Filed: May 21, 1996
Latest Update: Mar. 02, 2020
Summary: United States Court of Appeals, Fifth Circuit. No. 95-50774 Summary Calendar. Edward A. KOLLAR; George Natividad, Jr.; Dan Smith; Nickie H. Keene; Robert Berroteran; John Marcee, Plaintiffs-Appellants, v. UNITED TRANSPORTATION UNION; Robert A. Cushing; E.L. Haynes, Defendants-Appellees. May 21, 1996. Appeal from the United States District Court for the Western District of Texas. Before SMITH, BENAVIDES and DENNIS, Circuit Judges. BENAVIDES, Circuit Judge: The single issue in this appeal is wheth
Summary: United States Court of Appeals, Fifth Circuit. No. 95-50774 Summary Calendar. Edward A. KOLLAR; George Natividad, Jr.; Dan Smith; Nickie H. Keene; Robert Berroteran; John Marcee, Plaintiffs-Appellants, v. UNITED TRANSPORTATION UNION; Robert A. Cushing; E.L. Haynes, Defendants-Appellees. May 21, 1996. Appeal from the United States District Court for the Western District of Texas. Before SMITH, BENAVIDES and DENNIS, Circuit Judges. BENAVIDES, Circuit Judge: The single issue in this appeal is whethe..
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United States Court of Appeals,
Fifth Circuit.
No. 95-50774
Summary Calendar.
Edward A. KOLLAR; George Natividad, Jr.; Dan Smith; Nickie H.
Keene; Robert Berroteran; John Marcee, Plaintiffs-Appellants,
v.
UNITED TRANSPORTATION UNION; Robert A. Cushing; E.L. Haynes,
Defendants-Appellees.
May 21, 1996.
Appeal from the United States District Court for the Western
District of Texas.
Before SMITH, BENAVIDES and DENNIS, Circuit Judges.
BENAVIDES, Circuit Judge:
The single issue in this appeal is whether the plaintiffs'
common-law fraud claim against their union is preempted by the
Railway Labor Act ("RLA"), 45 U.S.C. ยงยง 151-188. Because we
conclude that the fraud claim is preempted, we affirm.
FACTUAL AND PROCEDURAL BACKGROUND
Edward Kollar and his fellow plaintiffs ("Plaintiffs") were
employed by Southern Pacific Railroad and were members of the
United Transportation Union ("the Union"). The Union is a party to
separate collective bargaining agreements ("CBA") with both
Southern Pacific and National Railroad Passenger Corporation
("Amtrak") covering terms and conditions of employment, including
seniority. In 1986, Amtrak entered into an agreement with the
Union that permitted Southern Pacific employees to transfer to
Amtrak. In March 1988, the seniority provisions of this agreement
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were modified by a letter agreement between the Union and Amtrak.
In June 1988, the Plaintiffs (then employees of Southern
Pacific) attended an informational meeting concerning transferring
to Amtrak. Plaintiffs contend that at this meeting representatives
of the Union made representations to them concerning seniority for
conductor positions with Amtrak. Plaintiffs applied for and
received positions with Amtrak in November 1988. On December 5,
1988, a seniority roster was posted listings Plaintiffs' positions.
In July 1989, Plaintiffs discovered that they had actually
received seniority designations lower than had been posted on the
December roster. Amtrak informed Plaintiffs that the seniority
designation was made pursuant to the letter agreement between the
Union and Amtrak. Plaintiffs then approached the Union to resolve
the dispute. In August 1991, Plaintiffs wrote to the Union's
general counsel who informed them that only the General Chairperson
could construe the agreement and that the Union would not waive any
limitations defense to their complaint. On October 3, 1991, the
General Chairperson replied that Amtrak's interpretation of the
agreement was correct.
On July 12, 1993, Plaintiffs sued the Union and its
representatives in Texas state court alleging only a fraud claim.
The Union removed the case to federal district court based upon a
federal question under the RLA. Subsequently, the Union moved for
summary judgment on limitations grounds. Plaintiffs moved to
remand the case arguing that their state law fraud claim was not
preempted by the RLA. Following a hearing on both motions, the
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district court granted the Union summary judgment on limitations
and therefore found the remand motion moot.1 Plaintiffs appeal
contending their fraud claim is not preempted and, therefore, the
district court erred in failing to remand.
DISCUSSION
The denial of a motion to remand an action removed from state
to federal court is a question of federal jurisdiction subject to
de novo review. Carpenter v. Wichita Falls Indep. Sch. Dist.,
44
F.3d 362, 365 (5th Cir.1995). Likewise, preemption is a question
of law reviewed de novo. Baker v. Farmers Elec. Coop.,
34 F.3d
274, 278 (5th Cir.1994). Thus we apply de novo review to this
appeal.
As we have recently noted, one of the goals of the RLA is to
provide prompt and orderly settlement of disputes arising out of
grievances or out of the interpretation or application of a CBA
covering rates of pay, rules, or working conditions. Hirras v.
National R.R. Passenger Corp.,
44 F.3d 278, 280-81 (5th Cir.1995).
As a general rule, disputes arising out of grievances or out of the
interpretation or application of a CBA are preempted by the RLA's
mandatory arbitration provisions.
Id. at 280. The preemptive
power of the RLA extends to state-law claims; however, not every
state-law claim is automatically preempted. Following the Supreme
Court's recent opinion in Hawaiian Airlines, Inc. v. Norris, ---
U.S. ----,
114 S. Ct. 2239,
129 L. Ed. 2d 203 (1994), this Circuit
1
Plaintiffs do not challenge on appeal the district court's
holding on limitations under the RLA. Their sole complaint is
jurisdictional.
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holds that "a claim is preempted by the RLA only if it relies on
the interpretation of a provision of the CBA; if the claim is
brought under state law without any reference to the CBA, then it
is not preempted."
Id. at ----, 114 S.Ct. at 282. Thus, the sole
issue in this case is condensed into whether Plaintiffs' common-law
fraud claim involves interpretation of the CBA.
Under Texas law a claim for fraud requires that: 1) a
material representation was made; 2) the representation was false;
3) the speaker knew the representation was false or made it
recklessly; 4) the speaker made the representation with the intent
that it should be acted upon by the party; 5) the party acted in
reliance upon the representation; and 6) the party suffered
injury. Eagle Properties, Ltd. v. Scharbauer,
807 S.W.2d 714, 723
(Tex.1990). The gravamen of Plaintiffs' fraud claim is that the
Union made false and misleading statements concerning Plaintiffs'
seniority rights to induce them to transfer from Southern Pacific
to Amtrak. Plaintiffs contend that under Hirras, their fraud claim
is not preempted because "the CBA contains no provision related to
the issue at hand-fraud." Plaintiffs' reliance on Hirras, however,
is misplaced.
In Hirras, we held that the plaintiff's intentional infliction
of emotional distress claim was not preempted by the RLA because
the terms of CBA were not relevant to the resolution of that claim.
We specifically noted that there was no provision in the CBA
relating to the underlying issue of sexual harassment present in
that case.
Hirras, 44 F.3d at 283-84 & n. 11. In stark contrast,
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the relevant underlying issue in this case is Plaintiffs'
seniority. Seniority is controlled by the CBA and modifying
agreements. While Plaintiffs couch their claim in terms of fraud,
resolution of their claim nonetheless requires interpretation of
the CBA. To prove the falsity of the representations, Plaintiffs
would have to show that the relevant seniority provisions of the
CBA, the transfer agreement, and modifying letter agreement, differ
from the representations made by the Union. This requires
interpretation of the CBA left appropriately to procedures
established under the RLA.
The weight of authority supports this view. Plaintiffs have
been unable to direct this Court to any authority holding that a
state-law fraud claim premised on a denial of seniority is not
preempted by the RLA. On the contrary, every circuit addressing
the question in similar contexts holds that the fraud claims are
preempted. See Allen v. United Trans. Union,
964 F.2d 818, 821-22
(8th Cir.1992) (state law misrepresentation claim concerning
seniority preempted by RLA); Melanson v. United Air Lines, Inc.,
931 F.2d 558, 562-63 (9th Cir.) (state law fraud claim preempted by
RLA), cert. denied,
502 U.S. 865,
112 S. Ct. 189,
116 L. Ed. 2d 150
(1991); see also Adkins v. General Motors Corp.,
946 F.2d 1201,
1209-10 (6th Cir.1991) (state law fraud claim concerning seniority
preempted under Labor Management Relations Act), cert. denied,
504
U.S. 908,
112 S. Ct. 1936,
118 L. Ed. 2d 543 (1992).
CONCLUSION
Plaintiffs' complaint clearly requires reference to and
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interpretation of the CBA. As a result, we hold that their
common-law fraud claim is preempted by the RLA. Consequently, the
district court did not err in failing to remand the case to state
court. The judgment of the district court is AFFIRMED.
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