MADELINE COX ARLEO, District Judge.
Dear Counsel,
This matter comes before the Court by way of Plaintiff Henry Smith's ("Plaintiff") motion to remand this case to state court. Dkt. No. 8. Defendants Silgan Containers Manufacturing Corporation ("Silgan") and Bryce Bedford ("Bedford") (collectively, "Defendants") opposed the motion. Dkt. No. 15. The Court referred the motion to the Honorable Leda D. Wettre, United States Magistrate Judge. On May 3, 2016, Judge Wettre issued a Report and Recommendation ("R&R") recommending that this Court grant Plaintiff's motion to remand. Report and Recommendation, Dkt. No. 21. Defendants filed a timely objection to the R&R on May 14, 2016. Dkt. No. 22. For the reasons set forth herein, Judge Wettre's R&R is
This lawsuit arises out of Plaintiff's employment with Silgan in 2006 as a machinist and millwright. Compl. ¶ 1, Dkt. No. 1-1. Plaintiff allegedly sustained a serious, work-related injury at the Silgan plant in Edison, New Jersey during his employment.
On November 3, 2015, Defendants filed a Notice of Removal basing subject matter jurisdiction upon a federal question, pursuant to 28 U.S.C. § 1331. Notice of Removal ("NOR"), Dkt. No. 1. Although no federal claims were pled, Defendants assert that Plaintiff's claims are completely preempted by section 301 of the Labor Management Relations Act ("LMRA"), which provides that "[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce . . . may be brought in any district court of the United States having jurisdiction of the parties." 29 U.S.C. § 185(a). Defendants contend that the allegations in Plaintiff's Complaint are inextricably intertwined with the parties' Collective Bargaining Agreement ("CBA"), and that the interpretation of the CBA will be necessary to adjudicate Plaintiff's claims. NOR ¶¶ 13, 15.
Prior to Plaintiff's initiation of this suit, on May 21, 2013, the day after Silgan advised Plaintiff of its decision to terminate his employment, Plaintiff and his union commenced a grievance procedure against Silgan contending that his termination was without the "just cause" required by the CBA. NOR ¶ 11. Although Plaintiff had been terminated by Silgan, he continued working at the Silgan plant pending the outcome of his grievance under the CBA's Justice and Dignity clause,
On December 8, 2014, Plaintiff filed a motion to remand contending that this action presents exclusively state law causes of action between parties who do not satisfy the diversity of citizenship requirements of 28 U.S.C. § 1332. Dkt. No. 4. Plaintiff argues that adjudication of his NJLAD and NJWCS claims do not require interpretation of the CBA or present any other federal question. Defendants opposed the motion, arguing that Plaintiff's state law claims under NJLAD and NJWCS are preempted by section 301 of LMRA, because their adjudication necessarily requires interpretation of the CBA, the arbitration proceedings, or the Arbitrator's analysis of the parties' rights under the CBA. Dkt. No. 15.
On May 3, 2016, Judge Wettre issued an R&R recommending that the Court grant Plaintiff's Motion to Remand. Judge Wettre found that Plaintiff's rights under state law may be adjudicated without considering the Arbitrator's decision or any term of the CBA, except by way of considering defenses presented by Defendants. She found that that the action is not preempted by section 301 of the LMRA under well-settled, binding precedent, and should be remanded to state court for lack of subject matter jurisdiction. R&R, Dkt. No. 21.
On May 14, 2016, Defendants filed a timely objection to Judge Wettre's Report and Recommendation arguing that (1) the Report disregards Plaintiff's improper "artful pleading" to evade federal jurisdiction; (2) the Report ignores relevant facts; (3) adjudicating this case would necessarily overturn the arbitrator's decision; and (4) the Complaint is inextricably intertwined with the rights set forth in the CBA. Dkt. No. 22.
When a magistrate judge addresses motions that are considered "dispositive," such as to grant or deny a motion to remand, a magistrate judge will submit an R&R to the district court. 28 U.S.C. § 636(b)(1)(A); FED. R. CIV. P. 72; L. CIV. R. 72.1(c)(2). The district court may then "accept, reject or modify, in whole or in part, the findings or recommendations made by the magistrate. The judge may also receive further evidence or recommit the matter to the magistrate with instructions." 28 U.S.C. § 636(b)(1)(C);
Having carefully considered Judge Wettre's recommendations, as well as Defendants' objections thereto, the Court agrees with Judge Wettre that Plaintiff's claims are not preempted by section 301 of the LMRA, and that this case should be remanded to state court for lack of subject matter jurisdiction.
Judge Wettre addressed each of Defendants' objections here in her R&R. She explained that:
R&R at 8. Judge Wettre explained that "[a]s the `master of the complaint,' plaintiff deliberately may avoid federal jurisdiction by exclusive reliance on state law."
The "artful pleading" doctrine "stands for the premise that a plaintiff cannot avoid federal jurisdiction by `artfully pleading' his federal claim as a state law claim."
The Court agrees with Judge Wettre that Plaintiff did not engage in "artful pleading" to evade federal jurisdiction. Here, the "real" causes of action in Plaintiff's Complaint are for discrimination and retaliation under New Jersey law, which, as Judge Wettre correctly explained, do not require interpretation of the CBA or the Arbitrator's decision.
Next, Defendants contend that the R&R ignores relevant background facts that are critical to the dispute. Specifically, Defendants claim the Report "omits any mention of the fact that
In addition, adjudication of Plaintiff's claims do not require interpretation of the CBA or the Arbitrator's decision. Judge Wettre explained that "Plaintiff's claims that Silgan violated LAD's prohibition of disability discrimination and engaged in worker's compensation retaliation will turn on the state law standards for resolving those claims, which will examine factually the conduct of plaintiff and the motivation of defendants in making the termination decision." R&R at 8-9. Thus, allowing these state law claims to go forward will not result is "overturning the arbitrator's award." Judge Wettre conclusion here is correct.
This case falls squarely in line with cases in this District that have repeatedly held that "[s]tate discrimination laws are generally not preempted by federal labor law."
Having thoroughly reviewed Judge Wettre's Report and Recommendation and Defendants' objection thereto, this Court hereby