Espinoza v. Cargill Meat Solutions Corp..
| Decision Date | 05 October 2010 |
| Docket Number | No. 09-11170.,09-11170. |
| Citation | 622 F.3d 432 |
| Parties | Tina ESPINOZA, Plaintiff-Appellant, v. CARGILL MEAT SOLUTIONS CORPORATION, Defendant-Appellee. |
| Court | U.S. Court of Appeals — Fifth Circuit |
OPINION TEXT STARTS HERE
COPYRIGHT MATERIAL OMITTED.
Chad Douglas Inderman, Sean Michael Crowley, Kevin Thomas Glasheen (argued), Glasheen, Valles, Inderman & DeHoyos, L.L.P., Lubbock, TX, for Espinoza.
Slater Chalfant Elza, S. Tom Morris (argued), Underwood Law Firm, Amarillo, TX, for Defendant-Appellee.
Appeal from the United States District Court for the Northern District of Texas.
Before JONES, Chief Judge, PRADO, Circuit Judge, and O'CONNOR * , District Judge.
Tina Espinoza appeals the district court's grant of summary judgment in favor of Cargill Meat Solutions Corporation (“Cargill”) on her negligence and gross negligence claims, stemming from an injury she incurred while working at Cargill's meat packing plant. The district court found that (1) Espinoza waived her right to sue Cargill under Texas tort law by electing to participate in the Cargill Meat Solutions Corporation Texas Occupational Temporary Disability Plan (the “Plan”); (2) § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185(a), preempted her suit; and (3) Espinoza failed to exhaust the claims, grievance, and arbitration procedure (the “Claims Procedure”) in the Plan and in Cargill's collective bargaining agreement (“CBA”). On appeal, Espinoza argues that (1) under Texas Labor Code (“TLC”) § 406.033(e), her waiver was “void and unenforceable”; (2) § 301 of the LMRA does not preempt her suit because her negligence claim is not “inextricably intertwined” with any provision of Cargill's CBA; and (3) because she retained her right to sue, she need not follow the Claims Procedure.
Because Cargill offered its employees Workers' Compensation coverage, and TLC § 406.033(e)'s prohibition against waiver of an employee's right to sue only applies to an employer who does not offer coverage, Espinoza's waiver was valid and enforceable. Additionally, § 301 of the LMRA preempts Espinoza's suit because a sufficient nexus exists between the terms of the CBA and the elements of Espinoza's negligence cause of action for purposes of preemption. Finally, because Espinoza's waiver of her rights was enforceable, her failure to follow the Claims Procedure bars her suit. We therefore affirm the district court's grant of summary judgment in favor of Cargill.
Since 2002, Cargill, a corporation operating a meat packing plant in Friona, Texas, has provided Workers' Compensation insurance for its employees. In addition to the Workers' Compensation insurance policy, Cargill instituted the Plan, which provides medical benefits so long as the injured claimant remains employed with Cargill. Upon commencement of employment, Cargill employees may: (1) receive protection under Cargill's Workers' Compensation insurance policy; (2) waive Workers' Compensation protection and retain the right to sue in tort; or (3) waive both Workers' Compensation protection and the right to sue in tort, and instead participate in the Plan.
On September 14, 2006, Cargill hired Espinoza. On September 15, 2006-the day after her hiring-Espinoza signed a written waiver of Workers' Compensation insurance and an election to participate in the Plan. The waiver states:
I have reviewed (1) the [CBA] between Excel 1 and the United Food and Commercial Workers Local No. 540, AFL-CIO, as amended ..., (2) a summary of the [Plan], and (3) the written Notice dated APRIL 15, 2002, that Excel now provides Workers' Compensation Insurance under the Texas Workers' Compensation Act (the Act), and I understand that I may make a choice as to the coverage I desire.
Therefore, I hereby WAIVE Workers' Compensation Insurance and make the election checked as follows:
Under the bolded sentence, the waiver provides two options:
In lieu of Workers' Compensation Insurance, I elect to be covered by the [Plan], and I understand that the exclusive and mandatory procedure for enforcing my rights will be the [Claims Procedure] under the Plan and the CBA.
In lieu of Workers' Compensation Insurance and in lieu of coverage under the [Plan], I elect to retain my rights of action under common and statutory law. I understand such rights will be subject to all defenses available to Excel under the common and statutory law. I further understand and agree that the exclusive and mandatory procedure for enforcing my rights will be the claim procedure provided in the CBA, including final and binding arbitration under the Federal Arbitration Act, 9 U.S.C. §§ 2-13.
Espinoza initialed the first option.
Cargill also entered into a CBA with the United Food and Commercial Workers CLC Local # 540, AFL-CIO (the “Union”), which governs the relationship between Cargill and its employees, including Espinoza. The CBA dictates that the Plan is the sole mechanism for addressing workplace injuries, and states that the Union “waive[s] on behalf of itself and all bargaining unit employees, and [sic] any and all other causes of action which it or such employees possess outside said Disability Plan which may in any way relate to or arise out of an on the job accident, illness, or injury.” If a claim is not resolved by the Plan's administrative procedures, an employee may then proceed to arbitration pursuant to the CBA, which is “final and binding upon all parties.” The Plan also states that “there shall be no right to appeal.”
On February 15, 2007, Espinoza injured her hand while operating a “butt bone” saw. After her injury, Espinoza began receiving medical and wage replacement benefits through the Plan. Although she received Plan benefits, she did not miss any time from work. She did not seek administrative review of her benefits through the Claims Procedure. On August 29, 2007, Cargill fired Espinoza, which also terminated her eligibility for Plan benefits. Espinoza subsequently filed this action against Cargill, alleging gross negligence and negligence for failing to properly train and supervise her, failing to adopt proper polices and procedures regarding operation of machinery, failing to provide safe equipment, and failing to provide a safe place of work.
Cargill filed a motion for summary judgment, which the district court granted. The district court found that Espinoza had waived her causes of action for torts when she elected to participate in the Plan, and that TLC § 406.033(e) did not render her waiver void and unenforceable because Cargill provided its employees with the option to retain coverage through Workers' Compensation insurance, thus remaining a “subscriber.” The district court also held that § 301 of the LMRA preempted Espinoza's suit because the scope of Cargill's duties and Espinoza's remedies under the CBA were inextricably intertwined with the scope of Cargill's legal duty for purposes of Espinoza's negligence claim. Finally, the district court found that Espinoza's failure to follow the Claims Procedure precluded her negligence action. Espinoza timely appealed.
We have jurisdiction under 28 U.S.C. § 1291, and review “the district court's grant of summary judgment de novo, applying the same standard as the district court.” Chaney v. Dreyfus Serv. Corp., 595 F.3d 219, 228-29 (5th Cir.2010) (citing Golden Bridge Tech., Inc. v. Motorola, Inc., 547 F.3d 266, 270 (5th Cir.2008)). Summary judgment is appropriate “if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). “Factual controversies are construed in the light most favorable to the nonmovant, but only if both parties have introduced evidence showing that an actual controversy exists.”
Lynch Props., Inc. v. Potomac Ins. Co. of Ill., 140 F.3d 622, 625 (5th Cir.1998) (citing Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994) (en banc)).
On appeal, Espinoza advances several arguments, the first alleging that the district court erred by finding her waiver of her right to sue Cargill valid and enforceable under TLC § 406.033(e). Espinoza also argues that the district court erred by holding that § 301 of the LMRA preempts her cause of action because the legal duties upon which her negligence claim rests are not dependent upon an interpretation of the CBA, and are thus not inextricably intertwined with the CBA. Finally, Espinoza contends that the district court erred by holding that her failure to initiate a claim through the Claims Procedure precludes her suit, because she is not seeking Plan benefits and is thus not required to participate in such procedures.
Espinoza's primary argument involves an application of TLC § 406.033. In relevant part, this provision reads:
(a) In an action against an employer who does not have workers compensation insurance coverage to recover damages for personal injuries or death sustained by an employee in the course and scope of the employment, it is not a defense that:
(1) the employee was guilty of contributory negligence;
(2) the employee assumed the risk of injury or death; or
(3) the injury or death was caused by the negligence of a fellow employee ....
(e) A cause of action described in Subsection (a) may not be waived by an employee before the employee's injury or death. Any agreement by an employee to waive a cause of action or any right described in Subsection (a) before the employee's injury or death is void and unenforceable.
Espinoza offers several reasons for why we should find that her waiver of future actions against Cargill is void and unenforceable. First, she contends that Cargill failed to provide evidence that it covered its employees with a Workers' Compensation insurance policy....
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