1:24-cv-00633•Howell et al v. Gate Gourmet, Inc.
Gesamter Gesetzestext
IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 24-cv-00633-RMR-KAS ASIA HOWELL and DEMARKIS MCCOLLISTER, individually and on behalf of all others similarly situated, Plaintiffs, v. GATE GOURMET, INC., Defendant. _____________________________________________________________________ RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE _____________________________________________________________________ ENTERED BY MAGISTRATE JUDGE KATHRYN A. STARNELLA This matter is before the Court on Plaintiffs’ Motion to Remand to the District Court for Arapahoe County, Colorado [#15] (the “Motion”). Defendant filed a Response [#18] in opposition to the Motion [#15] and Plaintiffs filed a Reply [#20]. Additionally, on October 2, 2024, Plaintiffs filed a Notice of Supplemental Authority in Support of Their Motion to Remand to the District Court for Arapahoe County, Colorado [#31] to draw the Court’s attention to Air Transport Association of America, Inc. v. Moss, No. 23-cv-02421- DDD-KAS, 2024 WL 4369137 (D. Colo. Sept. 30, 2024). The Motion [#15] has been referred to the undersigned for recommendation. See Order Referring Motion [#22]. The Court has reviewed the briefing, the entire case file, and the applicable law. For the following reasons, the Court RECOMMENDS that the Motion for Remand [#15] be Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 1 of 17
2 GRANTED and that this matter be REMANDED to the District Court for Arapahoe County, Colorado, pursuant to 28 U.S.C. § 1447(c).1 I. Background On February 2, 2024, Plaintiffs filed this action in the District Court for Arapahoe County, Colorado. Compl. [#6]. Their claims arise from Defendant’s alleged failure to provide Plaintiffs (and a putative class of current and former employees) with compensated 10-minute rest periods required under Colorado wage-and-hour laws. Id., ¶ 1. Plaintiff Asia Howell has worked for Defendant as a Customer Service Representative since May 2022, while Plaintiff Demarkis McCollister worked for Defendant as a Customer Service Assistant from September 2022 through November 23, 2023. Id., ¶¶ 19, 21. Plaintiffs allege that Defendant schedules Plaintiffs and other class members for at least eight-hour shifts, which entitles them to two 10-minute rest periods. Id., ¶¶ 28-30. They allege that during September 2022, October 2022, and March 2023, Defendant scheduled Plaintiff McCollister for 12-hour shifts, entitling him to three 10-minute rest periods. Id., ¶ 31. Plaintiffs explain that Defendant’s employees “perform a ‘push’ when they go to the Defendant’s kitchen to load trucks with food for the flights they are catering.” Id., ¶ 34. A “push” is followed by a “load,” where employees unload the food into the aircraft. Id., ¶ 37. Defendant allegedly “prohibits [Plaintiff] Howell and other Class Members from 1 Separately, Defendant filed a Motion to Dismiss [#11], to which Plaintiffs filed a Response [#26] and Defendant filed a Reply [#28]. The Motion to Dismiss [#11] has also been referred to the undersigned, see Order Referring Motion [#12], but because the Court finds that it lacks subject matter jurisdiction over Plaintiffs’ Complaint [#6], it cannot act upon the Motion to Dismiss [#11]. See, e.g., Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir. 1974) (“A court lacking jurisdiction cannot render judgment but must dismiss the cause at any stage of the proceedings in which it becomes apparent that jurisdiction is lacking.”). Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 2 of 17
3 clocking out to take a 10-minute rest period for each four hours of work, or major f[r]action of that time, during their shift.” Id., ¶ 40. Moreover, Defendant allegedly “discourages employees from taking any rest periods in between loads, even if a flight is delayed” and “generally does not provide employees with the opportunity to use the bathroom during their shift.” Id., ¶¶ 41, 44. Plaintiffs estimate that, due to Defendant’s failure to provide rest periods, Plaintiff Howell has worked through more than 852 uncompensated rest periods and Plaintiff McCollister worked through more than 665 uncompensated rest periods. Id., ¶¶ 55-57. They allege that “[Defendant’s] practice has been and continues to be not to provide compensated, duty-free, 10-minute rest periods to employees.” Id., ¶ 59. Plaintiffs state two claims against Defendant: failure to provide compensated rest periods in violation of the Colorado Wage Act, Colo. Rev. Stat. § 8-4-101 et seq. and 7 C.C.R. 1103-1; and failure to provide compensated rest periods in violation of the Colorado Minimum Wages of Workers Act (“Colorado Minimum Wages Act”), Colo. Rev. Stat. § 8-6-101 and 7 C.C.R. 1103-1:8. Id. at 8-10. The Colorado Wage Act claim is purportedly brought on behalf of Plaintiff Howell and the “CWA [Colorado Wage Act] Class” of all current and formerly employed hourly employees who worked for Defendant in Colorado between February 2, 2021, and the present. Id. at 8; id., ¶ 66. The Colorado Minimum Wages Act claim is purportedly brought on behalf of Plaintiff Howell and the “CMWA [Colorado Minimum Wages Act] Class” of all individuals who worked for Defendant as hourly employees in Colorado from January 29, 2018, to February 1, 2021. Id. at 9; id., ¶ 66. On March 7, 2024, Defendant filed a Notice of Removal [#1] that invoked the Court’s federal question jurisdiction. Notice of Removal [#1] at 1. Defendant argues that Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 3 of 17
4 even though Plaintiffs pleaded only state-law claims, the relevant Colorado Overtime & Minimum Pay Standards (“COMPS”) “provide that rest breaks may be governed by a collective bargaining agreement” and that interpretation of Defendant’s collective bargaining agreement is governed by the Railway Labor Act, 45 U.S.C. § 153. Id. at 2. Defendants argue that the Railway Labor Act “fully preempts Plaintiffs’ claims, because this dispute inevitably requires interpretation of the collective bargaining agreement as binding authority to determine if any breach occurred.” Id. Plaintiffs have moved to remand the case to state court, arguing that removal was improper because their claims arise only under state law. Motion [#15] at 2. II. Legal Standards “Federal courts are courts of limited jurisdiction, and the presumption is that they lack jurisdiction unless and until a [party] pleads sufficient facts to establish it.” Celli v. Shoell, 40 F.3d 324, 327 (10th Cir. 1994) (citations omitted). Under 28 U.S.C. § 1447(c), after a case is removed from state court, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” A. Preemption Pursuant to 28 U.S.C. § 1331, federal district courts have original jurisdiction “of all civil actions arising under the Constitution, laws, or treaties of the United States.” Under the “well-pleaded complaint” rule, to determine whether a claim arises under federal law, the Court will “examine the ‘well pleaded’ allegations of the complaint and ignore potential defenses.” Dutcher v. Matheson, 733 F.3d 980, 985 (10th Cir. 2013); see also Beneficial Nat’l Bank v. Anderson, 539 U.S. 1, 6 (2003) (“[A] defense that relies on the . . . pre-emptive effect of a federal statute . . . will not provide a basis for removal.”). Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 4 of 17
5 However, the complete preemption doctrine is “an ‘independent corollary’” to the well- pleaded complaint rule. Caterpillar, Inc. v. Williams, 482 U.S. 386, 393 (1987) (quoting Franchise Tax Bd. of Cal. v. Constr. Laborers Vacation Tr. for S. Cal., 463 U.S. 1, 22 (1983)). When a federal statute completely preempts a state law cause of action, “a claim which comes within the scope of that cause of action, even if pleaded in terms of state law, is in reality based on federal law.” Dutcher, 733 F.3d at 985 (quoting Beneficial Nat’l Bank, 539 U.S. at 6); see also 14C Charles Alan Wright & Arthur R. Miller, FEDERAL P RACTICE & P ROCEDURE § 3722.2 (4th ed., June 2024 update) (“[U]nder the complete- preemption doctrine, a narrow class of claims are ‘necessarily federal’ so that they are removable to federal court. In these cases, federal law does not merely preempt a state law to some degree; rather, it substitutes a federal cause of action for the state cause of action, thereby manifesting Congress’s intent to permit removal.”). The Tenth Circuit has noted that preemption encompasses three common forms, all falling under the umbrella of “ordinary preemption”: “express preemption, conflict preemption, and field preemption.”2 Devon Energy Prod. Co., L.P. v. Mosaic Potash Carlsbad, Inc., 693 F.3d 1195, 1203 n.4 (10th Cir. 2012). However, while ordinary preemption does not render a state-law claim removable to federal court, complete preemption does. Id. (citing Hansen v. Harper Excavating, Inc., 641 F.3d 1216, 1221 (10th Cir. 2011)). This is true even if ordinary preemption is asserted as a defense and “even if 2 Express preemption “occurs when the language of the federal statute reveals an express congressional intent to preempt state law”; field preemption “occurs when the federal scheme of regulation is so pervasive that Congress must have intended to leave no room for a State to supplement it”; and conflict preemption “occurs either when compliance with both the federal and state laws is a physical impossibility, or when the state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” US Airways, Inc. v. O’Donnell, 627 F.3d 1318, 1324 (10th Cir. 2010) (quoting Mount Olivet Cemetery Ass’n v. Salt Lake City, 164 F.3d 480, 486 (10th Cir. 1998)). Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 5 of 17
6 the validity of the preemption defense is the only issue to be resolved in the case.” Id. (quoting BLAB T.V. of Mobile, Inc. v. Comcast Cable Commc’ns, Inc., 182 F.3d 851, 854 (11th Cir. 1999)); see also Sullivan v. Am. Airlines, Inc., 424 F.3d 267, 273 n.7 (2d Cir. 2005) (noting that field preemption, a form of ordinary preemption, is distinct from complete preemption) cited with approval in Devon Energy, 693 F.3d at 1203 n.4. Unlike ordinary preemption, complete preemption “represents an ‘extraordinary pre-emptive power’” so rare that the Supreme Court has recognized complete preemption in three contexts: § 301 of the Labor Management Relations Act of 1947; § 502 of the Employee Retirement Income Security Act of 1974 (“ERISA”); and actions for usury against national banks under the National Bank Act.” Devon Energy, 693 F.3d at 1204- 05 (citing Hansen, 641 F.3d at 1221; Avco Corp. v. Aero Lodge No. 735, Int’l Ass’n of Machinists & Aerospace Workers, 390 U.S. 557, 560-61 (1968) (Labor Management Relations Act); Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 62-63 (1987) (ERISA); Beneficial Nat’l Bank, 539 U.S. at 6 (National Bank Act)). In summary, courts must exercise care to distinguish between ordinary preemption, which is an affirmative defense, and complete preemption, which confers federal question jurisdiction. “[A] state claim may be removed to federal court in only two circumstances—when Congress expressly so provides, . . . or when a federal statute wholly displaces the state-law cause of action through complete pre-emption.” Beneficial Nat’l Bank, 539 U.S. at 8 (internal citation omitted). A removing party may not simply rely on Congress’s or a federal agency’s occupation of a particular field of law. “[A] federal law may substantively displace state law under ordinary preemption but lack the extraordinary force to create federal removal jurisdiction under the doctrine of complete Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 6 of 17
7 preemption. If no other grounds for federal jurisdiction exist in such cases, then it falls to the state courts to assess the merits of the ordinary preemption defense.” Geddes v. Am. Airlines, Inc., 321 F.3d 1349, 1353 (11th Cir. 2003) (citing Caterpillar, 482 U.S. at 398 n.13). Here, because the issue presented in Plaintiffs’ Motion [#15] is whether their claims were removable, the only relevant question is whether the Railway Labor Act completely preempts state law. B. The Railway Labor Act Congress passed the Railway Labor Act (“the Act”) “to promote stability in labor- management relations by providing a comprehensive framework for resolving labor disputes.” Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246, 252 (1994). In furtherance of this goal, “the [Act] establishes a mandatory arbitral mechanism for ‘the prompt and orderly settlement’ of two classes of disputes.” Id. (quoting 45 U.S.C. § 151a). “Major disputes” relate to the formation of or efforts to secure collective bargaining agreements, while “minor disputes” relate to disagreements over the meaning of a bargained-for labor agreement. Ertle v. Cont’l Airlines, Inc., 136 F.3d 690, 693 (10th Cir. 1998) (citing Hawaiian Airlines, 512 U.S. at 252-53). Courts have found that the Act impliedly preempts state-law claims in three situations: (1) state laws that prohibit collective bargaining by airline or railway employees and thus directly conflict with the Act’s allowance of collective bargaining; (2) state law causes of action that depend upon the interpretation of collective bargaining agreements, because those “minor disputes” fall under Act-created arbitral bodies’ exclusive jurisdiction; and (3) state laws that frustrate the Act’s purpose. Air Transp. Ass’n of Am., Inc. v. Moss, No. 23-cv-02421-DDD-KAS, 2024 WL 4369137, at *6-7 (D. Colo. Sept. 30, Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 7 of 17
8 2024) (citations omitted). However, these three situations fall into the category of ordinary field or conflict preemption, not complete preemption. Devon Energy, 693 F.3d at 1203 n.4 (“For our purposes, it is important to distinguish these common forms of preemption from the doctrine of complete preemption—the doctrine at issue here.”); Sullivan, 424 F.3d at 273 (“Ordinary preemption is plainly a viable defense under the [Railway Labor Act] RLA.”). III. Analysis Here, Plaintiffs pleaded only state-law claims in their Complaint [#6], and federal question jurisdiction is Defendant’s only stated basis for removal. See Notice of Removal [#1] at 1-2. Therefore, the Court has an independent obligation to ensure that the Railway Labor Act supports complete preemption and, thus, subject-matter jurisdiction. Sullivan, 424 F.3d at 274. The Railway Labor Act serves five purposes: (1) to avoid any interruption to commerce or to the operation of any carrier engaged in commerce; (2) to forbid any limitation on employees’ freedom of association and to join a labor organization; (3) to provide for the complete independence of carriers and employees to self-organize; (4) “to provide for the prompt and orderly settlement of all disputes concerning rates of pay, rules, or working conditions”; and (5) “to provide for the prompt and orderly settlement of all disputes growing out of grievances3 or out of the interpretation or application of agreements covering rates of pay, rules, or working conditions.” 45 U.S.C. § 151a. Employee-carrier disputes concerning “grievances or . . . the interpretation or application of agreements concerning rates of pay, rules, or working conditions . . . shall be handled 3 The Act uses “grievances” “as a synonym for disputes involving the application or interpretation of a [collective bargaining agreement].” Hawaiian Airlines, 512 U.S. at 255. Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 8 of 17
9 in the usual manner up to and including the chief operating officer of the carrier designated to handle such disputes[.]” 45 U.S.C. § 153(i). Any unresolved disputes “may be referred by petition of the parties or by either party to the appropriate division of the Adjustment Board[.]” Id.; see also Sullivan v. Am. Airlines, Inc., 424 F.3d 267, 270 (2d Cir. 2005) (explaining that the Railway Labor Act gives primary jurisdiction to the Adjustment Board to arbitrate disputes between airlines and employees arising from grievances or application or interpretation of agreements regarding pay, rules, or working conditions). The Railway Labor Act contains additional dispute resolution mechanisms should the matter remain unresolved before the Adjustment Board. See 45 U.S.C. § 153(l). If a carrier does not comply with an Adjustment Board order to pay money or to provide other relief, the Railway Labor Act provides a mechanism for a person to seek enforcement of that Adjustment Board order, which consists of filing a petition “in the District Court of the United States for the district in which [the petitioner] resides or in which is located the principal operating office of the carrier, or through which the carrier operates[.]” 45 U.S.C. § 153(p). Additionally, federal district courts may review adjustment boards’ decisions. 45 U.S.C. § 153(q). However, the Railway Labor Act contains no provision that provides federal courts with exclusive jurisdiction over disputes arising from grievances or concerning rates of pay, rules, or working conditions. The absence of such provision belies Defendant’s argument that Plaintiffs’ claims are completely preempted by the Railway Labor Act. Plaintiffs’ Colorado Wage Act and Colorado Minimum Wages Act claims hinge on whether Defendant violated state law by purportedly “failing to provide rest periods” or failing “to compensate the hourly employees for the rest periods that were not provided Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 9 of 17
10 to them.” Compl. [#6] ¶¶ 77, 82. Defendant contends that Plaintiffs’ claims are “fully preempt[ed]” or “completely preempted” by the Railway Labor Act. See Notice of Removal [#1] at 2; Response [#18] at 3-4. In support, Defendant provides two arguments: (1) a collective bargaining agreement, which provides a higher standard than Colorado, governs Plaintiffs’ wage claims; and (2) remand to state court would frustrate the purpose of Railway Labor Act preemption. Response [#18] at 4-8. As authority for complete preemption, Defendant cites Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246, 263 (1994). However, a close inspection of Hawaiian Airlines and subsequent Supreme Court authority reveals a defect in Defendant’s arguments: While Defendant’s arguments concern preemption, they do not concern complete preemption which provides federal jurisdiction. Hawaiian Airlines explored the scope of federal preemption under the Railway Labor Act and, particularly, whether an airplane mechanic’s claims for wrongful discharge under state law were preempted. 512 U.S. at 248, 250-52. The Supreme Court began its analysis with the principles that federal preemption of state law is a question of congressional intent and that courts should not lightly infer preemption of state employment standards which fall within states’ “traditional police power” to regulate. Id. 252. These principles relate to “express preemption,” a form of ordinary preemption, not complete preemption. The Court also acknowledged the Railway Labor Act’s purpose— “to promote stability in labor-management relations by providing a comprehensive framework for resolving labor disputes”—is achieved through “a mandatory arbitral mechanism for ‘the prompt and orderly settlement’” of disputes concerning rates of pay, rules, or working conditions, or disputes concerning the formation of collective bargaining Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 10 of 17
11 agreements. Hawaiian Airlines, 512 U.S. at 252. In examining the Act’s text and legislative history, the Court noted an absence of “a clear and manifest congressional purpose to create a regime that broadly pre-empts substantive protections extended by the States, independent of any negotiated labor agreement.” Id. at 255-56. This consideration by the Court relates to “field preemption,” another form of ordinary preemption, not complete preemption. Later in its analysis, the Court adopted a framework articulated in a Labor Management Relations Act preemption case, Lingle v. Norge Division of Magic Chef, Inc., 486 U.S. 399 (1988), in which the Lingle court found preemption only if resolution of a state-law claim depends upon the interpretation of a collective bargaining agreement. Id. 262-63. In applying the Lingle framework, the Court reasoned that the mechanic’s wrongful discharge claims were not subsumed by the collective bargaining agreement and, thus, the claim should proceed to address the purely factual question of whether the employer’s actions support the elements of those state-law claims. Id. at 266 (noting that the state tort claims “require only the purely factual inquiry into any retaliatory motive of the employer,” not interpretation of the collective bargaining agreement). Thus, the Court held that the Railway Labor Act did not preempt the wrongful discharge claim even though a collective bargaining agreement governed the terms of the mechanic’s employment. Id. at 248-49, 266. Nearly a decade later, in Beneficial National Bank v. Anderson, 539 U.S. 1 (2003), the Supreme Court clarified in what contexts complete preemption exists. In considering the removability of a common law and state law usury claim against a bank, the Court specified that a state claim may be removed two federal court in only two circumstances: Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 11 of 17
12 (1) when Congress expressly provides for removal; and (2) “when a federal statute wholly displaces the state-law cause of action through complete pre-emption,” i.e., the Labor Management Relations Act and ERISA, the two categories of precedent where the Court found complete preemption. 539 U.S. at 8. Beneficial National Bank did not identify the Railway Labor Act as another category of precedent involving compete preemption. In Sullivan v. American Airlines, 424 F.3d 267 (2005), the Second Circuit discussed and distinguished Hawaiian Airlines from the situation pending before it, namely whether the Railway Labor Act completely preempted defamation claims brought by unionized airline employees against their employer following their termination for workplace conduct. The Second Circuit’s analysis began with the following question: whether the Hawaiian Airlines’ analogy between the Railway Labor Act and the Labor Management Relations Act “as to ordinary preemption also extends to complete preemption.” 424 F.3d at 274. In posing this question, the Second Circuit noted that Hawaiian Airlines “had no occasion to consider whether the [Railway Labor Act], as does § 301 of the [Labor Management Relations Act], supports federal subject-matter jurisdiction by completely preempting state-law claims within its scope.” Id. Thus, the Second Circuit declined to assume that Hawaiian Airlines was a complete-preemption case. Id. In its analysis, the Second Circuit highlighted a key difference between the Labor Management Relations Act and the Railway Labor Act: Section 301 of the Labor Management Relations Act establishes removability when ordinary preemption is established. See id.; 29 U.S.C. § 185(a) (“[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 Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 12 of 17
13 of the parties”); 29 U.S.C. § 185(c) (“[f]or purposes of actions and proceedings by or against labor organizations in the district courts for the United States, district courts shall be deemed to have jurisdiction of a labor organization”). Thus, in the Labor Management Relations Act context, “the defensive [ordinary] and complete-preemption inquiries collapse into one[.]” Sullivan, 424 F.3d at 274-75. Therefore, while Hawaiian Airlines may be useful for an ordinary preemption analysis in the context of the Railway Labor Act, it was never meant to extend to a complete preemption analysis in that context. Id. at 275. The Second Circuit drew upon Beneficial National Bank v. Anderson, 539 U.S. 1 (2003) to reach a conclusion about an “often overlooked” aspect of the compete- preemption doctrine: “removal of state-law claims based on complete preemption becomes possible . . . because a federal statute with completely preemptive force also gives rise to original federal jurisdiction, and as a consequence allows removal under 28 U.S.C. § 1441.” Sullivan, 424 F.3d at 276. The court then considered the Railway Labor Act’s text, which established that adjustment boards have exclusive, primary jurisdiction over disputes arising from grievances or concerning rates of pay, rules, or working conditions. Id. (citing 45 U.S.C. §§ 153, 184) (governing railroads and airlines, respectively)). Thus, based on the Act’s text, the Sullivan court held that even if state-law claims qualify as disputes about pay, rules, or working conditions under the Railway Labor Act, the Act “does not completely preempt those claims and therefore does not provide federal courts with original jurisdiction over them.” Id. at 269; see also id. at 277. To allow removal would lead to an absurd result: a case would be removed to federal court but then dismissed on ordinary preemption grounds “because only adjustment boards, not federal courts, have primary jurisdiction over claims arising under the [Railway Labor Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 13 of 17
14 Act].” Id. at 276. In contrast, removal under the Labor Management Relations Act, ERISA, or the National Bank Act does not yield a similarly absurd result because upon removal in those scenarios, “the district court may then adjudicate the claim on the merits under the relevant preemptive statute.” Id. As the Second Circuit recognized in Sullivan, circuits are split over whether complete preemption exists under the Railway Labor Act. Id. at 277. This Court could find no Tenth Circuit case deciding whether the Railway Labor Act completely preempts state- law claims. The Third, Fifth, Sixth, Ninth, and Eleventh Circuits have found that the Act does not completely preempt state-law claims. See Ry. Lab. Execs. Ass’n v. Pittsburgh & Lake Erie R.R. Co., 858 F.2d 936, 942-43 (3d Cir. 1988) (“Because there is no RLA [Railway Labor Act] . . . cause of action within the scope of which [plaintiff’s] state claim falls and because we do not find the requisite Congressional intent, we hold that there is no removal jurisdiction in this case.”), abrogation on other grounds noted in Maglioli v. All. HC Holdings, LLC, 16 F.4th 393, 407 n.9 (3d Cir. 2021); Anderson v. Am. Airlines, Inc., 2 F.3d 590, 597 (5th Cir. 1993) (concluding that the Railway Labor Act did not completely preempt the plaintiff’s state-law claim “[a]nd without complete pre-emption, there is no federal question jurisdiction.”); Roddy v. Grand Trunk W. R.R. Inc., 395 F.3d 318, 326 (6th Cir. 2005) (“[I]t would be difficult to find such extraordinary preemptive force when the Supreme Court has specifically rejected the contention that the [Railway Labor Act] broadly preempts state-law claims based on discharge or discipline” for removal purposes); Moore-Thomas v. Alaska Airlines, Inc., 553 F.3d 1241, 1246 (9th Cir. 2009) (overruling prior cases which had held that the Railway Labor Act was subject to complete preemption and stating that “because the [Act] is subject to ordinary rather than complete Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 14 of 17
15 pre-emption, [the] complaint does not arise under federal law and is not removable”); Geddes v. Am. Airlines, Inc., 321 F.3d 1349, 1357 (11th Cir. 2003) (holding that “the doctrine of complete preemption does not apply to the [Act]”). Just two circuits—the Seventh and Eighth—have held that the Railway Labor Act completely preempts state-law claims but, at least in the Eighth Circuit, the issue “is an open question” following the Supreme Court’s Beneficial National Bank decision, which the Eighth Circuit has not revisited since. See Miller v. Southwest Airlines Co., 926 F.3d 898, 904-05 (7th Cir. 2019) (finding federal question jurisdiction over state-law claims “concern[ing] collective bargaining regulated by federal law”); Richardson v. BNSF Ry. Co., 2 F.4th 1063, 1073 (8th Cir. 2021) (Colloton, J., concurring); but see Gore v. Trans World Airlines, 210 F.3d 944, 949 (8th Cir. 2000) (stating that because the Railway Labor Act requires arbitration of minor disputes, “complete preemption applies to disputes involving duties and rights created or defined by the collective bargaining agreement”); Deford v. Soo Line R.R. Co., 867 F.2d 1080, 1085-86 (8th Cir. 1989) (finding complete preemption doctrine applies to collective bargaining disputes because of the Railway Labor Act’s “extraordinary” preemptive force that “takes over the whole field of railroad labor disputes arising from collective bargaining agreements”). In the absence of Tenth Circuit authority, the weight of authority from other circuits teaches that the Railway Labor Act does not completely preempt a state-law claim concerning rates of pay, rules, or working conditions. Without complete preemption, federal question jurisdiction does not exist, and removal cannot occur. As noted earlier, because the issue presented in Plaintiffs’ Motion [#15] is whether their claims were removable, the only relevant question is whether the Railway Labor Act completely Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 15 of 17
16 preempts state law. Based on the foregoing analysis, the answer to that question is no. Therefore, this Court lacks jurisdiction over this dispute and this case must be remanded to Arapahoe County District Court. Accordingly, the Court recommends that the case be remanded pursuant to 28 U.S.C. § 1447(c). IV. Conclusion Based on the foregoing, IT IS HEREBY RECOMMENDED that Plaintiffs’ Motion to Remand to the District Court for Arapahoe County, Colorado [#15] be GRANTED. IT IS FURTHER RECOMMENDED that pursuant to 28 U.S.C. 1447(c), this matter be REMANDED to the District Court for Arapahoe County, Colorado due to lack of subject matter jurisdiction. IT IS FURTHER ORDERED that any party may file objections within 14 days of service of this Recommendation. In relevant part, Fed. R. Civ. P. 72(b)(2) provides that, “within 14 days after being served with a copy of the recommended disposition, a party may serve and file specific written objections to the proposed findings and recommendations. A party may respond to another party’s objections within 14 days after being served with a copy.” “[A] party’s objections to the magistrate judge’s report and recommendation must be both timely and specific to preserve an issue for de novo review by the district court or for appellate review.” United States v. 2121 E. 30th St., 73 F.3d 1057, 1060 (10th Cir. 1996). The objection must be “sufficiently specific to focus the district court’s attention on the factual and legal issues that are truly in dispute.” Id. “[A] party who fails to make a timely objection to the magistrate judge's findings and Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 16 of 17
17 recommendations waives appellate review of both factual and legal questions.” Morales- Fernandez v. I.N.S., 418 F.3d 1116, 1119 (10th Cir. 2005). Dated: October 29, 2024 BY THE COURT: Kathryn A. Starnella United States Magistrate Judge Case No. 1:24-cv-00633-RMR-KAS Document 32 filed 10/29/24 USDC Colorado pg 17 of 17
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