Ross v. Haw. Nurses' Ass'n Office & Prof'l Emps. Int'l Union Local 50
This text of 290 F. Supp. 3d 1136 (Ross v. Haw. Nurses' Ass'n Office & Prof'l Emps. Int'l Union Local 50) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
J. Michael Seabright, Chief United States District Judge *1138I. INTRODUCTION
On January 16, 2018, Defendant Hawaii Nurses' Association Office and Professional Employees International Union Local 50 ("Defendant" or "HNA") removed this action to this court from the First Circuit Court of the State of Hawaii (the "state court") after the state court issued a 30-day preliminary injunction on January 3, 2018 that enjoined HNA from certain union-related activities. Def.'s Notice of Removal, ECF No. 1. HNA removed based upon the complete preemption doctrine, contending that the suit "directly relates to the validity" of "an election already conducted" by a labor union, and is thus completely preempted by Title IV of the Labor-Management Reporting and Disclosure Act ("LMRDA"),
The court faces three Motions: (1) Plaintiffs Daniel Ross, Marina Robinson, and Joan Craft's (collectively, "Plaintiffs") Motion for Temporary Restraining Order ("TRO"), ECF No. 10; (2) Defendant's Motion to Dismiss for Lack of Jurisdiction and to Vacate Order Granting Plaintiffs' Motion for Preliminary Injunction, ECF No. 20; and (3) Plaintiffs' Motion to Remand, ECF No. 21. Based on the following, the action is REMANDED to state court for lack of subject matter jurisdiction. Plaintiff's Motion for TRO is DENIED as moot, and the court does not reach Defendant's Motion to Dismiss.
II. BACKGROUND
A. Factual Background
Because the Motions at issue primarily concern federal jurisdiction and procedure, and do not require the court to address the merits of the Complaint, the court sets forth only the essential factual allegations of the underlying dispute to provide necessary context for the Motions.
HNA is a Hawaii labor union with approximately 4,500 members whose purpose is "promoting the professional and educational advancement of nurses and other health care professionals and advancing their economic and general welfare by securing terms and conditions of employment consistent with the ideals of fair wages and benefits." Compl. ¶ 7, ECF No. 1-1. In 2010, HNA "affiliated with the Office and Professional Employees International Union ('OPEIU'), becoming Hawaii Nurses' Association, OPEIU Local 50, AFL-CIO."
Plaintiff Daniel Ross is a nurse at Queen's Medical Center.
Plaintiff Marina Robinson is a nurse at Kaiser Hospital.
Plaintiff Joan Craft is a nurse at Queen's Medical Center.
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J. Michael Seabright, Chief United States District Judge *1138I. INTRODUCTION
On January 16, 2018, Defendant Hawaii Nurses' Association Office and Professional Employees International Union Local 50 ("Defendant" or "HNA") removed this action to this court from the First Circuit Court of the State of Hawaii (the "state court") after the state court issued a 30-day preliminary injunction on January 3, 2018 that enjoined HNA from certain union-related activities. Def.'s Notice of Removal, ECF No. 1. HNA removed based upon the complete preemption doctrine, contending that the suit "directly relates to the validity" of "an election already conducted" by a labor union, and is thus completely preempted by Title IV of the Labor-Management Reporting and Disclosure Act ("LMRDA"),
The court faces three Motions: (1) Plaintiffs Daniel Ross, Marina Robinson, and Joan Craft's (collectively, "Plaintiffs") Motion for Temporary Restraining Order ("TRO"), ECF No. 10; (2) Defendant's Motion to Dismiss for Lack of Jurisdiction and to Vacate Order Granting Plaintiffs' Motion for Preliminary Injunction, ECF No. 20; and (3) Plaintiffs' Motion to Remand, ECF No. 21. Based on the following, the action is REMANDED to state court for lack of subject matter jurisdiction. Plaintiff's Motion for TRO is DENIED as moot, and the court does not reach Defendant's Motion to Dismiss.
II. BACKGROUND
A. Factual Background
Because the Motions at issue primarily concern federal jurisdiction and procedure, and do not require the court to address the merits of the Complaint, the court sets forth only the essential factual allegations of the underlying dispute to provide necessary context for the Motions.
HNA is a Hawaii labor union with approximately 4,500 members whose purpose is "promoting the professional and educational advancement of nurses and other health care professionals and advancing their economic and general welfare by securing terms and conditions of employment consistent with the ideals of fair wages and benefits." Compl. ¶ 7, ECF No. 1-1. In 2010, HNA "affiliated with the Office and Professional Employees International Union ('OPEIU'), becoming Hawaii Nurses' Association, OPEIU Local 50, AFL-CIO."
Plaintiff Daniel Ross is a nurse at Queen's Medical Center.
Plaintiff Marina Robinson is a nurse at Kaiser Hospital.
Plaintiff Joan Craft is a nurse at Queen's Medical Center.
Without reiterating the specific allegations of the Complaint, Plaintiffs allege that HNA violated various provisions of OPEIU and HNA governing documents and procedures in these Trial Board decisions (and related review processes) that removed them from office, and (with Ross and Craft) found them to be "members not in good standing."
When the Trial Board made its recommendations on November 16, 2017, all three Plaintiffs were candidates for an ongoing election for officers of the 2018 HNA Executive Board.
The Complaint further alleges that "Plaintiff Joan Craft prevailed in her candidacy for the office of Treasurer, but the [HNA] refuses to recognize her candidacy for office."
On its face, Plaintiffs' Complaint raises no federal claims (and there is no diversity of citizenship). Specifically, the Complaint asserts three Counts under Hawaii law: (1) Count One ("Breach of Governing Documents")
*1140alleges that Defendant violated provisions of the HNA Constitution and bylaws and/or HNA's parent union's (OPEIU) Constitution, policies, or procedures, all in "breach of the governing documents and HRS Section 414D-138"; (2) Count Two ("Declaratory Judgment") seeks a declaration that Ross and Robinson were removed from the offices of Vice President and Treasurer, respectively, in violation of governing documents and HRS § 414D-138 ; and (3) Count Three ("Injunctive Relief") seeks to enjoin Defendants from acting in violation of the governing documents and HRS § 414D-138. Compl. at 8-12. The Complaint's prayer seeks the following relief:
A. That the Court issue judgment declaring that: (i) the Hawaii Nurses' Association violated their governing documents; (ii) The Hawaii Nurses' Association improperly removed Plaintiffs Daniel Ross and Marina Robinson from their respective offices of Vice President and Treasurer; and
B. That the Court issue judgment enjoining the Defendants to: (i) cease and desist holding a membership meeting that does not include Plaintiffs' appeals of their Trial Board decisions; and (ii) cease and desist appointing and installing the prevailing candidates on the current election ballot into Offices of the HNA Executive Board.
B. Procedural History
Plaintiffs filed their Complaint in state court on December 15, 2017, and it was served on December 18, 2017. ECF No. 1-1 at 2; ECF No. 1-2 at 3. A week later, on December 22, 2017, Plaintiffs filed a Motion for Preliminary Injunction, along with a Motion to Shorten Time for hearing that Motion. ECF Nos. 1-3, 1-5. The Motion for Preliminary Injunction was heard by Judge Dean Ochiai on January 3, 2018. ECF No. 1-10.
Judge Ochiai issued an oral ruling granting the Motion on January 3, 2018, followed by a written order filed on January 11, 2018 (the "State Court Preliminary Injunction"). ECF No. 1-10. He ordered as follows:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that:
1. Defendant, as well as its officers, agents, servants, employees, and attorneys, are enjoined from installation and/or ratification of Defendant's Executive Board, elected by the ballots counted on December 12, 2017;
2. Defendant, as well as its officers, agents, servants, employees, and attorneys, are enjoined from conducting further disciplinary proceedings, including appeals, concerning the charges against Plaintiffs, determined by the Trial Board's written decisions issued on November 16, 2017;
3. Defendant, as well as its officers, agents, servants, employees, and attorneys, are enjoined from imposing and/or enforcing the penalties in the Trial Board's written decisions issued on November 16, 2017;
This preliminary injunction shall remain in effect for thirty (30) days from January 3, 2018, at 9:30 a.m. During the thirty-day period, the parties are placed back into the positions they were in prior to the following internal charges being filed against Plaintiffs: The charges filed by Terilyn Carvalho Luke against Daniel Ross, dated August 21, 2017; the charges filed by Terilyn Carvalho Luke against Marina Robinson, dated June 29, 2017; and the charges filed by Terilyn Carvalho Luke against Joan Craft, dated October 4, 2017.
Defendant removed the action to this court on January 16, 2018, ECF No. 1, and Plaintiffs filed their Motion for TRO on *1141January 26, 2018. ECF No. 10. The Motion for TRO sought to extend the State Court Preliminary Injunction (which was to expire according to its terms on February 2, 2018) until Plaintiffs could file, and the court could consider, their then-planned Motion to Remand. ECF No. 10-1 at 2. That is, it sought to preserve the status quo while this court could determine whether the action was properly removed. Defendant filed an Opposition to the Motion for TRO on January 28, 2018, ECF No. 11, and Plaintiffs filed their Reply on February 1, 2018. ECF No. 19.
After the court held status conferences on January 29th and 30th, ECF Nos. 14 & 15, the parties stipulated to certain terms regarding the State Court Preliminary Injunction. ECF No. 18. The parties agreed (and the court subsequently ordered) that they would waive enforcement of the first paragraph of the State Court Preliminary Injunction, but Defendant would continue to be bound by the other portions until this court could hear the Motion for TRO, as well as a Motion to Remand by Plaintiffs and a Motion to Dismiss by Defendant.
On February 2, 2018, Defendant filed its Motion to Dismiss for Lack of Jurisdiction and to Vacate the State Court Preliminary Injunction. ECF No. 20. That Motion argues that all or much of Plaintiffs' Complaint is barred (or "preempted") by the LMRDA and that this court should also vacate the State Court Preliminary Injunction for that reason.
III. STANDARD OF REVIEW
Although the court faces a Motion to Remand, Motion for TRO, and Motion to Dismiss, ultimately it bases this Order on remand principles only. Thus, the court only recites the standard for the Motion to Remand.
"If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded."
IV. DISCUSSION
Although the court faces three separate Motions, they overlap and raise common jurisdictional issues regarding preemption and removal jurisdiction. In particular, in justifying removal and in seeking dismissal, Defendant relies on a "preemption" argument it never made in state court-that Plaintiffs' action in substance challenges the results of a union election that already has been conducted, and thus the claims must be decided under Title IV of the LMRDA. In this context, however, this argument improperly conflates a preemption defense with "complete preemption" for purposes of removal jurisdiction. These related, although distinct, concepts are often confused. Here, even if Defendant's argument for a preemption defense has *1142merit, its argument for complete preemption does not. To explain why this is so, the court first addresses defensive preemption under Title IV of the LMRDA, and then analyzes whether the LMRDA completely preempts Plaintiffs' Complaint.
A. The Preemption Defense Under Title IV of the LMRDA
Plaintiff argues that this court (or any court) lacks jurisdiction to adjudicate Plaintiffs' claims because the LMRDA provides the exclusive remedy for a direct post-election challenge. That remedy is a complaint with the Secretary of Labor, and possibly a subsequent federal court action brought by the Secretary. See, e.g., Casumpang v. Int'l Longshoremen's and Warehousemen's Union, Local 142 ,
And this argument-at least as a preemption defense to at least some state law claims-has significant merit. Although the Complaint raises violations (sounding in breach of contract) of union rules or procedures under HNA and OPEIU governing documents, the ultimate relief sought concerns Plaintiffs' eligibility as candidates for an HNA election and the corresponding validity of the results of that election. See Compl. ¶ 79 ("Plaintiffs will suffer irreparable harm if [HNA] is permitted to continue with the installation of the current candidates.");
Casumpang emphasized that § 483's exclusivity provision is limited to "when an individual union member challenges the validity of an election that has already been completed."
Here, Plaintiffs' action appears to seek relief that, in significant part, "will interfere with the operation of a union pursuant to an already-conducted election." Casumpang ,
Title IV protects, in relevant part, the right of "every member of a union in good standing to be eligible to be a candidate and to hold office (subject to reasonable qualifications uniformly imposed) without being subject to penalty, discipline, or improper interference or reprisal of any kind by such organization or any member thereof."
Nonetheless, unless this court has subject matter jurisdiction, it would be improper for this court to decide whether some or all of Plaintiffs' Complaint is barred by § 483. Whether or not HNA has a good defense based on § 483's exclusivity provision, the court must first determine whether the action was properly removed-that is, whether this court even has jurisdiction to address that preemption defense. This raises the often misunderstood "complete preemption" doctrine, which is distinct from (although similar to) defensive preemption. See, e.g., Retail Prop. Tr. v. United Bhd. of Carpenters & Joiners of Am. ,
B. The LMRDA Does Not Completely Preempt Plaintiffs' Action-It Was Improperly Removed
Although no federal claims are apparent on the face of Plaintiffs' Complaint, HNA removed based on complete preemption under the LMRDA. As follows, this was an improper basis for removal.
1. The complete preemption doctrine
First, some basics. A defendant may remove a complaint from state court if "the district courts of the United States *1144have original jurisdiction" over the action.
"The Supreme Court has recognized, however, an 'independent corollary to the well-pleaded complaint rule known as the complete pre-emption doctrine.' " Retail Property ,
But it is critical to keep in mind that:
[c]omplete preemption is really a jurisdictional rather than a preemption doctrine, as it confers exclusive federal jurisdiction in certain instances where Congress intended the scope of federal law to be so broad as to entirely replace any state-law claim. Complete preemption is a limited doctrine that applies only where a federal statutory scheme is so comprehensive that it entirely supplants state law causes of action.
2. The LMRDA
"The Supreme Court has construed only three federal statutes to so preempt their respective fields as to authorize removal of actions seeking relief exclusively under state law[.]" In re Miles ,
Applied here, § 483 itself indicates that the LMRDA does not provide the exclusive remedy for all union-election challenges-only "already completed" elections fall within its exclusive regime. It leaves untouched "[e]xisting rights and remedies to enforce the constitution and bylaws of a labor organization with respect to elections prior to the conduct thereof [.]"
Moreover, Title IV of the LMRDA has its own administrative scheme that involves other remedies, even as to "already conducted" elections-it requires a complaint with the Secretary of Labor who investigates to determine whether there is probable cause and, if the complaint "has not been remedied,"
The existence of this type of statutory scheme was paramount in the Ninth Circuit's holding that a state action was not completely preempted by the Railway Labor Act ("RLA"). See Moore-Thomas ,
HNA relies on Porch-Clark v. Engelhart ,
In short, HNA has not met its burden to establish that removal was proper. Gaus ,
3. HNA Did Not Remove Based Upon the Labor and Management Relations Act ("LMRA")
In its Opposition to Plaintiffs' Motion to Remand, HNA argues in part that this court has original jurisdiction under Section 301 of the LMRA,
In removing this action, HNA was required to provide a "statement of the ground for removal" in its notice of removal.
Ordinarily, "the notice of removal required by [ 28 U.S.C. §] 1446(b) may be amended freely by the defendant prior to the expiration of the thirty-day period for seeking removal." 14C Charles Alan Wright, Arthur R. Miller, Edward H. Cooper, Pocket Part by The Late Charles Alan Wright, Arthur R. Miller, Edward H. Cooper, Joan E. Steinman, Federal Practice and Procedure § 3733 ["Federal Practice & Procedure"]. After the 30-day period for seeking removal has passed, however, "the notice may be amended only to set out more specifically the grounds for removal that already have been stated, albeit imperfectly, in the original notice."Id. ; ARCO Envtl. Remediation, L.L.C. v. Dep't of Health & Envtl. Quality of Montana ,213 F.3d 1108 , 1117 (9th Cir. 2000) ("[A] defendant may amend the Notice of Removal after the thirty day window has closed to correct a defective allegation of jurisdiction."); Barrow [Dev. Co. v. Fulton Ins. Co.] , 418 F.2d [316,] 317 [ (9th Cir. 1969) ] (after thirty-day period lapses, the defendant may not amend a notice of removal "to add allegations of substance but solely to clarify 'defective' allegations of jurisdiction previously made").
Hester v. Horowitz ,
C. The "Futility Doctrine"
HNA asks this court-even if the court finds (as it does) that the action was improperly removed-nevertheless to dismiss the Complaint because "it makes little sense to remand a case to a State court that is without jurisdiction to hear the case for the very same reason the federal court lack[s] jurisdiction." Def.'s Mot. at 12-13, ECF No. 20-2 at 12-13 (citing a "futility doctrine" applied in Porch-Clark ,
*1148If, after removal, "it appears that the district court lacks subject matter jurisdiction, the case shall be remanded."
"However, the Bell rule has been questioned, and may no longer be good law." Polo v. Innoventions Int'l, LLC ,
In International Primate Protection League v. Administrators of Tulane Educational Fund , decided a few months after we decided Bell , the Supreme Court declined to apply a futility exception to the remand rule.500 U.S. 72 , 88-89,111 S.Ct. 1700 ,114 L.Ed.2d 134 (1991). Although the Court did not reject the futility doctrine outright, it did take note of "the literal words of § 1447(c), which, on their face, give no discretion to dismiss rather than remand an action."Id. at 89 ,111 S.Ct. 1700 (quotation marks and alteration omitted). In the wake of International Primate , a number of other circuits have expressly rejected the futility doctrine. See Hill v. Vanderbilt Capital Advisors, LLC ,702 F.3d 1220 , 1225-26 (10th Cir. 2012) (collecting cases).
Id. at 1197-98. Despite questioning Bell's validity, however, Polo had no need to decide whether it has been overruled. Instead, it recognized that Bell requires "absolute certainty" that a state court will dismiss an action.
Even applying the Bell rule, however, a district court must have "absolute certainty" that a state court would "simply dismiss[ ] the action on remand."922 F.2d at 1425 (quotation marks omitted). In other words, only when the eventual outcome of a case after remand is so clear as to be foreordained have we held that a district court may dismiss it-to "prevent [ ] any further waste of valuable judicial time and resources."Id.
Id. at 1198. And because it was "far from clear that a state court would dismiss" the relevant claim, Polo held that the district court should have simply remanded under § 1447(c), rather than dismissing. Id.
Polo is directly on point. Although HNA appears to have a valid preemption defense, this court cannot say with "absolute certainty" that the state court will dismiss all of the action. Such a review would require a close analysis of the factual allegations of the Complaint, and an understanding and application of Hawaii law (both contract law and HRS § 414D-138 ). Plaintiffs have argued, for example, that they have stated claims that would survive LMRDA preemption. See, e.g. , Pls.' Opp'n at 3, ECF No. 25 ("[E]ven assuming that some of Plaintiffs' claims regarding the election are precluded by Title IV ... Plaintiffs have asserted a challenge to the status of Plaintiffs' membership rights."); id. at 10 ("[E]ven if there is Title IV preemption, it would solely affect relief regarding the election and would not affect Plaintiffs' claims regarding their membership rights and disciplinary actions taken against them."). That is, even if this court were inclined to apply a preemption defense, it is far from clear *1149how extensively it applies. Remand is not futile.
D. The Court Declines to Award Costs, Expenses, or Fees Under 28 U.S.C. § 1447 (c)
If a case is remanded, § 1447(c) authorizes a court to award "just costs and any actual expenses, including attorney fees, incurred as a result of the removal." But, "[a]bsent unusual circumstances, courts may award attorney's fees under § 1447(c) only where the removing party lacked an objectively reasonable basis for seeking removal." Martin v. Franklin Capital Corp. ,
Applying that objective standard, the court declines to award costs or expenses to Plaintiffs. "The preemptive effect of federal labor statutes is a complex and challenging area of law." Toensmeier v. Amalgamated Transit Union ,
V. CONCLUSION
For the foregoing reasons, the action is REMANDED to the First Circuit Court of the State of Hawaii. The Motion for TRO, which sought only to preserve the status quo while the court adjudicated the Motion to Remand, is DENIED as MOOT. The court does not reach Defendant's Motion to Dismiss.
IT IS SO ORDERED.
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