CORIZON HEALTH, INC. v. WHITEHEAD
2:17-cv-01807
E.D. Pa.Oct 26, 2017Background
- Corizon Health sued former nurse John Whitehead in Pennsylvania state court seeking reimbursement of $28,710.62 it alleges was mistakenly overpaid in wages and shift differentials.
- Corizon pleaded breach of contract and unjust enrichment, alleging the employment terms limited overtime to hours over 40 per week.
- Whitehead removed the case to federal court, asserting federal-question jurisdiction because Corizon’s claims are preempted by the Labor Management Relations Act (LMRA) and would require interpretation of the parties’ collective bargaining agreement (CBA).
- Whitehead also filed a motion to dismiss claiming LMRA preemption; Corizon moved to remand for lack of federal subject-matter jurisdiction.
- The district court examined whether resolution of Corizon’s purely state-law restitution and contract claims would necessarily require interpreting the CBA and thus be preempted under section 301 of the LMRA.
- The court concluded the claims are independent of the CBA, do not require its interpretation, and therefore remanded the case to state court; Whitehead’s motion to dismiss was denied as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal subject-matter jurisdiction exists via LMRA (§301) preemption | Corizon: state-law restitution and contract claims do not depend on CBA interpretation and thus belong in state court | Whitehead: Corizon’s claims are preempted because adjudication will require interpreting the CBA (grievance procedures, pay codes) | No federal jurisdiction; claims not preempted and case remanded to state court |
Key Cases Cited
- Kokkonen v. Guardian Life Co. of Am., 511 U.S. 375 (federal courts are courts of limited jurisdiction)
- Caterpillar Inc. v. Williams, 482 U.S. 386 (well-pleaded complaint rule; state-law claims arise under federal law only if they necessarily depend on substantial federal question)
- Franchise Tax Bd. v. Constr. Laborers Vacation Trust, 463 U.S. 1 (complete preemption doctrine)
- Textile Workers Union of Am. v. Lincoln Mills, 353 U.S. 448 (§301 authorizes federal courts to enforce collective-bargaining agreements)
- Allis-Chalmers Corp. v. Lueck, 471 U.S. 202 (state-law claims preempted when substantially dependent on CBA analysis)
- Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399 (state-law claim not preempted if it can be resolved without interpreting the CBA)
- Antol v. Esposto, 100 F.3d 1111 (3d Cir. standard for independence from CBA)
- Abels v. State Farm Fire & Cas. Co., 770 F.2d 26 (removal statute strictly construed; doubts resolved for remand)
