MARGARET LAWLESS, Plaintiff, Appellee, v. STEWARD HEALTH CARE SYSTEM, LLC, Defendant, Appellant.
No. 17-2128
United States Court of Appeals For the First Circuit
June 25, 2018
Torruella, Selya and Kayatta, Circuit Judges.
[Hon. Denise J. Casper, U.S. District Judge]
Robert G. Young, with whom Timothy P. Van Dyck and Bowditch & Dewey, LLP were on brief, for appellant.
Daniel W. Rice, with whom Glynn, Landry & Rice, LLP was on brief, for appellee.
I. BACKGROUND
The facts are, for all practical purposes, undisputed. Defendant-appellant Steward Health Care System, LLC owns and operates several medical facilities in Massachusetts, including Carney Hospital (Carney). Plaintiff-appellee Margaret Lawless worked as a nurse at Carney for many years. At the times relevant hereto, she was a member of the Massachusetts Nurses Association, a union that had a collective bargaining agreement (CBA) with the
On March 5, 2016, the defendant terminated the plaintiff‘s employment. On March 7, the plaintiff sued the defendant in a Massachusetts state court, alleging failure to pay accrued wages by the date of her termination. Specifically, the plaintiff alleged that the defendant had failed to pay $20,154.30 in paid time off (PTO) and $21,191.11 in extended sick leave (ESL). These payment shortfalls, she alleged, were in breach of her employment contract and in violation of the Wage Act,
On March 10, the defendant made a direct deposit into the plaintiff‘s bank account in the amount of $12,754.33 — a sum that was intended to compensate her for all of the PTO owed. Six days later, the plaintiff received a check from the defendant in the amount of $2,440.80 — a sum that was intended to compensate her for all of the accrued ESL. On March 22, the Attorney General assented to the plaintiff‘s maintenance of her suit.
On May 23, the plaintiff amended her complaint and withdrew her claim for breach of contract. The amended complaint also revised the amounts that the plaintiff claimed were overdue:
Following the filing of briefs, the case came on for oral argument in this court on May 10, 2018. Although neither party had broached the existence of federal subject-matter jurisdiction, we raised doubts about jurisdiction at oral argument and ordered supplemental briefing. Those briefs having been submitted, the appeal is now ripe for resolution.
II. JURISDICTION
A court without jurisdiction is like a king without a kingdom: both are powerless to act. Since the existence of federal subject-matter jurisdiction implicates our power to hear and determine a case, we must address that issue before proceeding
This case, though originally filed in a Massachusetts state court, was removed to the federal district court. It is settled beyond peradventure that a state-court action is removable only if it “originally could have been filed in federal court.” Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987). We review a district court‘s retention of subject-matter jurisdiction over a removed case de novo. See BIW Deceived v. Local S6, Indus. Union of Marine & Shipbldg. Workers of Am., 132 F.3d 824, 830 (1st Cir. 1997).
At first blush, the parties’ shared claim of jurisdiction appears to run headlong into the well-pleaded complaint rule. The operative pleading (the amended complaint) contains a single cause of action claiming violations of the Wage Act and does not refer at all to federal law. But there may be
We start with the doctrine of complete preemption: “Congress may so completely preempt a particular area that any civil complaint raising this select group of claims is necessarily federal in character.” Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 63-64 (1987). Section 301 of the LMRA operates in this fashion. See
Withal, the doctrine of complete preemption is “misleadingly named.” Rueli v. Baystate Health, Inc., 835 F.3d 53, 57 (1st Cir. 2016) (quoting Hughes v. United Air Lines, Inc., 634 F.3d 391, 393 (7th Cir. 2011)). Although preemption is typically a defense to liability under state law, complete preemption serves a different function: with respect to the application of the well-pleaded complaint doctrine, it transmogrifies a claim purportedly arising under state law into a claim arising under federal law. See id.; López-Muñoz, 754 F.3d at 5.
LMRA complete preemption has broad application in employment-related matters. See Lueck, 471 U.S. at 210-11; Cavallaro v. UMass Mem‘l Healthcare, Inc., 678 F.3d 1, 5 (1st Cir. 2012). In addition to claims that are predicated on rights created under CBAs, the complete preemption doctrine extends to claims that are “substantially dependent on analysis of a collective-bargaining agreement.” Caterpillar, 482 U.S. at 394 (quoting Int‘l Bhd. of Elec. Workers v. Hechler, 481 U.S. 851, 859 n.3 (1987)); see Lueck, 471 U.S. at 220 (ruling that state-law tort claim requiring interpretation of CBA was preempted).
Even so, LMRA complete preemption has its limits. “[N]ot every dispute concerning employment, or tangentially involving a
The line between consultation and interpretation has proven difficult to plot. See Livadas v. Bradshaw, 512 U.S. 107, 124 n.18 (1994) (noting judicial confusion about scope of LMRA complete preemption); Cavallaro, 678 F.3d at 5 (remarking that Supreme Court “has never fully integrated” LMRA complete preemption cases into a unitary doctrine). But precise line-drawing is not essential here: at the time of removal, this case fell within the “interpretation” sector. We explain briefly.
A court surveying its subject-matter jurisdiction “reviews a plaintiff‘s complaint not to judge the merits, but to determine whether [it] has the authority to proceed.” BIW, 132 F.3d at 832. The federal claim need not have merit in order for the court to assume jurisdiction. See Steel Co., 523 U.S. at 89. To the contrary, a court has jurisdiction to decide a case so long as the plaintiff has alleged a colorable federal claim. See Bell v. Hood, 327 U.S. 678, 682-83 (1946);
Applying these general principles to the section 301 setting, we do not focus on whether any of the plaintiff‘s claims were in fact completely preempted. Instead, we focus on whether the amended complaint, “taken in context, reveals a colorable federal question within a field in which state law is completely preempted.” BIW, 132 F.3d at 832. Federal subject-matter jurisdiction exists as long as — at the time of removal — there was a seemingly valid or genuine argument that adjudication of the plaintiff‘s claim would require construction of the CBA. See id. at 833.
We find this permissive standard satisfied here. The plaintiff alleged in her original complaint that the defendant failed to pay her PTO and ESL. There can be no doubt that the CBA was potentially implicated in any dispute over the amounts of PTO and ESL owed by the defendant to the plaintiff. After all, the CBA contained provisions addressing the plaintiff‘s right to both PTO and ESL.
Because the CBA addressed the plaintiff‘s rights to PTO and ESL, it was plausible at the time of removal that the district court would be required to interpret the CBA in order to determine what amounts, if any, were owed as lost wages. Cf. Cavallaro, 678 F.3d at 8 (finding Wage Act claim preempted when “determining what (if anything) is owed” was an “inevitable issue” and would “depend[] at least arguably on interpretations and applications of the CBA“); Flibotte v. Pa. Truck Lines, Inc., 131 F.3d 21, 26 (1st Cir. 1997) (similar). Since there was a genuine question about whether the plaintiff‘s entitlement to relief under her Wage Act
There is a wrinkle. The plaintiff testified, during her pretrial deposition, that she had been paid her PTO and ESL in full, prior to the date on which her action was removed to the federal court. The effect of this testimony was to concede that her only remaining claim was for penalties under the Wage Act. For aught that appears, the claim for penalties — unlike the claim for lost wages — was based on an independent obligation under the Wage Act and did not brook any interpretation of the CBA. See Livadas, 512 U.S. at 124-25. Thus, any prospect for preemption vanished by the time that the plaintiff‘s deposition ended (well before the district court entered summary judgment).
This circumstance, though, did not deprive the district court of jurisdiction. See
This is such a case. Because the plaintiff‘s claim for penalties under the Wage Act arose from the same nucleus of operative facts as her potentially preempted claim for lost wages, the district court had supplemental jurisdiction over the former claim. See BIW, 132 F.3d at 833. The mere fact that any prospect of complete preemption had dissipated by the time that the cross-motions for summary judgment were filed did not deprive the district court of its supplemental jurisdiction over the Wage Act claim. See Rodriguez, 57 F.3d at 1177.
Of course, the fact that the district court had discretion to hear and determine the plaintiff‘s Wage Act claim does not mean that its implicit exercise of that discretion was appropriate. When any and all federal claims have been dismissed prior to trial, “the balance of factors to be considered under the pendent jurisdiction doctrine — judicial economy, convenience, fairness, and comity” — often will counsel in favor of declining jurisdiction over any remaining state-law claim. Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 350 n.7 (1988). Where, as here, the only federal claim has vanished before trial and the remaining
Here, however, the circumstances are not typical. After the plaintiff clarified the extent of her case through her deposition testimony, neither party objected to the district court‘s retention of jurisdiction over what was obviously a claim arising under state law. Unlike an objection to federal subject-matter jurisdiction, which is unwaivable, an objection to the district court‘s exercise of supplemental jurisdiction over a pendent state-law claim may be waived. See Acri v. Varian Assocs., 114 F.3d 999, 1000-01 (9th Cir. 1997) (en banc); Doe by Fein v. District of Columbia, 93 F.3d 861, 871 (D.C. Cir. 1996) (per curiam). Here, the parties never challenged the district court‘s continuing exercise of supplemental jurisdiction,3 so they have waived any such challenge. See Powers v. United States, 783 F.3d 570, 576-77 (5th Cir. 2015).
III. THE MERITS
We begin our appraisal of the merits by rehearsing the familiar summary judgment standard. Summary judgment is warranted if the record, construed in the light most flattering to the nonmovant, “presents no genuine issue as to any material fact and reflects the movant‘s entitlement to judgment as a matter of law.” McKenney v. Mangino, 873 F.3d 75, 80 (1st Cir. 2017), cert. denied, 138 S. Ct. 1311 (2018); see
Since the district court adjudicated the state-law claim under supplemental jurisdiction, federal law supplies the applicable procedural rules and state law supplies the substantive rules of decision. See Perry v. Blum, 629 F.3d 1, 8 (1st Cir. 2010). In this instance, Massachusetts is the source of that state law. Absent controlling Massachusetts authority on a particular point, “we must make an ‘informed prophecy’ as to how the state‘s highest court — the Supreme Judicial Court (SJC) — would rule if faced with the issue.” Sanders v. Phoenix Ins. Co., 843 F.3d 37, 42 (1st Cir. 2016) (quoting Ambrose v. New Eng. Ass‘n of Schs. & Colls., 252 F.3d 488, 498 (1st Cir. 2001)). To arrive at this informed prophecy, we may look to “analogous decisions, considered dicta, scholarly works, and any other reliable data tending convincingly to show how the [SJC] would decide the issue at hand.” N. Am. Specialty Ins. Co. v. Lapalme, 258 F.3d 35, 38 (1st Cir. 2001) (quoting Gibson v. City of Cranston, 37 F.3d 731, 736 (1st Cir. 1994)).
The focal point of this appeal is the plaintiff‘s claim under the Wage Act,
The Wage Act establishes a two-track system of enforcement. One track is rooted in the criminal law: section 150 “authorizes, but does not require” the Attorney General of Massachusetts to charge violators criminally. Depianti v. Jan-Pro Franchising Int‘l, Inc., 990 N.E.2d 1054, 1060 (Mass. 2013). The other track is civil. In 1993, the Massachusetts legislature dramatically extended the statute‘s reach by creating a private right of action allowing aggrieved employees to sue for lost wages, treble damages, attorneys’ fees, and costs. See 1993 Mass. Acts 681-82; see also Melia v. Zenhire, Inc., 967 N.E.2d 580, 588 n.8 (Mass. 2012). Although the 1993 amendment required a plaintiff to prove that an employer‘s conduct was outrageous in order to recover treble damages, a 2008 amendment, applicable to this case, dispensed with that prerequisite and mandated the trebling of any award of lost wages under the Wage Act. See 2008 Mass. Acts 71;
In an effort to ensure that the Wage Act‘s dual enforcement mechanisms work harmoniously, the statute requires that an aggrieved employee file a “complaint” with the Attorney General, notifying her of a claimed violation. See Depianti, 990 N.E.2d at 1061. The employee may bring a private suit either “ninety days after filing a complaint with the Attorney General, or sooner if the Attorney General assents to such suit.” Id. at 1060.
In the case at hand, the plaintiff plainly failed to comply with the first alternative method for satisfying this notice requirement: she did not wait ninety days between filing her complaint with the Attorney General and commencing her action in state court. Instead, she filed both her administrative complaint and her state-court complaint on the same day. The plaintiff argues, however, that she did comply with the second alternative for satisfying the notice requirement: she obtained the Attorney General‘s assent to her suit, albeit several days after her suit was commenced. In her view, the fact that her action was already pending when the Attorney General assented was of no moment.
The defendant demurs. It insists that the plaintiff‘s action is foreclosed because she was paid in full before receiving the Attorney General‘s letter of assent. In other words, the
In resolving this interpretive dispute, our journey starts with the statutory text. When statutory terms are “‘plain and unambiguous’ in their meaning, we view them as ‘conclusive as to legislative intent.‘” Dorrian v. LVNV Funding, LLC, 94 N.E.3d 370, 375 (Mass. 2018) (quoting Water Dep‘t of Fairhaven v. Dep‘t of Envtl. Prot., 920 N.E.2d 33, 37 (Mass. 2010)). If, however, the meaning of a statute is not readily apparent from its language, “[w]e look to the intent of the Legislature ‘ascertained from all its words . . . considered in connection with the cause of [the statute‘s] enactment, the mischief or imperfection to be remedied and the main object to be accomplished, to the end that the purpose of its framers may be effectuated.‘” Id. (quoting DiFiore v. Am. Airlines, Inc., 910 N.E.2d 889, 893 (Mass. 2009)).
Here, the plain language of the Wage Act provides a convincing rebuttal to the defendant‘s argument. Section 148 directs that an employee “shall be paid in full on the day of [her] discharge.” We think that language says what it means and means what it says — and that conclusion is reinforced by the legislature‘s use of the word “shall.” It is apodictic that, in
The defendant resists this interpretation but does not point to any provision in the Wage Act that immunizes a dilatory employer based on the timing of the Attorney General‘s assent. Massachusetts courts generally “will not add language to a statute where the Legislature itself has not done so,” Mui v. Mass. Port Auth., 89 N.E.3d 460, 462 (Mass. 2018), and we see no reason to depart from this salutary praxis here. What language there is in the Wage Act points in the opposite direction. For instance, section 150 provides that a “defendant shall not set up as a defence [sic] a payment of wages after the bringing of the complaint.”
Striving to derail this reasoning, the defendant argues that a plain-language construction of the statutory text would divest the notice requirement of any real meaning. We agree with the premise on which this argument rests: courts should try to avoid interpretations that render statutory language mere surplusage. See Narragansett Indian Tribe v. Rhode Island, 449 F.3d 16, 26 (1st Cir. 2006) (en banc); Ropes & Gray LLP v. Jalbert, 910 N.E.2d 330, 336 (Mass. 2009). But the conclusion that the defendant would have us draw does not follow from this uncontroversial premise. A plain-language construction of the applicable Wage Act provision does not offend the “surplusage” canon. When a plaintiff files a civil action before receiving the Attorney General‘s assent and before the closing of the 90-day window, she runs the risk that the Attorney General‘s assent will not be forthcoming. In that event, the plaintiff‘s suit would become a dead letter.
Shifting gears, the defendant notes that, in 2014, the legislature amended the Wage Act to provide for tolling its three-year statute of limitations upon the filing of a complaint with
The defendant also suggests that we should be guided by the SJC‘s construction of similar language in the Massachusetts anti-discrimination statute. See, e.g., Commonwealth v. Hamilton, 945 N.E.2d 877, 882 & n.8 (Mass. 2011) (affording equivalent constructions to similarly phrased provisions appearing in different sections of code); see also
The filing of a complaint with the MCAD triggers a “prompt investigation” by the Commission, id. (quoting
The Wage Act contains nothing that even remotely resembles this elaborate process. It “does not provide a comprehensive remedial scheme to resolve claims outside a judicial forum.” Id. at 1061-62. Its filing requirement is “intended simply to ensure that the Attorney General receives notice of the alleged violations, so that she may investigate and prosecute such violations at her discretion.” Id. at 1061. To safeguard the Attorney General‘s prerogative, the Wage Act stipulates that a plaintiff cannot obtain a favorable judgment without first having notified the Attorney General and received her permission to
The short of it is that the defendant is attempting to compare plums to pomegranates. With respect to the operation of the statutory notice requirements and the timing of suits, the anti-discrimination statute and the Wage Act — despite their linguistic similarities — are not fair congeners.
Searching for more hospitable terrain, the defendant attacks the plain-language construction of the Wage Act on policy grounds. This attack features a parade of horribles. For example, the defendant complains that a refusal to recognize a grace period furnishes an unwholesome incentive for “employees to run to the courts immediately to assert claims under the Wage Act upon the slightest delay in payment.” Similarly, the defendant laments that “[a] mere payroll glitch, coupled with a fast-acting plaintiff‘s lawyer waiting at the courthouse steps, would be enough to impose treble damages (and attorneys’ fees) on an unwitting employer.”
Hyperbole is not a reliable tool for statutory construction, and it is not for us to say whether (or to what extent) the defendant‘s fears are overblown. As a federal court,
There is one loose end. In its reply brief, the defendant calls attention to the SJC‘s recent holding that ESL payments are not “wages” within the meaning of the Wage Act. See Mui, 89 N.E.3d at 461. Building on this foundation, the defendant urges that we reverse that portion of the district court‘s judgment awarding treble damages based on belated ESL payments.
We reject this exhortation. In the district court, the defendant never argued that ESL payments were outside the ambit of
Although there may be extraordinary circumstances that would warrant the relaxation of such procedural defaults, we discern none here. After all, a party generally may not “raise an entirely new argument that could have been articulated below or in the party‘s opening brief.” Learmonth v. Sears, Roebuck & Co., 710 F.3d 249, 256 (5th Cir. 2013). Here, the applicability of the Wage Act to ESL was an unresolved issue at the time of the plaintiff‘s firing, and several Massachusetts courts had anticipated the SJC‘s decision. See, e.g., Berry v. Greenery Rehab. & Skilled Nursing Ctr., No. CA923189, 1993 WL 818564, at *3 n.4 (Mass. Super. Oct. 29, 1993). Because the defendant could
We summarize succinctly. To prevail in a civil action, an employee aggrieved by a violation of the Wage Act must either wait 90 days after providing notice to the Attorney General or receive the Attorney General‘s assent. An employee who initiates such an action within the 90-day period and before the Attorney General has assented may still recover under the Wage Act as long as the Attorney General assents to the suit prior to the entry of judgment. Because the plaintiff received the Attorney General‘s assent while her suit was pending and well before the entry of judgment, we hold — as did the district court — that she was entitled to summary judgment.
IV. CONCLUSION
We need go no further. For the reasons elucidated above, the judgment is
Affirmed.
