CATOGGIO v. SHEET METAL WORKERS INTERNATIONAL ASSOCIATION, LOCAL 25, AFL-CIO et al
Filing
26
OPINION. Signed by Chief Judge Jose L. Linares on 9/13/18. (cm, )
NOT FOR PUBLICATION
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil Action No. 17-11674 (JLL)
STEVEN CATOGGIO,
OPINION
Plaintiff,
v.
SHEET METAL WORKERS
INTERNATIONAL ASSOCIATION, LOCAL
25, AFL-CIO, et aL,
Defendants.
LINARES, Chief District Judge.
This matter comes before the Court by way of Plaintiff Steven Catoggio’s Motion to
Remand this case to the Superior Court of New Jersey, Passaic County. (ECF No. 17). Defendant
Alliance Industries, LLC (“Defendant Alliance”) filed opposition, (ECF No. 20), but Defendant
Sheet Metal Workers International Association, Local 25, AFL-CIO (“Defendant Union”) did not
file opposition in the time provided by the Federal Rules of Civil Procedure and the Local Civil
Rules, (see Docket Sheet). The Court decides this matter without oral argument pursuant to
Federal Rule of Civil Procedure 7$. For the following reasons, the Court grants Plaintiffs Motion
to Remand.
I.
BACKGROUND
On October 11, 2011, Plaintiff began working for Defendant Alliance as a truck driver.
(ECF No. 1-1 (“Cornpl.”)
¶
6). Three weeks later, Defendant Alliance assigned Plaintiff extra
duties, such as metal cutting, assembling equipment, and heating, ventilation, and air conditioning
duct work. (Compi.
¶
7). Though this work required union membership and special training
through an apprenticeship, Plaintiff was not a member of a union or apprenticeship program when
he was first assigned these duties. (Compl.
¶ 7).
Because Plaintiff excelled at the metal and duct
work he was assigned, the foreman at Defendant Alliance encouraged Plaintiff to apply for an
apprenticeship prograim (Compi.
¶ 8).
Plaintiff was subsequently accepted into an apprenticeship program for sheet metal work,
which gave him automatic membership to Defendant Union. (Cornpl.
¶J 8—9).
To complete an
apprenticeship, Plaintiff needed to perform eight six-month terms, equaling four years, as well as
attend classes and take a written exam each tenm
(Cornpl.
¶ 10).
apprenticeship, Plaintiff would become a journeyman. (Cornpl.
¶
At the conclusion of the
11). An apprentice’s pay rate
increases each year of the four-year apprenticeship from thirty-five to sixty-five percent a
journeyman’s salary.
(Compl.
¶
11).
Any issues concerning apprentices were referred to
Defendant Union’s five-member Joint Apprenticeship Training Committee Board (“the JATC”).
(Compl.
¶ 25).
Plaintiff began his apprenticeship at Defendant Alliance on January 1, 2012. (Compi.
¶
12). Shortly after his apprenticeship began, Plaintiff alleges that he witnessed several strange
practices at Defendant Alliance. (Compl.
¶
12—14). Specifically, Plaintiff allegedly noticed that
newly hired truck drivers and other non-union employees were assigned duties that required union
membership and were generally reserved for apprentices and journeymen. (Compl.
¶11
12—13).
According to Plaintiff, Defendant Alliance also failed to follow the required procedure of reporting
workplace accidents to Defendant Union, demeaned injured employees who sought workers’
compensation benefits, and terminated employees who sought workers’ compensation or who
were suspected of leaking information regarding Defendant Alliance’s assignment of
required duties to non-union member employees. (Compi.
¶
union-
14).
On August 5, 2015, a non-union worker was cleaning and securing the bucket of a
bulldozer—a task that requires union membership—and failed to properly fasten the bucket,
causing it to fall on Plaintiffs foot and severely injure him. (Compi.
¶
15). Plaintiffwas taken to
the hospital, where he underwent reconstructive surgery, which was unsuccessful and Plaintiffs
toes were amputated three weeks later. (Compl.
¶
major fracttires throughout his foot.” (Compi.
¶J
16—18). Plaintiff alleges that he “also sustained
17).
Defendant Alliance did not report the
accident, and neither did Plaintiff out of fear that Defendant Alliance would retaliate against him.
(Compi.
¶
19).
Three weeks after the accident, Plaintiff contacted the president of the apprenticeship
program, Mr. Turner, to inform him that Plaintiff could not attend the upcoming class. (Compl.
¶
20). Mr. Turner told Plaintiff that he was not aware of Plaintiffs injury, which came as a surprise
to Plaintiff. (Compi.
¶ 21).
Mr. Turner and the business agent for Defendant Union then went to
visit Plaintiff, and advised him to contact the workers’ compensation attorney associated with
Defendant Union.
(Compl.
¶
22).
Plaintiff expressed doubts about contacting the workers’
compensation attorney, and explained that other employees of Defendant Alliance were retaliated
against for seeking workers’ compensation benefits. (Cornpl.
¶
22). Plaintiff also told the two
men the details of his injury and how a non-union worker was performing duties connected to the
bulldozer, in violation of the applicable rules and policies. (Compl.
¶ 23).
Mr. Turner and the
business agent assured Plaintiff that they would protect him, and Plaintiff retained Defendant
Union’s workers’ compensation attorney. (Compl. ¶ 24). At some point thereafter. Plaintiff began
receiving workers’ compensation benefits. (See Cornpl.
3
¶ 28).
In or around October 2015, the majority owner of Defendant Alliance, Mr. Williams,
became one of the five board members of the JATC. (Cornpl.
25). Around that time, Mr.
¶
Williams contacted Plaintiff and informed him that Plaintiff had been cleared for “light duty,” and
that Mr. Williams wanted Plaintiff to come back to work. (Compl.
¶ 26).
However, according to
Plaintiff, an employee must be cleared for “ftill duty,” not just “light duty,” before returning to
work. (Compl.
¶ 26). furthermore,
Plaintiff claims that he had not yet started physical therapy
and that his injuries were not fully healed. (Compl.
¶ 27).
Rather, Plaintiff participated in physical
therapy between November 2015 and March 2016, and was not cleared to return to work on full
duty until July 5, 2016. (Compl.
¶ 27, 40). Shortly after his October 2015
conversation with Mr.
Williams, Plaintiff was contacted by Mr. Turner, who informed him that Mr. Williams was
communicating with the union hail in an attempt to cancel Plaintiffs workers’ compensation
benefits. (Compi.
¶ 2$).
These events caused Plaintiff to fear that he would be retaliated against and possibly
terminated upon his return to Defendant Alliance for filing a workers’ compensation claim.
(Compl.
¶ 29).
Accordingly, Plaintiff met with the president of Defendant Union, Mr. Dernark,
on June 23, 2016, and requested that he be transferred to a different company once he was cleared
to return to work. (Compl.
¶ 30).
Mr. Demark informed Plaintiff that the JATC would have to
authorize the transfer, at which time Plaintiff reminded Mr. Demark that Mr. Williams had joined
the JATC and that there was a possible conflict of interest. (Compl.
¶ 31).
Plaintiff was assured
that Mr. Williams would not be involved in the decisionmaking process, but Plaintiff was never
infon-ned whether a vote took place or whether a decision was made. (Compl.
¶ 31).
On July 22, 201 6, Plaintiff received a letter from the JATC instructing him to contact the
Members Assistance Program (“MAP”). which provided services to members of Defendant Union
4
in connection with their finances and personal problems. (Compl.
¶
32). Plaintiff was further
instructed to contact MAP by July 29, 2016. but failed to do so because he was awaiting a decision
regarding his transfer request before he took any further action. (Compi.
¶J 32—33).
On August
17, 2016, the JATC sent Plaintiff another letter informing him that he failed to respond to its
previous correspondence regarding MAP, and that Plaintiff was therefore terminated from the
apprenticeship program and Defendant Alliance. (Compl.
¶ 34,
41). The letter also stated that
Plaintiff could not reapply once he was terminated, which Plaintiff alleges is inaccurate as other
members were allowed to reapply. (Compl.
¶
35). According to Plaintiff, the JATC used his
failure to respond as a pretext to terminate him, when in reality Plaintiff was terminated in
retaliation for filing a claim of workers’ compensation benefits and disclosing Defendant
Alliance’s allegedly improper policies and conduct. (Compl.
¶ 36).
Plaintiff further claims that
Defendant Alliance discriminated against him by firing him because of his disability, which was
caused by his work-related injury. (Compl.
¶J 36, 46).
Accordingly, on or around August 11, 2017, Plaintiff brought this action against
Defendants in New Jersey Superior Court, Passaic County, seeking reinstatement as well as
compensatory and punitive damages. (See generally Compl.). In his Complaint. Plaintiff asserts
the following causes of action under New Jersey state law: (1) Workers’ Compensation
Discrimination in Violation of the New Jersey Workers’ Compensation Act, N.J.S.A. 34:15-39.1
(“NJWCA”); (2) Disability Discrimination in Violation of New Jersey Law Against
Discrimination.
N.J.S.A.
10:5-5(q)
(‘NJLAD”);
(3)
failure
to
Provide
Reasonable
Accommodations in Violation of NJLAD and N.J.A.C. 13:13-2.5(b); (4) Retaliation in Violation
of NJLAD, N.J.S.A. 10:5-12(d); (5) Violation of the Conscientious Employee Protection Act,
N.J.S.A. 34:19-1 (“NJCEPA”); (6) Violation of Public Policy pursuant to Pierce v. Ortho Pharm.
5
Corp., 84 N.J. 58, 72 (1980) (“New Jersey Pierce claim”); and (7) Intentional Infliction of
Emotional Distress (“TIED”). (Compl.
¶ 37—85).
On November 15, 2017, Defendants removed the case to this Court on the basis of the
Cottrt’s federal jurisdiction, claiming that Plaintiff’s causes of action are preempted by the
Employee Retirement Income Security Act of 1974, 29 U.S.C.
Labor Management Relations Act of 1947, 29 U.S.C.
§ 1001, etseq. (“ERISA”) and the
§ 141, et seq. (“LMRA”). (ECF No. 1).
After the case was removed, Defendant Alliance filed a motion to join the JATC as an
indispensable party, which is currently pending. (ECF No. 15). Plaintiff now moves for remand.
(ECFNo. 17).
II.
ARGUMENTS & ANALYSIS
Federal question jurisdiction “exists only when a federal question is presented on the face
of the plaintiffs properly pleaded complaint,” pursuant to the “well-pleaded complaint rule.”
Caterpillar Inc. v. Williams, 482 U.S. 326, 392 (1987).
The “well-pleaded complaint rule”
establishes that federal courts do not have original jurisdiction over cases where the complaint sets
forth a state law cause of action, even if a defendant could raise a federal defense. franchise Tax
3d. v. Constr. Laborers Vacation Tr., 463 U.S. 1, 9—11(1983). Therefore, a plaintiffs complaint
must establish that the case arises from federal law. See Id. at 10; cf Pascack Valley Hosp. v.
Local 464A UfCW Welfare Reimbursement Plan, 388 F.3d 393, 392 (3d Cir. 2004) (holding that
removal was improper because the plaintiffs complaint did not present a federal question).
Here, Plaintiffs claims do not arise under federal law, but rather each of Plaintiffs seven
causes of action are brought pursuant to New Jersey state law. Specifically, Plaintiff has asserted
the following claims based exclusively on state law: violations of the NJWCA; disability-based
discrimination, retaliation, and failure to provide accommodations in violation of NJLAD;
6
violation of NJCEPA; violation of public policy through a New Jersey Fierce claim; and lIED.
(Compl.
¶J 3 7—85).
All of Plaintiffs claims relate to Defendants’ discrimination and retaliation
against Plaintiff, and do
not
specifically reference ERISA, LMRA, or any other federal law.
Therefore, a strict application of the “well-pleaded complaint rule” would preclude federal
jurisdiction over this matter, because the complaint raises no federal claims on its face.
franchise Tax Bd., 463 U.S.
at
See
13.
A. ERISA
Defendant Alliance argues that Plaintiffs state law claims are completely preempted by
ERISA, because: (1) the JATC’s apprenticeship program is allegedly an ERISA governed plan;
(2) Plaintiff was a participant in the apprenticeship program and alleges that he was unjustifiably
terminated; and (3) Plaintiff seeks reinstatement and to recover the benefits of participating in the
JATC’s apprenticeship program. (ECF No. 20 at 6). It is true that complete preemption under
ERISA is an exception to the “well-pleaded complaint rule.” See Metro. Li/a’ Ins. Co. v. Taylor,
481 U.S. 58, 63—64 (2007). A “participant or beneficiary” of an ERISA benefits plan can bring a
civil action under ERISA “to recover benefits due to him under the terms of his plan, to enforce
his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of
the plan.” 29 U.S.C.
§
1 132(a)(1)(B).
A state law cause of action is completely preempted by this section of ERISA “only if: (I)
the plaintiff could have brought the claim under [ERISA]; and (2) no other independent legal duty
supports the plaintiffs claim.” I’Li Carpenters & the Trs. Thereof v. Tishman Constr. Corp., 760
F.3d 297, 303 (3d Cir. 2014) (citations omitted). A legal duty is independent when “it is not based
on an obligation under an ERISA plan.” Id. (quoting Mann Gen. Hosp. v. Modesto & Empire
Traction Co., 581 F.3d 941, 950 (9th Cir. 2009)). Furthermore, the mere “possibility—or even
7
likelihood—that ERISA’s pre-emption provision
.
.
.
may pre-empt [a plaintiff’s] state law claims”
is an insufficient basis to remove the action to federal court. Fascack Valley Hosp., 388 F.3d at
398 (citingFranchise TaxBd., 463 U.S. at 12).
Here, the Court finds that the claims asserted are not preempted by ERISA. Plaintiffs
request for damages is strictly associated with the discriminatory and retaliatory conduct engaged
in by Defendants, and appears to be separate from recovering, enforcing, or clarifying benefits
under an ERISA plan. (See, e.g., Compi.
¶
16 (“The reasons provided for Plaintiffs termination
were pre-textual in nature and Plaintiff was tenuinated as a result of his disability”)). In fact,
Plaintiff specifically argues in support of his Motion for Remand that he “is not seeking to recover
benefits due to him under the terms of any plan, or to enforce his rights under the terms of any
plan, or to clarify his rights to future benefits under the terms of the plan.” (ECF No. 17-2 at 11)
(internal quotations omitted). Therefore, the Court finds that Plaintiff could
not
have brought this
case under ERISA.
However, assuming arguendo Plaintiff could have potentially brought this case under
ERISA, the Court finds that there are clear independent legal duties under New Jersey state law
that are implicated by Defendants’ alleged conduct. Specifically, Plaintiffs claims are based on
the allegation that Defendants terminated him in retaliation for (1) reporting their unlawful practice
of assigning union-required work to non-union employees, (2) applying for a transfer, and (3)
seeking workers’ compensation benefits afier his injury. Plaintiff further alleges that Defendants
discriminated against him when they terminated him because of his injury-based disability, and
failed to accommodate his disability. Plaintiff also states that Defendants’ assignment of union
required work to non-union employees, and retaliation against those who reported same, was
contrary to
New Jersey public policy. (Compl.
¶]
$
75—76). According to Plaintiff, Defendant’s
discriminatory and retaliatory conduct was intentional and caused Plaintiff to suffer damages,
including severe emotional distress. (Compi.
¶f 79—85).
These allegations give rise to the above
mentioned New Jersey state law claims regardless of the existence of an ERISA plan. See Joyce
v. RJR Nabisco Holdings Coip., 126 F.3d 166, 173 (3d Cit. 1997) (stating that a claim of
“essentially” employment discrimination was not preempted by ERISA where said claim’s “sole
relationship to an employee benefits plan is that upon termination from his job, [the plaintiffi was
no longer eligible for the long-term disability benefits.”).
Further evidence that the existence of an ERISA benefits plan is not necessarily relevant
to Plaintiffs claims is the fact that, according to Plaintiff, Defendants’ motivation in terminating
him was not based on a desire to deprive him of ERISA benefits, but rather was done in retaliation
for Plaintiff seeking a transfer and workers’ compensation benefits and to discriminate against
Plaintiff because of his injury-based disability. See Caivano v. Prod. Workers Union Local 148,
Civil No. 13-5746, 2014 WL 2931183, at *5 (D.N.J. June 30, 2014) (finding that a NJCEPA claim
was not preempted where the alleged retaliation was not based on a “benefits-denying” motive);
cf Wood v. Prudential Ins. Co. of Am.. 207 F.3d 674, 677 (3d Cit. 2000) (finding complete
preemption applied because the defendant had a “benefits-defeating motive,” i.e., the defendant
terminated the plaintiff in order to deprive him of full retirement benefits). Considering Plaintiffs
claims stem from Defendants’ alleged discrimination and retaliation in violation of New Jersey
state law, and are actionable irrespective of the existence of an ERISA benefits plan, the Court
concludes that Plaintiff has an independent legal basis for his claims. Therefore, Plaintiffs claims
are not preempted by ERISA.
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B. LMRA
Similarly, the Court finds that Plaintiffs Complaint is not preempted by LMRA.
plaintiff can bring a claim under
A
§ 301 of LMRA “for violation of contracts between an employer
and a labor organization representing employees in an industry affecting commerce.” 29 U.s.c.
§ 185(a). The Supreme Court has established that “an application of state law is pre-empted by
[LMRAI
.
.
.
if such application requires the interpretation of a collective-bargaining agreement.”
Lingle v. Norge Div. ofMagic Chef 486 U.S. 399, 413 (198$). However, a plaintiffs claim that
is asserted pursuant to state law is not completely preempted by LMRA if that claim requires no
interpretation of a collective-bargaining agreement, even if a court may refer to the collectivebargaining agreement when addressing said claim. Id. at 407.
In the current case, Defendant Alliance points out that a collective-bargaining agreement
supposedly governs the relationship and obligations between Plaintiff (as a union member),
Defendant Union (Plaintiffs union), and Defendant Alliance (the contractor who employed him).
(ECF No. 17 at 10). Regardless of this fact, it is apparent to the Court that Plaintiffs claims are
not completely preempted by LMRA, because Plaintiffs claims are not dependent on the
interpretation of a collective-bargaining agreement.
Specifically, for claims asserted under
NJLAD, it is well-settled that a collective-bargaining agreement “is neither the source of the
plaintiffs claim, nor a document that needs to be consulted to resolve [the] plaintiffs cause of
action.” Kitbe v. New Penn Motor Express, Inc., $65 F.Supp. 221, 228 (D.N.J. 1994). This is
because “both the existence and the scope of plaintiffs state law discrimination claims under the
NJLAD are derived independently from state law, and not from the obligations assumed by the
parties under the [collective-bargaining] agreement.” Carrington v. RC4 Glob. Corninc ‘ns, Inc.,
762 F. Supp. 632, 641 (D.N.J. 1991); see also Mitchell v. Vill. Sttper Mkt., Inc., 926 F. Supp. 476,
10
478—80 (D.N.J. 1996) (rejecting the notion that it was implicit to the plaintiffs allegations that the
union breached its duties to the plaintiff under the collective-bargaining agreement). This analysis
extends to Plaintiffs other state law claims as well. See, e.g., Herring v. Prince Macctroni ofNi,
Inc., 799 F.2d 120, 124 n.2 (3d Cir. 1986) (analyzing that a claim under the NJWCA is not
preempted “[b]ecause workers’ compensation rights are rooted in state law, rather than the
collective bargaining agreement”); Reynolds v. TC’M Sweeping, Inc., 340 F. Supp. 2d 541, 547—48
(D.N.J. 2004) (finding that the plaintiffs NJCEPA claim was not preempted by LMRA because
“retaliatory conduct is the focus of his claim and therefore, an interpretation of the [collectivebargaining agreement] is not required.”).
If the mere possibility that this Court might need to refer to the terms of a collectivebargaining agreement were to give rise to federal jurisdiction, then “all discrimination actions
brought by unionized employees would be preempted because the starting point for every case
would have to be the [collective-bargaining] agreement.” Coefleld v. Jersey Cent. Power & Light
Co., 532 F. Supp. 2d 685, 697 n.$ (D.N.J. 2007). This result would be contrary to controlling law,
as Plaintiffs state law claims “do not require an analysis of the terms of employment but rather
the motivations behind [the defendants’ conduct].” Montana v. Acra Turf Chtb, LLC, Civil No.
11-1394, 2011 WL 4703062, at *3 (D.N.J. Oct. 4, 2011).
Because Plaintiffs claims merely
reference a collective-bargaining agreement, but do not require the Court to interpret the meaning
of same, the Court concludes that Plaintiffs claims are not preempted by LMRA.
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III.
CONCLUSION
For the aforementioned reasons, the Court hereby grants Plaintiffs Motion to Remand this
case to the Superior Court of New Jersey, Passaic County.
In doing so, the Court will
administratively terminate any other motions that are pending in this action without prejudice, in
order to permit the parties to renew their arguments in state court. An appropriate Order follows
this Opinion.
Dated: September
,
2018.
JQE L. L ARES
/hief Judge, United States District Court
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