Judges affirm dismissal for lack of subject matter jurisdiction

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals has upheld the decision by a trial court to dismiss a company’s state law claims against a labor union, finding those claims are preempted by a decision of the National Labor Relations Board.

Engineered Steel Concepts, owned by Tom Anderson, negotiated with Steven Parks, a business agent for a union, to have union members drive trucks hauling a by-product of the steel-making process. Anderson had two agreement options: a Section 8(f) general construction agreement, applicable to employers who are primarily in the building and construction industry; and Section 9(a), a commodity hauling agreement. Anderson signed the Section 8(f) agreement under the belief that this was the best agreement since the work would be temporary.

After the by-product hauling project ended, the company told the union employees that no other work was available. The union filed a charge against ESC with the National Labor Relations Board claiming the employees were unjustly terminated. An administrative law judge found that the company couldn’t have entered into a Section 8(f) agreement and treated the agreement instead like the Section 9(a) agreement. Under Section 9(a), ESC couldn’t terminate the agreement at the end of the project. The ALJ found ESC violated several sections of the National Labor Relations Act.

Anderson and the company then alleged three counts against Parks and the union, including fraud in inducement of the contract. The trial court granted the union’s request to dismiss the complaint under Indiana Trial Rule 12(B)(1) for lack of subject matter jurisdiction.

The appellate judges found in Engineered Steel Concepts, Inc., ESC Group Limited, and Tom Anderson v. General Drivers, Warehousemen, and Helpers Union Local 142, International Brotherhood of Teamsters, and Steven Parks, that the National Labor Relations Act preempted the state claims. The three state law claims against Parks and the union are essentially based on the exchange between Anderson and Parks in deciding which agreement to use. These issues were before the ALJ for resolution of the NLRB complaint.

“As such, it would be impossible for a state court to determine the merits of Anderson and the Company’s allegations without becoming an obstacle to the federal objective of having the NLRB exclusively 'oversee and referee' the collectively bargaining process between these two entities,” wrote Judge Edward Najam.



Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
Subscribe to Indiana Lawyer
  1. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  2. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  3. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  4. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...

  5. Its a valid lawsuit. Since the civil war, States have no rights anyways. Get over it, people! You are all subjects now and merely "citizens of the world" anyways, with human rights and all that. Gov'nor knows that. This is just grandstanding to try and appease the red state troops still smarting over the "Gay rights" shoved down their unwilling throats. Gotta keep them "voting" in the kayfabe elections! After all, since nobody cares about the tens of millions of Mexicans here, what's a few Syrians going to do, anyways? Guess we'll find out! LOL