Newell Operating v. Int'l Union United ( 2008 )


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  •                              In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________
    No. 07-1931
    NEWELL OPERATING CO., et al.,
    Plaintiffs-Appellants,
    v.
    INTERNATIONAL UNION OF UNITED AUTOMOBILE,
    AEROSPACE, AND AGRICULTURAL IMPLEMENT
    WORKERS OF AMERICA, U.A.W., and
    MARCELLA COGSWELL, et al.,
    Defendants-Appellees.
    ____________
    Appeal from the United States District Court
    for the Northern District of Illinois, Western Division.
    No. 06 C 50010—Philip G. Reinhard, Judge.
    ____________
    ARGUED FEBRUARY 11, 2008—DECIDED JULY 2, 2008
    ____________
    Before BAUER, KANNE, and WILLIAMS, Circuit Judges.
    KANNE, Circuit Judge. Newell Operating Co. (“Newell”)
    amended its employee welfare benefits plan to allow
    administrators to charge retirees uniform monthly premi-
    ums. This simple corporate action produced complex
    litigation when two federal lawsuits over the validity of
    Newell’s amendments were filed in quick succession. First,
    Newell, its subsidiary, Newell Window Furnishings
    Company, Kirsch Division (“Newell Window”), and the
    2                                               No. 07-1931
    Newell Rubbermaid Health and Welfare Program 506 (“the
    Plan”) filed this suit in the Northern District of Illinois,
    seeking declaratory relief against over 500 retirees of a
    Michigan manufacturing plant, as well as their labor
    union, the International Union of United Automobile,
    Aerospace, and Agricultural Implement Workers of
    America, U.A.W., AFL-CIO, and its local chapter, the
    U.A.W. Local 797 (collectively, “UAW”). The complaint
    requested a judgment declaring that the amendments to
    the Plan did not violate the Employee Retirement In-
    come Security Act (ERISA), 29 U.S.C. § 1001 et seq., or the
    Labor Management Relations Act (LMRA), 29 U.S.C. § 141
    et seq. See 28 U.S.C. § 2201. Second, while the declaratory-
    judgment suit was pending in Illinois, the UAW and
    retirees brought their own lawsuit in the Western Dis-
    trict of Michigan, challenging the new premiums under
    ERISA and the LMRA. The Northern District of Illinois
    yielded to the action filed in the Western District of Michi-
    gan by declining to exercise its jurisdiction and dis-
    missing the declaratory-judgment suit. We believe that
    the decision to dismiss the case was sound, and we affirm.
    I. HISTORY
    Newell Window’s corporate predecessor, the Kirsch
    Company (“Kirsch”), manufactured drapery hardware
    and custom window coverings at several plants in Sturgis,
    Michigan. The UAW—which represented all production,
    tool-room, and maintenance employees who performed
    work at these plants—entered into collective-bargaining
    agreements with Kirsch that obligated Kirsch to provide
    certain health benefits for life to its employees and their
    families. In 1997, Newell Window acquired Kirsch, and,
    pursuant to the sale, the employees of Kirsch became
    No. 07-1931                                              3
    employees of Newell Window and members of the Plan,
    an employee welfare benefits plan sponsored by Newell
    and governed by ERISA. See 29 U.S.C. § 1002(1). In October
    2000, Newell decided to close the Sturgis plants and
    entered into a shut-down agreement with the UAW,
    which agreed to waive all claims it had, or would ever
    have, against Newell.
    In November 2005, Newell sent a letter to the retirees of
    Kirsch and Newell Window, notifying them that the
    Newell Rubbermaid Inc. Benefit Plans Administrative
    Committee (“the Committee”) had decided to consolidate
    all of Newell’s retiree health programs, including the
    Plan. The consolidation would allow a new insurance
    carrier, CIGNA Healthcare, to assume the daily administra-
    tion of all of Newell’s programs beginning on January 1,
    2006. Around the time Newell mailed the notice to retirees,
    Newell also amended the Plan to allow the Committee
    to charge a uniform monthly premium once CIGNA took
    over. The Committee set the premium at $40 per month.
    Prior to 2006, some retirees had never been charged a
    monthly premium, and many of the retirees that had paid
    a premium paid less than $40 per month.
    Anticipating backlash for the new charges, Newell, the
    Plan, and Newell Window filed this action against the
    UAW and the retirees in the Northern District of Illinois
    on January 12, 2006, requesting a declaratory judgment
    “that the transfer of the administration of the Plan” and
    “the corresponding changes in the terms and conditions
    of the benefits provided under the Plan” did not violate
    either ERISA or the LMRA. Of the 474 retirees named in
    the original complaint as individual defendants, only one
    resided in Illinois—in Charleston, which is situated in the
    Central District of Illinois. On February 15, 2006, the UAW
    and four retirees filed their own lawsuit in the Western
    4                                                No. 07-1931
    District of Michigan, claiming that Newell, Newell Win-
    dow, and the Plan had breached the collective-bargaining
    agreements and violated ERISA and the LMRA by
    charging the new $40 premium. The retirees filed their
    complaint both individually and as purported representa-
    tives of a class. A few weeks after filing the complaint in
    Michigan, the UAW filed a motion to dismiss the Illinois
    case for lack of subject-matter jurisdiction, see Fed. R. Civ.
    P. 12(b)(1), or in the alternative, to transfer venue to the
    Western District of Michigan, see 28 U.S.C. § 1404(a).
    In response to the UAW’s motion, Newell, Newell
    Window, and the Plan amended their complaint in March
    2006 to add the Committee as a plaintiff. In addition to
    pleading the same allegations as the initial complaint,
    the amended complaint added a new count on behalf of
    the Committee, which sought a declaration that it did not
    violate its fiduciary duties under ERISA § 502(a)(3) by
    charging the premiums. See 29 U.S.C. § 1132(a)(3)(B)(ii).
    The amended complaint also requested an injunction that
    would allow the Committee to condition the retirees’
    participation in the Plan on their payment of the premiums
    and would preclude any retiree who fails to pay from
    participating in the Plan.
    After the appellants amended their complaint in the
    Northern District of Illinois, the UAW and individual
    retirees filed new motions to either dismiss the case, or
    transfer it to the Western District of Michigan. Newell,
    Newell Window, the Plan, and the Committee then
    moved for partial summary judgment against the UAW,
    and for summary judgment against the individual defen-
    dants. The district court for the Northern District of
    Illinois took all of the motions under advisement and
    allowed the parties to conduct discovery.
    No. 07-1931                                                5
    In March 2007, the district court for the Northern District
    of Illinois granted the motions by the UAW and the
    individual defendants to dismiss the case for lack of
    subject-matter jurisdiction under Fed. R. Civ. P. 12(b)(1).
    The district court recognized that ERISA § 502(a)(3)
    provides exclusive jurisdiction over an action by a plan
    fiduciary “to obtain other appropriate equitable relief” in
    order to enforce the terms of ERISA or an ERISA plan. See
    29 U.S.C. § 1132(a)(3)(B)(ii). But the court reasoned that
    the Committee’s fiduciary action did not provide a basis for
    subject-matter jurisdiction in this case because the suit was
    not one to enforce the terms of ERISA or the
    Plan: “Plaintiffs amended the plan to require premium
    payments by retirees. Plaintiffs do not need any court
    action to enforce the provisions of the plan.” The district
    court relegated its analysis of jurisdiction under LMRA
    § 301, 29 U.S.C. § 185, to a footnote that stated, “[t]he
    court notes that jurisdiction for a declaratory judgment
    action that plaintiffs’ actions did not violate a collective
    bargaining agreement appears to be proper under Sec-
    tion 301 of the LMRA . . . but the court need not reach this
    question either.”
    The district court reasoned, “[i]f the plaintiffs are to
    have their case heard here, it must be under the Declara-
    tory Judgment Act,” and noted that “[e]ven where sub-
    ject matter jurisdiction may be exercised over a declara-
    tory judgment action, the court has discretion to decline
    to hear it.” The district court exercised its discretion and
    declined to hear the case because, in its view, the retirees
    were the natural plaintiffs of the underlying ERISA and
    LMRA disputes and “the vast majority of the retirees,
    and the site of the CBAs negotiations [were] all Michigan.”
    The court then denied the motions for transfer and for
    partial summary judgment as moot.
    6                                               No. 07-1931
    After this case was docketed for appeal, the district
    court for the Western District of Michigan ruled on a
    motion by Newell, Newell Window, and the Plan to
    dismiss the Michigan action or to transfer that case to the
    Northern District of Illinois. The Michigan court issued an
    opinion in July 2007, which denied the motion to transfer
    and the motion to dismiss with respect to the individual
    defendants. However, the Michigan court granted the
    motion to dismiss with respect to the UAW because the
    court believed that the UAW had waived its claims
    against Newell by acceding to the shut-down agreement
    in October 2000. After oral argument in this case, the
    individual retirees moved to certify their plaintiff class
    in the Western District of Michigan. Class certification in
    the Michigan case is still pending.
    II. ANALYSIS
    Newell, Newell Window, the Plan, and the Committee
    claim that the district court for the Northern District of
    Illinois should not have exercised its discretion to decline
    jurisdiction under the Declaratory Judgment Act, see
    28 U.S.C. § 2201, because ERISA § 502(a)(3) provides
    subject-matter jurisdiction over their claims for declaratory
    and injunctive relief, see 29 U.S.C. § 1132(a)(3). The appel-
    lants also contend that the LMRA provides subject-matter
    jurisdiction over their claims. See 29 U.S.C. § 185. The
    appellants argue, in the alternative, that if jurisdiction
    was proper only under the Declaratory Judgment Act,
    the district court abused its discretion by dismissing the
    case.
    We review de novo the district court’s order dismissing
    the case for lack of subject-matter jurisdiction under
    No. 07-1931                                                  7
    Rule 12(b)(1). Peters v. Vill. of Clifton, 
    498 F.3d 727
    , 729-30
    (7th Cir. 2007). In engaging in our review, “[w]e must
    accept all facts stated in the complaint as true and must
    draw all reasonable inferences in the light most favorable
    to the plaintiff.” 
    Id. at 730.
    “Federal courts are courts of
    limited jurisdiction and may only exercise jurisdiction
    where it is specifically authorized by federal statute.”
    Teamsters Nat. Auto. Transporters Indus. Negotiating Comm.
    v. Troha, 
    328 F.3d 325
    , 327 (7th Cir. 2003). “The Declara-
    tory Judgment Act empowers federal courts to give
    declaratory judgments in ‘a case of actual controversy
    within its jurisdiction,’ but it is not an independent grant
    of jurisdiction, rather jurisdiction must be predicated on
    some other statute.” Rueth v. EPA, 
    13 F.3d 227
    , 231 (7th
    Cir. 1993) (quoting 28 U.S.C. § 2201(a)). We will therefore
    analyze whether the district court had jurisdiction under
    the predicate statutes cited in the complaint: ERISA and
    the LMRA.
    A. Jurisdiction under ERISA
    The appellants argue that the district court erred by
    stating that it could only have jurisdiction under the
    Declaratory Judgment Act because jurisdiction over the
    case also exists under ERISA. The appellants point to
    ERISA § 502(a)(3), which provides for jurisdiction over
    equitable claims by the fiduciary of an ERISA plan for
    a declaration “to enforce any provisions of this sub-
    chapter or the terms of the plan.” See 29 U.S.C.
    § 1132(a)(3)(B)(ii); Spitz v. Tepfer, 
    171 F.3d 443
    , 449-50
    (7th Cir. 1999); Winstead v. J.C. Penney Co., 
    933 F.2d 576
    ,
    580 (7th Cir. 1991). The appellants contend that the Com-
    mittee is the fiduciary of the Plan, and as such, the
    court has jurisdiction over the Committee’s suit for a
    8                                                  No. 07-1931
    declaration that its implementation of the Plan amend-
    ments to charge premiums to retirees does not violate
    its ERISA fiduciary duties.
    The Committee is the named fiduciary of the Plan, and all
    of the parties apparently concede that the Committee is the
    only party to this suit that is a fiduciary of the Plan. See
    Mertens v. Hewitt Assocs., 
    508 U.S. 248
    , 251 (1993) (“The
    statute provides that not only the persons named
    as fiduciaries by a benefit plan, but also anyone else
    who exercises discretionary control or authority over the
    plan’s management, administration, or assets, is an
    ERISA ‘fiduciary.’ ” (internal citations omitted)). The UAW
    and the retirees argue that because the Committee was
    not a party to this litigation until the filing of the amended
    complaint, none of the original plaintiffs in this case
    “were authorized to bring their purported ERISA action.”
    As such, the UAW and retirees assert that the Michigan
    action was the first-filed suit with proper jurisdiction,
    and by advancing this argument, they insinuate that we
    need not reach the question of whether the district court
    had jurisdiction under ERISA § 502(a)(3) because this
    jurisdiction did not arise until after the UAW and re-
    tirees commenced the suit in Michigan.
    This circuit has never strictly adhered to the “first-to-file”
    rule in deciding whether to retain jurisdiction or dismiss
    a declaratory-judgment action. Trippe Mfg. Co. v. Am. Power
    Conversion Corp., 
    46 F.3d 624
    , 629 (7th Cir. 1995); Tempco
    Elec. Heater Corp. v. Omega Eng’g, 
    819 F.2d 746
    , 750 (7th Cir.
    1987). Therefore, the late addition of the Committee as a
    plaintiff does not foreclose the possibility that the dis-
    trict court had fiduciary jurisdiction under ERISA. And,
    in any case, it is very likely that the addition of the Com-
    mittee as a plaintiff in the amended complaint “related
    No. 07-1931                                                 9
    back” to the time of the original complaint’s filing,
    making the Illinois action first in time. See Fed. R. Civ. P.
    15(c); Plubell v. Merck & Co., 
    434 F.3d 1070
    , 1072 (8th
    Cir. 2006) (“ ‘The relation back of amendments changing
    plaintiffs is not expressly treated in revised Rule 15(c)
    since the problem is generally easier. Again the chief
    consideration of policy is that of the statute of limitations,
    and the attitude taken in revised Rule 15(c) toward
    change of defendants extends by analogy to amendments
    changing plaintiffs.’ ” (quoting Fed. R. Civ. P. 15(c) 1966
    advisory committee’s note)); E.R. Squibb & Sons, Inc. v.
    Lloyd’s & Cos., 
    241 F.3d 154
    , 164 n.3 (2d Cir. 2001); 6A
    Wright et al., Federal Practice and Procedure § 1501 (3d ed.
    1998).
    The appellants correctly note that the fiduciary of an
    ERISA plan may sue for declaratory judgments, injunc-
    tions, and restitution under ERISA § 502(a)(3)’s provi-
    sion for “appropriate equitable relief.” See 29 U.S.C.
    § 1132(a)(3)(B); 
    Spitz, 171 F.3d at 449-50
    (declarations);
    Harris Trust & Sav. Bank v. Provident Life & Accident Ins.
    Co., 
    57 F.3d 608
    , 615 (7th Cir. 1995) (restitution and injunc-
    tions). But it is clear from the language of the statute
    that the federal courts do not have jurisdiction over
    every suit for equitable relief by an ERISA fiduciary.
    Section 502(a)(3) provides jurisdiction for fiduciary suits
    “to obtain other appropriate equitable relief . . . to enforce
    any provisions of this subchapter or the terms of the
    plan.” 29 U.S.C. § 1132(a)(3)(B)(ii); see also 
    Mertens, 508 U.S. at 253
    (“[Section 502(a)(3)] does not, after all, au-
    thorize ‘appropriate equitable relief’ at large, but only
    ‘appropriate equitable relief’ for the purpose of ‘redressing
    any violations or . . . enforcing any provisions’ of ERISA
    or an ERISA plan.” (emphasis in original)).
    10                                             No. 07-1931
    We agree with the district court that the Committee’s
    declaratory-judgment action was not designed to
    enforce any provisions of the Plan or ERISA. The Com-
    mittee’s action cannot logically be construed as a suit to
    enforce the terms of the Plan because the Plan’s sponsor,
    Newell, has already amended the Plan to allow the Com-
    mittee to charge premiums to the retirees, and the Com-
    mittee has acted in accordance with the Plan by charging
    the premiums. In fact, the Committee alleged in the
    complaint that by charging premiums as a condition for
    the retirees’ participation in the Plan, “the Committee
    has adhered to the terms of the Plan as written and
    amended.” The Committee does not need the retirees’
    consent to comply with the unambiguous terms of the
    Plan because it has an easy remedy—if the retirees refuse
    to pay the new premiums, the Committee can stop pro-
    viding them benefits under the Plan. And we do not
    understand how the Committee will violate its fiduciary
    duties under ERISA by following the terms of the Plan
    when it has an obligation to do so under ERISA. See
    29 U.S.C. § 1104(a)(1)(D).
    A plaintiff cannot bring a claim within ERISA § 502(a)(3)
    by advantageous and creative pleading. See Wal-Mart
    Stores, Inc. Assocs’ Health & Welfare Plan v. Wells, 
    213 F.3d 398
    , 401 (7th Cir. 2000) (“[A] plaintiff cannot convert
    a claim of damages for breach of contract into an equitable
    claim by the facile trick of asking that the defendant be
    enjoined from refusing to honor its obligation to pay
    the plaintiff what the plaintiff is owed under the con-
    tract and appending to that request a request for payment
    of the amount owed.”). It follows that a complaint cannot
    invoke ERISA § 502(a)(3) jurisdiction by the mere asser-
    tion, without more, that ERISA will be violated. If the
    No. 07-1931                                               11
    Committee administers the Plan as written, it will enforce
    the terms of the Plan and vindicate its fiduciary duties
    under ERISA—the retirees’ dissatisfaction notwithstand-
    ing. The appellants have attempted to usurp the jurisdic-
    tional choice of the UAW and retirees by filing an anticipa-
    tory suit for declaratory relief under ERISA § 502(a)(3)
    before they could be sued in Michigan; however,
    without a need to enforce the Plan or ERISA, appellants’
    effort is for naught. The appellants’ suit for declaratory
    and injunctive relief under ERISA § 502(a)(3) against the
    UAW and retirees was unnecessary, and the district
    court properly concluded that jurisdiction did not exist
    under the statute. We therefore affirm the district court’s
    dismissal of the counts of appellants’ complaint that
    advanced claims under ERISA for lack of subject-matter
    jurisdiction.
    B. Jurisdiction under the LMRA
    The appellants’ next argument is that the district court
    erred by dismissing the case because it had jurisdiction
    under LMRA § 301, which provides jurisdiction over
    “[s]uits for violation of contracts between an employer
    and a labor organization representing employees.” 29
    U.S.C. § 185. The appellants contend that jurisdiction
    existed for their suit requesting a declaration that the
    Plan amendments did not violate the collective-bargaining
    agreements between Kirsch and the UAW.
    The appellants’ argument for jurisdiction under the
    LMRA relies heavily on our decision in J.W. Peters, Inc. v.
    Bridge, Structural & Reinforcing Iron Workers, for the propo-
    sition that when an employer accused of violating the
    terms of a collective-bargaining agreement files suit for
    declaratory relief, that suit is an action “for violation of
    12                                                No. 07-1931
    contracts within the meaning of § 301.” 
    398 F.3d 967
    , 973
    (7th Cir. 2005) (internal quotation omitted). Jurisdiction
    under LMRA § 301 is “extremely limited” and encom-
    passes only suits “ ‘filed because a contract has been
    violated’ ”—it does not extend to “ ‘suits that claim a
    contract is invalid.’ ” 
    Troha, 328 F.3d at 329
    (quoting Textron
    Lycoming Reciprocating Engine Div. v. United Auto., Aero-
    space, Agric. Implement Workers of Am., 
    523 U.S. 653
    , 656-57
    (1998)). But “ ‘a declaratory judgment plaintiff accused
    of violating a collective-bargaining agreement may ask a
    court to declare the agreement invalid.’ ” Stevens Constr.
    Corp. v. Chi. Reg’l Council of Carpenters, 
    464 F.3d 682
    , 685
    (7th Cir. 2006) (quoting 
    Textron, 523 U.S. at 658
    ).
    Although § 301 provides only limited jurisdiction,
    we agree with the appellants (and the district court’s
    footnote) that the appellants’ LMRA § 301 claim falls
    within the statute’s jurisdictional contours. Newell
    amended the Plan to charge premiums to retirees. Kirsch’s
    collective-bargaining agreement with the UAW obligated
    Newell to provide certain welfare benefits for the lives
    of the retirees. Some retirees, and the UAW, claim that the
    amendments to the Plan violated the terms of the
    collective-bargaining agreements by ceasing to provide
    these benefits for life to retirees who do not pay premiums.
    This dispute is over whether Newell’s conduct violated
    the collective-bargaining agreement, and Newell seeks
    a declaration that its amendments were appropriate.
    This suit involves the alleged violation of the collective-
    bargaining agreement, and therefore falls within the
    plain terms of LMRA § 301.
    But that does not end the matter because the complaint
    advanced only claims for declaratory relief under the
    LMRA, and these claims are covered by the umbrella of
    the Declaratory Judgment Act. See Haw. Stevedores, Inc. v.
    No. 07-1931                                                  13
    HT&T Co., 
    363 F. Supp. 2d 1253
    , 1267 n.16 (D. Haw. 2005)
    (“That jurisdiction may be proper under the LMRA does
    not override the Court’s discretion to decline [Declaratory
    Judgment Act] jurisdiction.” (citing Krey Packing Co. v.
    Hamilton, 
    572 F.2d 1280
    , 1284 (8th Cir. 1978))). A district
    court has “wide discretion” to decline to hear actions
    that pursue only declaratory relief. North Shore Gas Co. v.
    Salomon Inc., 
    152 F.3d 642
    , 647 (7th Cir. 1998); In re VMS
    Secs. Litig., 
    103 F.3d 1317
    , 1327 (7th Cir. 1996); see also
    Wilton v. Seven Falls Co., 
    515 U.S. 277
    , 288 (1995) (“By the
    Declaratory Judgment Act, Congress sought to place a
    remedial arrow in the district court’s quiver; it created an
    opportunity, rather than a duty, to grant a new form
    of relief to qualifying litigants. Consistent with the
    nonobligatory nature of the remedy, a district court is
    authorized, in the sound exercise of its discretion, to stay
    or to dismiss an action seeking a declaratory judgment
    before trial or after all arguments have drawn to a close.”);
    Brillhart v. Excess Ins. Co. of Am., 
    316 U.S. 491
    , 494 (1942).
    And the district court evaluated the claims in the com-
    plaint under the Declaratory Judgment Act and exercised
    its “wide discretion” by declining jurisdiction.
    There is some debate over what standard of review
    should be used to evaluate a district court’s decision to
    decline jurisdiction over a declaratory-judgment case.
    Nationwide Ins. v. Zavalis, 
    52 F.3d 689
    , 693 n.3 (7th Cir.
    1995) (noting a “simmering circuit split” on the issue). This
    circuit has opted for a de novo standard of review. See
    VMS Secs. 
    Litig., 103 F.3d at 1327
    ; see also Salomon 
    Inc., 152 F.3d at 647
    (reviewing decision retaining case de novo).1
    1
    The Supreme Court announced in Wilton v. Seven Falls Co., that
    a district court’s decision to stay a Declaratory Judgment
    (continued...)
    14                                                     No. 07-1931
    The district court noted that “the retirees and their union
    filed a class action suit approximately one month after
    this declaratory-judgment action was filed. The record
    reflects both sides expected the action by the ‘natural
    plaintiffs.’ ” We are usually wary of a declaratory-judg-
    ment action that is “ ‘aimed solely at wresting the choice
    of forum from the natural plaintiff.’ ” Hyatt Int’l Corp. v.
    Coco, 
    302 F.3d 707
    , 718 (7th Cir. 2002) (quoting Allendale
    Mut. Ins. Co. v. Bull Data Sys., Inc., 
    10 F.3d 425
    , 431 (7th
    Cir. 1993) (internal quotation marks omitted)).
    And we agree with the district court that the “natural
    plaintiffs” are the UAW and the retirees. It seems far
    more sensible to us that the retirees adjudicate their
    claims in Michigan, where the plant was located, where
    the ERISA and LMRA claims may go forward in the
    same litigation, and where the retirees may avail them-
    selves of the benefits of a class-action lawsuit—which
    will offer a much greater possibility of settlement than
    the current posture of this case with its hundreds of
    defendants. These pragmatic and realistic concerns coun-
    sel in favor of dismissal.
    Moreover, it is completely understandable that the
    district court declined its jurisdiction under the Declaratory
    1
    (...continued)
    Act action in favor of a pending state-court action is reviewed
    for “abuse of 
    discretion.” 515 U.S. at 289-90
    ; see also Grinnell Mut.
    Reinsurance Co. v. Shierk, 
    121 F.3d 1114
    , 1117 (7th Cir. 1997).
    However, in several cases after Wilton, our circuit has con-
    tinued to review de novo a district court’s decision to decline
    jurisdiction under the Declaratory Judgment Act. See Salomon
    
    Inc., 152 F.3d at 647
    ; VMS Secs. 
    Litig., 103 F.3d at 1327
    .
    No. 07-1931                                              15
    Judgment Act because this case raises serious questions
    about the wisdom of allowing litigation to go forward
    in the Northern District of Illinois. The UAW and the
    retirees raised the issue before the district court by
    filing the motion to transfer to the Western District of
    Michigan under 28 U.S.C. § 1404(a). The retirees reside
    in many states throughout the country; the majority live
    in Michigan. As the district court noted, the negotia-
    tions over the collective-bargaining agreement and the
    Sturgis plants were in Michigan. The Plan administration
    was only recently moved to Illinois, and only one retiree
    defendant resides in Illinois—in the Central District of
    Illinois, not in the Northern District where this case
    commenced. Thus, both convenience and the “interests
    of justice” practically dictate transfer to Michigan,
    where the mirror image of this suit has been filed. See 28
    U.S.C. § 1404(a) (“For the convenience of parties and
    witnesses, in the interest of justice, a district court may
    transfer any civil action to any other district or division
    where it might have been brought.”). And if the district
    court would have granted a motion to transfer if it had
    retained the case (and it appears nearly certain that it
    would have), it seems more than sensible to us that the
    district court facilitated the process by exercising its
    “wide discretion” to decline jurisdiction. See Salomon 
    Inc., 152 F.3d at 647
    .
    Given the status of the pending suit in the Western
    District of Michigan and the other considerations we
    have articulated, we affirm the district court’s discre-
    tionary dismissal of the LMRA count.
    16                                            No. 07-1931
    III. CONCLUSION
    We AFFIRM the district court’s dismissal of the complaint.
    USCA-02-C-0072—7-2-08
    

Document Info

Docket Number: 07-1931

Judges: Kanne

Filed Date: 7/2/2008

Precedential Status: Precedential

Modified Date: 9/24/2015

Authorities (21)

Mertens v. Hewitt Associates , 113 S. Ct. 2063 ( 1993 )

Wilton v. Seven Falls Co. , 115 S. Ct. 2137 ( 1995 )

teamsters-national-automotive-transporters-industry-negotiating-committee , 328 F.3d 325 ( 2003 )

harold-g-rueth-doing-business-as-rueth-development-company-v-united , 13 F.3d 227 ( 1993 )

stevens-construction-corp-plaintiffcounter-defendant-appellee-v-chicago , 464 F.3d 682 ( 2006 )

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North Shore Gas Company v. Salomon Inc , 152 F.3d 642 ( 1998 )

Wal-Mart Stores, Incorporated Associates' Health and ... , 213 F.3d 398 ( 2000 )

Pens. Plan Guide (Cch) P 23952n Ronald O. Spitz v. Arthur H.... , 171 F.3d 443 ( 1999 )

Peters v. Village of Clifton , 498 F.3d 727 ( 2007 )

Tempco Electric Heater Corporation v. Omega Engineering, ... , 819 F.2d 746 ( 1987 )

Marion M. Winstead v. J.C. Penney Company, Incorporated, ... , 933 F.2d 576 ( 1991 )

jw-peters-inc-v-bridge-structural-and-reinforcing-iron-workers-local , 398 F.3d 967 ( 2005 )

Mary Plubell, on Behalf of Herself and All Others Similarly ... , 434 F.3d 1070 ( 2006 )

Krey Packing Company v. Jeff Hamilton , 572 F.2d 1280 ( 1978 )

Trippe Manufacturing Company v. American Power Conversion ... , 46 F.3d 624 ( 1995 )

Hyatt International Corp. v. Gerardo Coco , 302 F.3d 707 ( 2002 )

allendale-mutual-insurance-company-and-factory-mutual-international , 10 F.3d 425 ( 1993 )

nationwide-insurance-v-aleck-zavalis-astroturf-industries-inc-safeco , 52 F.3d 689 ( 1995 )

Hawaii Stevedores, Inc. v. HT & T CO. , 363 F. Supp. 2d 1253 ( 2005 )

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