Ak Steel Corp. v. Chamberlain, C-1-97-383.

• Decision Date: 21 August 1997
• Docket Number: No. C-1-97-383.,C-1-97-383.
• Citation: 974 F.Supp. 1120
• Parties: AK STEEL CORPORATION, Plaintiff, v. Jeff CHAMBERLAIN, et al., Defendants.
• Court: U.S. District Court — Southern District of Ohio

Page 1120

974 F.Supp. 1120

AK STEEL CORPORATION, Plaintiff, v. Jeff CHAMBERLAIN, et al., Defendants.

No. C-1-97-383.

United States District Court, S.D. Ohio, Western Division.

August 21, 1997.

George Edward Yund, David Charles Horn, Frost & Jacobs, Cincinnati, OH, Frank Chester Woodside, III, Dinsmore & Shohl, Cincinnati, OH, for AK Steel Corp.

Louise Malbin Roselle, Colleen Marie Hegge, Stanley Morris Chesley, Waite, Schneider, Bayless & Chesley Co., Cincinnati, OH, James Delano Ruppert, Ruppert, Bronson, Chicarelli & Smith Co. LPA, Franklin, OH, David Marvin Cook, Andrew Seth Lipton, Manley, Burke, Fischer, Lipton & Cook, Cincinnati, OH, for Jeff Chamberlain, Gary Parks.

Louise Malbin Roselle, Colleen Marie Hegge, Waite, Schneider, Bayless & Chesley Co., Cincinnati, OH, for Joe Helton.

ORDER DENYING PLAINTIFF'S MOTION FOR PERMANENT INJUNCTION

SPIEGEL, Senior District Judge.

This matter is before the Court on Plaintiff's Motion for Permanent Injunction (doc. 2), Defendants' Memorandum in Opposition (doc. 7), Plaintiff's Reply (doc. 8), Defendants' Supplemental Citation of Authority (docs. 14 & 15) and Plaintiff's Reply (doc. 16). The Court held hearing on the Motion for Preliminary Injunction on June 3, 1997.

BACKGROUND

Plaintiff, AK Steel Corporation ("AK Steel"), brought this action for declaratory and injunctive relief against Defendants, Jeff Chamberlain, Gary Parks, Joe Helton, Ricky Allen Bauer, Jerry Rogers and Kenneth Carder, who are or were employees at the AK Steel facility in Middletown, Ohio. Defendants are or were also members of the collective bargaining unit represented by the Armco Employees Independent Federation ("AEIF"). Defendants were injured in an explosion at the Middletown facility in December 1995.

On January 26, 1996, Defendants filed a class action complaint against AK Steel in the Court of Common Pleas for Butler County, Ohio, Case No. CV96-01-0105 (the "State Class Action") (Sage, J.), seeking to represent a class of workers who had been employed at the AK Steel's Middletown facility since 1992. Defendants allege that AK Steel intentionally maintains an unsafe workplace, exposing its employees to hazardous working conditions. In the State Class Action, Defendants seek injunctive relief, medical monitoring and compensatory and punitive damages for the class.

AK Steel contends that the claims in the State Class Action are preempted by § 301 of the Labor Management Relations Act ("LMRA"), 29 U.S.C. § 185. AK Steel, however, did not remove the action to federal court. Instead, on May 9, 1996, AK Steel filed a motion for partial summary judgment in the State Class Action arguing that Defendants' state law claims for intentional tort were preempted by § 301 of LMRA. After fully briefing and arguing the issue, AK Steel withdrew the motion before Judge Sage could rule on the motion.

On March 4, 1997, Judge Sage issued a decision certifying the case as a class action. AK Steel immediately appealed the decision which the Ohio Court of Appeals dismissed as not a final and appealable order on June 20, 1997. See Document 15. AK Steel also moved to have Judge Sage disqualified based upon an alleged conflict of interest. On July 3, 1997, Chief Justice Moyer of the Supreme Court of Ohio denied the motion.

On April 21, 1997, AK Steel filed this action in the United States District Court for the Southern District of Ohio. AK Steel seeks a declaration that the Defendants' claims in the State Class Action are preempted, that Defendants' claims in the State Class Action must be arbitrated pursuant to the collective bargaining agreement ("CBA") between AK Steel and AEIF, as well as an injunction against Defendants from maintaining their State Class Action.

AK Steel then filed a Motion for Permanent Injunction. AK Steel asks this Court to enjoin Defendants from taking any further action in the State Class Action. The Court held a hearing on the Motion for Permanent Injunction on June 3, 1997.

DISCUSSION

AK Steel's motion raises numerous procedural as well as substantive legal questions. Initially, the Court is concerned about the status of its jurisdiction to even hear this matter. Further, there are numerous hurdles that must be overcome to issue an injunction against union activity and pending state proceedings. In addition, the Court must also address other equitable factors which inform our decision whether to enjoin the state court action. Finally, there are complex questions related to preemption,¹ contract interpretation and compelling arbitration which the Court must resolve in order to determine whether an injunction is proper. The Court will not have to address many of these issues because we do not have authority to grant the injunction sought by AK Steel.

I. Jurisdiction

AK Steel asserts that this Court has jurisdiction pursuant to the Federal Arbitration Act, 9 U.S.C. § 1, and the Labor Management Relations Act, 29 U.S.C. § 301. Federal courts have a duty to see that the jurisdiction granted to the court by the Constitution is not exceeded. Louisville & Nashville R.R. v. Mottley, 211 U.S. 149, 152, 29 S.Ct. 42, 43, 53 L.Ed. 126 (1908). In this case, the Court must determine whether AK Steel's action for declaratory judgment that claims in a pending state court action are preempted because of a CBA "arises under" the Constitution or laws of the United States. In essence, AK Steel seeks our ruling whether their preemption defense to the pending state claims is victorious.

The Court has engaged in extensive research concerning the basis of our jurisdiction to hear the merits of this case. Unfortunately, we have been unable to resolve the question to our satisfaction. However, because it is clear that we do not have authority to grant the injunction sought by AK Steel, we DENY the motion and ORDER the Parties to brief the question of whether the Court has jurisdiction to continue to hear this case. Specifically, the Court is concerned whether an action to declare the claims of a private party based upon state law are preempted fits within the limited exception to the well-pleaded complaint rule of Mottley. Compare Shaw v. Delta Air Lines, 463 U.S. 85, 96 n. 14, 103 S.Ct. 2890, 2899 n. 14, 77 L.Ed.2d 490 (1983) (stating that a plaintiff seeking injunctive relief from state regulation on ground that it is preempted presents a question of federal law).

II. The Anti-Injunction Act

Defendants argue that two provisions of federal law limit the Court's authority to grant injunctions in this context. First, the Norris-LaGuardia Act, 29 U.S.C. § 104, prohibits injunctions in certain instances in cases involving labor disputes. Second, the Anti-Injunction Act prohibits federal courts from enjoining pending state court actions except in three limited situations.

Because AK Steel seeks to enjoin the litigant in a state court action, our authority to grant an injunction must first be determined by reference to the Anti-Injunction Act, 28 U.S.C. § 2283. See Alton Box Board Co. v. Esprit de Corp., 682 F.2d 1267 (9th Cir.1982) (finding that injunction directed at litigant has same effect as injunction against the state court itself); Krey Packing Co. v. Hamilton, 572 F.2d 1280 (8th Cir.1978) (same). The Anti-Injunction Act states:

A court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary to aid of its jurisdiction, or to protect or effectuate its judgments.

28 U.S.C. § 2283. The Court may only enjoin a pending state court action if the injunction would fall within one of the three exceptions to the Anti-injunction Act. Atlantic Coast Line R.R. Co. v. Brotherhood of Locomotive Engineers, 398 U.S. 281, 287, 90 S.Ct. 1739, 1743, 26 L.Ed.2d 234 (1970) ("Any injunction against state court proceedings ... must be based on one of the specific statutory exceptions to § 2283 if it is to be upheld."). Furthermore, the Court may not attempt to expand those exceptions "by loose statutory construction." Id. Finally, any doubts regarding the propriety of granting an injunction against a pending state court proceeding should be resolved in favor of allowing the state court to determine the controversy. Id. at 294, 90 S.Ct. at 1746-47.

AK Steel argues that an injunction in this instance is necessary both in aid of this Court's jurisdiction and to protect or effectuate the Court's judgment. We disagree.

The term "to protect or effectuate its judgments," often referred to as the relitigation exception, is grounded in principles of res judicata and collateral estoppel. Huguley v. General Motors Corp., 999 F.2d 142, 145 (6th Cir.1993). "The `essential prerequisite for applying the relitigation exception is that the claims or issues which the federal injunction insulates from litigation in state proceedings actually have been decided by the federal court.'" Id. at 144 (emphasis in original) (quoting Chick Kam Choo v. Exxon, 486 U.S. 140, 148, 108 S.Ct. 1684, 1690, 100 L.Ed.2d 127 (1988)); Texas Employers' Ins. Assoc. v. Jackson, 820 F.2d 1406, 1416 (5th Cir.1987) aff'd in part on this ground and reversed in part, 862 F.2d 491 (5th Cir.1988) (en banc). In this situation, however, we have not issued nor have we been asked to issue an order which would create a judgment which requires an injunction to effectuate or enforce it. Accordingly, the Anti-Injunction Act does not authorize an injunction under this exception. See Krey, 572 F.2d at 1282 (finding action to enforce arbitrator's award and enjoin state action on similar issue did not fall within the relitigation exception because there was no final judgment from a federal court to protect or effectuate).

AK Steel also argues that an injunction is authorized under the "necessary in aid of jurisdiction" exception. The general rule under the "necessary in aid of its jurisdiction" exception is that where state and federal courts have concurrent...