Thе plaintiffs in this case, union members and employees of American Airlines, were mostly on the losing side of a hard-fought union election. They blame the loss, at least in part, on American, which suspended them during the campaign and then fired them for allegedly posting racist campaign fliers. Although American later reinstated them, the plaintiffs also want their names cleared of the taint of racism flowing from American’s conclusion that they posted racist fliers. The plaintiffs also object to campaign fliers posted by their opponents in the election. To clear their names and recover for their lоss of reputation, the plaintiffs filed a state-law defamation suit in New York state court against American, two of its managers, and three union members who ran against them.
American removed the case to federal court, arguing that (1) because the plaintiffs’ state-law defamation claims were so-called minor disputes under the Railway Labor Act (RLA), 45 U.S.C. § 151 et seq., the district court had jurisdiction over the claims, and (2) because the RLA preempts state-law claims that are minor disputes, the claims should be dismissed. The district court (Carol Bagley Amon, Judge) agreed in part, dismissing one count of the complaint as preempted and remanding the other two counts to state court.
I. BACKGROUND
In the spring of 2002, plaintiffs John Sullivan, David Virella, and Vincent Argentina, American Airlines employees, ran for reelection to their positions as officers of Air Transport Local 501 of the Transport Workers Union of America. Defendants and fellow employees Michael Chiofalo, Albert Gil, and Peter Perez ran on an opposing slate. According to the plaintiffs, during the campaign, the defendants posted in the workplace fliers disparaging Sullivan, Virella, and Argentina.
Meanwhile, someone posted a flier accusing defendant Gil of having lied about his ethnicity. American Airlines has strict rules about racial harassment in the workplace, and defendants Stan Roberts and Edwin Argonza, managers at American, investigated the posting of this flier. In the course of the investigation, American suspended with pay plaintiffs Sullivan, Vi-rella, Argentina, and John Kennedy (a fellow employee but not a candidate). Voting in the union elections took place while the plaintiffs were suspended; Sullivan and Vi-rella lost their elections.
As a result of its investigation, American concluded (wrongly, according to the plaintiffs) that the plaintiffs had posted the flier abоut Gil. American fired all four plaintiffs and issued notices of termination, termed “final advisories,” that included statements accusing them of having posted the flier. But after the plaintiffs lodged a grievance with the union protesting their termination, American backed down. American reinstated them, but it recast the “final advisories” (termination notices) as “second advisories” (warnings) that reiterated American’s finding that the plaintiffs had posted the flier about Gil.
Not satisfied with just returning to work, the plaintiffs filed suit in New York state court alleging three counts of defamation. Count 1 accused opposing candidates Chiofalo, Gil, and Perez of dеfaming plaintiffs Sullivan, Virella, and Argentina under state law by posting “libelous” fliers about the plaintiffs; Count 1 also alleged that American was liable for the defamation because it allowed the fliers to remain on a company bulletin board. Count 2 accused American and its managers Roberts and Argonza of defaming all four plaintiffs by, inter alia, issuing the “final advisories” that asserted that the plaintiffs had posted the flier about Gil. Count 3 accused Chiofalo alone of defaming all four plaintiffs by asserting, at a union meeting, that the plaintiffs had posted the flier about Gil.
On its face, the plaintiffs’ complaint raises only state-law defamation claims. The Supreme Court has explained, however, that “where the resolution of a state-law claim depends on an interpretation of [a collective-bargaining agreement], the claim is preempted” by the RLA and must be brought before one of the arbitral panels established pursuant to the RLA. Hawaiian Airlines v. Norris,
As to Count 1, the district court disagreed. It found that the state-law defamation claim based on American’s alleged endorsement of defamatory fliers posted by Chiofalo, Gil, and Perez could be evaluated without reference to the CBA and thus was not preempted by the RLA. As to Count 2, however, the district court agreed with American that resolving it would require interpreting the CBA and that it was preempted. It is from the dismissal of Count 2 alone that the plaintiffs appeal to this court.
II. DISCUSSION
Because the district court dismissed Count 2 on the pleadings, we review the district court’s decision de novo, taking the allegations in the complaint as true and making all reasonable inferences in the plaintiffs’ favor. Ziemba v. Wezner,
A. Preemption and federal subject-matter jurisdiction
Federal courts are courts of limited jurisdiction. U.S. Const, art. Ill, § 2, cl. 1. American removed this case to federal court under 28 U.S.C. § 1441, which permits removal only of actions over which “the district courts of the United States have original jurisdiction ...Id. § 1441(a); see also id. § 1441(b). If it exists at all, original jurisdiction in this case can be based solely on federal-question jurisdiction under 28 U.S.C. § 1331, which gives federal district courts jurisdiction over suits “arising under the Constitution, laws, or treaties of the United States.” The district court assumed (as did the parties) that if Count 2 was preempted by the RLA, a federal statute, Count 2 therefore arose under federal law.
The plaintiffs, however, raised only state-law claims in their state-court complaint. As a general rule, a suit seeking recovery under state law is not transformed into a suit “arising under” federal law merely because, to resolve it, the court may need to interpret federal law. See Gully v. First Nat’l Bank,
While the well-pleaded-complaint rule directs federal courts to disregard certain elements of a complaint in assessing federal subject-matter jurisdiction, federal courts sometimes do the inverse: read into a complaint elements that the plaintiff omitted. The artful-pleading doctrine, a corollary to the well-pleaded-complaint rule, rests on the principle that a plaintiff may not defeat federal subject-matter jurisdiction by “artfully pleading” his complaint as if it arises under state law where the plaintiffs suit is, in essence, based on federal law. See Rivet,
The artful-pleading doctrine includes within it the doctrine of complete preemption.
The complete-preemption doctrine must be distinguished from ordinary preemption, also known as defensive preemption. See, e.g., 16 James Wm. Moore et ah, Moore’s Fedеral Practice § 107.14[4][b][i]-[iii] (3d ed.2005) (discussing types of preemption). Many federal statutes — far more than support complete preemption — will support a defendant’s argument that because federal law preempts state law, the defendant cannot be held liable under
B. Preemption under the RLA
Ordinary preemption is plainly a viable defense under the RLA: pursuant to 45 U.S.C. §§ 153 (governing railroads) and 184 (governing airlines), minor disputes must be heard in the first instance before arbitral panels, not courts, and state-law claims that are disguised minor disputes are therefore preempted by the RLA. See, e.g., Hawaiian Airlines,
The key question, however, is whether the analogy drawn by the Court between RLA and LMRA preemption as to ordinary preemption also extends to
Because complete preemption may be crucial to the existence of federal subject-matter jurisdiction, we cannot rely on the partiеs’ assumptions about complete preemption under the RLA. We have an independent obligation to ensure that federal subject-matter jurisdiction exists, Bender v. Williamsport Area Sch. Dist.,
American argues that complete preemption under the RLA is not an open questiоn in this circuit and directs our attention to Shafii v. British Airways, PLC,
It appears that the panel in Shafii assumed that Hawaiian Airlines was a complete-preemption case and that the analogy between LMRA and RLA preemption established by that case was total. Because the Court’s more recent decision in Beneficial National Bank, the Court’s latest complete-preemption opinion, entirely undermines this assumption about the RLA, we must reconsider Shafii’s conclusions about RLA preemption without hearing this case en banc.
The conflation of ordinary and complete preеmption under the RLA reflected in Shafii’s reading of Hawaiian Airlines, and in the briefs of the parties in this case, is unsurprising, for under § 301 of the LMRA, establishing ordinary preemption also establishes removability. See 29 U.S.C. § 185(c) (expressly giving federal courts original jurisdiction over suits under the LMRA). In other words, in any
As the Court explained in Franchise Tax Board,
We now know, however, that the analogy between RLA and LMRA preemption in Hawaiian Airlines was never meant to go so far. In Beneficial National Bank, the Court clarified that it had found complete preemption only under the LMRA and ERISA, not under the RLA. The Court noted, “In the two categories of cases where this Court has found complete pre-emption — certain causes of action under the LMRA and ERISA — the federal statutes at issue provided the exclusive cause of action for the claim asserted and also set forth procedures and remedies governing that сause of action.” Beneficial National Bank,
In Beneficial National Bank, the Court held that sections 85 and 86 of the National Bank Act, 12 U.S.C. §§ 85-86, “provide the exclusive cause of action” for usury claims against national banks and therefore completely preempt analogous state-law usury claims.
Once we recognize that a state-law-based RLA minor dispute cannot be brought within the original jurisdiction of the federal courts and is thus not removable under § 1441, it becomes clear that the RLA does not completely preempt state-law claims that come within its scope. By its terms, § 1441 allows removal only of suits “of which the district courts of the United States have original jurisdiction .... ” 28 U.S.C. § 1441(a); see also id. § 1441(b). Put another way, “[o]nly state-court actions that originally could have been filed in federal court may be removed to federal court by the defendant.” Caterpillar,
Minor disputes under the RLA cannot be filed in the first instance in federal court; they are therefore not removable to federal court. Instead, primary jurisdiction over minor disputes under the RLA— the type of claim American asserts that Sullivan has raised — exists solely in the adjustment boards established pursuant to 45 U.S.C. § 153 (for railroads) or § 184 (for airlines). See Consol. Rail Corp.,
As this case illustrates, allowing removal to fedеral court on complete-preemption grounds of state-law claims that also qualify as minor disputes under the RLA is internally inconsistent: the district court must have jurisdiction for removal to be proper, but the court must then dismiss the removed case because only adjustment boards, not federal courts, have primary jurisdiction over claims arising under the RLA. The latter negates the former. None of the three statutes that the Supreme Court has found to completely preempt covered state-law claims suffers from this inconsistency. When a state-law claim is removed to federal court because a section of the LMRA, ERISA, or the National Bank Act preempts it, the district court may then adjudicate the claim on the merits under the relevant preemptive statute. See Avco,
Further, the RLA demonstrates that Congress knew how to create federal-court jurisdiction when it wanted to: the RLA provides for limited federal-court review of adjustment boards’ decisions in cases involving railroads. 45 U.S.C. § 153(q). Had Congress wished to create a cause of action in federal court solely to determine whether a state-law claim was a minor dispute under the RLA, it could have done so. It did not.
Our conclusion about the lack of complete preemption under the RLA is buttressed by comparison to another type of labor-law preemption, Garmon preemption. The National Labor Relations Board (NLRB) has primary jurisdiction, by virtue of 29 U.S.C. §§ 159-60, over claims arising under Sections 7 and 8 of the National Labor Relations Act (NLRA), id. §§ 157-58. The Supreme Court held in San Diego Building Trades Council v. Garmon,
In holding thаt there is no complete preemption under the RLA, we align ourselves on one side of a circuit split and follow what seems to be an emerging trend.
III. CONCLUSION
The RLA commits to arbitral panels, not to federal courts, disputes between airlines and their employees that “grow[] out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions .... ” 45 U.S.C. § 184. Because such disputes cannot be brought in federal court in the first instance, federal courts may not take jurisdiction over them simply to dismiss them on the basis that they are defensively рreempted and belong before arbitral panels. We therefore Vacate the judgment of the district court and Remand with instructions that the case be remanded to state court.
Notes
. The fliers included the following statements and others like them: "Jack Sullivan, Secretary Treasurer of Local 501, guilty of discrimination by the U.S. government against its members”; "Guilty as charged! ... The Dave Virella administration has been found guilty of discriminating against its own members by the Equal Employment Opportunity Commission.... Guilty of unlawful employment practices against its own members.” The "Dave Virella administration” allegedly referred to the plaintiffs collectively.
. Section 153 (First) (q) also provides for limited federal-court review of the adjustment boards’ decisions.
. We raised sua sponte the question whether RLA preemption, even if found, could be a proper basis for federal subject-matter jurisdiction. The parties did not contest this issue below or on appeal, and the district court did not address it.
.The precise scope of the artful-pleading doctrine is not entirely clear. See generally Arthur R. Miller, Artful Pleading: A Doctrine in Search of Definition, 76 Tex. L.Rev. 1781 (1998). In this circuit, the artful-pleading doctrine has been relied upon to support federal-court jurisdiction where complete preemption did not apply, but where a plаintiff’s state-law contract claims were construed as asserting rights arising only under federal tariffs. See Marcus,
. Because comрlete preemption operates to create federal subject-matter jurisdiction, some commentators have argued that the doctrine would be better labeled 'jurisdictional'' preemption. See 15 James Wm. Moore et al., Moore’s Federal Practice § 103.45[1] (3d ed.2005); see also Lister v. Stark,
. The Supreme Court has also held in Oneida Indian Nation of N.Y. v. County of Oneida,
. Some commentators seem to equate the defense of field preemption, which defeats a plaintiff's state-law claim because federal law "occupies the field” within which the state-law claim falls, with the doctrine of complete preemption, which creates federal subject-matter jurisdiction over preempted state-law claims. See 15 Moore's Federal Practice § 103.45[2] ("[I]n complete preemption cases, federal law so occupies the field that any complaint alleging facts that come within the statute's scope necessarily 'arise under' federal law, even if the plaintiff pleads a state law claim only.” (emphasis added)). But no Supreme Court case has ever held the two forms of preemption to be equivalent. It is true that the defense of field preemption and the doctrine of complete preemption both rest on the breadth, in some crude sense, of a federal statute’s preemptive forcе. The two types of preemption are, however, better considered distinct. See S. Candice Hoke, Preemption Pathologies and Civic Republican Values, 71 B.U. L.Rev. 685, 747 (1991) ("Another pathology attending field preemption lies in some courts’ confusion of field preemption with the complete preemption doctrine.”).
. For a detailed discussion of Garmon preemption that supports our analysis, see Ethridge v. Harbor House Restaurant,
. Compare Roddy v. Grand Trunk W. R. Inc.,
