Vassil M. Marinov v. Fiat Chrysler Automotive (mem. dec.)

• Court: Indiana Court of Appeals
• Decided: December 29, 2016
• Docket: 79A04-1604-SC-881
• Status: Published

Opinion

MEMORANDUM DECISION FILED Pursuant to Ind. Appellate Rule 65(D), Dec 29 2016, 10:10 am this Memorandum Decision shall not be CLERK regarded as precedent or cited before any Indiana Supreme Court Court of Appeals court except for the purpose of establishing and Tax Court

the defense of res judicata, collateral estoppel, or the law of the case.

APPELLANT PRO SE ATTORNEYS FOR APPELLEE Vassil M. Marinov Todd M. Nierman West Lafayette, Indiana Bonnie L. Martin Ogletree, Deakins, Nash, Smoak & Stewart Indianapolis, Indiana

IN THE COURT OF APPEALS OF INDIANA

Vassil M. Marinov, December 29, 2016 Appellant-Plaintiff, Court of Appeals Case No. 79A04-1604-SC-881 v. Appeal from the Tippecanoe Superior Court Fiat Chrysler Automotive, The Honorable Laura Zeman, Appellee-Defendant. Judge The Honorable Jeffrey R. Smith, Senior Judge Trial Court Cause No. 79D04-1508-SC-2922

Bailey, Judge.

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 1 of 9 Case Summary [1] Vassil Marinov (“Marinov”) appeals the denial of his motion to correct error,

which challenged the dismissal of his pro-se small claims complaint against his

employer, Fiat Chrysler Automotive (“Fiat”) whereby Marinov denied the

validity of an assignment of wages for the payment of union dues. The small

claims court, ruling upon a paper record, concluded that the claim was

preempted by federal law and dismissed it on jurisdictional grounds. Marinov

raises the sole issue of whether the dismissal was in error. We reverse and

remand for a hearing for the development of jurisdictional facts.

Facts and Procedural History [2] On August 4, 2015, Marinov filed a complaint against Fiat concerning an

assignment of wages for the payment of union dues.1 Fiat filed a motion to

dismiss pursuant to Indiana Trial Rule 12(B)(6), for failure to state a claim upon

which relief can be granted, and filed an accompanying brief and exhibits.

[3] Marinov appeared at a non-evidentiary hearing conducted on February 25,

2016. Speaking through a Bulgarian-French translator, Marinov denied that he

was a union member and indicated that his claim arose from employer wage

assignment “without consent.” (Tr. at 15.) Fiat referenced exhibits related to

1 Indiana Code Section 22-2-6-2(b)(5) provides: “A wage assignment under this section may be made for the purpose of paying any of the following: Dues to become owing by the employee to a labor organization of which the employee is a member.”

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 2 of 9 dealings between Marinov and Fiat and argued that Marinov’s claim belonged

before the National Labor Relations Board (“the NLRB”).2 At the conclusion

of the hearing, the trial court entered an order of dismissal on grounds that it

lacked subject matter jurisdiction.

[4] On March 21, 2016, Marinov filed a motion to correct error. The trial court

denied the motion to correct error that same day. This appeal ensued.

Discussion and Decision [5] Generally, we review a trial court’s ruling on a motion to correct error for an

abuse of discretion. City of Indianapolis v. Hicks, 932 N.E.2d 227, 230 (Ind. Ct.

App. 2010), trans. denied. However, to the extent the issues raised on appeal are

purely questions of law, our review is de novo. Id.

[6] Fiat described its motion as a Trial Rule 12(B)(6) motion to dismiss for failure

to state a claim upon which relief can be granted but instead presented

jurisdictional argument. The lack of subject matter jurisdiction may be raised

as an affirmative defense either in an answer to the complaint 3 or in a motion to

dismiss. GKN Co. v. Magness, 744 N.E.2d 397, 403-04 (Ind. 2001). Generally,

2 Fiat’s counsel argued: “The problem is that the state wage deduction statute and federal labor law define consent differently.” (Tr. at 21.) 3 Here, in small claims proceedings, there was no answer to the complaint.

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 3 of 9 the party challenging subject matter jurisdiction carries the burden of

establishing that jurisdiction does not exist. Id.

[7] Here, the small claims court treated Fiat’s motion as one having been made

pursuant to Trial Rule 12(B)(1). In ruling upon a motion to dismiss for lack of

subject matter jurisdiction, the trial court may consider not only the complaint

and motion, but may also consider affidavits or supporting evidence. GKN, 744

N.E.2d at 400. Additionally, the trial court may weigh the evidence to

determine the existence of the requisite jurisdictional facts. Id.

[8] The standard of appellate review is a function of what occurred in the trial

court. Id. at 401. The standard of review is dependent upon whether the trial

court resolved disputed facts and, if so, whether it conducted an evidentiary

hearing or ruled on a paper record. Id. If the facts before the trial court are

undisputed, the question of subject matter jurisdiction is purely one of law. Id.

In such circumstances, we review de novo the trial court’s ruling. Id.

[9] If the facts are in dispute, then our standard of review focuses on whether the

trial court conducted an evidentiary hearing. Id. In those circumstances, the

trial court typically engages in a classic fact-finding function, with evaluation of

the character and credibility of witnesses. Id. Thus, where a trial court

conducts an evidentiary hearing, we give its factual findings and judgment

deference. Id. In that review, we will reverse only for clear error. Id.

[10] However, where the facts are disputed but the trial court rules on a paper record

without conducting an evidentiary hearing, no deference is afforded the trial

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 4 of 9 court’s factual findings or judgment. Id. In those circumstances, a court of

review is in as good a position as the trial court to determine whether there is

subject matter jurisdiction. Id. Thus, our review is de novo when the facts are

disputed and the trial court has ruled upon a paper record. Id.

[11] Here, the small claims court scheduled a hearing on Fiat’s purported Trial Rule

12(B)(6) motion. A 12(B)(6) motion tests the legal sufficiency of a complaint

and not the sufficiency of the facts alleged. Trail v. Boys and Girls Clubs of

Northwest Indiana, 845 N.E.2d 130, 134 (Ind. 2006). Thus, a 12(B)(6) hearing is

not for the purpose of admitting evidence.4 Nonetheless, in advance of the

hearing, Fiat filed a brief reciting a series of “relevant facts” for the small claims

court’s consideration. (Ex. Vol. pg. 3.) These included Fiat’s contentions that

Marinov had been hired pursuant to a particular collective bargaining

agreement, he had signed a valid wage assignment, and he had not revoked the

wage assignment.

4 Trial Rule 12(B) provides in relevant part:

If, on a motion, asserting the defense number (6), to dismiss for failure of the pleading to state a claim upon which relief can be granted, matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56. In such case, all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by Rule 56.

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 5 of 9 [12] Fiat attached to the motion a number of “exhibits” including: a “Statement

Concerning Union membership as a Condition of Continued Employment,”

correspondence from Marinov to Chrysler Group LLC, “Relevant Sections of

Collective Bargaining Agreement [between Chrysler Group LLC and the

UAW],” and an authorization for checkoff of dues and initiation fee

(purportedly executed by Marinov). (Ex. Vol. pgs. 1-3, 14-39.) In sum, Fiat

took the position that Marinov had voluntarily executed an assignment of his

wages to pay union dues and any ensuing controversy involving reimbursement

was preempted by federal labor law.

[13] Marinov claimed that his voluntary consent for a wage assignment was lacking.

His unsworn statements included his representation that: “A form that which I

has [sic] not being [sic] filled out does not give any right and if I promise and a

declaration or that document was signed after previous document with

Chrysler.” (Tr. at 16.) Marinov also denied that he was employed by Chrysler

on the date shown on the wage assignment. He also claimed that he had to fill

out some documents and “the employer forced me to sign” but explained that,

upon the employer’s advice, he did not check a box mentioning union dues.

(Tr. at 18.) He expressed his belief that his “recent declaration” to Chrysler

“actually cancelled” any obligation. (Tr. at 18.)

[14] The trial court did not take sworn testimony to develop jurisdictional facts or

assess credibility. Instead, the trial court ruled upon a paper record in the face

of disputed facts. Accordingly, we owe no deference to the factual findings or

judgment. GKN, 744 N.E.2d at 401.

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 6 of 9 [15] Indiana is a so-called “right-to-work” state, meaning that employees cannot be

required to join a union as a condition of employment. See Ind. Code § 22-6-6-

8.5 However, Indiana Code Section 22-2-6-2 permits an employee to authorize

a wage assignment as one method of paying union dues. “When it is clear or

may fairly be assumed that the activities which a State purports to regulate are

protected by § 7 of the National Labor Relations Act, or constitute an unfair

labor practice under § 8, due regard for the federal enactment requires that the

state jurisdiction must yield.” San Diego Building Trades Council v. Garmon, 359

U.S. 236, 244 (1959).

[16] Recently, the United States District Court for the Northern District of Indiana

recognized that there is a conflict of law, to some extent, between Indiana Code

Section 22-2-6-2 and federal law regarding dues checkoff authorizations:

[T]o the extent that an Indiana law conflicts with federal law regarding dues checkoff authorizations, the State law is preempted, and General Cable has no obligation to comply with it. See Maryland v. Louisiana, 451 U.S. 725, 746 (1981) (“State laws that have been preempted by federal laws are ‘without effect.’”). Indiana’s wage assignment statute requires that all assignments of wages be “revocable at any time.” See Ind. Code § 22-2-6-2. The assignment of wages for union dues, however, is an area that has long been regulated by federal law. See 29 U.S.C. § 186(c)(4) (allowing written assignment of union dues, so

5 Indiana Code Section 22-6-6-8 provides: “A person may not require an individual to: (1) become or remain a member of a labor organization; (2) pay dues, fees, assessments, or other charges of any kind or amount to a labor organization; or (3) pay to a charity or third party an amount that is equivalent to or a pro rata part of dues, fees, assessments, or other charges required of members of a labor organization; as a condition of employment or continuation of employment.”

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 7 of 9 long as they are not irrevocable for more than a year or beyond the termination date of the [Collective Bargaining Agreement]). So regulated, in fact, that there is no room for regulation by the states, and laws like Indiana’s wage assignment statute are preempted when it comes to dues checkoffs. See Shen-Mar Food Prods., Inc., 221 N.L.R.B. 1329, 1330 (1976) (“[M]atters concerning dues-checkoff authorization and labor agreements implementing such authorizations are exclusively within the domain of Federal law.”); Int’l Bhd. Of Oper. Potters v. Tell City Chair Co., 295 F.Supp. 961, 965 (S.D. Ind. 1968) (“Congressional regulation of the area of check-offs is sufficiently pervasive and encompassing to pre-empt” Indiana’s wage assignment statute.); SeaPAK v. Indus. Tech & Prof. Empls., 300 F. Supp. 1197, 1200 (S.D. Ga 1969) (“The area of checkoff of union dues has been federally occupied to such an extent … that no room remains for state regulation in the same field.”), aff’d 423 F.2d 1229 (5th Cir. 1970), aff’d 400 U.S. 985 (1971). As a result, Indiana’s wage- assignment statute does not govern dues checkoff authorizations like Shephard’s, and the arbitrator’s award did not require the company to violate the Indiana statute.

General Cable Indus. v. Chauffeurs, Teamsters, Warehousemen and Helpers Local

Union No. 135, 2016 WL 3365133, slip op. at 3, (N.D. Ind. June 17, 2016).

[17] There, a union member had signed a dues checkoff when he began his

employment. See id. at 1. After a few weeks, he resigned from the union and

asked that his company stop deducting union dues from his pay. Id. Here, the

nature of Marinov’s claim is not entirely clear, due to the informality of small

claims complaints and the lack of an evidentiary hearing. The trial court

compared Marinov’s claim to that in Halsey v. Cessna Aircraft Co., 6 Kan. App.2d

37 (1981), which involved the interpretation or ambiguity of a union dues

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 8 of 9 checkoff authorization as it pertained to the time for revocation. Federal pre-

emption was recognized and the matter was dismissed for lack of subject matter

jurisdiction. Id. at 38.

[18] Here, however, it is not clear that Marinov asserts a right to revoke a wage

assignment and obtain reimbursement for withholdings after that revocation.

Rather, his position may be that there is nothing to revoke. The brief unsworn

statements made by Marinov as to lack of consent assert that he did not execute

a wage assignment, or he acted under coercion when signing, or he lacked

knowledge of the contents. In his appellate brief, Marinov points to his earlier

denial that he signed a checkoff document. In short, he denies the existence of

a valid wage assignment provided for by state law. From the limited record, we

are unable to determine whether Marinov’s claim belongs before the NLRB as

asserted by Fiat. Reviewing the paper record reviewed by the trial court, we

cannot conclude that the trial court lacked jurisdiction over Marinov’s claim.

Conclusion [19] The dismissal of Marinov’s complaint was in error. As such, the trial court

abused its discretion in denying Marinov’s motion to correct error. We remand

for a hearing for the development of jurisdictional facts.

[20] Reversed and remanded.

Najam, J., and May, J., concur.

Court of Appeals of Indiana | Memorandum Decision 79A04-1604-SC-881 | December 29, 2016 Page 9 of 9