Noyola v. Oasis Car Wash, Inc.

220 F. Supp. 2d 638, 2002 U.S. Dist. LEXIS 17279, 2002 WL 31050120
CourtDistrict Court, E.D. Texas
DecidedJune 14, 2002
Docket2:02-cv-00290
StatusPublished
Cited by2 cases

This text of 220 F. Supp. 2d 638 (Noyola v. Oasis Car Wash, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noyola v. Oasis Car Wash, Inc., 220 F. Supp. 2d 638, 2002 U.S. Dist. LEXIS 17279, 2002 WL 31050120 (E.D. Tex. 2002).

Opinion

MEMORANDUM OPINION

COBB, District Judge.

Before the court is Plaintiffs’ Motion to Remand [Dkt. # 2], and the court having reviewed the motion and response on file is of the opinion that the motion be GRANTED. This case, originally filed in state court and removed to federal court by the defendant, Oasis Car Wash, Inc. (Oasis), arises out of an on-the-job injury suffered by one of the plaintiffs while employed by and working for Oasis. The plaintiffs have now filed a Motion to Remand.

I. The Burden is on Oasis to Demonstrate Entitlement to Removal

Oasis, as the party invoking federal court removal jurisdiction, bears the burden of establishing that this court has subject matter jurisdiction. See Carpenter v. Wichita Falls Indep. Sch. Dist., 44 *640 F.3d 362, 365 (5th Cir.1995); Willy v. Coastal Corp., 855 F.2d 1160, 1164 (5th Cir.1988). “[B]ecause the effect of removal is to deprive the state court of an action properly before it, removal raises significant federalism concerns.... ” Carpenter, 44 F.3d at 365. The court, therefore, must strictly construe the removal statute. Id. When removal is sought under 28 U.S.C. § 1441(b), as it is here, the right of removal depends on the existence of a claim or claims within the federal question jurisdiction of the court. Id. Remand is proper when there is any doubt as to the existence of federal jurisdiction. Delgado v. Shell Oil Co., 890 F.Supp. 1324, 1341 (S.D.Tex.1995); Samuel v. Langham, 780 F.Supp. 424, 427 (N.D.Tex.1992).

II. Background

According to the Original Complaint, which was filed in state court on April 1, 2002: Jessie Noyola worked for Oasis and while performing work for Oasis on March 12, 2002, he fell from a ladder when he received an electric shock. Oasis is a non-subscriber to the Texas Workers’ Compensation Act, but has established its own Employee Injury Benefit Plan. While Mr. Noyola received treatment for his injuries at the hospital, an agent of Oasis approached Beatrice Noyola, Jessie Noyola’s wife, with a one-page document that the agent said needed to be signed in order for Oasis to pay Jessie Noyola’s medical expenses. Mrs. Noyola questioned the purpose of the form, but the agent assured her that it was merely an insurance form that needed to be signed. Mrs. Noyola signed the form, which turned out to be only the last page of a thirty-two page document that included a waiver of worker compensation claims provision.

On April 1, 2002, the Noyolas filed suit in Texas state court against Oasis raising negligence claims and Mrs. Noyola also brought a claim for fraud. On May 8, 2002, Oasis removed the case to federal court contending that the Noyolas’ claims are preempted by ERISA. Concerned with the propriety of exercising jurisdiction over this case, the court addressed a letter to the attorneys for both parties requesting briefing on the issue of jurisdiction. Presumably, in response to the court’s letter, the Noyolas filed a Motion to Remand that argued ERISA did not preempt their state law claims. Oasis responded to the Motion to Remand by reurging ERISA preemption.

The Noyolas argue that their claims, negligence and fraud, are not preempted by ERISA and they cite Hook v. Morrison Milling Co., 38 F.3d 776 (5th Cir.1994) as support for their position. Naturally, Oasis disagrees with the Noyolas’ view, and it contends that Hernandez v. Jobe Concrete Products, Inc., 282 F.3d 360 (5th Cir.2002) dictates that these claims are preempted and that removal is, therefore, proper.

III. Statutory Background

A. The Texas Workers’ Compensation Act

The Texas Workers’ Compensation Act (TWCA) governs the distribution of benefits to workers who are injured on the job. The TWCA provides that any benefits distributed pursuant to it are an employee’s exclusive remedy for any work-related injuries or death. Tex.Lab.Code ANN. § 406.034 (Vernon 1996). This statute is different from most other states in that it gives employers the option not to carry insurance under the TWCA. Tex.Lab.Code AnN. § 406.002 (Vernon 1996). If an employer chooses not to carry TWCA coverage, the employer is referred to as a non-subscriber. A non-subscriber’s employees retain the right to sue their employer in state court, and the employer is deprived of traditional common law defenses. Tex. Lab.Code Ann. § 406.033 (Vernon 1996).

*641 B. ERISA

On Labor Day 1974, President Gerald Ford signed the Employee Retirement Income Security Act of 1974 (ERISA) into law, enacting the first federal legislation protecting the rights of America’s workers who earn pension benefits. ERISA: A CompRehensive Guide 1 (Martin Wald & David Kenty, eds.1991). Congress’s goal in passing ERISA was to replace the patchwork of state laws governing this area with a uniform body of federal law. See N.Y. Conference of Blue Cross v. Travelers Ins., 514 U.S. 645, 656-57, 115 S.Ct. 1671, 131 L.Ed.2d 695 (1995); Fort Halifax Packing Co. v. Coyne, 482 U.S. 1, 9, 107 S.Ct. 2211, 96 L.Ed.2d 1 (1987). One of the tools Congress placed into ERISA to accomplish this goal was a preemption provision. See Wald & Kenty, supra at 249 (“The preemption by ERISA of state laws was designed to create a uniform national law governing employee benefit plans that would, among other things, permit the uniform administration of plans covering employees in several states.”).

ERISA’s preemption clause specifies, in pertinent part, that the provisions of ERISA “supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan.” ERISA § 514(a), 29 U.S.C. § 1144(a); Christopher v. Mobil Oil Corp., 950 F.2d 1209, 1217 (5th Cir.1992) cert. denied, 506 U.S. 820, 113 S.Ct. 68, 121 L.Ed.2d 35 (1992). The Supreme Court has repeatedly stressed that this “relate to” standard must be interpreted expansively, and that the words are to be given their “broad common-sense meaning.” Egelhoff v. Egelhoff, 532 U.S. 141, 146, 121 S.Ct. 1322, 149 L.Ed.2d 264 (2001); Ingersoll-Rand Co. v. McClendon, 498 U.S. 133

Free access — add to your briefcase to read the full text and ask questions with AI

Related

VASQUEZ v. DILLARD'S, INC.
2016 OK 89 (Supreme Court of Oklahoma, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
220 F. Supp. 2d 638, 2002 U.S. Dist. LEXIS 17279, 2002 WL 31050120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noyola-v-oasis-car-wash-inc-txed-2002.