Opinion
Background
This is an appeal by John E. Johnson from a judgment of dismissal entered on April 20, 1982. The first amended complaint was dismissed after a de *521 murrer by respondent, Trans World Airlines, Inc. (TWA), was sustained without leave to amend on July 14, 1981. 1
In the original complaint filed by appellant on December 22, 1980, appellant sought to recover damages against TWA under common law theories of wrongful termination, bad faith, fraud and deceit arising from appellant’s discharge as an employee of TWA on July 9, 1979. The complaint alleged that TWA terminated appellant’s 18-year employment with TWA for the “sole purpose of depriving [him] of his pension benefits which would have accrued six months from the date of his termination.”
TWA demurred to the complaint upon grounds that appellant’s common law claims were preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq. (ERISA), a federal statute, and that exclusive jurisdiction over the cause was vested in the federal courts. 2 The demurrer was sustained on May 8, 1981.
Thereafter, on May 21, 1981, appellant filed a first amended complaint. The first cause of action is substаntially similar to the original complaint with the exception that references to “pension benefits” in the original complaint are labeled in the first amended complaint as “employee benefits.” Another difference between the two complaints is the allegation in the first amended complaint that the “employee benefits” which TWA promised to provide to appellant included five weeks paid vacation per year, annual accrued sick leave, free lifetime travel passes upon retirement, stock and thrift plan, medical and hospitalization plan, dental plan, $50,000 life insurance policy, disability policy and retirement plan.
The first cause of action alleges that appellant “was discharged from his employment with . . . TWA for the sole purpose of depriving [him] of his employee benefits . . . some of which benefits would have accrued six months from the date of his termination.” The first amended complaint prays for damages for loss of earnings and loss of earning capacity, loss of employee benefits, general damages and punitive damages.
TWA again demurred contending that, changes in the amended complaint notwithstanding, the crux of appellant’s claim remained the allegedly wrongful discharge for the sole purpose of interfering with the attainment of benefits provided in one or more employee benefit plans. TWA again *522 urged that the state court lacked subject matter jurisdiction because the misconduct alleged in the first amended complaint was of the kind regulated by ERISA and that ERISA preempted appellant’s state law claims.
The demurrer to the first cause of action of the first amended complaint was sustained on grounds that the complaint failed to state a cause of action.
Issue
The issue in this appeal is whether appellant’s common law claims for wrongful termination, bad faith, fraud and deceit are preempted by the provisions of ERISA, where the alleged employer misconduct concerns discharge solely for the purpose of denying employee benefits to appellant.
Provisions of ERISA Pertinent to the Appeal
Beforе reaching the merits of this appeal it is necessary to recite the provisions of ERISA which are relevant in this case.
Section 1144(a) provides, inter alia, “the provisions of this subchapter [subchapter I - protection of employee benefit rights] and subchapter III [plan termination insurance] of this chapter shall supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan described in section 1003(a) of this title and not exempt under section 1003(b) of this title.” Subdivision (c)(1) of this same section provides that “the term ‘State Law’ includes all laws, decisions, rules, regulations, or other State action having the effect of law, of any State. ...”
Section 1003(a) provides, in part, “[subchapter I] shall apply to any employee benefit plan if it is established or maintained— [f] (1) by any employer engaged in commerce or in any industry or activity affecting commerce; or [f] (2) by any employee organization or organizations representing employees engaged in commerce or in аny industry or activity affecting commerce; or [!] (3) by both.”
Section 1002 defines the terms “ ‘employee welfare benefit plan,”’ “ ‘employee pension benefit plan,’ ” and “ ‘employee benefit plan.’ ” An employee welfare benefit plan is “any plan . . . which ... is hereafter established or maintained ... for the purpose of providing for its participants or their beneficiaries . . . (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits ....”(§ 1002(1).) An employee pension benefit plan is described as “any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee *523 organization, or by both, to the extent that by its express terms or as a result of surrounding circumstances such plan, fund, or program— [S] (A) provides retirement income to employees, or [1] (B) results in a deferral of income by employees for periods extending to the termination of covered employment or beyоnd, regardless of the method of calculating the contributions made to the plan, the method of calculating the benefits under the plan or the method of distributing benefits from the plan." (§ 1002(2).) “‘[E]mployee benefit plan’ or ‘plan’ means an employee welfare benefit plan or an employee pension benefit plan or a plan which is both an employee welfare benefit plan and an employee pension benefit plan.” (§ 1002(3).)
Section 1140 provides in pertinent part that, ‘‘It shall be unlawful for any person to discharge, fine, suspend, expel, discipline, or discriminate against a participant or beneficiary . . . [Qof an employee benefit planQ] ... for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan . . . .”
Finally, section 1132(a) provides that ‘‘(a) A civil action may be brought—[1] (1) by a participant or beneficiary— [K] (A) for the relief provided for in subsection (c) of this section, or [t] (B) to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan; [f] . . . . [1] (3) by a participant, beneficiary, or fiduciary (A) to enjoin any act or practice which violates any provision of this subchapter or the terms of the plan, or (B) to obtain other appropriate equitable relief (i) to redress such violations or (ii) to enforce any provisions of this sub-chapter or the terms of the plan; ...” Subdivision (e)(1) of section 1132 further provides that, “[ejxcept for actions under subsection (a)(1)(B) of this section, the district courts of thе United States shall have exclusive jurisdiction of civil actions under this subchapter brought by the Secretary or by a participant, beneficiary, or fiduciary. State courts of competent jurisdiction and district courts of the United States shall have concurrent jurisdiction of actions under subsection (a)(1)(B) of this section.”
Discussion
In California an employee may bring a suit against a former employer for wrongful termination of employment contract and breach of the implied-in-law covenant of good faith and fair dealing in employmеnt contracts. The employee is not limited to contractual remedies but may maintain a tort action and recover damages, including punitive damages, which are traditionally recoverable in such actions where discharge of the employee violates fundamental principles of public policy.
(Tameny
v.
Atlantic Rich
*524
field Co.
(1980)
For purposes of this appeal, since the demurrer was sustained, the truth of the allegations of the first cause of action will be assumed. (See
Glaire
v.
LaLanne-Paris Health Spa, Inc.
(1974)
The question thus presented is whether appellant’s common law claims are preempted by ERISA. We conclude that, with the exception of his claims to lifetime travel passes and under the stock and thrift plan, his common law claims are preempted.
The first step of our inquiry here is whether the employee benefits enumerated in appellant’s first amended complaint fall within the purview and regulation of ERISA. Under the definitions of employee benefit plan in section 1002 and its subdivisions, it is clear that most of the employee benefits enumerated in the first amended complaint are part of a comprehensive “employee benefit plan” provided by TWA to its employees. 3 Having reached this conclusion, the next step in our inquiry requires determination of whether TWA’s alleged misconduct in discharging appellant for the sole purpose of depriving him of employee benefits is unlawful under ERISA. We conclude that such conduct is proscribed by ERISA.
Section 1140 makes it “unlawful ... to discharge ... a participant . . . [Qof an employee benefit plan[)] . . . for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan . . . .” (Italics added.)
In
Calhoun
v.
Falstaff Brewing Corp.
(E.D.Mo. 1979)
Our state courts have considered the purposes of ERISA in the context of pension plans and community property laws.
(In re Marriage of Campa
(1979)
The allegation of the first cause of action clearly states a cause of action under section 1140 since it is alleged that appellant was discharged solely for the purpose of depriving him of various employee benefits.
Nowhere in the first amended complaint is ERISA mentioned. This omission, however, does not disguise the existence of a claim under ERISA. (See, e.g.,
Andrews
v.
Louisville & Nashville R. Co.
(1972)
Having determined that appellant has in essence stated a claim under ERISA as well as under this state’s common law, the third step of our inquiry requires us to determine whether the remedial provisions of ERISA preempt appellant’s common law claims. We conclude that the state claims are preempted only to the extent that any or all of the employee benefits enumerated in the first cause of action fall within the aegis of section 1002.
As earlier quoted, section 1144(a) provides that the provisions of ERISA supersede any and all state laws which “relate to” any employee benefit plan described by the act. What Congress intended by the term “relate to” has been the source of much consternation and confusion.
In
Hewlett-Packard Co.
v.
Barnes
(N.D.Cal. 1977)
The United States Supreme Court also recently recognized the broad reach of the preemptive clause in ERISA, in
Alessi
v.
Raybestos-Manhattan, Inc.
(1981)
In the aftermath of
Alessi,
other cases have held that common law claims for retаliatory discharge
(Maxfield
v.
Central States Health, Wel. & Pen.
*527
Funds
(N.D.Ill. 1982)
In
Maxfield
v.
Central States Health, Wel. & Pen. Funds, supra,
In
Dependahl
v.
Falstaff Brewing Corp., supra,
More recently the Appellate Court of Illinois and a United States District Court in Illinois addressed the issue of whether an employee’s state common law claims for wrongful discharge for the purpose of preventing attainment of certain benefits were preempted by ERISA. In
Witkowski
v.
St. Anne’s Hosp. of Chicago, Inc., supra,
The same conclusion was reached in
Gordon
v.
Matthew Bender & Co., Inc.
(N.D.Ill. 1983)
Here, section 1140 expressly proscribes the wrongful conduct alleged in appellant’s first cause of action; i.e., discharge for the sole purpose оf depriving appellant of employee benefits. The remedial provisions of ERISA, sections 1132 and 1140, coupled with section 1144 establish that, to the extent that the employee benefits enumerated in the first cause of action are within the regulation of the act, appellant’s state law claims are preempted.
Appellant’s assertions that his state law claims are not preempted because they do not regulate, either directly or indirectly, TWA’s retirement plan miss the mark, as the cases discussed above demonstrate. It is clear that any attempt by the state to regulate, directly or indirectly, the formation, terms or administration of private employee benefit plans is absolutely preempted by federal law unless the state law is
expressly exempted.
(See, e.g.,
Delta Air Lines, Inc.
v.
Kramarsky
(2d Cir. 1981)
Appellant urges that his state law claims do not even tangentially affect areas regulated by ERISA, because they are “only concerned with the provisions of the contract of employment; the conduct of . . . TWA in terminating [his] employment; whether there was good cause for [his] termination; and whether . . . TWA had the intent of [sic] performing the promise not to terminate without good cause.” This argument misses the mark for two reasons. First, while appellant’s state law claims initially arose from contract, the fact that he alleged that he was discharged solely for the purpose of depriving him of employment benefits clearly changed the nature of his claim and brought it within the preview of ERISA. Second, we note that the public policy of this state alleged by appellant in the seventh paragraph of the first cause of action also clearly brings the cause within the provisions of ERISA. That paragraph recites that, “At the time defendant TWA promised that it would provide pension and profit sharing to [appellant], there existed a public policy in the State of California fostering private industry to participate in pension plans and profit sharing plans for the benefit of its еmployees and not allowing employers in private industry to take these said benefits away from its employees in any fashion without just cause.” The public policy alleged squarely coincides with the policy which promulgated ERISA and, specifically, section 1140.
Furthermore, appellant’s reliance upon
Provience
v.
Valley Clerks Trust Fund
(E.D.Cal. 1981)
While Provience superficially appears to support appellant’s position that his state common law claims are not preempted, that case is factually distinguishable from the one at bar. Significantly, the misconduct in Provience concerned misrepresentations to the plaintiff of the nature of benefits which were actually available under a medical plan. The plaintiff there apparently *530 obtained treatment and submitted a claim under the belief that the claim was covered by the medicаl plan as represented. Here, however, appellant has not alleged that TWA misrepresented the nature of benefits available under the employee benefit plans or that appellant sought benefits which were withheld from him in bad faith. Rather, the gravamen of appellant’s complaint is that he was discharged for the sole purpose of depriving him of employee benefits. Appellant’s claim thus falls squarely within the exclusive remedial provisions of ERISA.
Finally, the last step in the inquiry involved in this appeal brings us to the questiоn whether the state has concurrent jurisdiction or whether exclusive jurisdiction over appellant’s claim is vested with the United States District Courts. We conclude that the United States District Courts have exclusive jurisdiction over the matter.
Appellant urges that the state court has concurrent jurisdiction over his claims because he “seeks damages for lost employee benefits caused by . . . TWA’s wrongful termination, bad faith and fraud. We do not agree.
Under section 1132(e)(1), states have concurrent jurisdiction over civil actions only if the actions are brought under section 1132(a)(1)(B). Section 1132(a)(1)(B) permits a civil action to be brought by a participant of an employee benefit plan to “recover benefits due . . . under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan.” (Italics added.)
The gravamen of appellant’s complaint concerns his discharge for the purpose of depriving him of employee benefits which he seeks to recover as part of his damages. Such damages are recoverable. (See
Bittner
v.
Sadoff & Rudoy Industries
(E.D.Wis. 1980)
*531 Disposition
The judgment is reversed, with directions to the trial court to permit amendment to the first amended complaint, restricting the claims to deprivation of benefits under the lifetime travel pass and stock and thrift plan.
Kingsley, Acting, P. J., and Lucas, J., * concurred.
Notes
The first amended complaint had included two causes of action. Demurrer to the first cause of action was sustained without leave to amend. On appellant’s motion the second cause of action of the first amended complaint was dismissed without prejudice on March 19, 1982. Accordingly, we do not discuss the second cause of action in this appeal,
Hereinafter all references are to the provisions of ERISA, unless otherwise specified.
Benefits which are not covered by section 1002 include the free lifetime TWA travel passes upon retirement and the stock and thrift plan. Section 1002(2)(A) covers the retirement benefit. Section 1002(1)(A) covers the vacation, sick leave, medical, dental, insurance and disability benefits.
Assigned by the Chairperson of the Judicial Council.
