Lead Opinion
The Morrison Milling Company (“MMC”) appeals a district court’s remand of Roxanne Hook’s negligence action against the company. MMC argues that Hook’s negligence claim is preempted by the Employment Retirement Income Security Act of 1974 (“ERISA”). 29 U.S.C. §§ 1001-1461. Because we conclude that Hook’s claim does not relate to MMC’s ERISA plan, and therefore is not preempted, we affirm the district court’s decision to remand Hook’s suit to state court.
I.
Texas’ workers’ compensation scheme resembles the workers’ compensation schemes of many other states. The Texas Workers’ Compensation Act (“TWCA”), for example, provides that any benefits distributed pursuant to the TWCA are an employee’s exclusive remedy for any work-related injuries or death. ' Tex.Rev.Civ.StatAnn. art. 8308-4.01(a) (Vernon Supp.1993).
Notwithstanding the risks associated with “opting out,” MMC in March 1989 elected to discontinue workers’ compensation insurance and began offering the Interim Employee Welfare Benefit Plan. The Plan pays enroll-ees:
certain benefits for personal injuries suffered in the course of their employment, or for death resulting from such injuries, without the necessity of showing negligence on the part of the Company, and to provide for the continuation or partial continuation of their weekly salary or wages that would otherwise be lost as a result of their inability to work because of injury or illness incurred on the job.
The parties do not dispute that the Plan is governed by ERISA See 29 U.S.C. § 1002(1). While participation in the plan is voluntary, MMC requires employees who elect to participate to sign an enrollment and waiver form, which is an entirely separate document. Paragraph 3 of the form states:
In consideration of my election to enroll in, and thus become eligible to receive benefits under, the Interim Plan, I hereby waive my rights under Tex.Rev.Civ.Stat.*779 AnN. art. 8306, § 4,[3 ] to bring suit and recover judgment against the Company and its directors, officers, agents, and employees for any damages sustained by reason of any personal injury received in the course of my employment by the Company, or by reason of death resulting from such injury. By electing to enroll in the Interim Plan, I agree that benefits payable under the Interim Plan shall be the exclusive remedy for me or my legal beneficiaries arising from any such personal injury or death.
Hook began working for MMC in October 1990 after she elected to participate in the Plan and completed the enrollment and waiver form. In December 1990, Hook fell down a staircase at work and was injured. Hook filed for benefits under the Plan with MMC, the Plan’s administrator. The Plan paid her a total of $5,383.03: $4,749.28 for medical expenses and $633.75 for salary continuation benefits. Hook then left her job with MMC in July 1991.
In February 1992, Hook filed a wrongful discharge and negligence action in Texas state court against MMC. MMC removed the case to federal court, arguing that the wrongful discharge claim was preempted by ERISA. Hook then filed her first motion to remand the case back to state court, which the federal district court denied in July 1992 on the grounds that ERISA preempted her wrongful discharge claim. Hook amended her petition to omit the wrongful discharge claim, leaving the negligence claim as the sole basis for her suit. She again moved to remand the ease, claiming that the negligence action was governed by state law.
In December 1992, the district court granted Hook’s second motion to remand. The court addressed two possible grounds for preemption and rejected them. First, the court held that Hook’s negligence action is not preempted because it does not relate to MMC’s ERISA Plan. Second, the court concluded that the waiver does not independently trigger preemption because it is incidental to her negligence action and that, alternatively, such waivers are void under Texas law.
II.
Before analyzing our appellate jurisdiction over this appeal, we first note that the district court’s subject matter jurisdiction was proper at all times. To begin with, this case was properly removed pursuant to 28 U.S.C. § 1446. Hook’s original petition alleged, inter alia, that she was wrongfully discharged in retaliation for filing a workers’ compensation claim. MMC removed the suit to federal district court, whereupon Hook filed her first motion to remand. The district court treated Hook’s allegation as a claim that she was fired in retaliation for filing a claim under MMC’s ERISA plan.
The issue of whether we have appellate jurisdiction arises from the district court’s decision to remand the ease to state court. On the one hand, we do not have jurisdiction to review a remand order if it is made pursuant to 28 U.S.C. § 1447(c). In particular, if a district court remands a case because of either a defect in removal procedure or lack of subject matter jurisdiction, we are powerless to review that remand order. 28 U.S.C. § 1447(d); see also Thermtron Prods. v. Hermansdorfer,
III.
A.
We begin by establishing the appropriate standard of review. If a district court’s decision to remand a case to state court is based on its discretion, then we obviously review that decision for abuse of discretion. In Re Wilson Indus.,
B.
Section 514(a) of ERISA, 29 U.S.C. § 1144(a), expressly provides that ERISA
But as broad as ERISA’s preemptive scope has been stated to be, it has its limits. The Supreme Court noted in Shaw that “[s]ome state actions may affect employee benefit plans in too tenuous, remote, or peripheral a manner to warrant a finding that the law ‘relates to’ the plan.” Shaw,
C.
The United States and Texas contend that Hook’s negligence cause of action does not “relate to” MMC’s ERISA plan.
As for the waiver in MMC’s plan, the amici parties insist that its inclusion in the plan does not alter their analysis. The mere fact, they argue, that a court may have to consider, by looking to the plan, whether Hook has waived her claim does not mean the cause of action “relates to” MMC’s plan. They argue that Hook’s claim, whether or not it has been waived, does not involve the administration of MMC’s plan or the disbursement of benefits under the plan. Furthermore, they contend, the waiver is nothing more than a gimmick by MMC to trigger preemption, thereby avoiding litigation in state court. The amici rely on Westbrook v. Beverly Enterprises,
MMC’s argument that Hook’s claim is preempted hinges on the waiver. MMC, in other words, bypasses the issue of whether an unsafe workplace claim, by itself, relates to an ERISA plan and argues only that the inclusion of the waiver in its plan means Hook’s cause of action is one that necessarily relates to the plan. MMC contends that this ease is controlled by Christopher v. Mobil Oil Corporation,
We noted that a court, in addressing the employees’ claims, “would have to examine, at a minimum, the operation of the plan prior to the amendment.” Id. at 1218. The employees’ claim therefore closely resembled employee claims of wrongful termination, wherein the employee asserts that the employer fired him to avoid vesting of pension befits. Id. (citing Ingersoll-Rand Co. v. McClendon,
In addition to Christopher, MMC relies on a Sixth Circuit opinion to argue that mere consideration of the waiver by a court triggers preemption. Van Camp v. AT & T Info. Sys.,
The Sixth Circuit, relying in part on our decision in Sommers Drug Stores, held that the employee’s claims were preempted. Van Camp,
We agree with amici that Hook’s claim, standing alone, is not preempted by ERISA because it affects only her employer/employee relationship with MMC and not her administrator/benefieiary relationship with the company. In this sense, the claim is distinctly "different from various other common law claims found to be preempted by ERISA. In Ingersoll-Rand, for example, an employee sued his employer for wrongful discharge, alleging that the employer fired him to avoid making contributions to his ERISA-covered pension fund. The Court ruled that the employee’s claim was preempted because it “makes specific reference to, and indeed is premised on, the existence of a pension plan.” Ingersoll-Rand,
Hook’s unsafe workplace claim, however, is totally independent from the existence and administration of MMC’s ERISA plan. She neither seeks benefits under the plan nor claims that MMC improperly processed her claim for benefits. She seeks only damages for MMC’s alleged negligent maintenance of its. workplace. Numerous federal district courts in Texas have concluded that a tort claim alleging an unsafe workplace does not relate to an ERISA plan. See e.g., Westbrook v. Beverly Enters.,
Admittedly, the presence of the waiver in this case complicates the issue of whether Hook’s claim is preempted. Amici
The Ninth Circuit, in Employee Staffing Services v. Aubry,
Syntactically, the preemption of “laws” and exemption of “plans” might be construed to place the power to exempt in the employer’s hands, when it adopts a plan, instead of the state legislature’s hands, when it promulgates laws. But a construction which attributes a rational purpose to Congress makes this locus of power unlikely, because it would accidentally allow employers to avoid the century-old system of workers’ compensation.
Id. at 1041. While Employee Staffing involved ERISA’s exemption for workers’ compensation, we concur with its reasoning that ERISA was not enacted to allow employers to control which laws or claims are preempted and those which are not. With the exception of Van Camp,
Instead, we choose to adhere to our traditional mode of analysis, as prescribed in ERISA § 514(a): a law or claim is preempted when it relates to an ERISA plan, and not the reverse.
As we stated in Memorial Hospital, “ ‘[a] preemption provision designed to prevent state interference with federal control of ERISA plans does not require the creation of a fully insulated legal world that excludes these plans from regulation of any purely local transaction.’ ” Memorial Hosp.,
D.
Having concluded that the district court properly determined that ERISA does not preempt Hook’s negligence cause of action against MMC, we now turn to the district court’s discretionary decision to remand the case to state court. Given that we accord district courts significant deference when reviewing their decisions for abuse of discretion, Thomas v. Capital Sec. Servs., Inc.,
IV.
We hold that Hook’s common law negligence suit against MMC, which alleges only that MMC maintained an unsafe workplace, does not relate to MMC’s ERISA plan and therefore is not preempted by ERISA. We AFFIRM the district court’s decision to remand this case to district court.
Notes
. The TWCA recently was re-codified. See TWCA, 73rd Leg., R.S., ch. 269, § 1 (current version at Tex.Lab.Code Ann. §§ 401.001-417.004 (Vernon Pamp.1994)). Because none of the recent amendments to the TWCA are relevant to this case, we will cite to the TWCA as codified at the commencement of this suit in February 1992.
. As of 1990, Texas, New Jersey, and South Carolina were the only states that permitted employers to "opt out” of the state’s worker's compensation scheme. The remaining 47 states required employers to carry worker’s compensation insurance. Ellen S. Pryor, Compensation and a Consequential Model of Loss, 64 TulL.Rev. 783, 801 n. 50 (1990).
. Article 8306, § 4, is the predecessor to articles 8308-3.03 and -3.04, wherein the employee of a non-subscribing employer is vested with the right to sue that employer for work-related injuries or death.
. The court specifically relied on the TWCA’s proscription against waivers, which states "an agreement by an employee to waive the employee’s right to compensation is void." Tex.Rev.Civ. Stat.Ann. art. 8308-3.09. The TWCA defines compensation as “payment of medical benefits, income benefits, death benefits, or burial benefits.” Id. art. 8308-1.03(11). As will be apparent below, we do not reach the court’s alternative holding that the waiver is void under Texas law because, like the district court, we conclude that ERISA does not preempt Hook's claim. The question of whether the waiver is void will be answered by the state court upon remand.
. See Fed.R.App.P. 29.
. We note that the record supports the district court's characterization of Hook's original petition as alleging wrongful discharge for filing a claim under MMC's ERISA plan and not for filing a workers' compensation claim. First, whereas Hook did, in fact, file a claim under MMC’s plan, she never filed a workers' compensation claim. Second, to the extent she intended
. ERISA § 514(c)(1) defines "state law” to mean “all laws, decisions, rules, regulations, or other State action having the effect of law.” 29 U.S.C. § 1144(c).
. Our colleague in dissent argues that FMC Corporation controls this case. We find that case distinguishable for two reasons. First, the statute in FMC Corporation expressly referred to ERISA plans. FMC Corp.,
.Amici also raise other arguments against preemption. Because we find their argument that Hook’s claim does not "relate to” MMC’s plan dispositive, we do not reach the validity of ami-ci's alternative arguments.
. The hospital specifically alleged that an agent for the insurance company informed the hospital that the wife of an employee of the insured company was, in fact, covered by the insured's policy. The hospital relied on this alleged representation and treated the employee's wife. The employee then transferred to the hospital his rights to benefits under the policy. The hospital, in turn, sought payment from the insurance company, but the insurance company informed the hospital that the employee's wife was not covered and denied the claim. The hospital then filed its suit against the insurance company. Memorial Hosp.,
. Hartle involved an employee who sued his former employer for various tort claims arising out of his termination. He alleged that he had a fixed-term employment contract and therefore could not be fired at will. To prove his case, he relied on certain details in the employer's ERISA plan, to which he had contributed. We concluded that the employee's claim "does not in any manner implicate the federal regulation of employee benefit plans” because the employee neither sought benefits nor alleged improper processing. Id. at 356. Though an ERISA plan was at issue, the employee’s claim was only "peripherally connected to the concerns addressed by ERISA.” Id.
. Our colleague in dissent disagrees with our analytical framework because we focus solely on the negligence claim and not the fact that it squarely conflicts with a provision in MMC’s plan. Again, we point out that § 514(a) requires us to do as we have done. We do not dispute our colleague's contention that Hook wants to have her cake and eat it, too. But we are not assigned the role of spoiler. A state court may perform that function upon remand if that court is persuaded, as our colleague asserts, that the waiver is enforceable under Texas law.
. Our holding is consistent with the holding the United States recommends in its amicus brief. The brief, it should be pointed out, was authored by the Department of Labor, the federal agency charged with primary jurisdiction over enforcing employee benefit rights.
Dissenting Opinion
dissenting:
With due respect to my colleagues, I disagree with their conclusion that Ms. Hook’s negligence claim against her employer Morrison Milling Co. was not preempted by her participation in the employer’s ERISA benefits plan. I therefore dissent.
Texas is among a handful of states that do not require its employers to furnish state-mandated worker’s compensation coverage. Morrison Milling availed itself of the privilege of being a nonsubscriber, but it also sought to compensate its employees for their on-the-job injuries. To do so, the company established an ERISA welfare benefits plan and permitted, but did not require, employees to enroll in that plan. Under the plan, they would receive benefits for on-the-job injuries comparable to or better than those under the state program simply by proving that an on-the-job injury occurred. In exchange for the certainty and promptness of
Hook liked the plan’s provision for benefits, which she collected after falling down a staircase at work. She did not like the waiver of right to sue, however, so she also filed suit against Morrison Milling for negligence.
This sequence of events should make it obvious why the majority is wrong in concluding that Hook’s lawsuit does not “relate to” an ERISA plan for purposes of federal preemption. If all of Morrison’s employees tried to have their cake and eat it by collecting benefits and then suing Morrison Milling, Morrison Milling could not afford the luxury of providing its welfare benefit plan. The plan is a substitute for, not a vehicle to finance, employee litigation.
Not only is the waiver of right to sue economically essential to Morrison Milling’s plan, but Hook’s claim legally “relates to” the plan by challenging the enforceability of that waiver. I cannot follow the majority’s assertions to the contrary. First, the majority states that, taken alone, Hook’s claim against her employer based on an unsafe workplace would not be preempted. This might well be true in the absence of a waiver. The majority then opines that even considering the waiver, the question is not whether Hook’s claim “is preempted because the waiver, as a part of the plan, relates to Hook’s claim. Instead, the appropriate question ... is whether the claim or law relates to an ERISA plan.” Apparently, one should focus only on the negligence claim, ignoring that it squarely conflicts with a provision of this ERISA plan. This logic is rather like a borrower’s accepting money under a promissory note and asking the court to ignore its reference to a security agreement.
Without parsing the majority’s analysis further, I think they have simply overlooked the breadth of the ERISA preemption doctrine, and in particular, the significance of the Supreme Court’s holding in FMC Corp. v. Holliday,
Like the majority, I reach this conclusion without having expressly to decide whether the waiver of right to sue would be enforceable, although I have concluded that if Texas law governs this question, it ought to be enforceable.
But despite my unease with this conclusion, I cannot overlook the breadth of ERISA preemption and the applicability of FMC Corp. v. Holliday in this case.
I respectfully dissent.
. Under Texas law, an employee may sue a non-subscriber to state workers compensation and his employer may not take advantage of common law defenses.
. Both federal and state cases have held that a nonsubscriber may require a release from an employee as a condition of receiving insurance benefits. Collier v. Allstate Ins. Co.,
More recently, the Beaumont Court of Appeals held that a waiver of the right to sue the employer for negligence, contained in an ERISA benefits plan offered by a nonsubscriber to Texas workers compensation, was void and against public policy. Texas Health Enterprises, Inc. v. Kirkgard,
