New Jersey Carpenters & the Trustees Thereof Ex Rel. Chatten v. Tishman Construction Corp.
760 F.3d 297
3rd Cir.2014Background
- Carpenters worked on the Revel Casino Project in NJ and allege Simon/Watt failed to provide fringe benefits required by New Jersey Prevailing Wage Act (PWA).
- Plaintiffs are employee-benefit plans/trust funds who obtained assigned claims from the workers and sued Tishman Construction in state court under the PWA (and EDA Act). Defendant removed to federal court claiming federal preemption.
- Defendant argued complete preemption under ERISA §502(a) and §301 of the LMRA, and district court concluded ERISA §502(a) completely preempted the claim and dismissed under ERISA preemption.
- Plaintiffs moved to remand; they asserted the PWA creates an independent state-law duty to pay prevailing wages that does not require interpreting ERISA plans or collective bargaining agreements (CBAs).
- Third Circuit reviews de novo whether ERISA or LMRA completely preempt the PWA claims and whether federal jurisdiction was proper; it vacated dismissal and ordered remand to state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ERISA §502(a) completely preempts the PWA claims | PWA imposes an independent state-law wage duty; no ERISA plan interpretation needed | Plaintiffs seek to collect benefit contributions and thus their claim falls within ERISA’s civil enforcement scheme | Not completely preempted: PWA duty is independent of ERISA, so §502(a) does not confer federal jurisdiction |
| Whether LMRA §301 completely preempts the PWA claims | PWA claim is independent of any CBA and can be resolved without interpreting a CBA | Amounts overlap with CBAs, so resolution depends on CBA terms and §301 applies | Not completely preempted: claim can be resolved without interpreting CBAs, so §301 does not preempt |
| Whether district court had removal jurisdiction to decide ERISA §514 express preemption | Remand appropriate; state court should decide express-preemption defenses | Defendant can raise express preemption in federal court if removal proper | Held: District Court lacked removal jurisdiction; it should remand to state court, where express-preemption defenses may be raised |
| Whether identity of parties (plans) alone triggers ERISA federal law jurisdiction | Identity of parties does not determine jurisdiction; focus is on the nature of the claim | Defendant argued plan-party status supports removal | Held: Party identity insufficient; must examine whether federal ERISA law is an essential element of the claim |
Key Cases Cited
- Avco Corp. v. Machinists, 390 U.S. 557 (Sup. Ct.) (LMRA §301 complete-preemption principle)
- Metro. Life Ins. Co. v. Taylor, 481 U.S. 58 (Sup. Ct.) (ERISA §502(a) complete-preemption doctrine)
- Beneficial Nat’l Bank v. Anderson, 539 U.S. 1 (Sup. Ct.) (examples of complete preemption)
- Aetna Health Inc. v. Davila, 542 U.S. 200 (Sup. Ct.) (ERISA’s expansive preemptive effect and §502(a) enforcement scheme)
- Pascack Valley Hosp. Inc. v. Local 464A UFCW Welfare Reimbursement Plan, 388 F.3d 393 (3d Cir.) (two-prong test for ERISA complete preemption)
- Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399 (Sup. Ct.) (state-law claim not preempted where it can be resolved without interpreting CBA)
- Allis-Chalmers Corp. v. Lueck, 471 U.S. 202 (Sup. Ct.) (§301 preemption requires substantial dependence on CBA interpretation)
- Fort Halifax Packing Co. v. Coyne, 482 U.S. 1 (Sup. Ct.) (distinguishing wage regulation from ERISA-regulated ongoing benefit programs)
- Keystone Chapter, Associated Builders & Contractors, Inc. v. Foley, 37 F.3d 945 (3d Cir.) (state prevailing-wage law not preempted by ERISA)
- Kline v. Sec. Guards, Inc., 386 F.3d 246 (3d Cir.) (parallelism between CBA and state law does not alone create §301 dependence)
