Healy v. Metropolitan Pier & Exposition Authority
2015 U.S. App. LEXIS 18542
| 7th Cir. | 2015Background
- Plaintiffs are union electrical workers employed at McCormick Place who were terminated after MPEA contracted with Freeman and GES for in‑house electrical services and side agreements altered hiring practices.
- The Union’s CBA (Article IV) established a referral pool and priority hiring for electrical workers; McCormick Place used a separate “McCormick Call” and had an informal conversion process from short‑ to long‑term work.
- In 2011 the Illinois legislature amended the Metropolitan Pier and Exposition Authority Act, prompting MPEA to let Freeman and GES supply electrical services; the Union then entered “Interpretive Side Letter” agreements allowing out‑of‑pool hiring.
- Freeman and GES fired the Plaintiffs on August 15, 2011 and subsequently used MPEA‑provided in‑house electricians; Plaintiffs later learned of the side letters and filed grievances and suit.
- Plaintiffs amended their complaint to include a state law claim (Count IV) for intentional tortious interference with contracts against MPEA; the district court dismissed that claim as preempted by § 301 of the LMRA and Plaintiffs appealed only that dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Plaintiffs’ Illinois tortious‑interference claim is preempted by § 301 | Healy et al.: The state tort claim can proceed; they followed grievance procedure and brought a hybrid § 301 suit so federal court can hear the tort claim against MPEA | MPEA: Resolution of the tort claim requires interpreting the CBA, so § 301 preempts it and converts it into a § 301 claim | Preempted: The tort claim requires interpreting the CBA, so § 301 preempts it and converts it into a § 301 contract claim |
| Whether MPEA can be sued under § 301 after preemption | Plaintiffs: Even if preempted, procedural steps (grievances/hybrid suit) permit relief against MPEA | MPEA: It is a political subdivision and LMRA excludes states/political subdivisions from the definition of "employer," so it is immune from § 301 suits | Dismissed: MPEA is a political subdivision and immune from § 301 claims, so the preempted claim is extinguished |
| Whether Brazinski/Kimbro create an exception allowing the state tort claim to proceed | Plaintiffs: They followed the grievance/arbitration path described in those cases and thus can pursue the claim | Defendants: Those cases converted tort theories into § 301 claims and required arbitration/grievance steps; they do not permit suing an immune political subdivision under § 301 | Rejected: Brazinski/Kimbro do not permit circumventing MPEA’s § 301 immunity; plaintiffs would at best have a § 301 claim, which MPEA cannot face |
| Whether the remedial gap justifies creating a federal tort remedy | Plaintiffs: Preemption plus immunity leaves them without a remedy against MPEA | MPEA/Defense: Supreme Court and § 301 jurisprudence foreclose creation of a federal tort remedy; courts cannot create jurisdiction where none exists | Rejected: Courts may acknowledge the gap but cannot create a new federal tort cause of action; Granite Rock controls |
Key Cases Cited
- Textile Workers Union of America v. Lincoln Mills of Ala., 353 U.S. 448 (1957) (§ 301 grants federal jurisdiction over employer‑union contract disputes)
- Allis‑Chalmers Corp. v. Lueck, 471 U.S. 202 (1985) (state law claims that require interpreting a CBA are preempted by § 301)
- Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399 (1988) (preemption when resolution requires interpretation of a collective bargaining agreement)
- Caterpillar, Inc. v. Williams, 482 U.S. 386 (1987) (§ 301 preempts state law claims founded directly or indirectly on CBAs)
- Granite Rock Co. v. Int’l Bhd. of Teamsters, 561 U.S. 287 (2010) (Supreme Court refuses to create a federal tort remedy under § 301; state tort claim preempted)
- Brazinski v. Amoco Petroleum Additives Co., 6 F.3d 1176 (7th Cir. 1993) (state tort claims preempted and plaintiffs must pursue § 301 remedies via grievance/arbitration)
- Kimbro v. PepsiCo, Inc., 215 F.3d 723 (7th Cir. 2000) (same principle; § 301 creates contract‑based remedies, not tort rights)
- Vaca v. Sipes, 386 U.S. 171 (1967) (recognition of hybrid suits against employer and union for breach of CBA and duty of fair representation)
- United Parcel Serv., Inc. v. Mitchell, 451 U.S. 56 (1981) (describes the hybrid § 301 suit procedure)
