Laborers' Int'l Union of N. Am. v. Main Bldg. Maint., Inc.

435 F.Supp.3d 995

LABORERS' INTERNATIONAL UNION OF NORTH AMERICA, LOCAL 341, Plaintiff,

v.MAIN BUILDING MAINTENANCE, INC., Defendant.

Case No. 3:19-cv-00221-TMB

United States District Court, D. Alaska.

Signed January 24, 2020

Khalial L. Withen, Alaska District Council of Laborers, Anchorage, AK, for Plaintiff.

Caroline Newman Small, Pro Hac Vice, Harry Jay Hulings, Pro Hac Vice, San Antonio, TX, Rebecca A. Lindemann, Richmond & Quinn, Anchorage, AK, for Defendant.

ORDER ON DEFENDANT'S MOTION TO DISMISS (DKT. 5)

TIMOTHY M. BURGESS, UNITED STATES DISTRICT JUDGE

I. INTRODUCTION

The matter comes before the Court on Defendant Main Building Maintenance, Inc.'s ("MBM") Motion to Dismiss (the "Motion").¹ The Motion seeks to dismiss the Complaint² filed by Plaintiff Laborers' International Union of North America, Local 341 ("Local 341") pursuant to Federal Rules of Civil Procedure 12(b)(1) and (6) for lack of subject matter jurisdiction and failure to state a claim.³ The Motion was fully briefed by the Parties.⁴ The Parties have not requested oral argument, and the Court finds one would not be helpful. For the reasons stated below, Defendants' Motion is DENIED.

II. BACKGROUND

The present action concerns the Collective Bargaining Agreement (the "CBA") between the Parties and whether MBM must litigate certain disputes in arbitration.⁵ Local 341 is a "labor organization" as defined by 29 U.S.C. §§ 152(5) and 185.⁶ MBM is a private corporation that provides housekeeping services in the state of Alaska and an "employer" within the meaning of 29 U.S.C. §§ 152(6) and 185.⁷ MBM and Local 341 entered into the CBA effective from November 1, 2018 through November 14, 2022.⁸ The CBA provides that all disputes in connection with the interpretation or application of the terms of the CBA must be resolved in binding arbitration.⁹

On April 1, 2019, MBM succeeded a government contract for hospital housekeeping services on the Joint Base Elmendorf-Richardson in Anchorage, Alaska.¹⁰ Simaika Tagaloa was an employee of MBM's predecessor.¹¹ However, when MBM assumed the contract, it informed Tagaloa that he would no longer work on the project after the transition.¹² Local 341 initiated grievances against MBM for its decisions regarding Tagaloa's employment.¹³ Local 341 alleged that MBM had violated several provisions of the CBA and Executive Order 13495, which, Local 341 argues, had been incorporated into the CBA by reference.¹⁴ Local 341 alleges that MBM participated in the grievance process until Local 341 notified MBM that it was submitting the grievances to arbitration.¹⁵ On May 30, 2019, MBM stated that it would "neither select an arbitrator nor participate in the proposed arbitration."¹⁶ Between June 4, 2019 and July 11, 2019, Local 341 repeated its demand for arbitration twice.¹⁷ Nevertheless, MBM refused to participate in arbitration.¹⁸

On August 13, 2019, Local 341 filed this action.¹⁹ In its Complaint, Local 341 claims MBM has violated the CBA by refusing to arbitrate Local 341's grievances.²⁰ Local 341 requests "that the Court issue an Order compelling the arbitration without delay of all claims in the grievance before a mutually selected arbitrator in accordance with the grievance and arbitration procedure in Article IX of the collective bargaining agreement."²¹ MBM moved to dismiss Local 341's Complaint on November 14, 2019 under Rules 12(b)(1) and (6).²²

III. LEGAL STANDARD

A. Federal Rule of Civil Procedure 12(b)(1)

MBM has moved to dismiss the Complaint, in part, because it argues the Court lacks subject matter jurisdiction under Rule 12(b)(1). "[I]n reviewing a Rule 12(b)(1) motion to dismiss for lack of jurisdiction, [courts] take the allegations in the plaintiff's complaint as true."²³ "Once challenged, the party asserting subject matter jurisdiction has the burden of proving its existence."²⁴ "A federal court is presumed to lack jurisdiction in a particular case unless the contrary affirmatively appears."²⁵ Moreover, a Rule 12(b)(1) jurisdictional attack may be facial or factual, depending on whether the challenger asserts that the complaint, on its face, is insufficient to invoke federal jurisdiction or whether the challenger disputes the truth of the allegations themselves.²⁶ For a facial attack, " ‘the court must only consider the allegations of the complaint and documents referenced therein and attached thereto, in the light most favorable to the plaintiff.’ "²⁷ For a factual attack, the Court may consider evidence outside the pleadings to resolve factual disputes as to jurisdiction.²⁸ When faced with a challenge to its subject matter jurisdiction under Rule 12(b)(1), the court must resolve that issue before determining whether the complaint states a claim under Rule 12(b)(6).²⁹

B. Federal Rule of Civil Procedure 12(b)(6).

MBM also move under Rule 12(b)(6) to dismiss Local 341's Complaint for failure to state a claim upon which relief can be granted.³⁰ In order to survive a motion to dismiss under Rule 12(b)(6), a complaint must set forth "a short and plain statement of the claim showing that the pleader is entitled to relief,"³¹ and "contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ "³² In ruling on a 12(b)(6) motion, the Court must "accept all factual allegations of the complaint as true and draw all reasonable inferences in favor of the nonmoving party."³³

In determining whether a complaint pleads sufficient facts to cross "the line between possibility and plausibility," "[t]hreadbare recitals of the elements of a cause of action" and "conclusory statements" do not suffice.³⁴ However, a plaintiff need not plead "all facts necessary to carry" his or her burden.³⁵ "Determining whether a complaint states a plausible claim for relief ... [is] a context-specific task that requires the reviewing court to draw on its judicial experience and common sense."³⁶ So long as plaintiffs meet this standard of plausibility, their claim survives a 12(b)(6) motion even if defendants present a similarly plausible description of the disputed events.³⁷ "A dismissal for failure to state a claim is proper only if it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief."³⁸

Generally, the court should not consider materials outside of the pleadings when ruling on a motion to dismiss for failure to state a claim.³⁹ Courts may consider additional materials where the complaint "necessarily relies" on those documents and their authenticity is not disputed.⁴⁰

IV. DISCUSSION

Local 341 raises a single claim for relief: that the CBA requires MBM to arbitrate Local 341's grievances in binding arbitration.⁴¹ However, MBM argues that Local 341 has not exhausted its administrative remedies and, therefore, the Court does not have subject matter jurisdiction over this case.⁴² Additionally, MBM contends that because President Trump revoked Executive Order 13495, the Executive Order cannot form the basis of Local 341's Complaint.⁴³ Accordingly, MBM argues, the Complaint should be dismissed with prejudice pursuant to Rules 12(b)(1) and (6).⁴⁴

A. The Court Has Subject Matter Jurisdiction Pursuant to Section 301(a) of the Labor Management Relations Act.

Local 341 states that this Court has jurisdiction under Section 301 of the Labor Management Relations Act ("Section 301")⁴⁵ and 28 U.S.C. § 1331.⁴⁶ Section 301(a) provides that "suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter ... may be brought in any district court of the United States having jurisdiction of the parties...." Therefore, according with the plain meaning of the statute, to have jurisdiction under Section 301(a), this Court need only find that: (1) MBM is an "employer," (2) Local 341 is a "labor organization representing employees," and (3) the claim is for a violation of a contract between the two Parties.

MBM does not dispute that it is an "employer" or that Local 341 is a "labor organization" within the meaning of under Section 301(a). However, MBM alleges that Tagaloa was a "nondisplaced worker" and not MBM's employee and, therefore, MBM argues that Local 341 is not a "labor organization representing employees."⁴⁷ Further, MBM contends that "[Local 341] has cited no case where jurisdiction was conferred under Section 301(a) for nondisplaced workers such as Tagaloa."⁴⁸ However, MBM misconstrues the posture of this case. At heart, this is a contract dispute between Local 341 and MBM.⁴⁹ Although the subject matter might concern Tagaloa, he is not a party to this action. Therefore, Tagaloa's employment status or whether Tagaloa—a stranger to this action—exhausted his administrative remedies, is irrelevant for the purposes of the Court's jurisdiction over Local 341's claims. Local 341 represents employees, some of whom work for MBM.⁵⁰ Local 341, on behalf of the employees it represents, negotiated the CBA with MBM.⁵¹ Now, Local 341, on behalf of the employees it represents, is suing MBM for violations of the CBA.⁵² Although the dispute may have arisen from MBM's dealings with an alleged nondisplaced worker, that does not change the fact that Local 341 alleges a violation of the CBA. Therefore, this Court has subject matter jurisdiction to hear this case pursuant to Section 301(a).

Accordingly, MBM's Motion as made under Rule 12(b)(1) is DENIED .

B. Local 341 Has Sufficiently Stated Its Claim for a Violation of the CBA.

Local 341 alleges that MBM breached the CBA by failing to submit Local 341's underlying grievance to arbitration.⁵³ MBM argues that Local 341 has failed to state a claim and dismissal is appropriate pursuant to Rule 12(b)(6).⁵⁴ Under Rule 12(b)(6), a district court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must allege "enough facts to...