Valles v. Ivy Hill Corporation

Court of Appeals for the Ninth Circuit·Decided June 6, 2005·No. 03-55440·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

DAVID VALLES; JOHN BRESLIN, and  members of the general public No. 03-55440

similarly situated, Plaintiffs-Appellants,

 D.C. No.

CV-02-08528-MLR

v.

OPINION

IVY HILL CORPORATION, Defendant-Appellee.

Appeal from the United States District Court for the Central District of California Manuel L. Real, District Judge, Presiding

Argued and Submitted

December 7, 2004—Pasadena, California

Filed June 6, 2005

Before: Stephen Reinhardt, Cynthia Holcomb Hall, and Kim McLane Wardlaw, Circuit Judges.

Opinion by Judge Reinhardt

VALLES v. IVY HILL CORP. 6295

COUNSEL

Howard Z. Rosen & Lazaro Cuevas, Posner & Rosen LLP, Los Angeles, California, for the appellants.

6296 VALLES v. IVY HILL CORP. Jamie J. Johnson, Bryan Cave LLP, Santa Monica, California, for the appellee.

OPINION

REINHARDT, Circuit Judge:

David Valles and John Breslin sued their employer, the Ivy Hill Corporation, for failing to provide them and other unionized employees with adequate meal periods and rest breaks in violation of California’s Labor Code and wage regulations. Ivy Hill removed the action to federal court on the ground that the meal period claims were “completely preempted” by federal labor law. The district court denied the employees’ motion to remand to state court and granted summary judgment in favor of Ivy Hill. Valles and Breslin appeal. We reverse.

I. BACKGROUND

Ivy Hill has been operating a Los Angeles printing facility since 1966. Since that time, its employees have been represented by the Graphic Communications International Union, Local 404 (or a predecessor union). The terms and conditions of employment are governed by a collective bargaining agreement , which does not address rest breaks but includes two provisions regarding meal periods: One mandates non- working meal periods and the other provides for time and a half payment in the event an employee must work during a regularly scheduled meal period.1 Despite this contract lan-

1 Section 8.2 of the collective bargaining agreement reads:

No employee shall be compelled to work more than five (5) hours without being permitted to have one-half (1/2) hour for lunch. No presses will operate during lunch time, except in accordance with the manning table.

VALLES v. IVY HILL CORP. 6297 guage, from the time that the printing facility opened until June 2002, employees who worked on the first shift were not afforded lunch periods. Instead, they worked through lunch and were paid at their normal hourly rate for their working lunches. No employee filed a grievance about this practice. In June 2002, Ivy Hill instituted non-working, unpaid lunch periods .

Three months later, employees Valles and Breslin brought a class action lawsuit in state court, alleging that until June 2002 Ivy Hill had failed to provide them with uninterrupted thirty minute meal periods and ten minute rest breaks. The employees based their claims entirely on the provisions of state law and not on any terms contained in their collective bargaining agreement. They sought penalties back to October 1, 2000, the date upon which they contend that the state’s meal period and rest break penalty provisions became applicable . Ivy Hill removed the case to federal court on the ground that the employees’ meal period claims were completely preempted by Section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185 (2005). The employees moved the district court to remand the matter to state court, while Ivy Hill moved for summary judgment on the ground of preemption. The district court denied the employees’ motion to remand and granted summary judgment in favor of Ivy Hill. The employees appealed.2

Section 11.1(f) reads:

If an employee is specifically requested by the Employer to work during his/her regularly scheduled lunch period (where such is observed) and is then required by the Employer to take a lunch period later in the shift, the employee shall be paid one and one- half (1-1/2) times his hourly rate for the lunch period worked. 2 Ivy Hill does not contend that the employees’ rest period claim is preempted . Rather, it relies on the doctrine of supplemental jurisdiction. See United Mine Workers v. Gibbs, 383 U.S. 715, 725 (1966). Notably, the district court never addressed the rest period claim, although it granted summary judgment for Ivy Hill. The employees requested clarification, but apparently the district court did not respond.

6298 VALLES v. IVY HILL CORP.

We have jurisdiction under 28 U.S.C. § 1291 and review the district court’s finding of preemption under § 301 de novo. Cramer v. Consolidated Freightways, 255 F.3d 683, 689 (9th Cir. 2001) (en banc) (as amended).

II. DISCUSSION

A. Complete Preemption Doctrine

Federal jurisdiction typically exists only when a federal question is presented on the face of the plaintiff’s properly pleaded complaint. Balcorta v. Twentieth Century-Fox Film Corp., 208 F.3d 1102, 1106 (9th Cir. 2000) (citing Caterpillar , Inc. v. Williams, 482 U.S. 386, 392 (1987)). A federal law defense to a state-law claim does not confer jurisdiction on a federal court, even if the defense is that of federal preemption and is anticipated in the plaintiff’s complaint. Franchise Tax Bd. of Cal. v. Constr. Laborers Vacation Trust for S. Cal., 463 U.S. 1, 14 (1983). This rule makes a plaintiff the “master of his complaint”: He may generally avoid federal jurisdiction by pleading solely state-law claims. Balcorta, 208 F.3d at 1106.

An exception to the general rule exists, however, when the preemptive force of a statute is so strong that it “completely preempt[s]” an area of state law. Id. at 1107; see also Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 65 (1987). In such circumstances, federal law displaces a plaintiff’s state-law claim, no matter how carefully pleaded. Gregory v. SCIE, LLC, 317 F.3d 1050, 1052 (9th Cir. 2003). This is because the “claim purportedly based on . . . [a] preempted state law is considered, from its inception, a federal claim, and therefore arises under federal law.” Balcorta, 208 F.3d at 1107 (citing Franchise Tax Bd., 463 U.S. at 24).

[1] The complete preemption exception to the well-pleaded complaint rule is applied primarily under § 301 of the LMRA. Id. That section vests jurisdiction in federal courts over

VALLES v. IVY HILL CORP. 6299 “[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce.” 29 U.S.C. § 185(a). Although the text of § 301 contains only a jurisdictional grant, the Supreme Court has interpreted it to compel the complete preemption of state law claims brought to enforce collective bargaining agreements. Avco Corp. v. Aero Lodge No. 735, Int’l Ass’n of Machinists & Aerospace Workers, 390 U.S. 557, 560 (1968). In addition, although the language of § 301 is limited to “[s]uits for violation of contracts,” the Supreme Court has expanded § 301 preemption to include cases the resolution of which “is substantially dependent upon analysis of the terms of [a collective bargaining agreement].” Allis-Chalmers Corp. v. Lueck, 471 U.S. 202, 220 (1985); see also Franchise Tax Bd., 463 U.S. at 23; see also Balcorta, 208 F.3d at 1107-08 (discussing development of Supreme Court precedent on complete preemption); Cramer, 255 F.3d at 689-90 (same).

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