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THE ERISA INDUSTRY COMMITTEE v. ROBERT ASARO-ANGELO
3:20-cv-10094
| D.N.J. | May 20, 2021
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Background

  • Plaintiff: ERISA Industry Committee, a D.C. trade association representing large employers whose benefit plans are governed by ERISA.
  • New Jersey amended its WARN Act in 2020: reduced "mass layoff" threshold (500→50), broadened "establishment" across the State, and added employer severance-pay obligations for qualifying events.
  • Plaintiff sued Robert Asaro-Angelo in his official capacity as NJ Commissioner seeking declaratory and injunctive relief that ERISA expressly preempts the amendments and enjoining enforcement.
  • Defendant moved to dismiss under Rules 12(b)(1) and 12(b)(6), arguing (inter alia) he lacks enforcement authority (so Ex parte Young inapplicable), Plaintiff lacks organizational/associational standing, and the claims are not ripe.
  • The Court denied the motion to dismiss: (1) Commissioner has sufficient enforcement connection via general enforcement statute and his statutory duty to establish a WARN response team, (2) Plaintiff adequately pled organizational standing by diversion of resources, and (3) the preemption claim is ripe as a purely legal question. Plaintiff later moved for summary judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Commissioner is a proper defendant under Ex parte Young Commissioner enforces WARN through Dept. duties and response-team role that connects him to enforcement Commissioner has only remedial/ministerial duties and no authority to enforce the WARN Act against employers Denied dismissal — Commissioner has sufficient enforcement connection under §34:1-6 and WARN response-team duties to satisfy Ex parte Young
Organizational standing (injury-in-fact & causation) Committee diverted resources to educate members and address amendments, constituting a concrete organizational injury Complaint lacks detail on resource diversion and any injury is not fairly traceable to the Commissioner Denied dismissal — diversion-of-resources allegations satisfy injury-in-fact and causation at motion-to-dismiss stage
Ripeness for declaratory relief Preemption is a purely legal question; imminent enforcement risk exists given Commissioner’s statutory role No enforcement or threat of enforcement; Commissioner’s remedial role means interests are not adverse, so claim is premature Denied dismissal — adversity and imminence sufficiently alleged; legal preemption question is ripe
Associational standing (Asserted but not necessary) Argued insufficient Court did not decide (found direct organizational standing adequate)

Key Cases Cited

  • Ex parte Young, 209 U.S. 123 (1908) (state-official exception to Eleventh Amendment for prospective relief)
  • Davis v. Wells Fargo, 824 F.3d 333 (3d Cir. 2016) (distinguishes facial and factual Rule 12(b)(1) attacks and cautions against conflating jurisdiction and merits)
  • Const. Party of Pa. v. Cortes, 824 F.3d 386 (3d Cir. 2016) (even ministerial duties can create a sufficient Young connection when they affect enforcement)
  • Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) (an organization suffers injury-in-fact when it diverts resources to counteract unlawful conduct)
  • Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard for Rule 12(b)(6))
  • Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (complaint must plead facts raising a plausible claim)
  • Plains All Am. Pipeline LP v. Cook, 866 F.3d 534 (3d Cir. 2017) (ripeness test for declaratory judgment: adversity, conclusiveness, utility)
  • Waterfront Comm’n of N.Y. Harbor v. Governor of N.J., 961 F.3d 234 (3d Cir. 2020) (statutory obligations can create a sufficiently specific Young connection)
Read the full case

Case Details

Case Name: THE ERISA INDUSTRY COMMITTEE v. ROBERT ASARO-ANGELO
Court Name: District Court, D. New Jersey
Date Published: May 20, 2021
Docket Number: 3:20-cv-10094
Court Abbreviation: D.N.J.