Lead Opinion
Exxоn Coal USA has a progressive discipline system. Exxon resorted to ever-higher levels of discipline for Walter Spearman’s absenteeism. In September 1988 Exxon fired Spearman for this unreliability. In lieu of filing a grievance under the collective bargaining agreement, Spearman signed a “last chance agreement” permitting him to keep his job. This agreement provided that Spearman would be sacked, without any opportunity for further complaint, if he missed 84 hours of scheduled work “for any reason” between September 15, 1988, and July 26, 1989. Spearman was sent home on February 2, 1989, because his supervisor smelled alcohol on his breath; the time he missed that day put him over the 84-hour mark, and his employment ended.
Exxon counted toward the 84 hours 44.5 that Spearman took off in January 1989 because of a bruised сhest. Spearman filed this suit in state court, contending that including time he missed because of injury produced a discharge in retaliation for the exercise of his rights under the workers’ compensation laws of Illinois. Although no state statute establishes such a rule, the Supreme Court of Illinois treats retaliatory discharge as a tort. Kelsay v. Motorola, Inc.,
Exxon removed the case under the diversity jurisdiction. See 28 U.S.C. § 1441(a). The potential obstacle is 28 U.S.C. § 1445(c): “A civil action in any State court arising under the workmen’s compensation laws of such State may not be removed to any district court of the United States.” According to Spearman, a claim of retaliation for the exercise of rights under the workers’ compensation laws “arises under” those laws even though the claim rests on general tort doctrines rather than the contents of the statutes. We have considered and rejected this claim before, in a case dealing with the Kelsay tort in Illinois. Lingle v. Norge Division of Magic Chef, Inc.,
Our view that the tort of retaliatory discharge is not a worker’s compensation law is supported by the fact that, as a matter of federal law, worker’s compensation laws provide limited no-fault compensation for an injury; this limit on damages is in exchange for the elimination of general tort rules and defenses. See Larson, Workmen’s Compensation § 1.10 (desk ed. 1986). The Illinois tort of retaliatory discharge lacks, for purposes of § 1445(c), the essential elements of a worker’s compеnsation law.
Section 1445(c) was enacted in 1958. An apt way to understand its meaning is to ask how a sophisticated legal audience would have understood the words “workmen’s compensation law” at the time. As we observed in Lingle, liability without fault (and with limited recovery) for injuries in the course of employment was the standard definition in 1986, and it was the prevailing definition in 1958 and before. When dealing with a federal workers’ compensation act, the Supreme Court wrotе: “A prime purpose of the Act is to provide residents of the District of Columbia with a practical and expeditious remedy for their industrial accidents and to place on District of Columbia employers a limited and determinate liability.” Cardillo v. Liberty Mutual Insurance Co.,
What is more, Illinois does not believe that the Kelsay tort is a workers’ compensation law. Kelsay called its rule an “independent tort action”.
Workers’ compensation law serves as the background of the Kelsay tort, furnishing the “pubUc poUcy” that the employer must respect. That workers’ compensation law is a premise of the tort does not mean that the tort “arises under” the workers’ compensation laws, any more than a state tort based on the violation of a federal safety standard “arises under” that standard for purposes of the federal question jurisdiction in 28 U.S.C. § 1331. See Merrell Dow Pharmaceuticals, Inc. v. Thompson,
AFFIRMED.
Notes
This opinion was circulated before release to all judges in regular active service. See Circuit Rule 40(f). A majority did not favor a hearing en banc on the question whether thе tort of retaliatory discharge "arise[s] under the workmen's compensation laws” of Illinois. Judges Cudahy, Flaum, Ripple, and Rovner voted to hear the case en banc. Judges Cummings and Coffey did not participate in the consideration or decision of this case.
Dissenting Opinion
dissenting.
The majority today upholds a jury verdict that I too find eminently reasonable. That verdict easily withstands the substantive attacks Walter Spearman lodges here, and the court is therefore understandably loathe to disturb it. In my view, however, we should vacate the jury’s verdict and remand the case to state court because Spearman’s suit arises under the workmen’s compensation laws of the State of Illinois and 28 U.S.C. § 1445(c) therefore prohibited its removal to federal court.
Spearman originally filed this retaliatory discharge action in the Circuit Court of Clinton County, Illinois, alleging that work-related injuries had rendered him temporarily totally disabled for purposes of the Illinois Workers’ Compensation Act, 820 ILCS § 305/1 et seq. (the “Act”). Spearman further alleged that Exxon had fired him for asserting his rights under the Act, thereby violating section 305/4(h), which prohibits discharge in retaliation for the filing of a workers’ compensation claim.
The majority considers the issue to have been settled by Lingle v. Norge Div. of Magic Chef, Inc.,
Lingle itself plainly cast the jurisdictional analysis in federal question terms:
The plaintiffs argue that section 1445(c) of Title 28 of the United States Code bars the removal of their retaliatory discharge claims, because these claims arise under the Workers’ Compensation Act of Illinois. We must first determine, therefore, whether or not § 1445(c) bars the removal of the plaintiffs’ retaliatory discharge claims. We conclude that § Ub5(c) does not bar removal of the plaintiffs’ claims, because each plaintiff has asserted a claim for breach of the collective bargaining agreement and not a worker’s compensation claim. See Vantine v. Elkhart Brass Mfg. Co.,762 F.2d 511 , 517 (7th Cir.1985) (“In view of the fact that the employee has a cause of action for breach of the collective bargaining agreement, the claim does not arise under the Indiana Workman’s Compensation Act, and thus federal jurisdiction is not barred under 28 U.S.C. § 1445(c).”).
The determination of whether the tort of retaliatory discharge arises under federal law, and is therefore removable, is a federal question. We conclude that the plaintiffs’ retaliatory discharge claims arise under federal law, so that § m5(c) does not bar removal.
Id. at 1039 (emphasis added) (citation omitted).
Yet the Supreme Court, having granted certiorari on the issue of federal preemption of the state retaliatory discharge claims, expressly rejected the premise on which this court’s jurisdictional holding was based — that the plaintiffs’ claims required interpretation of the collective bargaining agreement.
The majority finds that Lingle is nonetheless controlling because the Supreme Court never mentioned section 1445(c) and did not question Lingle’s holding that “the Kelsay tort did not ‘arise under the workmen’s compensation laws’ of Illinois.” (Ante at 724.) But the Court’s failure to mention section 1445(c) is not surprising, as its opinion makes clear that it had granted certiorari only on the preemption issue, on which the circuits had split. Lingle,
Our view that the tort of retaliatory discharge is not a worker’s compensation law is supported by the fact that, as a matter of federal law, worker’s compensation laws provide limited no-fault compensation for an injury; this limit on damages is in exchange for the elimination of general tort rules and defenses. The Illinois tort of retaliatory discharge lacks, for purposes of § 1445(c), the essential elements of a worker’s compensation law.
Lingle,
I am not alone in my view that Lingle does not control a retaliatory discharge claim that is unrelated to a collective bargaining agreement.
Nor have the federal district courts in Illinois shared the interpretation of Lingle that my colleagues advance today. Rather, most have remanded retaliatory discharge claims like Spearman’s without regard to Lingle. See, e.g., Kolnes v. J.B. Hunt Transport, Inc., No. 93 C 4718,
Yet the majority contends, without citation to authority, that “[t]he basis of removal [in Lingle ], whether diversity or a federal question, was logically irrelevant to the scope of § 1445(c). Even a case containing a federal claim may not be removed if it also arises under state workers’ compensation law.” (Ante at 724 (majority’s emphasis).) The majority thus assumes that it is possible for a claim to arise under the laws of the United States pursuant to 28 U.S.C. § 1331 and at the same time to arise under a State’s workmen’s compensation laws. But neither Lin-gle nor other decisions from this сircuit have discussed the section 1445(c) issue in those terms. Indeed, Lingle never suggested that the same retaliatory discharge claim could arise under both federal and state law; rather, Lingle held that section 1445(c) did not bar removal precisely because the plaintiffs’ claims arose under federal law. In most instances, “[a] suit arises under the law that creates the cause of action” (American Well Works Co. v. Layne & Bowler Co.,
Our decision in Burda v. M. Ecker Co.,
In extending Lingle to a retaliatory discharge claim that is unrelated to a collective bargaining agreement, the majority creates a split amongst the circuits because its decision cannot be reconciled with Jones v. Roadway Express, Inc.,
I find Jones instructive here. Section 305/4(h) also prohibits retaliatory discharges but, as noted, does not provide a civil damages remedy to injured employees. Yet because the Illinois Supreme Court implied such a remedy in Kelsay, I see no basis for treating the Texas and Illinois situations differently. The retaliatory discharge action authorized by Kelsay simply recognizes a private action under section 305/4(h) and has the same effect as article 8307c in providing a remedy to workers who file claims under the Act and are subsequently discharged. Lingle itself acknowledged that the motivating purpose behind Kelsay “was to uphold and implement the public policy” of the Act. It thus makes no difference for section 1445(c) purposes that Kelsay called the action an “independent tort” (see ante at 724), as the majority readily acknowledges that we look to federal law in deciding whether a claim arises under a state’s “workmen’s compensation laws.” Ante at 724; see also Burda,
Yet the majority makes no attempt to distinguish Jones because it limits the term “workmen’s compensation laws” only to those laws providing “liability without fault (and with limited recovery) for injuries in the course of employment.” (Ante at 724.) The majority’s restrictive interpretation would
Because section 305/4(h)’s prohibition against retaliatory discharges clearly is a part of Illinois’ workmen’s compensation laws for purposes of section 1445(c), Spearman’s claim necessarily arises under those laws. In Jones, the Fifth Circuit interpreted the phrase “arising under” in section 1445(c) by looking to interpretations of the same phrase in 28 U.S.C. § 1331, the statute conferring jurisdiction in federal question cases.
In Franchise Tax Bd. v. Construction Laborers Vacation Trust,
Section 305/4(h) of the Illinois Act makes it unlawful for an employer to discharge an employee in retaliation for the filing of a workers’ compensation claim. Although section 305/4(h) does not provide a civil damages remedy and the Illinois Supreme Court was therefore required to imply one in Kelsay, the cause of action still looks to whether the employer has violated a policy embodied in the statute. See, e.g., Ryherd v. General Cable Co.,
The majority relies on Merrell Dow Pharmaceuticals, Inc. v. Thompson,
Merrell Dow does not control this case. Here, unlike Merrell Dow, a state supreme court has implied a private remedy for injured employees under a state statute that imposes specific duties on employers but does not provide for private enforcement. The present situation is thus akin to a federal court implying a civil damages remedy under a federal statute that either regulates or criminalizes behavior and provides for public but not private enforcement of the duties so imposed. See T.B. Harms Co. v. Eliscu,
That logic applies as persuasively here. In Kelsay, the Illinois Supreme Court simply implied a private right of action and private remedies under a provision of the Act that imposed duties on Illinois employers but provided only for public enforcement. See Alexander,
The employer argues that the absence of any provisions for civil remedies for retaliatory discharge in [section 305/4(h) ], which make[s] it a criminal offense for an employer to threaten or effect such a discharge, is a conscious decision by the legislature that no such civil remedy shall exist. We do not agree. As we have noted, retaliatory discharge is offensive to the public policy of this State as stated in the Workmen’s Compensation Act. This policy can only be effectively implemented and enforced by allowing a civil remedy for damages, distinct from any criminal sanctions which may be imposed on employers-for violating the Act after 1975. The imposition of a small fine, enuring to the benefit of the State, does nothing to alleviate the plight of those employees who are threatened with retaliation and forgo their rights, or those who lose their jobs when they proceed to file claims under the Act. It is conceivable, moreover, that some employers would risk the threat of criminal sanction in order to escape their responsibility under the Act. Further, the fact that an act is penal in nature does not bar a civil remedy, and where a statute is enacted fоr the benefit of a particular class of individuals a violation of its terms may result in civil as well as criminal liability, even though the former remedy is not specifically mentioned.
Kelsay,
. Section 305/4(h) provides:
It shall be unlawful for any employer ... to interfere with, restrain or coerce an employee in any manner whatsoever in the exercise of the rights or remedies granted to him or her by this Act or to discriminate, attempt to discriminate, or threaten to discriminate against an employee in any way because of his or her exercise of the rights or remedies granted to him or her by this Act.
It shall be unlawful for any employer, individually or through any insurance company or service or adjustment company, to discharge or to threaten to discharge, or to refuse to rehire or recall to active service in a suitable capacity an employee because of the exercise of his or her rights or remedies granted to him or her by this Act.
. One of the consolidated cases in Lingle had been removed on diversity grounds whereas the other had been removed solely because it allegedly presented a federal question.
A federal court may not, of course, address the merits of a claim without first determining whether it has jurisdiction. Accordingly, when a case is removed to federal district court under 28 U.S.C. § 1441(b), the Court must be*727 assured that the claim arises under the Constitution, treaties, or laws of the United States. Only after a court finds that it has jurisdiction may it reach the merits.
Id. at 1037.
. It seems unlikely that the Lingle court would have devoted the better part of five Federal Reporter pages to the federal nature of the plaintiffs’ claims if the court had separately determined that it had diversity jurisdiction and that the plaintiffs' retaliatory discharge claims did not arise under the Illinois workmen’s compensation laws. See Lingle,
. See also id. at 1040 ("removal was proper because both complaints stated claims that arose under federal law”); id. at 1041 ("these claims arise under federal law, and removal is proper”); id. at 1042 ("federal law is controlling, and the suit was properly removed”).
Of course, after finding that the cases were proрerly removed, Lingle went on to hold that the plaintiffs' retaliatory discharge claims were preempted by section 301 of the Labor Management Relations Act. Id. at 1049.
. Indeed, in discussing the legislative history of section 1445(c), Lingle itself stated that “[s]ection 1445(c) thus bars removal of all worker’s compensation claims" and cited two decisions which hold that retaliatory discharge claims such as Spearman's could not be removed even if diversity existed.
. Koines distinguished the Lingle situation as being one where "removal jurisdiction has been found to be proper on pre-emption grounds_” Id.
. Burda affirmed in relevant part the following district court decision:
There is only one cause of action in this case and the issue presented is whether it arises under federal or state law. If it arises legitimately under state law, it does not arise under fedеral law, § 1441(b) is not implicated, and the action is not removable regardless of § 1445(c). On the other hand, if the court determines that the plaintiff’s action does arise under federal law, it is because it cannot arise under state law despite the clear language of the complaint. Obviously, § 1445(c) would not apply in such a situation. Plaintiff apparently has failed to note that the purpose of § 1445(c) is to prevent removal of admittedly state-law claims under federal diversity jurisdiction. Thus, with or without § 1445(c), the issue remains as to whether the plaintiff's claim arises under state or federal law.
Burda v. M. Ecker Co., No. 89 C 8605,
Indeed, courts generally have observed that section 1445(c) was intended to restrict only the diversity jurisdiction of the federal courts, apparently assuming that a case could not prеsent a federal question for purposes of 28 U.S.C. § 1331 and at the same time arise under a State’s workmen's compensation laws. See Jones,
. Vantine, like Lingle, did not decide whether the claim would have arisen under the State’s workmen’s compensation laws in the absence of the collective bargaining agreement.
. The majority correctly observes that the tort of retaliatory discharge has since been expanded by the Illinois courts to include any discharge that violates "a clearly mandated public policy of the [S]tate of Illinois.” Hicks v. Resolution Trust Corp.,
. The majority suggests that we are limited to the 1958 conception of a workmen's compensation law, as "[o]ld words may gain new meaning as circumstances change, but old words in statutes retain their meaning; change depends on amendment.” (Ante at 725 (majority’s emphasis).) Even accepting that premise, the statute's use of the general phrase "workmen’s compensation laws” suggests that an amendment is not necessary each time a state amends its worker's compensation statute to expand the individual rights provided. That general phrase plainly was intended to encompass the natural evolution of a State’s workmen’s compensation laws. As one court has suggested, the plural "laws” "seems to indicate [that Congress] envisaged a broader application of the term’s use." Thompson v. Cort Furniture Rental Corp.,
It is well settled that this statutory grant of “jurisdiction will support claims founded upon federal common law as well as those of a statutory origin.” Federal common law as articulated in rules that are fashioned by court decisions are “laws” as that term is used in § 1331.
National Farmers Union Ins. Cos. v. Crow Tribe of Indians,
. One decision synthesized the existing district court case law as follows:
[I]n all of the decisions in which such claims were held to arise under worker’s compensation laws, the substantive right to be free from retaliatory discharge was statutorily-created, even if the remedy was provided by the courts rather than by a statutory provision creating a private right of action. Where the state's worker's compensation statute does not even prohibit, much less provide a private remedy for retaliatory discharge, the cause of action will be seen as an independent tort.
Gonzales v. City of Mesa,
. It is therefore inaccurate for the majority to suggest that section 305/4(h) “has played no role" in the development of the retaliatory discharge tort or in litigation under Kelsay. (See ante at 725.)
