Lead Opinion
These combined cases present close and difficult questions regarding whether § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, preempts plaintiffs’
SMOLAREK
Smolarek was employed by Chrysler from 1953 until his lay off in 1984 and was a member of the United Automobile Workers (UAW).
In April 1986, Smolarek filed a two count complaint in Michigan state court alleging discrimination under the HCRA and workers’ compensation retaliation. He claimed that Chrysler discriminated against him by refusing to return him to his former position based on a handicap unrelated to his ability to perform his job duties, and that Chrysler also refused to reinstate him based on its fear that he might injure himself during a seizure on the job and file a workers’ compensation claim. Smolarek did not allege any violation of the collective bargaining agreement between the UAW and Chrysler.
Chrysler removed the case to federal district court claiming federal question jurisdiction. Smolarek filed a motion to remand, which the district court denied on the grounds that § 301 preempted Smola-rek’s claims. The district court then dismissed Smolarek’s action because he had failed to exhaust his intra-union remedies before filing a § 301 action. Smolarek now appeals the district court’s denial of his motion to remand solely on the handicap discrimination issue.
FLEMING
Chrysler hired Fleming, also a UAW member, in 1976 as a painter-glazer. In August 1984 Fleming was injured while leaving the Chrysler plant, and as a result he suffered some loss of balance, severe headaches, muscle spasms in his back, and nausea. Fleming continued to work with some medical restrictions on the kind of work he could do. Fleming claims that following his injury he was given job assignments inconsistent with his limitations. Fleming further contends that this “harassment” increased when he expressed his intent to file a workers' compensation claim. In October 1984, Fleming was laid off indefinitely. Chrysler claims his lay off was due to lack of work, as allowed by the collective bargaining agreement. Fleming claims that, while technically on lay off, he was told he was being dismissed.
In December 1984 Fleming grieved his lay off. This grievance was pursued to the third step of a four-step grievance procedure before Fleming voluntarily terminated his employment in May 1986 by relinquishing his recall rights as part of a settlement of his workers’ compensation claim filed in February 1985.
Fleming filed a complaint in state court in July 1985, alleging violation of HCRA, discharge in retaliation for expressed in
Chrysler then filed a motion for summary judgment arguing that Fleming’s claims were preempted by § 301. Finding that all of Fleming’s claims were preempted, the district court granted the motion and dismissed the case. Fleming appeals this dismissal only with regard to the HCRA and retaliatory discharge claims.
Removal and § 301 Preemption
Ordinarily, the question of remova-bility to federal court under 28 U.S.C. § 1441 turns upon application of the “well-pleaded complaint rule.” Federal jurisdiction exists only when a plaintiff’s properly pleaded complaint presents a federal question on its face.
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 plaintiff’s properly pleaded complaint. See Gully v. First National Bank,299 U.S. 109 , 112-113,57 S.Ct. 96 , 97-98,81 L.Ed. 70 (1936). The rule makes the plaintiff the master of the claim; he or she may avoid the federal jurisdiction by exclusive reliance on state law.
Caterpillar, Inc. v. Williams,
In a series of cases, the Supreme Court has made clear that § 301 of the LMRA preempts any state-law claim arising from a breach of a collective bargaining agreement. See Textile Workers Union v. Lincoln Mills of Alabama,
Thus, Lueck faithfully applied the principle of § 301 preemption developed in Lucas Flour: if the resolution of a state-law claim depends upon the meaning of a collective bargaining agreement, the application of state law (which might lead to inconsistent results since there could be as many state law principles as there are States) is pre-empted and federal labor-law principles — necessarily uniform throughout the nation — must be employed to resolve the dispute.
Lingle,
In Allis-Chalmers v. Lueck, the Court expanded the preemptive reach of § 301 to state-law tort claims. In Lueck the Court
Although the Court limited its holding in Lueck to the specific facts of that case and made clear that not “every state-law suit asserting a right that relates in some way to a provision in a collective-bargaining agreement... necessarily is pre-empted by § 301,” id. at 220,
Our analysis must focus, then, on whether the [state-law cause of action] confers nonnegotiable state-law rights on employers or employees independent of any right established by contract, or, instead, whether evaluation of the [state-law] claim is inextricably intertwined with consideration of the terms of the labor contract.
Id. at 213,
At the same time, we must keep in mind that
Section 301 does not ... require that all “employment-related matters involving unionized employees” be resolved through collective bargaining and thus be governed by a federal common law created by § 301_ The Court has stated that “not every dispute concerning employment, or tangentially involving a provision of a collective-bargaining agreement, is preempted by § 301 or other provisions of the federal labor law.” Allis-Chalmers,471 U.S. 202 , 211,105 S.Ct. 1904 , 1911,85 L.Ed.2d 206 (1985).
Caterpillar,
In its recent decision addressing asserted § 301 preemption of state-law claims, the Supreme Court has attempted to clarify its language in Lueck regarding what kind of “independence” of state-law actions from collective bargaining agreements permits a finding of non-preemption. In Lingle,
Fleming filed a state-law suit claiming that he was effectively discharged (technically, he was laid off) because of his expressed intention to file a workers’ compensation claim. The district court found that Fleming’s state-law claim was preempted by § 301, and Chrysler argues that this decision was correct because the retaliatory discharge claim is inextricably intertwined with the terms of the collective bargaining agreement.
Fleming’s claim is essentially the same as the claim that the Court addressed in Lingle. In order for a plaintiff to show retaliatory discharge under Michigan law, he must demonstrate that he was discharged by his employer in retaliation for the filing of a lawful claim for workers’ compensation. See Sventko v. Kroger Co.,
Whether Fleming’s claim of retaliatory discharge under these circumstances will be deemed to state a proper cause of action in state court is a question we do not decide. It is a state claim, sufficiently set out as separate and apart from a collective bargaining contract claim, and thus avoids preemption. Chrysler has cited Wilson v. Acacia Park Cemetery,
Fleming has exclusively relied on a state law retaliation claim without reference to the collective bargaining agreement. We conclude that this claim is not so “inextricably intertwined with consideration of the terms of the labor contract” that this claim is preempted under § 301. Lueck,
Accordingly, we conclude that the district court erred in finding § 301 preemption with regard to Fleming’s retaliatory discharge claim.
The Handicap Discrimination Claims
Smolarek and Fleming make the following argument against preemption of their handicap discrimination (HCRA) claims: The rights created by HCRA are in addition to and independent of any rights created by the UAW-Chrysler collective bargaining agreement. They argue that these rights exist regardless of the terms of the collective bargaining agreement and apply equally to union and nonunion employees. Furthermore, they assert that the individual rights established by HCRA are the type of “nonnegotiable” rights that Lueck exempted from § 301 preemption and that cannot be bargained away by a collective bargaining unit. In summary, plaintiffs contend that success on the HCRA claim is not contingent on showing that any provision of the collective bargaining agreement was breached; therefore, the federal policy concern regarding interpretive uniformity is not implicated in these cases as set out in Lingle.
Chrysler counters these arguments by asserting that in these particular cases, evaluation of plaintiffs’ HCRA claims will require consideration of collective bargaining agreement terms. The HCRA provisions applicable to Smolarek’s and Fleming’s claims require that an employer not “[discharge or otherwise discriminate
The Supreme Court in IAngle approved, in dicta, the Seventh Circuit’s recognition that “ ‘§ 301 does not preempt state anti-discrimination laws, even though a suit under these laws, like a suit alleging retaliatory discharge, requires a state court to determine whether just cause existed to justify the discharge.’ ”
(1) Smolarek’s HCRA Claim
On appeal from the district court’s order denying his motion for remand, Smolarek specifically argues that Chrysler violated its duties under HCRA by refusing to return him “to his former position or another position consistent with his medical restrictions and has maintained [him] instead on a disability lay off indefinitely.” Chrysler responds that this state-law claim is “substantially dependent” on interpretation of the collective bargaining agreement’s provisions regarding an employee’s right to reinstatement following disability leave and characterizes Smolarek’s claim as asserting a breach of 1153 of the collective bargaining agreement, entitled “Reinstatement after Disability.”
Under HCRA, an employee has the initial burden of proving that the employer violated the Act, Gloss v. General Motors Corp.,
Chrysler may, in its own defense, assert that its treatment of Smolarek was allowed or required by the terms of the collective bargaining agreement and therefore was not based on Smolarek’s handicap. The assertion of a defense requiring application of federal law, however, does not support removal to federal court:
It is true that when a defense to a state claim is based on the terms of a collective bargaining agreement, the state court will have to interpret that agreement to decide whether the state claim survives. But the presence of a federal question, even a § 301 question, in a defensive argument does not overcome the paramount policies embodied in the well-pleaded complaint rule —that the plaintiff is the master of the complaint, that a federal question must appear on the face of the complaint, and that the plaintiff may, by eschewing claims based on federal law, choose to have the cause heard in state court.
Caterpillar,
Chrysler and Judge Kennedy, in her separate opinion, seem to take the position that since plaintiffs may not be able to prevail on their separate HCRA claim under Michigan law to the extent they seek accommodation for their medical restrictions, see Carr v. General Motors and its progeny, then they must therefore be seeking a contract remedy. At oral argument, counsel for plaintiffs expressly disclaimed that they seek any collective bargaining agreement remedy, and we believe their respective complaints support this proposition. In any event, under our ruling, they are limited to pursuit of remedies sought outside the collective bargaining agreement context.
We find that Smolarek’s complaint pleaded a cause of action based solely on Michigan’s HCRA, a statute that Lingle suggests has not been completely preempted by § 301. Accordingly, we conclude that the district court erred in denying Smola-rek’s motion for remand to state court.
Smolarek’s complaint makes reference to his reporting to work “to his former position,” and that “defendant has refused to return plaintiff to his former position” in violation of HCRA. It would therefore be necessary for plaintiff to establish under this allegation that Chrysler violated its HCRA duty, independent of the collective bargaining agreement, not to deprive him of his former job status “because of a handicap that is unrelated to the individual’s [Smolarek’s] ability to perform the duties of a particular job or position,” which he had performed for many years satisfactorily. See MCLA § 37.1202(l)(a). Only if found not capable of working at this former job would the court be concerned with Smolarek’s alternative contention that he be placed in “another position consistent with his medical restrictions.” Complaint, paragraph 16. That Chrysler may defend this latter alternative claim by reference to its responsibilities under the collective bargaining agreement in respect to reasonable accommodation of Smolarek’s “medical restrictions” is, in our view, no basis to hold that § 301 preemption is mandated under these circumstances. International Brotherhood of Electrical Workers v. Hechler,
As the Supreme Court noted in Caterpillar, although the state court may need to determine whether § 301 preempts Smo-larek’s claim in light of Chrysler’s defense based on the collective bargaining agreement, this court need not consider that issue.
(2) Fleming's HCRA Claim
In contrast to Smolarek’s appeal from an order denying remand, Fleming appeals directly from the district court’s decision finding § 301 preemption of Fleming’s HCRA and retaliatory discharge claims. Therefore, we must consider the preemption issue, whether raised in Fleming’s complaint or by Chrysler’s defenses.
Fleming asserted in his complaint that Chrysler violated HCRA by failing to provide him with work consistent with his medical restrictions and by effectually terminating him because of his handicap. Chrysler may rely upon the collective bargaining agreement or the Michigan Carr rule that it is not called upon to accommodate Fleming if his handicap precludes him from working. See also DesJardins v. The Budd Co.,
To defend against the HCRA charge, Chrysler must show that its actions were motivated by some factor other than Fleming’s handicap. We recognize that Chrysler is likely to assert as its defense to Fleming’s claim that it based its actions on the provisions of the labor agreement regarding reinstatement and accommodation. Even this defense, however, does not require a finding of preemption. In order to resolve the HCRA claim in light of this defense, a court need only decide whether Chrysler took actions adverse to Fleming because of his handicap or rather solely because Chrysler felt bound by the union agreement to take the actions or for some other legitimate reason. It is not necessary to decide at the outset whether or not Chrysler's interpretation of the agreement is correct as a matter of federal labor law. The question is a factual one: What was Chrysler’s motivation? Under ¡Angle, therefore, Fleming’s HCRA claim is sufficiently “independent” of the collective bargaining agreement to escape § 301 preemption, for “resolution of the state-law claim does not require construing the collective-bargaining agreement.”
We decided only recently a comparable case involving a claim under the Michigan HCRA and a defendant automobile maker to reverse a district court judgment of § 301 preemption and direct that plaintiff employee’s claim be remanded to state court. DeRoseau v. Ford Motor Co.,
In sum, based primarily upon Lingle and upon the other precedent discussed, we hold that because resolution of neither Fleming’s retaliatory discharge claim nor his handicap discrimination claim would necessitate interpretation of a collective bargaining agreement, those claims are not preempted by § 301. The judgment of the district court in Fleming’s case is accordingly REVERSED, and the matter REMANDED for further proceedings. We further find that because Smolarek’s complaint asserted solely a violation of Michigan’s HCRA and presented no question of federal law, removal to federal court was improper in this case, and the district court erred in denying Smolarek’s motion to remand. The order of the district court denying remand is REVERSED, and the case is ordered REMANDED to Michigan state court.
Notes
. The UAW has filed an amicus curiae brief in the Smolarek appeal arguing for reversal of the district court’s judgment.
. Wilson does observe that claims arising under HCRA, like Title VII claims, are "directed toward enforcement of statutory rights, not contractual rights arising from the collective bargaining agreement.”
. Our conclusion that Fleming’s HCRA claim is not preempted by § 301, infra, however, suggests, but does not compel, the conclusion that a state court considering the issue in Smolarek's case might reach.
. This conclusion is not inconsistent with our decision in Maynard v. Revere Copper Products, Inc.,
. Ackerman did discuss the circumstance that under the California laws the employer might be directed to accommodate the claimant’s handicap. The attempted distinction drawn between the statute and the Michigan law on accommodation is, in our view, immaterial. The employer's defense in Ackerman was the CBA provision “which broadly prohibits discrimination on the basis of race, color, religion, sex, age ... or because of handicap,” and that interpretation and enforcement of that CBA clause was "inextricably intertwined” with the asserted state law handicap claim. Id. at 1517. This is the same argument made by Chrysler. Acker-man points out that it was a matter of affirmative defense to show whether the employee could perform the job duties “in a manner which does not endanger his or her health and safety or the health and safety of others.” Id. at 1518. Chrysler, in the instant case, may raise a similar affirmative defense in state court under the Michigan statutory scheme. Miller was formulated before Lingle, and refers to Lingle only in n. 6 as confirming “the approach we have taken,” and reaffirming “the holding of Allis-Chalmers."
Concurrence in Part
concurring in part and dissenting in part.
I concur with the majority that Fleming’s retaliatory discharge claim is not preempted by § 301 because resolution of that claim does not require interpretation of the collective bargaining agreement; reversal of the District Court’s judgment on the
I. The Standard for Preemption
I agree with the majority on the applicable standard to determine preemption under § 301. State law claims are preempted unless the state law “confers non-negotiable state-law rights ... independent of any right established by contract, or, instead, whether evaluation of the [state-law] claim is inextricably intertwined with consideration of the terms of the labor contract.” Allis-Chalmers Corp. v. Lueck,
II. The Pleadings
In general, the question of whether removal jurisdiction exists based upon a federal question is answered by reviewing the complaint as of the time of removal. See O’Halloran v. University of Washington,
With respect to plaintiffs’ disclaimer, removal jurisdiction is not tested at the time of oral argument; rather, the Court must look to the face of the complaint at the time of removal. There is no indication in the record that plaintiffs attempted to amend their complaint at that time, and they may not effectively make such an amendment upon appellate review. The complaints and the substance of plaintiffs’ claims do present a § 301 federal question.
At the time of removal, Smolarek claimed a right to reinstatement to “his former position or another position consistent with his medical restrictions.” Smola-rek’s Complaint, ÍI16, Jt App 5-6 (emphasis added). To the extent that Smolarek asks for reinstatement to another position, his claim is clearly preempted. There is no right independent of the collective bargaining agreement to be reinstated to another job consistent with one’s medical disability under the HCRA. Carr v. General Motors Corp.,
This is a difficult question to answer. The Michigan Supreme Court has made it clear that an employer has no duty to accommodate an employee’s medical restrictions that are related to his ability to perform the duties of a particular job. Carr,
The Michigan courts might hold that the proper reference point for Smolarek’s ability to perform his former job is the “carved-out” position. Assuming that the Michigan courts so hold, Smolarek would have a claim under the HCRA if he was able to perform the “carved-out” job from which he was discharged, and the discharge was due to an unfounded fear of epileptics. I leave to another day. whether the right under the HCRA would be parallel to, or, as I believe, “inextricably intertwined” with, the terms of the collective bargaining agreement. Resolution of this issue may depend on how the right is defined as a matter of state law. I make no attempt to resolve this question today, since it would merely be dicta in a dissent.
The majority fails to note that Fleming’s claim is also preempted to the extent that he claims a right to reinstatement to another position. Such rights are “inextricably intertwined” with the contract, and must be pursued under § 301. Fleming’s complaint states that Chrysler breached its duties under the HCRA by “[fjailing to suggest and/or implement reasonable accommodations so as to allow Plaintiff to work despite his physical determinable handicap in violation of MCLA § 37.1101 et seq.” Fleming’s Complaint, Count II ¶ 3(c), Jt App 12. Reviewing the complaint as of the time of removal, it is clear that Fleming was requesting an accommodation that has been held outside of HCRA’s scope by Carr. This conclusion is also evident in Fleming’s deposition testimony, in which he admits that he cannot perform the requirements of his former job without being accommodated. See Fleming Deposition, Jt App 177. The only source of Chrysler’s duty to make “provisions [for] me to do my job,” id., is the collective bargaining agreement. It is, however, possible to construe Fleming’s claim as requesting “adaptive aids or devices ... thereby enabling [him] to perform the specific requirements of [his job as a painter-glazer].” M.C.L. § 37,1202(l)(g). To that extent, his claim would not be preempted, and would be a pendent state-law claim analogous to Smo-larek’s “pretext” claim.
III. Beyond the Pleadings
Even if this Court were not required to test removal jurisdiction as of the time the removal petition was filed, those aspects of Smolarek’s and Fleming’s claims beyond their former positions are preempted under the complete preemption doctrine. As explained by the Supreme Court in Hechler,
In Hechler, the plaintiff argued that her union had breached its duty of care to ensure a safe workplace.. She contended that the collective bargaining agreement
Respondent’s allegations of negligence assume significance if — and only if — the Union, in fact, had assumed the duty of care that the complaint alleges the Union breached. The collective bargaining agreement between the Union and Florida Power ... contain[s] provisions on safety and working requirements for electrical apprentices on which Hechler could try to base an argument that the Union assumed an implied duty of care. In order to determine the Union’s tort liability, however, a court would have to ascertain, first, whether the collective bargaining agreement in fact placed an implied duty of care on the Union_
As in Hechler, Smolarek and Fleming ask us to wear blinders. Plaintiffs conceded during oral argument that their claim to accommodation to another position under the HCRA was eliminated by the Michigan Supreme Court’s holding in Carr,
Appellants analogize their “floor of rights” theory to race, sex, and age discrimination cases. The problem with this analogy is that race, sex, and age discrimination are classic examples of “nonnegotiable rights ... independent of any right established by contract.” Allis-Chalmers,
[E]ven if dispute resolution pursuant to a collective-bargaining agreement, on the one hand, and state law, on the other, would require addressing precisely the same set of facts, as long as the state-law claim can be resolved without interpreting the agreement itself, the claim is “independent” of the agreement for § 301 preemption purposes.
Likewise, if an employee is terminated for a handicap unrelated to his ability to perform the functions of his job, interpretation of a collective bargaining agreement is unnecessary to his claim. The HCRA has provided a nonnegotiable right to be free of this type of discrimination. In contrast, however, the HCRA confers no right of accommodation. Accommodation is therefore a negotiable right provided either by contract, here the collective bargaining agreement, or voluntarily. To allow the extension of HCRA’s non-discrimination language once negotiable rights are given would impermissibly bootstrap an accommodation requirement into the HCRA. Thus, the “floor of rights” argument simply restates that which is impermissible: “you are not required to give rights, i.e., accommodate employees, but once you do,
Although the majority feels otherwise, plaintiffs’ position is not strengthened by the Ninth Circuit’s finding that there was no § 301 preemption in Ackerman v. Western Elec. Co.,
Lastly, the majority cites a number of federal district court cases for the proposition that “§ 301 or federal labor law [does not] preempt[] a state handicap claim.” Majority Opinion at 1335. The cited cases neither undermine, nor are they in conflict with, my position. Plaintiffs’ claims in those cases were not preempted because they were not dependent on interpreting the collective bargaining agreement. See, e.g., Turk v. General Motors Corp.,
Unlike the cases cited by the majority, Smolarek’s and Fleming’s claims to accommodation to other positions, regardless of the terminology used, derive solely from negotiable rights under the collective bargaining agreement. Such rights are not “independent of any right established by contract, [and are] inextricably intertwined with consideration of the terms of the labor contract,” Allis-Chalmers,
IV.
Smolarek & Fleming v. Chrysler sets an overbroad precedent against finding § 301 preemption when the collective bargaining agreement is clearly implicated. The danger is clear:
[A]s we explained in Lueck, “[t]he need to preserve the effectiveness of arbitration was one of the central reasons that underlay the Court’s holding in Lucas Flour.”471 U.S., at 219 ,105 S.Ct. at 1915 . “A rule that permitted an individual to sidestep available grievance procedures would cause arbitration to lose most of its effectiveness, ... as well as eviscerate a central tenet of federal labor contract law under § 301 that it is the arbitrator, not the court, who has the responsibility to interpret the labor contract in the first instance.” [citations omitted]. Today’s decision should make clear that interpretation of collective-bargaining agreements remains firmly in the arbitral realm; judges can determine questions of state law involving labor-management relations only if such questions do not require construing collective-bargaining agreements.
Lingle,
I would AFFIRM the District Courts’ finding of preemption to the extent that plaintiffs request reinstatement to other positions, and would REMAND the . cases to the District Court on the issue of wheth
. For the exception to the general rule, see Libhart,
