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Barnick v. Longs Drug Stores, Inc.

Citations: 203 Cal. App. 3d 377; 250 Cal. Rptr. 10; 1988 Cal. App. LEXIS 703Docket: D006125

Court: California Court of Appeal; July 29, 1988; California; State Appellate Court

Narrative Opinion Summary

The case involves William Barnick's appeal of a summary judgment in favor of Longs Drug Stores, Inc., concerning claims of wrongful termination, breach of contract, and ERISA preemption. Barnick, who was terminated in 1980, argued that Longs dismissed him to prevent his pension benefits from vesting. Longs contended that the state court lacked jurisdiction due to federal preemption under ERISA. The court found that while some of Barnick's claims were preempted by ERISA, others contained independent grounds that were not, leading to a partial reversal of the summary judgment. The court emphasized that lack of subject matter jurisdiction can be raised at any time, supporting Longs's position. Furthermore, the court accepted Longs's evidence despite Barnick's objections regarding its relevance and authentication. Ultimately, the Ninth Circuit Court of Appeals determined that Barnick's lawsuit was not entirely preempted by ERISA, as certain claims did not relate to the employee benefit plan, aligning with precedents like Sorosky v. Burroughs Corp. The case was remanded for further proceedings, with neither party awarded costs.

Legal Issues Addressed

Admissibility of Evidence in Summary Judgment

Application: Longs successfully introduced evidence at the summary judgment hearing despite Barnick's objections, with the court finding the evidence relevant and properly authenticated.

Reasoning: Subject matter jurisdiction is affirmed under Code of Civil Procedure section 430.80, with Longs presenting admissible evidence at the summary judgment hearing despite Barnick's objections regarding authentication, relevance, and hearsay.

ERISA Preemption of State Law Claims

Application: The court assessed whether Barnick's lawsuit was preempted by ERISA, concluding that some claims were preempted while others contained independent grounds not related to the employee benefit plan.

Reasoning: Barnick argues his lawsuit contains independent causes of action not preempted by ERISA, a valid point.

Scope of ERISA's Preemption Clause

Application: The court examined the broad interpretation of ERISA's preemption clause to determine which of Barnick's claims were related to Longs's employee benefit plan.

Reasoning: In assessing whether Barnick's lawsuit falls under ERISA preemption, the key inquiry is whether his causes of action 'relate to' Longs's employee benefit plan.

Subject Matter Jurisdiction and Federal Preemption

Application: The court held that Longs's assertion of federal preemption under ERISA could be raised at any time, even if not included in the initial pleadings, affirming subject matter jurisdiction.

Reasoning: The court clarified that lack of subject matter jurisdiction can be raised at any time and is not subject to waiver, referencing California statutes and case law which support the notion that jurisdictional issues must be addressed regardless of whether they were included in initial pleadings.