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Garcia v. SEIU

Garcia v. SEIU

United States Court of Appeals for the Ninth Circuit

October 16, 2020, Argued and Submitted, San Francisco, California; April 5, 2021, Filed

No. 19-16863, No. 19-16933, No. 19-16934

Opinion

 [*761]  NGUYEN, Circuit Judge:

This dispute between union members and their union arises out of a trusteeship imposed on Nevada Service Employees Union ("the Local") by the Service Employees International Union (the "International"). Following a period of internal strife and two hearings investigating member complaints, a majority of the Local's executive board voted to request the trusteeship. Local member Raymond Garcia filed suit in state court against the International, International officials, and the Local's board (collectively, "the Union") challenging the trusteeship as violating the Local's constitution, the International's constitution, and an affiliation agreement between the two organizations. The case was removed to federal court, and the district court granted the Union's motion dismiss in part, holding that five claims were preempted by § 301 of the Labor Management Relations Act ("LMRA"), 29 U.S.C. § 185 [**4] , and were therefore "converted" into § 301 claims. The consolidated plaintiffs (the "Union Members") appeal. We affirm the district court's preemption determination and its exercise of jurisdiction over the preempted claims.3

I. BACKGROUND

The Local is an affiliate of the International and is governed by the Local Constitution, which is generally subordinate to the International Constitution. The Local and the International are also parties to an Affiliation Agreement. The Affiliation Agreement contains a waiver provision purporting to, in some circumstances, waive portions of the International Constitution concerning trusteeships.

After the International received numerous complaints from Local members regarding the breakdown of the Local's basic governance and democratic processes, the International ordered a hearing concerning the state of the Local. The hearing officer issued findings of fact and recommendations including a recommendation that the International place the Local into trusteeship. The Local Board met with two representatives of the International and the International's associate general counsel, and voted to request that the International place the Local into [**5]  trusteeship. The International subsequently did so.

Garcia filed suit in state court against the Union. He brought seven state law claims: (1) breach of contract by the Local Board, (2) breach of contract by the International, (3) breach of the implied covenant of good faith and fair dealing by the International, (4) fraudulent misrepresentation by the International, (5) negligent misrepresentation by the International, (6) legal malpractice by the International's associate general counsel, and (7) breach of fiduciary duty by the International. After removing the case to federal court, the Union moved to dismiss Garcia's claims. The district court granted the motion in part, holding that five of the claims (Claims 2, 3, 5, 6, and 7) were preempted by § 301 of the LMRA and thus "converted" into—that is, treated as—§ 301 claims. The Union Members appeal.

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993 F.3d 757 *; 2021 U.S. App. LEXIS 9762 **

RAYMOND GARCIA, as a member, and on behalf of Clark County Public Employees Association, Plaintiff-Appellee, and CHERIE MANCINI; FREDERICK GUSTAFSON, Plaintiffs, v. SERVICE EMPLOYEES INTERNATIONAL UNION; NEVADA SERVICE EMPLOYEES UNION; MARY KAY HENRY, in her official capacity as Union President; LUISA BLUE, in her official capacity as trustee, Defendants-Appellants.RAYMOND GARCIA, as a member, and on behalf of Clark County Public Employees Association, Plaintiff-Appellant and CHERIE MANCINI; FREDERICK GUSTAFSON, Plaintiffs v. SERVICE EMPLOYEES INTERNATIONAL UNION; NEVADA SERVICE EMPLOYEES UNION; MARY KAY HENRY, in her official capacity as Union President; LUISA BLUE, in her official capacity as trustee, Defendants-Appellees.CHERIE MANCINI, Plaintiff-Appellant, and RAYMOND GARCIA, as a member, and on behalf of Clark County Public Employees Association; FREDERICK GUSTAFSON, Plaintiffs, v. SERVICE EMPLOYEES INTERNATIONAL UNION; NEVADA SERVICE EMPLOYEES UNION; MARY KAY HENRY, in her official capacity as Union President; LUISA BLUE, in her official capacity as trustee, Defendants-Appellees.

Prior History:  [**1] Appeal from the United States District Court for the District of Nevada. D.C. Nos. 2:17-cv-01340-APG-NJK, 2:17-cv-02137-APG-NJK. Andrew P. Gordon, District Judge, Presiding

Garcia v. SEIU, 2017 U.S. Dist. LEXIS 177437 (D. Nev., Oct. 25, 2017)

Disposition: AFFIRMED.

CORE TERMS

preempted, labor contract, state law claim, Affiliation, trusteeship, union member, union's constitution, district court, constitutions, state law, misrepresentation, preemption, rights, labor organization, alleges

Civil Procedure, Appeals, Standards of Review, De Novo Review, Jurisdiction, Subject Matter Jurisdiction, Jurisdiction Over Actions, Constitutional Law, Supremacy Clause, Federal Preemption, Removal, Specific Cases Removed, Federal Questions, Federal Questions, Well Pleaded Complaint Rule, Federal & State Interrelationships, Federal Common Law, Preemption, Elements for Removal, Removability, Labor & Employment Law, Employment Relationships, Employment Contracts, Breaches, Collective Bargaining & Labor Relations, Unfair Labor Practices, Jurisdiction, Federal Preemption, Primacy of Labor Policy, Interpretation of Agreements, Judicial Review, Governments, Legislation, Expiration, Repeal & Suspension, Conditions & Terms, Arbitration Provisions