger than him, and to terminate his employment despite the fact that he was “performing his duties and responsibilities in a manner that met the reasonable expectations of the defendants.” Complaint ¶ 11. Believing that the defendants laid him off in full or in part because of his age, the plaintiff filed an age discrimination claim in the Circuit Court of Wood County, West Virginia pursuant to the West Virginia Human Rights Act.

The defendants then removed the case to federal court, asserting pre-emption of the plaintiffs state-law claim under § 301 of the LMRA. Essentially, the defendants claim that the combination of a nondiscrimination clause and an arbitration clause in the CBA 1 preclude the state court from hearing the plaintiffs state-law claim because the claim was not submitted to arbitration. According to the defendants, it is this alleged failure to exhaust arbitral remedies which compels preemption of the plaintiffs state-law claim under § 301, thus forming the basis for federal jurisdiction. By contrast, the plaintiff contends that failure to exhaust arbitral remedies has no bearing on the issue of whether a state-law claim is pre-empted under § 301. Accordingly, the plaintiff filed this timely motion to remand the case to the Wood County Circuit Court.

Legal Analysis

Article III of the United States Constitution establishes several specific categories of federal court jurisdiction. A federal court may not exercise the judicial power of the United States unless the court first is satisfied that jurisdiction over the subject matter of the action exists within one of the specific categories described in Article III. Here, the defendants removed the case to federal court under 28 U.S.C. § 1441 by alleging federal question jurisdiction. 2 To overcome plaintiffs motion to remand, defendants bear the burden of proving the existence of a federal question. Mulcahey v. Columbia Organic Chems. Co., 29 F.3d 148, 151 (4th Cir.1994). “Because removal jurisdiction raises significant federalism concerns, [courts] must strictly construe removal jurisdiction. If federal jurisdiction is doubtful, remand is necessary.” Id. (citations omitted).

Under the well-pleaded complaint rule, “federal jurisdiction exists only when a federal question is presented on the face of the plaintiffs properly pleaded complaint.” Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). As the Supreme Court explained, the well-plead *572 ed complaint rule “makes the plaintiff the master of the claim; he or she may avoid federal jurisdiction by exclusive reliance on state law.” Id. Here, plaintiff has chosen to rely exclusively on state law in his single-count complaint, alleging age discrimination in violation of the West Virginia Human Rights Act. Thus from the face of the complaint, there is no indication that plaintiffs case “aris[es] under the Constitution, laws, or treaties of the United States,” as would be necessary to establish federal question jurisdiction under 28 U.S.C. § 1381.

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17 F. Supp. 2d 569, 1998 U.S. Dist. LEXIS 12801, 1998 WL 476193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mixer-v-mk-ferguson-co-wvsd-1998.