United Steel, Paper and Forestry v. LLFlex, LLC

CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 24, 2021
Docket19-5464
StatusUnpublished

This text of United Steel, Paper and Forestry v. LLFlex, LLC (United Steel, Paper and Forestry v. LLFlex, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Steel, Paper and Forestry v. LLFlex, LLC, (6th Cir. 2021).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 21a0155n.06

No. 19-5464

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

UNITED STEEL, PAPER AND FORESTRY, ) RUBBER, MANUFACTURING, ENERGY, ) FILED ALLIED INDUSTRIAL AND SERVICE ) Mar 24, 2021 WORKERS INTERNATIONAL UNION, AFL- ) DEBORAH S. HUNT, Clerk CIO-CLC; UNITED STEEL, PAPER AND ) FORESTRY, RUBBER, MANUFACTURING, ) ENERGY, ALLIED-INDUSTRIAL AND ) SERVICE WORKERS INTERNATIONAL ) ON APPEAL FROM THE UNITED UNION, AFL-CIO-CLC, LOCAL UNION 1693, ) STATES DISTRICT COURT FOR ) THE WESTERN DISTRICT OF Plaintiffs-Appellants, ) KENTUCKY ) v. ) ) LLFLEX, LLC, ) ) Defendant-Appellant. ) )

BEFORE: BATCHELDER, GRIFFIN, and STRANCH, Circuit Judges.

GRIFFIN, J., delivered the opinion of the court in which BATCHELDER, J., joined. STRANCH, J. (pp. 10–14), delivered a separate opinion concurring in part and dissenting in part.

GRIFFIN, Circuit Judge.

Plaintiffs contend defendant violated a collective bargaining agreement by changing retiree

healthcare benefits and then refusing to arbitrate plaintiffs’ grievance regarding those changes.

The district court dismissed plaintiffs’ complaint, concluding plaintiffs lacked Article III standing,

and, alternatively, plaintiffs’ complaint failed to state a claim upon which relief could be granted.

For the reasons we state below, we affirm the district court’s judgment. No. 19-5464, United Steel v. LLFlex

I.

Defendant LLFlex, LLC (“the Employer”) and plaintiffs United Steel, Paper and Forestry,

Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union, AFL-

CIO-CLC, and its Local No. 1693 (collectively, “the Union”) are parties to a collective bargaining

agreement (“CBA”) effective “September 1, 2017 through August 31, 2020.” In January 2018,

the Employer began requiring certain retirees—namely those who retired by June 29, 2017 (i.e.,

before the operative agreement became effective)—“to pay a share of the premium cost of [their]

healthcare benefits.” Displeased with the change, the Union filed a grievance under the CBA for

this “unilateral imposition of premium costs to retirees in violation of the parties’ agreements.”

The parties did not resolve the dispute through the CBA’s grievance process (and in so doing, the

Employer refused to arbitrate the grievance).

Thereafter, the Union initiated this lawsuit, asking the district court to order the Employer

“to arbitrate the grievance pursuant to the . . . CBA[.]” The Employer moved to dismiss, arguing

under Federal Rule of Civil Procedure Rule 12(b)(1) that the district court lacked subject-matter

jurisdiction because the Union did not have standing, and, alternatively, that the Union failed to

state a claim upon which the district court could grant relief under Federal Rule of Civil Procedure

12(b)(6) because the disputed grievance was not arbitrable. The district court agreed with the

Employer on both grounds and dismissed the complaint. The Union timely appeals.

II.

We review a Rule 12(b)(1) facial-attack decision and a Rule 12(b)(6) decision de novo.

Chase Bank USA, N.A. v. City of Cleveland, 695 F.3d 548, 553 (6th Cir. 2012). For each type of

motion to dismiss, we accept non-conclusory factual allegations in the complaint as true. See

Gentek Bldg. Prod., Inc. v. Sherwin-Williams Co., 491 F.3d 320, 330 (6th Cir. 2007). But for

-2- No. 19-5464, United Steel v. LLFlex

either kind of motion to dismiss, “conclusory allegations or legal conclusions masquerading as

factual conclusions will not suffice to prevent a motion to dismiss.” O’Bryan v. Holy See, 556

F.3d 361, 376 (6th Cir. 2009) (citation omitted); In re Travel Agent Comm’n Antitrust Litig., 583

F.3d 896, 903 (6th Cir. 2009). To withstand a Rule 12(b)(1) facial attack on subject matter

jurisdiction, the complaint’s allegations must establish a federal claim. See O’Bryan, 556 F.3d at

376. “To survive a [Rule 12(b)(6)] motion to dismiss, a complaint must present facts that, if

accepted as true, sufficiently ‘state a claim to relief that is plausible on its face.’” Coley v. Lucas

Cty., 799 F.3d 530, 537 (6th Cir. 2015) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570

(2007)). “A claim is facially plausible when a plaintiff ‘pleads factual content that allows the court

to draw the reasonable inference that the defendant is liable for the misconduct alleged.’” Id.

(quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)).

III.

“[A] collective bargaining agreement is . . . a contract[.]” Morgan Servs., Inc. v. Local

323, Chicago & Cent. States Joint Bd., Amalgamated Clothing & Textile Workers Union, 724 F.2d

1217, 1223 (6th Cir. 1984) (citation omitted). “[A] party to a breached contract has a judicially

cognizable interest for [Article III] standing purposes, regardless of the merits of the breach

alleged.” Hicks v. State Farm Fire & Cas. Co., 965 F.3d 452, 463 (6th Cir. 2020) (first alteration

in original) (quoting Kuhns v. Scottrade, Inc., 868 F.3d 711, 716 (8th Cir. 2017)). Here, the Union

essentially contends that the Employer breached their contract by refusing to arbitrate a dispute

that the Union claims the parties agreed to arbitrate. Accordingly, we disagree with the district

court and conclude that the Union possesses Article III standing to pursue this lawsuit in federal

court.

-3- No. 19-5464, United Steel v. LLFlex

IV.

A.

As mentioned above, “[a] collective bargaining agreement is . . . a contract.” Morgan

Services, 724 F.2d at 1223 (citation omitted). And we “interpret CBAs under ‘ordinary principles

of contract law.’” Int’l Union, United Auto., Aerospace & Agric. Implement Workers Of Am. v.

Honeywell Int’l, Inc., 954 F.3d 948, 954 (6th Cir. 2020) (quoting M & G Polymers USA, LLC v.

Tackett, 574 U.S. 427, 430 (2015)). One of those ordinary principles of contract law is “that courts

interpret contracts according to their plain meaning.” Rogers v. I.R.S., 822 F.3d 854, 860 (6th Cir.

2016) (citation omitted); Dobbs, Inc. v. Local No. 614, Int’l Bhd. of Teamsters, Chauffeurs,

Warehousemen & Helpers of Am., 813 F.2d 85, 88 (6th Cir. 1987) (“Terms in a collective

bargaining agreement are to be given their ordinary meaning in the absence of ‘evidence indicating

that the parties to this contract intended to expand or otherwise deviate from that meaning.’”

(citation omitted)).

“Before compelling an unwilling party to arbitrate, [we] must engage in a limited review

to determine whether the dispute is arbitrable; meaning that a valid agreement to arbitrate exists

between the parties and that the specific dispute falls within the substantive scope of that

agreement.” Javitch v.

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Related

At&T Technologies, Inc. v. Communications Workers
475 U.S. 643 (Supreme Court, 1986)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Teamsters Local Union No. 89 v. Kroger Co.
617 F.3d 899 (Sixth Circuit, 2010)
Javitch v. First Union Securities, Inc.
315 F.3d 619 (First Circuit, 2003)
International Union v. Cummins, Inc.
434 F.3d 478 (Sixth Circuit, 2006)
Chase Bank USA, N.A. v. City of Cleveland
695 F.3d 548 (Sixth Circuit, 2012)
Denise Coley v. Lucas County, Ohio
799 F.3d 530 (Sixth Circuit, 2015)

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United Steel, Paper and Forestry v. LLFlex, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steel-paper-and-forestry-v-llflex-llc-ca6-2021.