Screen Extras Guild, Inc. v. Superior Court

800 P.2d 873, 51 Cal. 3d 1017, 275 Cal. Rptr. 395, 90 Daily Journal DAR 13830, 6 I.E.R. Cas. (BNA) 12, 90 Cal. Daily Op. Serv. 8792, 1990 Cal. LEXIS 5232, 135 L.R.R.M. (BNA) 3182
CourtCalifornia Supreme Court
DecidedDecember 3, 1990
DocketS006813
StatusPublished
Cited by21 cases

This text of 800 P.2d 873 (Screen Extras Guild, Inc. v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Screen Extras Guild, Inc. v. Superior Court, 800 P.2d 873, 51 Cal. 3d 1017, 275 Cal. Rptr. 395, 90 Daily Journal DAR 13830, 6 I.E.R. Cas. (BNA) 12, 90 Cal. Daily Op. Serv. 8792, 1990 Cal. LEXIS 5232, 135 L.R.R.M. (BNA) 3182 (Cal. 1990).

Opinions

Opinion

PANELLI, J.

A woman employed by a labor union as a business agent, not herself a member of the union, was discharged, allegedly for dishonesty and for insubordination. She sued the union and its executive secretary for wrongful discharge in breach of an employment contract, intentional and negligent infliction of emotional distress, and defamation. The union moved for summary judgment on the ground that these claims were preempted by federal labor law. The trial court denied the motion; the Court of Appeal denied a petition for mandate. We granted review to consider the preemption issue.

The Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), 29 United States Code sections 401-531, mandates that labor unions be democratically governed. Democratic union governance dictates that elected union officials be responsive to the will of their union membership-electorate. To effectuate this policy, elected union officials have the authority to discharge union employees in management or policymaking positions who do not, in their opinion, serve the union membership properly. Permitting former union employees who held management or policy-making positions to bring state actions against the unions which employed them, or against the officials of such unions, premised on their discharge, [1021]*1021would undermine the ability of elected union leaders to effectuate the will and policies of the union membership they represent. Thus, the strong federal policy favoring union democracy, embodied in the LMRDA, preempts state causes of action for wrongful discharge or related torts when brought against a union-employer by its former management or policymaking employee. Accordingly, we reverse the Court of Appeal.

I.

Facts and Proceedings Below

The undisputed facts are as follows:

The Screen Extras Guild (SEG) is a labor union comprised of motion-picture extra players and is governed by a constitution and bylaws. The governing body of SEG is the board of directors (Board), which is elected by and from the SEG membership by secret ballot. Power to hire and discharge paid business representatives is vested solely with the Board.

Barbara Smith (Smith) was employed by the SEG as a business agent from 1978 until she was discharged in 1986.1 Her job responsibilities included handling SEG members’ claims, filing claims and grievances by SEG members against the studios that employed them, settling wage claims, settling grievances, and granting waivers of certain terms of the collective bargaining agreement between SEG and various motion picture studios. Smith was considered a management employee.

Neva Brown (Brown) was the national executive secretary (NES) of SEG when Smith was discharged. The NES is the chief administrative officer of SEG. The NES, appointed by a majority vote of the Board, is authorized to recommend to the Board the appointment and removal of SEG employees, including SEG business agents. At a special Board meeting in June 1986, Brown read a statement criticizing Smith’s past job performance and recommended that Smith not be retained. This recommendation was accepted, and Smith was thereafter terminated by the Board.

Smith sued SEG for wrongful discharge in breach of the covenant of good faith and fair dealing. She also sued both SEG and Brown (collective[1022]*1022ly, the defendants) for intentional and negligent infliction of emotional distress and defamation. The defendants moved for summary judgment on the ground that Smith’s claims were preempted by the LMRDA. The trial court denied the motion. The Court of Appeal summarily denied writ review. We granted the defendants’ petition for review and transferred the matter to the Court of Appeal with directions to issue an alternative writ. The Court of Appeal issued and ultimately discharged the alternative writ, denying the petition for a writ of mandate. We granted review to decide whether a union business agent’s claims for wrongful discharge and related torts against the union and its officials are preempted by the LMRDA.

II.

Discussion

A state action is preempted wherever it “ ‘stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.’ ” (U.S. Const., art. VI, cl. 2; Brown v. Hotel Employees (1984) 468 U.S. 491, 501 [82 L.Ed.2d 373, 383, 104 S.Ct. 3179], quoting Hines v. Davidowitz (1941) 312 U.S. 52, 67 [85 L.Ed. 581, 587, 61 S.Ct. 399].)2

Preemption cases may be divided into two types: substantive or jurisdictional.3 Substantive preemption is based on federal protection of conduct that state law attempts to regulate or penalize. (Railroad Trainmen v. Terminal Co. (1969) 394 U.S. 369, 383, fn. 19 [22 L.Ed.2d 344, 357, 89 S.Ct. 1109].) Jurisdictional preemption is based on protecting the primary jurisdiction, within a particular sphere of conduct, of federal regulatory bodies. (Ibid.) Both kinds of preemption advance congressional purposes, but “[s]ince congressional purposes can be either substantive or jurisdictional, a state action may be struck down as an invalid interference with the federal design either because it is in actual conflict with the substantive operation of [1023]*1023a federal program, or because, whatever its substantive impact, it intrudes upon a field that Congress has validly reserved to the federal sphere [of regulation].” (Tribe, American Constitutional Law, supra, § 6-25 at p. 481.)

The two types of preemption are analyzed differently. Jurisdictional preemption involves balancing the competing federal and state interests at stake. In such cases, the magnitude of especially deep-rooted local interests underlying particular state causes of action may outweigh any resulting interference with federal jurisdiction. (See, e.g., Operating Engineers v. Jones (1983) 460 U.S. 669, 683 [75 L.Ed.2d 368, 380, 103 S.Ct. 1453].)

On the other hand, if state law regulates conduct that is actually protected by federal law, preemption follows not as a matter of protecting the primary jurisdiction of federal regulatory bodies, but as a matter of substantive right. Where the issue is one of substantive conflict with federal law, “[t]he relative importance to the State of its own law is not material. . . for the Framers of our Constitution provided that the federal law must prevail.” (Brown v. Hotel Employees, supra, 468 U.S. at p. 503 [82 L.Ed.2d at p. 384], citing Free v. Bland (1962) 369 U.S. 663, 666 [8 L.Ed.2d 180, 183, 82 S.Ct. 1089].) In such cases, state action is preempted, without balancing state and federal interests, by direct operation of the supremacy clause of the United States Constitution. (U.S. Const., art. VI, cl. 2; Brown v. Hotel Employees, supra, 468 U.S. at p. 501 [82 L.Ed.2d at p. 383].)

This case is not one involving jurisdictional preemption, as Smith’s claims do not implicate the jurisdiction of federal regulatory bodies.

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Screen Extras Guild, Inc. v. Superior Court
800 P.2d 873 (California Supreme Court, 1990)

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800 P.2d 873, 51 Cal. 3d 1017, 275 Cal. Rptr. 395, 90 Daily Journal DAR 13830, 6 I.E.R. Cas. (BNA) 12, 90 Cal. Daily Op. Serv. 8792, 1990 Cal. LEXIS 5232, 135 L.R.R.M. (BNA) 3182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/screen-extras-guild-inc-v-superior-court-cal-1990.