Shawn Hallinan v. Fraternal Order of Police, Lo ( 2009 )


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  •                               In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 06-3602
    S HAWN H ALLINAN and W AYNE H AREJ,
    Plaintiffs-Appellants,
    v.
    F RATERNAL O RDER OF P OLICE OF C HICAGO
    L ODGE N O . 7 and F RATERNAL O RDER OF P OLICE
    OF ILLINOIS,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 06 C 2586—Joan Humphrey Lefkow, Judge.
    A RGUED A PRIL 30, 2007—D ECIDED JUNE 25, 2009
    Before R OVNER, W OOD , and SYKES, Circuit Judges.
    R OVNER, Circuit Judge. After being expelled from
    their labor union, Chicago police officers Shawn
    Hallinan and Wayne Haraj sued the union and its parent
    organization for violations of their First and Fourteenth
    Amendment rights. The district court found that the
    plaintiffs had failed to plead the state action necessary
    2                                           No. 06-3602
    to maintain an action pursuant to § 1983 and, con-
    sequently, the court granted the unions’ motion to dis-
    miss. We affirm.
    I.
    Plaintiffs Hallinan and Harej are long time City of
    Chicago police officers and were members in good stand-
    ing of the City’s police union, the Fraternal Order of
    Police Chicago Lodge No. 7 (FOP Lodge 7 or Union) until
    they were suspended in June 2005 and then expelled on
    September 6 of that same year. FOP Lodge 7 is a labor
    organization with the exclusive right to represent and
    bargain on behalf of police officers employed by the
    City. The Fraternal Order of Police of Illinois oversees
    FOP Lodge 7.
    Both men were leaders of a group of Union members
    opposed to the FOP Lodge 7 president, Mark Donohue,
    and his political organization. During the March 2005
    election cycle, Hallinan and Harej formed an opposition
    slate of twenty candidates to oppose President Donohue
    and the incumbent officers. During the course of the
    campaign, the plaintiffs uncovered evidence that
    Donahue had under-reported significantly his salary on
    a report filed with the Attorney General. Harej reported
    the discrepancy to the Attorney General’s office and the
    FOP twice corrected the form. The under-reporting
    issue became a major one in the campaign and Hallinan
    and Harej discussed the error among Union members
    and publically, including with the media.
    No. 06-3602                                                   3
    Soon after the March 25 election, Donahue and his slate
    members began proceedings to suspend and then expel
    both Hallinan and Harej from membership in the Union.
    On April 19, 2005, FOP Lodge 7 officers filed disciplinary
    charges against the two men and on June 25, while the
    charges were pending, suspended them. In July 2005, the
    FOP Lodge 7 held hearings regarding the disciplinary
    charges. Hallinan and Harej alleged in their complaint
    that the Union hearing panel was comprised of their
    political rivals. The panel recommended that the Union
    expel both plaintiffs, and on September 6, 2005, the
    FOP Lodge 7 board accepted the recommendation and
    voted to expel the two men.
    The plaintiffs appealed the decision to the FOP Illinois.
    FOP Illinois held a hearing on the appeal and considered
    only whether the plaintiffs had received due process.
    The hearing panel’s recommendation, which the FOP
    Board accepted, was to deny the appeal and uphold
    the plaintiffs’ expulsion.
    For unexplained reasons, Hallinan and Harej con-
    tinued to pay full dues to the Union through an auto-
    matic payroll deduction mechanism until just after
    Hallinan and Harej filed a September 16, 2005 complaint
    with the Illinois Labor Relations Board (ILRB).1 Because
    1
    That complaint to the ILRB alleged that in expelling them as
    members, the Union violated its duty of fair representation to
    Hallinan and Harej. The Board dismissed the charges con-
    cluding that under Illinois law the duty of fair representation
    (continued...)
    4                                                  No. 06-3602
    of that ILRB complaint, FOP Lodge 7 became aware
    that Hallinan and Harej, although expelled, were still
    paying full Union dues. In response, the Union, over
    the plaintiffs’ objections, informed the City that it
    should make Hallinan and Harej fair-share pay-
    ers—persons who make payments for activities essential
    to collective bargaining but who are not union members
    and do not pay membership dues. The City com-
    plied—rendering Hallinan and Harej fair-share payers
    and deducting the appropriate fair-share amount from
    their paychecks to send to the Union. Hallinan has
    offered and tendered payment of the amount of full
    Union dues to the FOP Lodge 7, but the Union has
    refused payment. FOP Lodge 7 currently receives
    Hallinan’s and Harej’s fair-share payments and continues
    to represent the two men in all matters concerning
    their wages, hours, and working conditions as police
    officers for the City of Chicago.
    On May 9, 2006, Hallinan and Harej filed a complaint
    in the district court alleging First and Fourteenth Amend-
    1
    (...continued)
    covered only the conduct of a labor union in collective bargain-
    ing and grievance handling and that the duty of fair representa-
    tion did not extend to the right of union membership. The
    appeal before us is not from the ruling of the ILRB. This appeal
    arises from a separate suit, filed by plaintiffs in the district
    court below alleging federal constitutional and state law
    violations. We mention the proceedings before the ILRB only
    because it was the complaint in those proceedings that alerted
    the Union that the plaintiffs, although expelled, continued to
    pay full Union member dues.
    No. 06-3602                                                 5
    ment violations pursuant to 
    42 U.S.C. § 1983
     as well as
    pending state law claims for breach of the Union con-
    stitution and breach of the duty of fair representation.
    The suit named as defendants both the FOP Lodge 7 and
    the FOP Illinois. On August 24, 2006, the District Court
    granted the defendants’ motion to dismiss, brought
    pursuant to Federal Rules of Civil Procedure 12(b)(1) and
    12(b)(6) ruling that the court lacked subject matter juris-
    diction as the plaintiffs had failed to plead adequately
    the state action necessary for maintaining an action pursu-
    ant to § 1983. (R. 41 p.1). The court granted leave to
    the plaintiffs to amend the complaint to add allegations
    of illegal state action. When the plaintiffs declined to do
    so, the district court entered a final order on Septem-
    ber 19, 2006, dismissing the case with prejudice. We
    review that decision de novo. Richards v. Kiernan, 
    461 F.3d 880
    , 883 ( 7th Cir. 2006).
    II.
    The plaintiffs in this case allege constitutional violations
    redressable through 
    42 U.S.C. § 1983
    . The First and Four-
    teenth Amendments to the Constitution protect citizens
    from conduct by the government, but not from conduct
    by private actors, no matter how egregious that conduct
    might be. Nat’l Collegiate Athletic Ass’n v. Tarkanian, 
    488 U.S. 179
    , 191, 
    109 S. Ct. 454
    , 461 (1988); Messman v. Helmke,
    
    133 F.3d 1042
    , 1044 (7th Cir. 1998). Unions are not state
    actors; they are private actors. Messman, 
    133 F.3d at 1044
    .
    This does not end the matter, however, because the
    conduct of private actors, in some cases, can constitute
    state action. Consequently, the outcome of this case
    6                                                 No. 06-3602
    depends on whether the conduct of the Union can be
    characterized as state or purely private action.
    In order to be characterized as state action, “the depriva-
    tion [of constitutional rights] must be caused by the
    exercise of some right or privilege created by the State or
    by a rule of conduct imposed by the [S]tate or by a
    person for whom the State is responsible . . . [and] the
    party charged with the deprivation must be a person who
    may fairly be said to be a [S]tate actor.” Lugar v. Edmondson
    Oil Co., Inc., 
    457 U.S. 922
    , 937, 
    102 S. Ct. 2744
    , 2753-54
    (1982). The Supreme Court has identified numerous
    situations when private conduct takes on the color of
    law. See, e.g., 
    id. at 939
    , 
    102 S. Ct. at 2754-55
    ; Brentwood
    Acad. v. Tenn. Secondary Sch. Athletic Assoc., 
    531 U.S. 288
    ,
    295-96, 
    121 S. Ct. 924
    , 930 (2001). Private action can
    become state action when private actors conspire or are
    jointly engaged with state actors to deprive a person of
    constitutional rights, Dennis v. Sparks, 
    449 U.S. 24
    , 27-28,
    
    101 S. Ct. 183
    , 186 (1980); where the state compels the
    discriminatory action, Adickes v. S.H. Kress & Co., 
    398 U.S. 144
    , 152, 
    90 S. Ct. 1598
    , 1605 (1970); when the state
    controls a nominally private entity, Pa. v. Bd. of Dirs. of
    City Trusts, 
    353 U.S. 230
    , 231, 
    77 S. Ct. 806
    , 807 (1957);
    when it is entwined with its management or control,
    Evans v. Newton, 
    382 U.S. 296
    , 299, 301, 
    86 S. Ct. 486
    , 488,
    489 (1966); when the state delegates a public function to
    a private entity, Terry v. Adams, 
    345 U.S. 461
    , 484, 
    73 S. Ct. 809
    , 821 (1953); West v. Atkins, 
    487 U.S. 42
    , 56-57, 
    108 S. Ct. 2250
    , 2259-60 (1988); Edmonson v. Leesville Concrete Co.,
    
    500 U.S. 614
    , 628, 
    111 S. Ct. 2077
    , 2087 (1991), or when
    there is such a close nexus between the state and the
    challenged action that seemingly private behavior rea-
    No. 06-3602                                                 7
    sonably may be treated as that of the state itself. Jackson
    v. Metro. Edison Co., 
    419 U.S. 345
    , 351, 
    95 S. Ct. 449
    ,
    453 (1974).
    Over time, Supreme Court and Seventh Circuit
    precedent have revealed that these cases do not so much
    enunciate a test or series of factors, but rather demonstrate
    examples of outcomes in a fact-based assessment. Brent-
    wood, 
    531 U.S. at 295
    , 
    121 S. Ct. at 930
    ; Tarpley v. Keistler,
    
    188 F.3d 788
    , 792 (7th Cir. 1999) (“All of the tests, despite
    their different names, operate in the same fashion: [ ] by
    sifting through the facts and weighing circumstances.”).
    What is fairly attributable is a matter of normative
    judgment, and the criteria lack rigid simplicity. . . .
    [N]o one fact can function as a necessary condition
    across the board for finding state action; nor is any
    set of circumstances absolutely sufficient, for there
    may be some countervailing reason against attributing
    activity to the government.
    Brentwood Academy, 
    531 U.S. at 295-96
    , 
    121 S. Ct. at 930
    (internal citation omitted).
    Hallinan and Harej begin their argument by pointing out,
    correctly, that the existence of an exclusive union agency
    agreement with a government employer implicates the
    state action doctrine. Chicago Teachers Union Local No. 1 v.
    Hudson, 
    475 U.S. 292
    , 301, 
    106 S. Ct. 1073
     (1986). Under
    the exclusive agency arrangement, a single labor organiza-
    tion has sole authority to bargain with a particular em-
    ployer over wages, hours, and working conditions of
    employees. For employees, the unified bargaining agent
    8                                              No. 06-3602
    provides strength in numbers and economies of scale.
    See Tavernor v. Ill. Fed’n of Teachers, 
    226 F.3d 842
    , 844
    (7th Cir. 2000). For employers it protects them from
    conflicting demands of different groups of workers.
    Imagine the difficulties that would ensue if union A
    bargained for and received a different salary and set of
    benefits for its members than did union B. Giving ex-
    clusive bargaining rights to one particular union meets
    the needs of the union, the members it represents, and the
    employer. See Abood v. Detroit Bd. of Educ., 
    431 U.S. 209
    ,
    221-22, 
    97 S. Ct. 1782
    , 1792 (1977) (outlining the problems
    with multiple representatives including inter-union
    rivalries, dissension in the work force, the undermining
    of the advantages of collectivization etc.). Consequently,
    the National Labor Relations Act (
    29 U.S.C. §§ 151-169
    )
    is premised on such a system of exclusive representation.
    With all if its benefits, however, the exclusive agency
    agreement does come at a cost. When a government
    employer requires its employees to associate with a
    particular private organization, it infringes on its em-
    ployees’ First Amendment associational rights and on
    liberty rights protected by the Fourteenth Amendment.
    See Abood, 
    431 U.S. at 222
    ; Hudson, 
    475 U.S. at 301
    , 
    106 S. Ct. at 1073
    . The Supreme Court long ago resolved this
    problem by requiring employers to allow employees to
    opt out of union membership. Abood, 
    431 U.S. at 221-22
    ,
    
    97 S. Ct. at 1792
    . To prevent free riders from securing
    the benefits of collective bargaining without contributing
    to its cost, however, an employer may have a collective
    bargaining agreement with a union that requires em-
    ployees who opt out of membership to contribute their
    No. 06-3602                                                   9
    fair share of the costs of collective bargaining. Id.;
    Tavernor, 
    226 F.3d at 844
    .
    As the plaintiffs rightly point out, this forced association,
    even in the fair-share payer scenario, still imposes in
    some way on associational rights. See Hudson, 
    475 U.S. at 301
    , 
    106 S. Ct. at 1073
    ; Abood, 
    431 U.S. at 222
    , 
    97 S. Ct. at 1793
    ; Hudson v. Chicago Teachers Union Local No. 1, 
    743 F.2d 1187
    , 1193 (7th Cir. 1984), aff’d, 
    475 U.S. 292
    , 
    106 S. Ct. 1066
     (1986). It is possible, for example, that the union’s
    leadership, in its negotiations over wages and benefits,
    strongly favors employer-sponsored retirement plans, but
    a particular fair-share payer believes in higher salaries
    without government sponsored retirement plans. Or
    perhaps the union is negotiating for a health plan that
    includes coverage for fertility treatment to which the
    employee is morally opposed. The fair-share payer may
    have no choice but to support financially this bargaining
    activity (or, of course, wage the difficult battle for union
    de-certification). The imposition on associational rights,
    however, is lawful in that it goes no further than neces-
    sary to prevent the free-rider problem and ensure the
    smooth operation of the exclusive agency shop. Hudson,
    
    743 F.2d at 1193-94
    . As the Abood court put it,
    To be required to help finance the union as a collec-
    tive-bargaining agent might well be thought, there-
    fore, to interfere in some way with an employee’s
    freedom to associate for the advancement of ideas, or
    to refrain from doing so, as he sees fit. But the judg-
    ment [of our precedent] is that such interference as
    exists is constitutionally justified by the legislative
    assessment of the important contribution of the union
    10                                               No. 06-3602
    shop to the system of labor relations established
    by Congress.
    Abood, 
    431 U.S. 209
    , 222, 
    97 S. Ct. at 1793
     (1977).
    To sum up, the plaintiffs are certainly correct that
    when a government employer forces its employees to
    join a union it is imposing on associational rights. The
    plaintiffs argue that this is the mirror image of such a
    forced association case—“a reverse fair-share case” as they
    put it. But the reverse case of an employer forcing an em-
    ployee to join a union is the case where the employer
    prohibits its employees from associating with a union.
    Clearly this too would constitute a violation of First
    Amendment associational rights, but it is not what hap-
    pened here. Here, it was the Union, rather than the em-
    ployer, that barred the plaintiffs from membership. And
    union actions taken pursuant to the organization’s own
    internal governing rules and regulations are not state
    actions. Messman v. Helmke, 
    133 F.3d 1042
    , 1044 (7th Cir.
    1998); see also Leahy v. Bd. of Trs. of Cmty. Coll. Dist. No.
    508, 
    912 F.2d 917
    , 921-22 (7th Cir. 1990). Thus the
    simplistic “reverse fair share” moniker turns out to be
    inapt and we are thrust back to the initial question of
    whether something about this Union’s relationship
    with the City turned what is generally private conduct
    into state action. That is, was the Union, for example,
    acting in concert or collusion with the City; was it acting
    with powers delegated to it by the City or state law; or
    somehow inextricably entwined with the City? In this
    case we conclude that it was not.
    Hallinan and Harej appear to argue that because state
    action is present when a state employer forces employees
    No. 06-3602                                                11
    to associate with a union, every action the union takes
    becomes action taken under color of law. “[G]overnmental
    regulation or participation in some of the affairs of un-
    ions,” however, “does not consequently make every
    union activity so imbued with governmental action that
    it can be subjected to constitutional restraints.” Driscoll v.
    Int’l Union of Operating Eng’rs, Local 139, 
    484 F.2d 682
    , 690
    (7th Cir. 1973). If it did, state action could be assumed
    in every case involving a collective bargaining agree-
    ment between a union and a public entity, but our court
    and others have found otherwise. See, e.g., 
    id.
     (finding no
    state action in internal union rule requiring all candidates
    for union office to execute a non-communist affidavit);
    Leahy, 
    912 F.2d at 921-22
     (finding that plaintiff failed to
    adequately allege state action in portion of suit against
    union representing employees of city employer); see also
    Jackson v. Temple Univ., 
    721 F.2d 931
    , 933 (3d Cir. 1983)
    (plaintiff failed to satisfy state action requirement for
    claim against union representing employees of public
    employer). Rather, “the very activity of a private entity
    which a plaintiff challenges must be supported by state
    action.” Driscoll, 
    484 F.2d at 690
    . Membership regulations
    and disciplinary procedures are quintessentially internal
    affairs. See Messman, 
    133 F.3d at 1044
    . In this case, no
    matter how they dress it, the plaintiffs are challenging
    only the Union’s internal act of expelling them from
    membership in the organization. Even taking the facts
    of the complaint in the light most favorable to Hallinan
    and Harej, there is no evidence that the City exercised
    such coercive power, provided such significant encour-
    agement, or was sufficiently entangled in any ways that
    the choice to expel the plaintiffs must, in law, be deemed
    12                                              No. 06-3602
    to be that of the City. See Blum v. Yaretsky, 
    457 U.S. 991
    ,
    1004, 
    457 S. Ct. 2777
    , 2786 (1982).
    The complaint in this case alleges that Union members
    filed disciplinary charges against Hallinan and Harej, that
    the Union suspended them before a hearing, that the
    Union conducted the hearings with biased panel mem-
    bers, and that the Union board ultimately voted to expel
    the plaintiffs. Hallinan and Harej further alleged that the
    Illinois FOP denied their appeal and upheld their expul-
    sion. The complaint does not allege that the City was in
    any way involved with the suspension or expulsion or
    hearing. Nor does it allege a conspiracy, compulsion, or
    delegation of duties. Indeed, the complaint alleges that
    the Union expelled the plaintiffs from their Union mem-
    bership pursuant to the FOP Lodge 7’s constitution and
    bylaws and not because of any provision in the
    collective bargaining agreement or any other agreement
    with the City. Regarding the City, the complaint merely
    alleges that the City requires the plaintiffs to support
    the Union and that the City assisted the Union by
    refusing to deduct the full amount of membership dues
    as the plaintiffs desire. (R. at 1, ¶¶ 10, 12, 54, 56).
    The City’s deduction of fair-share dues came about as
    a result of, and was not the cause of, the plaintiffs’ expul-
    sion. In fact, had the City done nothing at all and simply
    continued to deduct full membership dues and forward
    them to the Union, the plaintiffs would be in the exact
    same position as they are in now. The City could not
    compel the Union to accept the expelled members
    and the Union merely would be obliged to refund immedi-
    ately any amount of over-payment. In response to the
    No. 06-3602                                              13
    Union’s expulsion, the City simply reacted by taking the
    required administrative steps to fulfill its ministerial
    obligations to deduct $X in dues for members and $Y in
    fees for fair-share payers. The City’s deductions had
    no effect on whether the plaintiffs were expelled and will
    have no effect on whether the Union allows them to re-join.
    Decisions about membership are between the Union and
    its police officer members. In this way, this case resembles
    the integral facts of Blum, 
    457 U.S. 991
    , 
    102 S. Ct. 2777
    (1982). In Blum, private nursing homes independently
    determined that some of their residents did not require
    the level of care that they were receiving and con-
    sequently transferred those patients to a lower level of
    care. 
    Id. at 995
    . The homes then notified the city officials
    who were responsible for administering the Medicaid
    program and ultimately the city adjusted the payments
    to the homes according to the level of care provided and
    the city’s statutory obligations. 
    Id.
     The Supreme Court
    concluded, “[t]hat the State responds to such actions by
    adjusting benefits does not render it responsible for
    those actions. The decisions about which respondents
    complain are made by physicians and nursing home
    administrators, all of whom are concededly private par-
    ties.” 
    Id. at 1005
     (emphasis in original).
    Hallinan and Harej admit that the City has not
    directly expelled the plaintiffs nor prevented their mem-
    bership, but rather, they argue that the state action
    comes in the form of “non-obvious” involvement of the
    City. The non-obvious involvement stems largely from
    the language of the Collective Bargaining Agreement
    14                                                No. 06-3602
    between the City and the FOP Lodge 7 which, in Section
    3.1 states,
    A. Each officer who on the effective date of this
    Agreement is a member of the Lodge, and each
    officer who becomes a member after that date,
    shall, as a condition of employment, maintain
    their membership in good standing in the Lodge
    during the term of this Agreement.
    B. Any present officer who is not a member of the
    Lodge shall, as a condition of employment, be
    required to pay fair share (not to exceed the
    amount of Lodge dues) of the cost of the collective
    bargaining process and contract administration.
    All officers hired on or after the effective date of
    this Agreement and who have not made applica-
    tion for membership shall, on or after the
    thirtieth day following completion of their proba-
    tionary period, also be required to pay a fair
    share of the cost of the collective bargaining pro-
    cess and contract administration.
    (R. at 28, Ex. C, p.2).
    Hallinan and Harej interpret this language to mean
    that although new hires have the choice of becoming
    full members or simply fair-share payers, officers who
    were members on the effective date of the collective
    bargaining agreement can never subsequently opt-out
    and become fair-share payers. Consequently, the plain-
    tiffs argue, any officer who is expelled from the Union
    can be (and theoretically must be) terminated by the
    City. This is neither a fair reading of the collective bargain-
    No. 06-3602                                               15
    ing agreement nor constitutionally workable under the
    First Amendment. It could not be more clear that all
    persons “who object to nonrepresentational activities of
    the union have the right to pay fees that exclude con-
    tributions to those activities,” and become fair-share
    payers. Tavernor, 
    226 F.3d at 844
    ; see also Hudson, 
    475 U.S. at 294
    , 
    106 S. Ct. at 1069
    ; Abood, 
    431 U.S. at 234
    , 
    97 S. Ct. at 1799
    . It would be an odd reading of the contract
    indeed to allow only new hires and not long-standing
    employees to opt out of membership. Such a reading
    would mean that an employee who had been a member
    could never opt out of membership even if the Union
    began to pursue a political and ideological agenda with
    which the member disagreed. Suppose, for example, that
    the Union began to contribute to pro-choice causes to
    which the member was religiously opposed. Under the
    Union’s reading, that member would be forced to
    maintain her association with a group to which she was
    ideologically opposed or lose her job. Such a forced
    association would undoubtedly violate the First Amend-
    ment as described in Abood. Not only would it be
    a stretch to read this first sentence of Section 3.2 as ap-
    plying only to new hires, we need not. The language of
    that sentence contains no such restriction. Rather, that
    first sentence in subsection B is clear that “[a]ny present
    officer who is not a member of the Lodge shall, as a
    condition of employment, be required to pay fair share
    (not to exceed the amount of Lodge dues) of the cost of
    the collective bargaining process and contract admin-
    istration.” In other words any officer who is not a
    member—either by choice or due to expulsion—can and
    16                                             No. 06-3602
    must become a fair-share payer, just as Hallinan and
    Harej have. “Terms that are lawful as written may not be
    given an illegal spin as part of an effort to curtail the
    obligation they create.” Cent. States, S.E. and S.W. Areas
    Pension Fund v. Joe McClelland, Inc., 
    23 F.3d 1256
    , 1258
    (7th Cir. 1994).
    The City cannot terminate the officers for non-compli-
    ance with Section 3.1; as fair-share payers, they have
    complied. The Union, therefore, does not have the
    power to have the officers terminated from their em-
    ployment, as the plaintiffs allege. The decision to expel
    any member is regulated only by internal union regula-
    tions which are neither influenced nor compelled by the
    City or any other government agency. There is no en-
    tanglement, coercion, control, delegation, encouragement
    or any other indicia of state action. A state “normally can
    be held responsible for a private decision only when it
    has exercised coercive power or has provided such sig-
    nificant encouragement, either overt or covert, that the
    choice must in law be deemed to be that of the [govern-
    ment].” Blum, 457 U.S. at 1004, 102 S. Ct. at 2786. The
    state does not govern the union’s internal affairs.
    What appears to be driving this appeal is the need to
    correct an injustice inflicted upon Hallinan and Harej. If
    their allegations are accurate—and for purposes of the
    motion to dismiss we accept all factual allegations in the
    complaint and draw all reasonable inferences from
    those facts in the plaintiffs favor (Richards v. Kiernan,
    
    461 F.3d 880
    , 882 (7th Cir. 2006))—Hallinan and Harej
    were expelled from the Union simply for challenging
    No. 06-3602                                               17
    incumbent officers and exposing wrongdoing. It goes
    without saying that unions should tolerate and indeed
    encourage dissension among their ranks and encourage
    whistle-blowing of nefarious and questionable practices
    by union leadership. The Constitution, however, does not
    require private organizations to provide free speech or
    due process rights to its members in matters concerning
    their purely private and internal affairs. “The federal
    judiciary will not engraft a remedy on a statute, no
    matter how salutary, that Congress did not intend to
    provide.” California v. Sierra Club, 
    451 U.S. 287
    , 297, 
    101 S. Ct. 1775
    , 1781 (1981). Here, the Constitution requires
    state action which the plaintiffs have failed to effec-
    tively plead.
    Federal Rule of Civil Procedure 12(b)(1) allows a party
    to move to dismiss a claim for lack of subject matter
    jurisdiction. A motion under Rule 12(b)(6) challenges
    the sufficiency of the complaint to state a claim upon
    which relief may be granted. Although the district court
    ultimately concluded that it lacked subject matter juris-
    diction because the plaintiffs had failed to plead the
    state action necessary for maintaining an action pursu-
    ant to § 1983—a conclusion that invokes Fed. R. Civ. P.
    12(b)(1)—the court should have instead dismissed pursu-
    ant to Fed. R. Civ. P. 12(b)(6) for failure to state a claim.
    Because the plaintiff properly pleaded a colorable claim
    arising under a law of the United States, the district court
    had subject matter jurisdiction pursuant to 
    28 U.S.C. § 1331
    . Arbaugh v. Y & H Corp., 
    546 U.S. 500
    , 511, 
    126 S. Ct. 1235
    , 1244 (2006). Proof of state action, in contrast, is an
    element of the claim. See id.; Lugar v. Edmondson Oil Co.,
    18                                                No. 06-3602
    Inc., 
    457 U.S. 922
    , 930, 
    102 S. Ct. 2744
    , 2750 (1982) (describ-
    ing the state action requirement as an element of a § 1983
    claim). Indeed, the defendant’s motion to dismiss
    properly moved the court to dismiss for failure to state
    a claim under Rule 12(b)(6), alleging that the plaintiffs
    had failed to plead state action. Defendants moved to
    dismiss for lack of subject matter jurisdiction pursuant to
    Rule 12(b)(1) solely on the pendant state law claim.
    The plaintiffs failed to plead adequately state action
    and thus the district court’s grant of the defendants’
    motion to dismiss is A FFIRMED.
    6-25-09