O'Brien v. Consolidated

U.S. Court of Appeals for the First Circuit

O'Brien v. Consolidated

Opinion

USCA1 Opinion









August 5, 1992 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT

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No. 92-1086

WILLIAM J. O'BRIEN,

Plaintiff, Appellant,

v.

CONSOLIDATED RAIL CORPORATION,

Defendant, Appellee.


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APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

[Hon. William G. Young, U.S. District Judge]
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Before

Selya, Circuit Judge,
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Lay,* Senior Circuit Judge,
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and O'Scannlain,** Circuit Judge.
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Philip G. Boyle for appellant.
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Gary D. Buseck with whom Robert L. Farrell and Parker, Coulter,
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Daley & White were on brief for appellee.
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* Of the Eighth Circuit, sitting by designation.
** Of the Ninth Circuit, sitting by designation.















O'SCANNLAIN, Circuit Judge: We must decide whether a state
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law providing for physical handicap discrimination claims against

employers is preempted by the Railway Labor Act ("RLA"), 45 U.S.C.

151-88.

I

In August 1985, William J. O'Brien was laid off by

Consolidated Rail Corporation ("Conrail") from his position as

yardmaster in the Boston area. O'Brien declined Conrail's offer

of a position in Springfield, Massachusetts and instead applied

for a stevedore position with Conrail, also in the Boston area.

Although such position was already filled, O'Brien had eight and

one-half years of seniority with Conrail and under the collective

bargaining agreement he was entitled to "bump" the less senior

employee filling the position.

O'Brien was born without a right hand. The supervisor of the

stevedoring operation told O'Brien he was disqualified from being

a stevedore because he was physically incapable of performing the

duties of a stevedore. O'Brien requested a field test to refute

the supervisor's contention. Six Conrail employees conducted the

field test, and concluded that O'Brien could not safely perform

all of the duties of a stevedore. In particular, the six-member

committee determined that O'Brien would not be able to climb

ladders safely in adverse weather, and would not be able to handle

safely the forty pound "bridge plates" used in the stevedoring

operation.

O'Brien filed a grievance under the procedures provided by

the collective bargaining agreement, claiming that Conrail



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violated the antidiscrimination provision of such agreement. The

grievance was first denied by the Manager-Labor Relations at

Conrail, and later by Conrail's Senior Director-Labor Relations.

O'Brien then submitted the matter to the National Railroad

Adjustment Board ("NRAB"), which was created by the RLA to resolve

labor disputes in the railroad industry. The NRAB denied O'Brien's

grievance.

O'Brien also filed a complaint with the Office of Federal

Contract Compliance Programs ("OFCCP"), which investigates

complaints of unlawful employment discrimination lodged against

federal contractors such as Conrail. The OFCCP determined that

Conrail had not violated the antidiscrimination provisions of its

contract with the government. O'Brien sought reconsideration by

the Director of the OFCCP, who affirmed the determination of the

OFCCP.

Eventually, O'Brien was called back from lay off by Conrail

to his former yardmaster job. In January 1988, however, O'Brien

was again laid off. O'Brien wrote to the stevedoring supervisor

requesting to "bump" an employee in a stevedore position, and the

supervisor replied that "Conrail's prior determination still

stands."

On March 14, 1988, after he had requested the stevedore

position but before his request was denied, O'Brien filed a

complaint with the Massachusetts Commission Against Discrimination

("MCAD"), a prerequisite to bringing an action in court for a

violation of the state antidiscrimination law. O'Brien alleged





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that Conrail had violated Massachusetts General Laws Chapter 151B

("Chapter 151B"), which prohibits discrimination on the basis of

physical or mental handicap, if the handicapped person is "capable

of performing the essential functions of the position involved

with reasonable accommodation, unless the employer can demonstrate

that the accommodation required . . . would impose an undue

hardship to the employer's business." Mass. Gen. L. ch. 151B,

4. The MCAD permitted O'Brien to file suit in Massachusetts state

court, and he did so.1

Conrail petitioned to remove the case to United States

district court, alleging that the district court had diversity

jurisdiction and jurisdiction under 28 U.S.C. 1337(a), which

grants federal jurisdiction over a "civil action . . . arising

under any Act of Congress regulating commerce." The district

court granted the removal petition.

Conrail then moved for summary judgment on the following

grounds: (1) O'Brien's claims were preempted by the RLA, (2)

O'Brien's claims were preempted by Section 503 of the

Rehabilitation Act, (3) the adverse determinations of the NRAB and

the OFCCP had preclusive effect on O'Brien's claims, and (4)

O'Brien's claim under Chapter 151B was barred by a six month






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In his state court complaint, O'Brien also alleged breach
of the covenant of good faith and fair dealing in his
employment contract and violation of his rights under the
Massachusetts Constitution, Amendment Article 114. On the
recommendation of the magistrate judge, these counts were
dismissed by the district court, and O'Brien does not
challenge such dismissals on appeal.1

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statute of limitations. A hearing on the motion was held before

U.S. Magistrate Judge Marianne Bowler.

The magistrate judge recommended that summary judgment be

granted for Conrail on all the grounds urged by Conrail except the

statute of limitations theory. The district court adopted the

recommendations of the magistrate judge in whole and entered

summary judgment for Conrail. O'Brien timely appealed.

II

O'Brien argues that the district court erred in determining

that his claim was barred because his state statutory rights under

Chapter 151B are independent of and exceed his rights under the

RLA and the collective bargaining agreement with Conrail. O'Brien

contends that the resolution of his claim under Chapter 151B

"hinge[s] upon the meaning to be given the terms of the statute

involved, and not those within the collective bargaining

agreement," and thus that the RLA and the collective bargaining

agreement are simply not implicated, let alone preemptive.

A

Preemption doctrine is founded on Article VI, clause 2 of the

Constitution, which states that "the Laws of the United States . .

. shall be the supreme Law of the Land." Under the Supremacy

Clause, "state laws that 'interfere with, or are contrary to the

laws of congress, made in pursuance of the constitution' are

invalid." Wisconsin Pub. Intervenor v. Mortier, 111 S. Ct. 2476,
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2481 (1991) (quoting Gibbons v. Ogden, 22 U.S. 1, 71 (1824)).
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Thus, the mere fact that O'Brien's cause of action under Chapter





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151B is "independent" of the RLA says nothing about whether such

action is preempted by the RLA. Indeed, in any case where

preemption doctrine is applied, there will be a state law cause of

action "independent" of federal law. Rather, the critical issue

is whether the state law, Chapter 151B, "interfere[s] with" the

federal RLA.

"'[P]reemption may be either express or implied, and is

compelled whether Congress' command is explicitly stated in the

statute's language or implicitly contained in its structure and

purpose.'" Morales v. Trans World Airlines, Inc., 112 S. Ct.
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2031, 2036 (1992) (quoting FMC Corp. v. Holliday, 111 S. Ct. 403,
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407 (1990)). Where, as here, express preemption is absent,
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the challenged state law must yield when
it "regulates conduct in a field that
Congress intended the Federal Government
to occupy exclusively" . . . [or] where
the state law "actually conflicts with
federal law." . . . Such a conflict arises
where it is physically impossible to
comply with both the federal and the state
law or where "state law stands as an
obstacle to the accomplishment and
execution of the full purposes and
objectives of Congress."

Pedraza v. Shell Oil Co., 942 F.2d 48, 51 (1st Cir. 1991)
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(quoting English v. General Elec. Co., 110 S. Ct. 2270, 2275
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(1990)), cert. denied, 112 S. Ct. 993 (1992). Hence, we
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consider whether the RLA evinces a congressional intent to

occupy the field of railroad labor relations and whether

separate state causes of action such as Chapter 151B

undermine the "full purposes and objectives of Congress" in

enacting the RLA.




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This court has not previously had occasion to determine

the scope of preemption under the RLA. We have, however,

examined preemption under the Labor Management Relations Act

("LMRA"), 29 U.S.C. 141-87. See Jackson v. Liquid
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Carbonic Corp., 863 F.2d 111 (1st Cir. 1988), cert. denied,
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490 U.S. 1107 (1989). The LMRA and the RLA are similar in

many respects: "[a]lthough the preemptive effect of . . .

the Labor Management Relations Act . . . cannot be 'imported

wholesale into the railway labor arena,' courts may look to

the construction of other federal labor statutes for

assistance in construing [the RLA]." McCall v. Chesapeake &
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Ohio Ry. Co., 844 F.2d 294, 299 (6th Cir.) (quoting
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Brotherhood of R.R. Trainmen v. Jacksonville Terminal Co.,
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394 U.S. 369, 383 (1969)), cert. denied, 488 U.S. 879 (1988).
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In Jackson, an employee challenged drug testing by his

employer under Massachusetts' privacy laws. Jackson, 863
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F.2d at 113. The employer contended that the employee's

Massachusetts causes of action were barred, state law having

been preempted by the federal LMRA. Id. The court observed
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that "under state law, Massachusetts would look to the

[collective bargaining] Agreement to discern the scope of the

privacy right which [the employee] was attempting to assert."

Id. at 120. The court then held that "[b]ecause resolution
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of [the employee's] state-law claims 'requires the

interpretation of a collective bargaining contract,' . . . it

follows inexorably, as night unto day, that [the LMRA]





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preempts maintenance of the suit in its present form." Id.

at 122 (quoting Lingle v. Norge Division of Magic Chef, Inc.,
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108 S. Ct. 1877, 1883 n.8 (1988)).

We believe that the holding of Jackson is equally

applicable to asserted RLA preemption. The Jackson court

concluded that to allow state law claims arising out of the

employment relationship to be brought in court would

undermine the scheme for labor dispute resolution established

by Congress.

We are mindful of the need to preserve the
central role of arbitration in our system
of industrial self-government. . . . The
ordering and adjusting of competing
interests through a process of free and
voluntary collective bargaining is the
keystone of the federal scheme to promote
industrial peace. Grievance and
arbitration are important cogs in the
machinery. A plaintiff should not be
allowed to bypass the grievance procedures
established by the labor contract in a case
where his claims are so clearly dependent
on interpretation of the terms of that
contract. Allowing such an end run would
surely undermine the structure of
industrial self-government.

Id. at 121-22 (quotations and citations omitted).
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Such concerns are equally present here. The RLA

established a comprehensive conflict resolution procedure for

railroad labor disputes. The RLA divides disputes into major

disputes, those relating to the formation or existence of

collective bargaining agreements, and minor disputes, which

concern rights under an existing collective bargaining

agreement. See Consolidated Rail Corp. v. Railway Labor
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Exec. Ass'n, 109 S. Ct. 2477, 2480 (1989). "In the event of
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a major dispute, the RLA requires the parties to undergo a

lengthy process of bargaining and mediation." Id. In the
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event such mediation fails, the RLA provides for arbitration

of major disputes. Id. at 2480 n.3. "A minor dispute in the
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railroad industry is subject to compulsory and binding

arbitration before the National Railroad Adjustment Board . .

. . The Board . . . has exclusive jurisdiction over minor

disputes." Id. at 2480-81.
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Thus, the RLA "envision[s] binding administrative

proceedings into which virtually all individual labor-

management disputes are directed." McCall, 844 F.2d at 301.
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The RLA's procedures were designed for quick and efficient

dispute resolution. Union Pac. Ry. v. Sheehan, 439 U.S. 89,
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94 (1978) (per curiam). "The federal act was intended to

serve the interests of railroad employees by creating a

statutory scheme providing for the final settlement of

grievances by a tribunal composed of people experienced in

the railroad industry." McCall, 844 F.2d at 301.
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As in the case of the LMRA, to permit litigation in

court of state law claims connected with the collective

bargaining agreement would undermine the purposes behind the

RLA. "If the federal dispute resolution mechanism is to have

any force, juries cannot be allowed to second-guess the

decisions of arbitration boards." Id. at 302. Congress'
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intent that industry-based grievance and arbitration





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proceedings be used to resolve labor-management disputes in

the railroad industry would be frustrated if employees (or

employers) could bring actions requiring interpretation of

the collective bargaining agreement in court, based on state

law. Costly litigation would replace efficient grievance and

arbitration procedures.

B

Having concluded that the preemption rule of Jackson
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governs here, we turn to applying it. Would resolution of

O'Brien's physical handicap discrimination claim under

Chapter 151B "require[] interpretation of a collective

bargaining contract?" We believe it would.2

In order to determine whether Conrail had unlawfully

discriminated against O'Brien, we would first have to

ascertain whether O'Brien was otherwise eligible for the

stevedore position he sought. That is, aside from his

handicap, would O'Brien be eligible? To answer this question

we would have to resort to the collective bargaining

agreement. O'Brien was laid off from his job as yardmaster

in the Boston area, but Conrail offered him another position

in Springfield, Massachusetts, where O'Brien had worked

before. Further, no stevedore positions were vacant in the


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2
O'Brien argues that Chapter 151B holds Conrail to a
different and higher standard of conduct than Conrail's duties
under the collective bargaining agreement because Chapter 151B
contains a "reasonable accommodation" requirement. We do not
need to decide whether that is correct because we conclude to
the extent that O'Brien's state law claim requires
interpretation of the collective bargaining agreement such
claim is preempted under Jackson.
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Boston area. Thus, as a threshold issue to determine

O'Brien's contractual eligibility for the job, we would need

to interpret the collective bargaining agreement to determine

whether it entitled O'Brien to refuse to return to

Springfield, and whether it entitled O'Brien to "bump" the

present holder of the stevedore position.

More fundamentally, addressing the merits of O'Brien's

claim of physical handicap discrimination would require us to

assess O'Brien's fitness and ability to perform safely the

functions of a stevedore. Yet an employee's fitness and

ability are governed by the rules and procedures contained in

the collective bargaining agreement. Rule 49 of the

collective bargaining agreement sets forth the method by

which an employee's physical fitness to perform his job is

determined. Rule 50 describes Conrail's obligations to

accommodate disabled and incapacitated employees. Perhaps

the best indication that fitness and ability are the subject

of the collective bargaining agreement is the very grievance

that O'Brien brought under this collective bargaining

agreement on the issue of his fitness and ability to be a

stevedore. Chapter 151B requires a court to determine

whether the plaintiff is a "qualified handicapped person,"

but this determination would be impossible to make without

reference to the collective bargaining agreement.

Hence, we hold, following Jackson, O'Brien's claim under
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Chapter 151B is barred because resolution of his claim would





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require interpretation of the collective bargaining

agreement.3 This holding is not inconsistent with Colorado
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Anti-Discrimination Comm'n v. Continental Air Lines, Inc.,
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372 U.S. 714 (1963), which held that a state racial
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discrimination claim statute was not preempted by the RLA.

Resolution of the question of whether an employer was engaged

in racial discrimination would not require interpretation of

the collective bargaining agreement. As the Sixth Circuit

has noted, "racial discrimination [is] conduct that is not by

any construction a subject for collective bargaining and

arbitration." McCall, 844 F.2d at 302.
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"In enacting [the RLA], Congress endeavored to promote

stability in labor-management relations in this important

national industry by providing effective and efficient

remedies for the resolution of railroad-employee disputes


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3
The New Jersey Supreme Court has recently held that
"[a]llowing [an aggrieved employee] to bring his claim of
handicap discrimination before the courts would interfere
impermissibly with Congress's intent that the Adjustment
Boards be the sole arbiter of claims related to railroad
'rules and working conditions.'" Maher v. New Jersey Transit
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Rail Oper., Inc., 593 A.2d 750, 765 (N.J. 1991). Similarly,
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the California Court of Appeal has stated that "[i]f an
employee's lack of fitness to perform his job is made
arbitrable under the parties' collective bargaining agreement,
the present action is preempted insofar as it alleges
discrimination based on physical handicap because it raises an
issue determinable solely under procedures established by the
RLA." Evans v. Southern Pacific Trans. Co., 262 Cal. Rptr.
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416, 420 (Cal. App.), review denied, 1989 Cal. LEXIS 5073
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(Cal. 1989), cert. denied, 496 U.S. 936 (1990). See also
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Quinn v. Southern Pacific Trans. Co., 711 P.2d 139, 144 (Or.
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App. 1985) (because neither party argued that employee's
physical handicap discrimination claim under Oregon law
"implicate[d] any provision of a collective bargaining
agreement," Oregon law was not preempted by the RLA), review
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denied, 715 P.2d 93 (Or. 1986).
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arising out of the interpretation of collective-bargaining

agreements." Union Pacific Ry., 439 U.S. at 94. The
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procedures provided by the RLA were intended "to secure the

prompt, orderly, and final settlement of grievances that

arise daily between employees and carriers." Id. O'Brien

has fully availed himself of such procedures. To permit him

to relitigate the issue of his physical fitness by way of a

claim under a state physical handicap discrimination law

would clearly conflict with the "prompt, orderly, and final

settlement of grievances" sought by Congress in enacting the

RLA's dispute resolution procedures.

Affirmed.
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Reference

Status
Published