Balcorta v. Twentieth Century-Fox Film CorporationBalcorta v. Twentieth Century-Fox Film Corporation
COUNSEL: Jeffrey F. Webb, Los Angeles, California, for the defendant appellants.
Elizabeth Rosenfeld, Wohlner, Kaplon, Phillips, Young & Barsh, Encino, California, for the plaintiff-appellee.
Appeal from the United States District Court for the Central District of California; Richard A. Paez, District Judge, Presiding. D.C. No. CV-98-02653-RAP/MAN
Before: Stephen Reinhardt, Michael Daly Hawkins, and Susan P. Graber,1 Circuit Judges.
REINHARDT, Circuit Judge:
The plaintiff, David Balcorta, sued his employer, Twentieth Century Fox Film Corporation, in state court for violations of a California wage law. Fox removed the case to federal court on the ground that the claims were “completely preempted” by federal labor law. It then moved for summary judgment, and Balcorta moved to remand the case to state court. The district court granted Balcorta‘s motion and awarded him attorney‘s fees. Fox was precluded from appealing the remand order, but it appealed the award of fees. We affirm.
I. BACKGROUND
During the time relevant to the present dispute, Balcorta worked in the film industry as an electrical rigger. The unique circumstances of the motion picture industry result in studios often employing electrical riggers and other industry technicians for very short periods of time -sometimes for only a few days. To govern the conditions of employment in these unusual circumstances, the Alliance of Motion Picture & Television Producers has entered into a master collective bargaining agreement with the International Alliance of Theatrical Stage Employees and the Moving Pictures Technicians, Artists and Allied Crafts of the United States and Canada. Nearly every film industry employer enters into an individual collective bargaining agreement with its employees that makes the parties subject to this master labor agreement, and Fox is no exception. Balcorta is a member of The Studio Electrical Lighting Technicians, Local 728, which has such an individual agreement with Fox. Therefore, the conditions of Balcorta‘s employment as an electrical rigger for Fox were governed by the terms of Fox‘s individual collective bargaining agreement with Local 728 and the industry‘s master labor agreement.
Balcorta worked several short-term “calls” for Fox in 1997. In 1998, he filed a complaint against Fox with the California Department of Industrial Relations, Division of Labor Standards Enforcement (DLSE), alleging that Fox had violated
Fox removed the DLSE action to federal court on March 12, 1998, on the basis of federal question jurisdiction under
Before the district court, Balcorta moved to remand the case to state court for lack of federal question jurisdiction. He also moved for attorney‘s fees pursuant to
II. JURISDICTION AND STANDARD OF REVIEW
Although we do not have jurisdiction to review directly the district court‘s decision under
III. DISCUSSION
A.
As the above discussion makes clear, the validity of the district court‘s award of attorney‘s fees to Balcorta turns on whether it correctly concluded that no federal question jurisdiction existed. The presence or absence of federal-question jurisdiction is governed by the “well-pleaded complaint rule,” which provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff‘s properly pleaded complaint. See Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987). This rule makes a plaintiff the master of his complaint: it allows him to avoid federal jurisdiction by relying exclusively on state law. Thus, it is “settled law that a case may not be removed to federal court on the basis of a federal defense, including a defense of preemption, even if the defense is anticipated in the plaintiff‘s complaint, and even if both parties concede that the federal defense is the only question truly at issue.” Franchise Tax Bd. of Cal. v. Construction Laborers Vacation Trust for S. Cal., 463 U.S. 1, 14 (1983).
There does exist, however, a corollary to the wellpleaded complaint rule, known as the “complete preemption” doctrine. The Supreme Court has concluded that the preemptive force of some statutes is so strong that they “completely preempt” an area of state law. See Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 65 (1987). In such instances, any claim purportedly based on that preempted state law is considered, from its inception, a federal claim, and therefore arises under federal law. See Franchise Tax Bd., 463 U.S. at 24.7
The “complete preemption” exception to the wellpleaded complaint rule is applied primarily under
Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations, may be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.
The pre-emptive force of § 301 is so powerful as to displace entirely any state cause of action “for violation of contracts between an employer and a labor organization.” Any such suit is purely a creature of federal law, notwithstanding the fact that state law would provide a cause of action in the absence of § 301.
Franchise Tax Bd., 463 U.S. at 23 (explaining the decision in Avco Corp. v. Aero Lodge No. 735, Int‘l Ass‘n of Machinists & Aerospace Workers, 390 U.S. 557 (1968)).
Although the language of § 301 is limited to “[s]uits for violation of contracts,” courts have concluded that, in order to give the proper range to § 301‘s policies of promoting arbitration and the uniform interpretation of collective bargaining agreement provisions, § 301 “complete preemption” must be construed to cover “most state-law actions that require interpretation of labor agreements.” Associated Builders & Contractors, Inc. v. Local 302 Int‘l Bhd. of Elec. Workers, 109 F.3d 1353, 1356 (9th Cir. 1997); see also Lueck, 471 U.S. at 210-11.9 One reason for expanding complete preemption beyond the textual confines of § 301 is that any claim the resolution of which requires the interpretation of a collective bargaining agreement presents some risk to the policy of uniformity if state law principles are employed in that interpretation, even if the claim is not one for breach of contract. See Lingle, 486 U.S. at 405-06; Livadas v. Bradshaw, 512 U.S. 107, 121-23 (1994). Moreover, extending complete preemption to cover claims involving interpretation of collective bargaining agreements promotes the federal policy favoring arbitration of labor disputes, because it prevents parties from “evad[ing] the requirements of § 301 by relabeling their contract claims as claims for tortious breach of contract.” Lueck, 471 U.S. at 211; see also Livadas, 512 U.S. at 123.10
There is another strand to this aspect of federal labor law, however. Despite the breadth of § 301 complete preemption, “not every claim which requires a court to refer to the language of a labor-management agreement is necessarily preempted.” Associated Builders & Contractors, Inc., 109 F.3d at 1357. In order to help preserve state authority in areas involving minimum labor standards, the Supreme Court has distinguished between claims that require interpretation or construction of a labor agreement and those that require a court simply to “look at” the agreement. See Livadas, 512 U.S. at 123-26, 124 (“[W]hen the meaning of contract terms is not subject to dispute, the bare fact that a collective bargaining agreement will be consulted in the course of state-law litigation plainly does not require the claim to be extinguished.“). We have stressed that, in the context of § 301 complete preemption, the term “interpret” is defined narrowly -it means something more than “consider,” “refer to,” or “apply.” See Associated Builders & Contractors, 109 F.3d at 1357; Ramirez v. Fox Television Station, Inc., 998 F.2d 743, 748-49 (9th Cir. 1993); Milne Employees Ass‘n v. Sun Carriers, Inc., 960 F.2d 1401, 1409-10 (9th Cir. 1991). Although “the line between reference to and interpretation of an agreement may be somewhat hazy,” Ramirez, 998 F.2d at 749, the totality of the policies underlying § 301 -promoting the arbitration of labor contract disputes, securing the uniform interpretation of labor contracts, and protecting the states’ authority to enact minimum labor standards -guides our understanding of what constitutes “interpretation.”
B.
Section 201.5 of the California Labor Code requires that Fox pay Balcorta no more than “24 hours after discharge.”
1. “Discharge”
The district court held that the determination whether Balcorta was discharged on the eleven occasions of which he complained of required the resolution of only “purely factual issues that may be ascertained without the need to interpret the local 728 collective bargaining agreement.” Fox disagrees, asserting that several paragraphs of the collective bargaining agreement -paragraphs 14, 15, and 18 -must be interpreted in order to determine whether Balcorta was in fact discharged. With respect to paragraphs 15 and 18, however, Fox provides no argument to support its bare assertion that a court must interpret those provisions to determine whether Balcorta was discharged. The lack of support for its contention is not surprising, because a cursory examination of the paragraphs reveals that they do nothing more than prohibit certain types of employee “calls” and limit the manner in which Fox may change or cancel other types of “calls.”12 In short, these provisions simply prescribe certain procedures and timing requirements for the making, changing, and cancellation of “calls.” Although the provisions do detail fairly complicated procedures and contain a hefty dose of industry jargon, their meaning is neither uncertain nor ambiguous. A court may be required to read and apply these provisions in order to determine whether an employee was discharged from his “call” at the end of his shift, but no interpretation of the provisions would be necessary.
Fox also contends that a court cannot determine whether Balcorta was discharged without interpreting the following language in paragraph 14 of the collective bargaining agreement: “Any employee not personally notified of his discharge at the end of his shift, who reports for work at his next regular shift, shall be considered as having been called for a minimum call.”13 We have difficulty understanding why Fox thinks this straightforward language requires interpretation, especially in light of the fact that Fox appears to have acknowledged before the district court that the meaning of the provision “clearly” requires that an employee be notified of a discharge at the end of the shift in order for discharge to occur.
In short, determining whether Balcorta was discharged does not require a court to interpret the collective bargaining agreement between Fox and Local 728, and thus does not render Balcorta‘s claims subject to complete preemption.
2. Timely Payment
In addition to arguing that a court must interpret the collective bargaining agreement to determine whether Balcorta was discharged, Fox argues that the agreement must be interpreted to determine whether Balcorta was paid within the time allowed by the agreement. It is true that the collective bargaining agreement contains a paragraph that sets forth time requirements governing the payment of wages after discharge.16 We need not decide whether the collective bargaining agreement‘s provision governing the payment of wages is ambiguous and requires interpretation, however, because
It may be Fox‘s contention that, even if the calculation of timely payment under
Moreover, § 301 does not permit parties to waive, in a collective bargaining agreement, nonnegotiable state rights like those conferred by
Section 301 on its face says nothing about the substance of what private parties may agree to in a labor contract. Nor is there any suggestion that Congress, in adopting § 301, wished to give the substantive provisions of private agreements the force of federal law, ousting any inconsistent state regulation. Such a rule of law would delegate to unions and unionized employers the power to exempt themselves from whatever state labor standards they disfavored. Clearly, § 301 does not grant the parties to a collective-bargaining agreement the ability to contract for what is illegal under state law . . . . [I]t would be inconsistent with congressional intent under that section to preempt state rules that proscribe conduct, or establish rights and obligations, independent of a labor contract.
Lueck, 471 U.S. at 211-12; see also Lingle, 486 U.S. at 409; cf. Livadas, 512 U.S. at 125. Therefore, Fox cannot claim § 301 complete preemption on the ground that the parties agreed in the collective bargaining agreement to waive the statutory rights conferred by
CONCLUSION
Because § 301 of the LMRA does not completely preempt Balcorta‘s claims under
AFFIRMED.
Notes
An employer who lays off a group of employees engaged in the production of motion pictures whose unusual or uncertain terms of employment require special computation in order to ascertain the amount due, shall be deemed to have made immediate payment within the meaning of Section 201 if the wages of such employees are paid within such reasonable time as may be necessary for computation of payment thereof; provided, however, that such reasonable time shall not exceed 24 hours after discharge . . . .
If an employer willfully fails to pay, without abatement or reduction, in accordance with §§ 201, 201.5, and 202, any wages of an employee who is discharged or quits, the wages of such employees shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefore is commenced; but such wages shall not continue for more than 30 days . . . .
14. Layoff Provisions
This provision applies to “Off Production” employees only.
(a) Any employee not personally notified of his discharge at the end of his shift, who reports for work at his next regular shift, shall be considered as having been called for a minimum call. Shifts commencing on days that would otherwise be the sixth or seventh day worked in the employee‘s workweek shall not be considered as regular shifts.
(b) No calls may be canceled after an employee has been dismissed for the day and has left the studio premises.
(a) . . . When employee is laid off and requests pay at time of layoff, he shall be paid within twenty-four (24) hours, excluding Saturdays, Sundays, and holidays.
(b) If, due to the fault of the producer, an employee does not receive wages or salary on a timely basis, the Producer shall, within three (3) days after being so notified by the employee, issue a check in payment of same to the employee. . . .