Martin Marietta Corp. v. Maryland Com'n on Human Relations

• Decision Date: 27 October 1994
• Docket Number: No. 93-1913,93-1913
• Citation: 38 F.3d 1392
• Parties: 147 L.R.R.M. (BNA) 2645, 63 USLW 2320, 3 A.D. Cases 1429, 7 A.D.D. 36, 5 NDLR P 429 MARTIN MARIETTA CORPORATION, AERO & NAVAL SYSTEMS, Plaintiff-Appellant, v. MARYLAND COMMISSION ON HUMAN RELATIONS, Defendant-Appellee.
• Court: U.S. Court of Appeals — Fourth Circuit

Page 1392

38 F.3d 1392

147 L.R.R.M. (BNA) 2645, 63 USLW 2320,

3 A.D. Cases 1429,

7 A.D.D. 36, 5 NDLR P 429

MARTIN MARIETTA CORPORATION, AERO & NAVAL SYSTEMS, Plaintiff-Appellant, v. MARYLAND COMMISSION ON HUMAN RELATIONS, Defendant-Appellee.

No. 93-1913.

United States Court of Appeals, Fourth Circuit.

Argued April 11, 1994.

Decided Oct. 27, 1994.

ARGUED: William Leroy Reynolds, II, Piper & Marbury, Baltimore, MD, for appellant. Lee David Hoshall, Asst. Gen. Counsel, Maryland Com'n on Human Relations, Baltimore, MD, for appellee. ON BRIEF: Russell H. Gardner, Scott V. Kamins, Piper & Marbury, Baltimore, MD, for appellant.

Before ERVIN, Chief Judge, NIEMEYER, Circuit Judge, and RESTANI, Judge, United States Court of International Trade, sitting by designation.

Affirmed by published opinion. Judge RESTANI wrote the opinion, in which Chief Judge ERVIN and Judge NIEMEYER joined.

OPINION

RESTANI, Judge:

Martin Marietta Corporation, Aero & Naval Systems ("Martin Marietta") appeals from the decision of the United States District Court for the District of Maryland granting the motion to dismiss of defendant Maryland Commission on Human Relations (the "MCHR") and denying Martin Marietta's motion for preliminary injunction to enjoin state administrative proceedings. The district court dismissed the action on the grounds that the requirements for abstention as discussed in Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971), had been met. For the reasons described herein, we affirm.

I. BACKGROUND

Martin Marietta provides goods and services, under contract, to various agencies of the United States government. Martin Marietta is a party to several collective bargaining agreements ("CBAs") that define terms and conditions of employment, including the handling of employee grievances. ¹ The state administrative proceedings Martin Marietta sought to enjoin concerned discrimination claims brought by Franklin R. Price ("Price"), a former employee. Price began employment with Martin Marietta in 1979 at its Baltimore facility. ² At the time Price was hired, he suffered from a severe hearing impairment.

On September 29, 1983, Price was struck by a vehicle in Martin Marietta's parking lot, and suffered serious injuries to his head, abdomen, limbs and torso. In particular, Price sustained a "traumatic brainstem contusion," resulting in multiple neurological problems including disturbed memory, loss of balance, dizziness, forgetfulness, unsteady gait, lack of mobility, and pain. Price subsequently went on medical leave and filed a claim for workers' compensation benefits with the Maryland Workers' Compensation Commission. During 1985 and 1986, medical examinations of Price indicated he had residual neurological impairments related to the head injury. Thus, the physicians at that time recommended that Price not return to a work environment with dangerous machinery and unprotected heights.

Price and Martin Marietta reached a settlement on the workers' compensation claim on January 13, 1987. The settlement agreement stated that Martin Marietta disputed the extent of Price's disability, and did not refer to any date for Price to return to work. In February 1987, Price was evaluated by a neurologist, Dr. Richard Taylor, who found Price to possess a "mild degree of unsteadiness," but also determined Price could return to regular duty as long as he avoided walking or climbing at unprotected heights. J.A. at 55. Martin Marietta subsequently prevented Price from returning to work on the basis that its medical department was unable "to clear" him. Id. at 83. Later in 1987 Price was re-evaluated by Dr. Taylor and was found to be able to return to work without restriction. Price was still not permitted to return to his job.

Price filed a complaint with the MCHR on February 22, 1988, alleging that the decision not to clear him for work was made on the basis of a perceived handicapped condition, and constituted discrimination. The complaint was served on Martin Marietta on March 17, 1988. Price was notified by Martin Marietta on March 22, 1988 that he was terminated, and that he had been kept on the payroll "erroneously" since January 24, 1987. Price amended his complaint on December 15, 1990 to include a charge that his dismissal by Martin Marietta was retaliatory because it occurred soon after the complaint was filed.

On June 27, 1991, the MCHR determined it had found probable cause to believe that Martin Marietta had discriminated against Price. The MCHR filed an administrative complaint on April 1, 1992 alleging that Martin Marietta had unlawfully discriminated against Price because of his handicap, in violation of Article 49B of the Annotated Code of Maryland, Secs. 16(a) and 16(f) ("Article 49B"), and seeking reinstatement for Price. On September 8, 1992, Martin Marietta moved for dismissal of the administrative complaint on the grounds of federal preemption of these claims.

Martin Marietta filed its complaint and motion for preliminary injunction in federal court on November 19, 1992 to enjoin state administrative proceedings brought by the MCHR. Simultaneously, Martin Marietta moved the administrative law judge to stay the proceedings pending the outcome of the federal action. On December 11, 1992, the MCHR moved for dismissal of the federal action, or in the alternative, for summary judgment. On June 17, 1993, the district court granted the motion for dismissal, on the basis that abstention under Younger was applicable.

Martin Marietta appeals from this judgment, contending that section 301 of the Labor Management Relations Act, 29 U.S.C. Sec. 185(a) (1988) (the "LMRA" or "Sec. 301"), and the Rehabilitation Act of 1973, 29 U.S.C. Secs. 701 et seq. (1988 & Supp. IV 1992) (the "FRA"), preempt the MCHR's jurisdiction over Price's claims, and that Younger abstention does not apply.

II. DISCUSSION

A. Abstention under Younger v. Harris

The district court's decision to abstain under Younger is reviewed for an abuse of discretion. Richmond, F. & P. R.R. v. Forst, 4 F.3d 244, 250 (4th Cir.1993). In Younger, the Supreme Court articulated the strong policy against federal court interference with any pending state judicial proceeding unless extraordinary circumstances so warrant. Middlesex County Ethics Comm. v. Garden State Bar Ass'n, 457 U.S. 423, 431, 102 S.Ct. 2515, 2521, 73 L.Ed.2d 116 (1982); Younger, 401 U.S. at 43, 45, 91 S.Ct. at 750, 751. Younger serves as an exception to the traditional rule that federal courts should exercise jurisdiction conferred on them by statute. See Colorado River Water Conservation Dist. v. United States, 424 U.S. 800, 813, 96 S.Ct. 1236, 1244, 47 L.Ed.2d 483 (1976). In Younger and its progeny, the Supreme Court generally has found abstention appropriate if the following three-pronged test has been met: 1/ there are ongoing state judicial proceedings; 2/ the proceedings implicate important state interests; and 3/ there is an adequate opportunity to raise federal claims in the state proceedings. Middlesex, 457 U.S. at 432, 102 S.Ct. at 2521.

The Supreme Court decided in Younger that a federal court should abstain from exercising jurisdiction and not interfere with a pending state criminal proceeding by awarding injunctive or declaratory relief. 401 U.S. at 41 & n. 2, 91 S.Ct. at 749 & n. 2. Even though Younger involved only criminal proceedings, abstention is fully applicable to noncriminal judicial proceedings when important state interests are involved. Middlesex, 457 U.S. at 432, 102 S.Ct. at 2521. In addition, state administrative proceedings, if they are judicial in nature, are within the purview of Younger. See Ohio Civil Rights Comm'n v. Dayton Christian Sch., Inc., 477 U.S. 619, 627, 106 S.Ct. 2718, 2722-23, 91 L.Ed.2d 512 (1986). The Younger doctrine was motivated by fundamental notions of comity and federalism. Younger, 401 U.S. at 44, 91 S.Ct. at 750-51. The doctrine also recognizes that state courts are fully competent to decide issues of federal constitutional law. Lynch v. Snepp, 472 F.2d 769, 774 (4th Cir.1973), cert. denied, 415 U.S. 983, 94 S.Ct. 1576, 39 L.Ed.2d 880 (1974).

In New Orleans Pub. Serv., Inc. v. Council of New Orleans, 491 U.S. 350, 365, 109 S.Ct. 2506, 2516-17, 105 L.Ed.2d 298 (1989) ("NOPSI "), the Supreme Court rejected the argument that substantial claims of preemption automatically preclude abstention. Furthermore, the NOPSI court did not resolve the issue of whether a "facially conclusive" claim of federal preemption always bars abstention. ³ Id. at 367, 109 S.Ct. at 2517-18.

The district court in the instant case applied the Younger test, determining that the administrative proceeding brought under Article 49B qualified as an ongoing state judicial proceeding, that Maryland has an important state interest in enforcing its employment discrimination laws, and that appellant Martin Marietta would have an adequate opportunity to raise its preemption claims in this context. The district court further determined that Martin Marietta's preemption claims were neither "facially conclusive" nor "readily apparent," and thus the Younger abstention was found to be applicable. Martin Marietta contends that its action should have survived the Younger test because Price's claims are inextricably intertwined with the CBAs, and thus, that the LMRA and the FRA preempt Price's state law claims.

B. Section 301 Preemption

Section 301 of the LMRA provides that:

Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce ... may be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.

29 U.S.C. Sec. 185(a) (1988). Previously, the Supreme Court has interpreted Sec. 301 to provide federal court jurisdiction over controversies involving contract disputes, and...