# Petition for Writ of Certiorari — Soth v. Baltimore Sunpapers, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1999
- **Citation:** 525 U.S. 1067

## Text

O | FILED
ry ~ 98 SRL NES

OFFICE UF THE CLERK

IN THE

SUPREME COURT OF THE UNITED STATES
October Term, 1998

-.
>

EDWARD D. SOTH, JR.,

Petitioner,

BALTIMORE SUNPAPERS, INCORPORATED,
THE BALTIMORE SUN COMPANY,
DIANA M. MURPHY, JACK ROSS,
JOHN KIDWELL, JAMES BORN,

Respondents.

y a
—

On Petition for a Writ of Certiorari
_To the United States Court of Appeals For the Fourth Circuit

a
—

PETITION FOR WRIT OF CERTIORARI

a
a al

D. JOSEPH MAY*
GLEN M. FALLIN
Suite 173
549 Ritchie Highway
Severna Park, MD 21146
410-465-3382
*Counsel of Record

QUESTIONS FOR REVIEW

Whether the "total preemption" doctrine of 301 of the
Labor-Management Relations Act applies to a State law
claim of tortious interference with the Plaintiff's
employment relationship that is based on an assertedly
impermissibly motivated discharge, as evidenced by the
employer's failure to discipline other, similarly situated
employees, and is in no way dependent upon any
provision of an existing collective bargaining agreement

between the Plaintiff's union and his employer?

LIST OF PARTIES TO THE PROCEEDING

Petitioner (previous plaintiff and appellant): Edward
D. Soth , Jr.

Respondent (previous defendant and appellee):
Baltimore Sunpapers, Incorporated, a Maryland
Corporation.

Respondent (previous defendant and appellee):
The Baltimore Sun Company, a Maryland
Corporation.

Respondent (previous defendant and appellee):
Diana M. Murphy, individually and in her corporate
capacity as Vice President for Advertising and
Marketing, The Baltimore Sun Company.

Respondent (previous defendant and appellee):
Jack Ross, individually and in his official
corporate capacity as Classified Advertising
Manager, The Baltimore Sun Company.

Respondent (previous defendant and appellee):
John Kidwell, individually and in his corporate
capacity as Automotive Manager, The Baltimore

Sun Company .

Respondent (previous defendant and appellee):
James Born, individually and in his corporate
cacapacity as Automotive Supervisor, The
Baltimore Sun Company.

Questions Presented for Review
List of all Parties
Table of Contents
Table of Authorities
Opinions Below
Jurisdiction
Statute Involved
Statement of the Case
Argument
The lower courts erred in
concluding that review of the
collective bargaining agreement
between Petitioner's union and his
employer was essential to
determining Petitioner's claim of
tortious interference with his

employment.

Conclusion

Appendix

TABLE OF CONTENTS

ii

14

26

Table of Authorities
Cases

Adler v. American Standard
Corp., 291 Md. 31 (1981).............:02:seeeeeeeee eee ees 2,4

Childers v. Chesapeake & Potomac Telephone
Co., 881 F.2d 1259 OE MIR a isivciinsisansvnsnsi 20

Continental Cas. Co. v. Mirabile,
52 Md. App. 387 (1982), cert. denied
294 Md. 652 (1982)............c:ccccee ce ere eee eee eee eeenens 3,24

DeBleecker v. Montgomery County,
292 Md. 498, 438 A.2d 1348 (1982).........ccceeeeeee 20

Finch v. Holliday-Tyler Printing, Inc.,
322 Md. 197, 586 A.2d 1275 (1991).......2..0..:00eeee 20

Frampton v. Central Indiana Gas Company,
260 Ind. 249, 297 N.E.2d 425 (1973).......0..::000c:eeeeees 22

Goldman v. Harford Road Bldg. Ass'n, 150 Md.
677, 133 A. 843 (1926).............. 06sec cee eee cence eee eee ene 16

Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246,
114 $04 SRO) cent icin. 1

Lake Shore Investors v. Rite Aid Corp.,
67 Md.App. 743, 509 A.2d 727
(Md.Ct.Spec. App. 1986)...........-...ssecceeee eee eeeee cess 16

iV

Lingle v. Norge Div. of Magic Chef, Inc.,
486 U.S. 399, 108 S.Ct. 1877, 100 L.Ed. 2d
410 (19D Sian ie ae esas, .oecdeed, TD

Lucke v. Clothing Cutters Assembly,
TT Md. 396, D6 Ai SOS IGS) ii 10

McDonald v. Santa Fe Transportation Systems,
427 US. 273, 96 S.Ct. 2574, 49 L.Ed.2d 493
ON So ccicsuancll a epee, oben, TS

Macklin v. Robert Logan Assoc., 334 Md. 287
(194) as cnsoresstscncesrnisnncannsissecnscengepacedncscetscaee races 4

Marrs v. Marriott oem 830 F. nae 274
(D.Md. 1992).... Lis cle iakeys sits desl Ceyed unva chicane: ae

Natural Design, Inc. v. The Rouse Co.,
302 Md. 45, 485 A.2d 663 (1984).............-..eee eee 4,15

State Farm Mut. v. Nationwide Mut.,
307 Md. 631, 516 A.2d 586 (1986).............: eee y

Trimed, Inc. v. Sherwood Medical Co.,
977 F.2d 885, (4th Cir. 1992), aff g

772 F.Supp. 879 (D.Md. 1991).........:sccceeeeeee eens 16
Statutes
29 U.S.C. § 185(a) (West 1978)............-.. ce eeee passim
Maryland Code Commercial Law, § 11-204................ 2,4
Vv

OPINIONS BELOW

Soth v. Baltimore Sunpapers Incorporated, et al.,.
Nos. 96-2385, 96-2390 (4" Cir., May 4, 1998), 1998-
1 Trade Cases P 72,145, 1998-1 Trade Cases P
72.445, 1998 WL 225140 (4th Cir.(Md.)).

Soth v. Baltimore Sun Co., (NO. CIV. Y-94-1349,
CIV. Y-94-1350 (D.Md., July 18, 1996), 1996 WL
941821 (D.Md.).

STATEMENT OF JURISDICTION

The United States Court of Appeals for the Fourth
Circuit issued on May 4, 1998, the opinion that Petitioner
asks this Court to review. This Court has jurisdiction on
the basis of 28 U.S.C. Sec. 1254(1).

STATUTES INVOLVED IN THE CASE

1. 29 U.S.C. 185(a) (West 1978) (§ 301(a) of the
Labor Management Relations Act).

(a) Venue, amount, and citizenship

Suits for violation of contracts between an employer and a
labor organization representing employees in an industry
affecting commerce as defined in this chapter, or between
any such labor organizations, 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.

2. Md. COMMERCIAL LAW Code Ann. @ 11-204 (1995)

@ 11-204. Prohibited conduct; unlawful contracts,
combinations, and conspiracies

(a) Prohibited conduct. -- A person may not:

(1) By contract, combination, or conspiracy with one or
more other persons, unreasonably restrain trade or
commerce;

Vil

(2) Monopolize, attempt to monopolize, or combine or
conspire with one or more other persons to monopolize any
part of the trade or commerce within the State, for the
purpose of excluding competition or of controlling, fixing,
or maintaining prices in trade or commerce;

(3) Directly or indirectly discriminate in price among
purchasers of commodities or services of like grade and
quality, if the effects of the discrimination may:

(i) Substantially lessen competition,

(ii) Tend to create a monopoly in any line of trade or
commerce; or

(iii) Injure, destroy, or prevent competition with any
person who grants or knowingly receives the benefit of the
discrimination or with customers of either of them;

* * *

(5) Discriminate in favor of one purchaser against |
another purchaser of a commodity bought for resale, with |
or without processing, by contracting to furnish,
furnishing, or contributing to the furnishing of any service
or facility connected with the processing, handling, sale, or
offering for sale of the commodity on terms not accorded to
all purchasers on proportionally equal terms; or

* * *

(b) Conduct not prohibited. — Subsection (a) (3) through

(6) of this section does not prevent:
* * *

(2) A person engaged in selling a commodity or service
from selecting his own customers in bona fide transactions

and not in restraint of trade;
* * *

Statement of the Case

Edward D. Soth, Jr., the Petitioner herein and Plaintiff
and Appellant below, seeks this Court's reversal or vacatur of
the Fourth Circuit's summary affirmance, predicated upon
and supporting the district court's finding of "total preemp-
tion" by Section 301 of the Labor Management Relations Act
(LMRA:), of a grant of summary judgment to his former
supervisors on his claim against them for tortious interfer-
ence with his employment by discharging him from that
employment.

Soth, a former advertising salesman ("account execu-
tive") for the Baltimore Sunpapers, contends that he was
fired for protesting his superiors' decision to offer space for a
full-page ad, at a heavily discounted price, to one of his auto-
dealer clients -- but not to others, and particularly not to the
dealership that previously had held a long-term contract with

the newspaper to run an ad in the space in question. ”

” Before filing the actions that give rise to this present Peti-
tion, Soth attempted unsuccessfully to secure relief from his
discharge through arbitration, pursuant to the collective
bargaining agreement between his union and the Sunpapers,
and filed untimely charges with the National Labor Relations

Soth contends further that the selective manner in

which the ad space was offered constituted price discrimina-
tion, in violation of the Maryland Anti-Trust Act, Maryland
Code Commercial Law, Sec. 11-204. Thus, he contends, his
discharge violated a "clear mandate of public policy" and
gave rise to his claim for an “abusive discharge" under the
doctrine announced in Adler v. American Standard Corp.,
291 Md. 31, 47 (1981).

If the four Defendant management officials who fired
Soth were ac’ing only in further of their own, private inter-
ests and not in furtherance of the employer's interests, then
these individuals are liable for tortious interference with
Soth's employment. See also Marrs v. Marriott Corp., 830 F.
Supp. 274, 282-283 (D.Md. 1992), in which the court rec-
ognized that a managerial employee can take adverse action
against a subordinate for only private reasons and thus be

liable for tortious interference, although, more commonly,

.,.continued...

Board and the U.S. Equal Employment Opportunity Com-
mission. He also filed a complaint in

the U.S. District Court for the District

of Maryland. See, Soth v. Washington-Balti-

more Newspaper Guild, et al., Civ. No.

HAR 91-2762 (D.Md. Oct. 13, 1992), 1992

WL 296726 (D.Md.).

the management official acts in furtherance of his employer's

interests, and within the scope of his employment, and thus
may not be held liable for tortious interference. Continental
Cas. Co. v. Mirabilie, 52 Md.App. 387 (1982), cert. denied
294 Md. 652 (1982).

To reach his abusive discharge claim and other
claims, the district court first found that his tortious interfer-
ence claim against his former superiors was subject to Sec-
tion 301's total preemption. %

Applying an analysis not argued or addressed by
either side, the district court concluded, sua sponte, that a
tortious interference claim requires interference with a con-
tractual relationship: “Soth must prove that a third party
intentionally induced a breach of an existing contract". Dis-

trict Court's Memorandum, at A-18. Furthermore, for this

” As noted infra, the Fourth Circuit's removal jurisprudence
would have allowed the district court to reach the merits cf
Soth's state law claims even in the absence of a determination
of whether it has removal jurisdiction. Soth urges this Court
to address that issue, too, so that any remand by this court on
the preemption issue will be not be vitiated by a decision that
bypasses the jurisdictional issue to address the merits of the
State law claims. In sum, Soth seeks unqualified remand to
the State court.

conclusion the district court purported to rely on authorities

in which the Court of Appeals of Maryland expressly held
that a contractual relationship is NOT essential to a tortious
interference claim. See, Macklin v. Robert Logan Assoc.,
334 Md. 287, 297 (1994) (referring to two varieties of tor-
tious interference), citing Natural Design, Inc. v. The Rouse
Co., 302 Md. 45, 69, 485 A.2d 663, 675 (1984), wherein the
court observed:
[T]he two general types of tort actions for interfer-
ence with business relationships are inducing the
breach of an existing contract and, more broadly,
maliciously or wrongfully interfering with economic
relationships in the absence of a breach of contract.
[Italics supplied.]

In addition to the tortious interference claim against
the individual Defendants, Soth sued all of the Defendants
for an "abusive" or wrongful discharge, brought pursuant to
the doctrine announced in Adler v. American Standard Corp.,
291 Md. 31, 47 (1981). Soth brought claims also for viola-
tion of the Maryland Anti-Trust Act, Maryland Code
Commercial Law, § 11-204; civil conspiracy; and, in only

one of the two actions that were filed initially in the State

court, a claim under 42 U.S.C. § 1981 for his discharge as an

act of retaliation for his opposition to racial discrimination

perpetrated by Defendants against another employee, an

African-American. ”

Ot interest herein are only the tortious interference
claim, which the district court found to be preempted by
Section 301 and thus to confer federal jurisdiction, and, to
suppori Soth's argument against preemption of the tortious
interference claim, the abusive discharge claim.

Soth urges that this Court grant certiorari to reverse
the lower courts' determinations that removal jurisdiction
existed, on the basis of Section 301 “total preemption", and
to order remand to the State court without a ruling on the
merits of his State law claims.

Statement of facts.

Soth was discharged from his employment by the

Baltimore Sunpapers and unsuccessfully arbitrated his dis-

charge through his union and the collective bargaining

¥ As the district court noted, A-23-24, Soth filed two actions

in State court, one with the Section 1981 claim and the other

with only State law claims. This was indeed a tactic invoked
to preserve the Plaintiff's choice of forum, which amounted
essentially to splitting his cause of action. The Court of
Appeals of Maryland has ruled explicitly that splitting causes
of action is permitted. Jones v. Speed, 320 Md. 249, 259
(1990).

agreement (CBA). The issue of why Soth was singled out for

disciplinary action allegedly for engaging in outside activi-
ties, while other Sunpapers employees engaged far more
flagrantly than he in such activities but sie unpunished, was
not raised in the arbitration.

There is substantial support for Soth's contention that
his superiors fired him in an attempt to cover-up their actions
that cost their employer many thousands of dollars in lost
advertising revenue. Further, the Sunpapers had no interest
in violating its own rate structure, as the individual Defend-
ants (Respondents herein) did in offering space for a full-
page, front-of-the-section advertisement on a selective basis.

Soth was employed, until his suspension and dis-
charge on August 3, 1990, to sell advertising space, including
in some instances all of the services that go into production
of advertisements in the newspaper, to automobile dealers in
the Baltimore area.

After approximately two years of employment by the
Sunpapers, in August of 1989 Soth began performing "print

coordination" services -- preparation of "rough layouts" or

instructions for the preparation of advertisements and the

coordination of the placement of these advertisements in
various newspapers other than the Sunpapers -- for the Beal
GMC Truck dealership in Baltimore. Soth turned to outside
activities after being offered, and turning down, a promotion
to a supervisory position.

The materials that Soth prepared in his outside activi-
ties consisted of sheets with instructions thereon for the final
preparation of advertisement, rather than "camera ready" ad
copy. As compensation for the above described services
Soth was given the use of a vehicle.

Soth picked up two additional, outside accounts, so
that his total income from his outside work was approximate-
ly $2,000 per month. But at the same time he was generating
$10,000 per month in advertising revenue to the Sunpapers
from his outside clients. Furthermore, Soth at no time direct-
ed the placement of advertisements in an particular outlet or
media, and he performed no services for his outside clients
that he would have been obliged to perform for them in his
Capacity as an employee of the Sunpapers.

In his capacity as an ad salesman, Soth served the Al

Packer dealerships. In February of 1990, the Packer group,

who had a one-year contract with the Sunpapers that was to

expire on March 11, 1990, sought to negotiate, for the
coming year, a reduction of $750 from its fee of $13,000 per
week for a full-page ad that was published on the front page
of the classified section of the Sunday Sun. The reduction
would be accomplished by dropping the color from the ad.
Initially the Sunpapers management did not respond to
Packer's request. Soth urged that Packer's offer be accepted.

Packer's offer angered Defendant / Respondent
Murphy ("Murphy"), the Sunpapers' vice-president for adver-
tising and marketing, as was apparent to Soth from her
behavior and remarks. Murphy stated to Soth and Defendant
/ Respondent Jack Ross, the Sunpapers' Advertising Depart-
ment Manager, that she had a “philosophical problem with
giving [Packer] any kind of a rate break". Soth urged that
she compromise with Packer. Ross said nothing about
compromising.

Defendant Respondent Born, Soth's immediate supe-
rior, told Soth that he, too, was angered by Packer's proposed
rate reduction. And Defendant Respondent Kidwell, Born's

boss, stated in Soth's presence that "I gave the kike bastard a

- LT

break once, and I'm not going to do it again", or words preci-
sely to that effect.

The enmity toward Packer escalated into a decision,
announced at a sales meeting, to sell to another dealer the
premium ad space that Packer had been enjoying. But the
sales staff was unable to find any other dealer that would pay
the premium price -- approximately $13,000 per week.
Finally, during the week prior to March 18, 1990, which was
the first Sunday after the expiration of Packer's contract, Soth
learned that the premium ad space had been offered to anoth-
er dealer, the Norris Ford dealership, at one-half the price
that Packer had paid for it, and that Packer had not been
offered this opportunity.

Soth vigorously, but unsuccessfully protested this
favored treatment of Norris. Ross told Soth that the decision
would not be changed, and the Norris ad ran on March 18,
1990. Ross testified on deposition that no other advertiser
was offered this opportunity. It is disputed whether the space
could have been sold to any other advertiser in the limited

time available.

Still outraged about the treatment of Norris and

Packer, Soth told another managerial employee -- to whom
he had previously mentioned his outside activities -- what
had occurred. That employee, Vicki Franz, immediately re-
sponded that this favored treatment of Norris was an anti-
trust violation: "It's rate breaking, it's illegal."

Soth continued to complain to Born, Kidwell, and
Ross that their treatment of Packer had been "absurd",
"unethical", and was costing the Sunpapers thousands of
dollars in lost ad revenue -- while Packer presumably re-
mained willing to pay only slightly less than the premium
rate for the subject ad space.

When it continued to be impossible to get other deal-
ers to buy the premium space, Soth approached Packer and
suggested that it could contract for the subject space on a
long-term basis for a "contract rate" of $3,21 per line (at
2,570 lines), versus the "premium rate" that it had been
paying, $4.58 per line (for the same lineage).

As Soth recalled in his affidavit submitted in support
of his opposition to Defendants’ motion for summary judg-

ment, in mid-July of 1990, he proposed to Born and Kidwell

that Packer would purchase the subject space at the above

contract rate. The rejected the proposal, although there was
no alternative that would generate comparable revenue.

Soth protested that their favored treatment of Norris,
back in March, and unfavorable treatment of Packer had
constituted an anti-trust violation, and that he intended to
carry his protests to the Sunpapers' Publisher and possible to
the FTC (referring to the Federal Trade Commission). But
first Soth said he would discuss the issue with Ross, who was
not in his office on the day Soth's above-described conversa-
tion with Born and Kidwell took place.

When Ross returned, Soth renewed his contention
that the treatment of Packer had been unlawful and urged that
Packer be offered the subject space at the contract rate and on
a long-term basis. Ross responded that he would get back to
Soth on this issue. On August 5, 1990, the Packer ad re-
turned the premium space.

On July 31, 1990, Soth was suspended for five days
allegedly for operating an "advertising agency" that created a
conflict of interest with regard to his responsibilities as a
Sunpapers employee. When given a letter announcing his

suspension, Soth also was given a writing that stated the

11

policy he was accused of violating. This writing was a letter
signed by the Sunpapers' General Manager, Richard Basoco,
and dated April 16, 1987 -- which was prior to Soth's being

hired by the Sunpapers.

While at home serving the suspension, Soth received
a call conveying an order from Born to be sure to "get every- )
thing in", referring to all of the advertising material that was )
due to run within the next several days. Although on suspen- ;
sion, Soth telephoned one of the Sunpapers' affiliate newspa-
pers to make sure that the ads for which he was responsible
would run as scheduled. This was precisely what Soth be-
lieved he had been ordered to do. But one of the ads had
been prepared by Soth for an "outside" client, albeit during
the previous week.

On August 3, 1990, Soth was called into Ross office
and handed a letter stating that he was fired, effective that
day, for gross insubordination.

At no time was Soth ever made aware that there was
any provision of the CBA that addressed outside activities,

and during his suspension and at the time of his discharge,

only the Basoco letter was referred to.

The Basoco letter is addressed to “[a]ll Baltimore
Sun employees", and not just to members of the union to
which Soth belonged. The letter begins: “Recently,
questions have come to my attention concerning certain
employees who have engaged in outside business activities."
[Italics supplied. ]

Furthermore, in neither the suspension letter nor the
subsequent discharge letter, which was dated August 3, 1989,
is there any mention of the CBA or any provision of the CBA
concerning outside employment. Indeed, in the discharge
letter Plaintiff is alleged to have violated "The Baltimore Sun
Company policy against conflicts of interest or apparent
conflicts of interest in outside activities". [Emphasis sup-
plied. ]

In the course of the instant litigation, Soth has devel-
oped evidence that at least five other employees who en-
gaged in outside activities and were not discharged and were
not discharged. One such employee for many years had a
paid, outside position in which he was in charge of advertis-
ing at the Baltimore Boat Show while he remained an adver-

tising salesman for the Sunpapers; his Boat Show functions

13

including the sale of advertising in direct competition with
the Sunpapers. This individual also was found to be perform-
ing Boat Show functions while at his work station at the
Sunpapers.

Another co-employee of Soth was reprimanded
for repeatedly soliciting Sunpapers' advertising custom-
ers to buy insurance -- on company time. Another
served as advertising manager of one the Sun's zoned
editions while also advertising in that edition to solicit
business as a real estate agent. And at least two other
Sunpapers employees are well-known columnists who
also appear as commentators on local television and

radio.

ARGUMENT

1. The lower courts erred in concluding that review of

the collective bargaining agreement between Petition-
er's union and his employer was essential to determin-
ing Petitioner's claim of tortious interference with his
employment.

As the district court noted, "[i]f the resolution of a

state tort claim requires interpretation of a CBA [collective

14

bargaining agreement], then that claim is preempted by
section 301." Lingle v. Norge Div. of Magic Chef, Inc., 486
U.S. 399, 405- 406, 108 S.Ct. 1877, 100 L.Ed.2d 410
(1988). The district court then concluded that necessarily a
claim of tortious interference with Soth's "employment"
required interpretation of the CBA, since the CBA gov-
erned Soth's employment relationship.

To reach this conclusion the district court plainly
misstated Maryland law, positing that such a claim of tor-
tious interference required that Soth prove the existence of
a contract, which then would be examined to determine the
scope of the respective duties of the parties to the contract,
i.e., Soth's union and his employer.

But in fact Maryland law does not require proof of
an existing contract as an element of tortious interference:

[T]he two general types of tort actions for interfer-
ence with business relationships are inducing the
breach of an existing contract and, more broadly,
maliciously or wrongfully interfering with economic
relationships in the absence of a breach of contract.
[Italics supplied. ]

Natural Design, Inc. v. The Rouse Co., 302 Md. 45, 69, 485
A.2d 663, 675 (1984).

Curiously, Senior Judge Young, who rendered the

15

district court's opinion, had presided in an case in which he

held that a contract was unnecessary for a claim of tortious
interference with economic relations and expectations.
Furthermore, it is clear in Maryland law that, even if a

contract exists, recovery on a claim of tortious interference
does not require a showing that the contract was breached:

"[P]roof of breach of contract is not an essential

element of the tort." > Lake Shore Investors v. Rite

Aid Corp., 67 Md.App. 743, 509 A.2d 727, 729

(Md.Ct.Spec.App.1986); see also > Goldman v.

Harford Road Bldg. Ass'n, 150 Md. 677, 133 A.

843, 845 (1926) (ruling that right of action existed

against third party where contract terminated with-

out breach); > Lucke v. Clothing Cutters Assembly,

77 Md. 396, 26 A. 505, 508 (1893) (holding u:.uon

liable for wrongful interference in employment

termination despite absence of employment con-

tract).
Trimed, Inc. v. Sherwood Medical Co., 977 F.2d 885, 889 “"
Cir. 1992), affirming 772 F.Supp. 879 (D.Md. 1991), in
which Senior Judge Young, who presided herein, recognized
and quoted the same principles as those quoted supra. Id. at
882-883.

The facts in this case are similar to those addressed by

this Court in McDonald v. Santa Fe Transportation Systems,
427 U.S. 273, 96 S.Ct. 2574, 49 L.Ed.2d 493, 12 Fair

Empl.Prac.Cas. (BNA) 1577, 12 Empl. Prac. Dec. P 10,997

16

i ee eee eee eee

(1076). There, the employer found that a group of both black
and white employees had committed serious misconduct.
The white employees were fired; the black employee was noi
fired. This court found that these facts made out a claim of
race discrimination in violation of Title VII of the Civil
Rights Act of 1964, 42 U.S.C. 2000e, et seg. (1997) ("Title
VII"), and the Civil Rights Act of 1870, 42 U.S.C. 1981. ¢
Here, it is not the managerial employees’ racial
animus about which Soth complains, * but that his discharge
was impermissibly motivated by his superiors' animus
against him for resisting and protesting what Soth regarded
as price discrimination. Had this Court applied in McDonald
the reasoning applied here by the lower courts, it would have
denied relief to the discharged white employees simply
because they were found to have committed the misconduct
in question, without further analysis. Further analysis,

beyond the simple determination that misconduct was

“ The employees’ union was sued also in McDonald for
acquiescing in the discriminatory discharges of the white
employees.

* There was an initial claim under 42 U.S.C. 1981, which became
determined that the 1991 Civil Rights Act did not apply retroactively.

17

aii

committed, to determine the actual motivation for the dis-
charge. And the fact that other employees of the Sunpapers
committed similar misconduct and were never punished adds
considerable weigh to Soth's contention that he was fired, not
for his outside activities, but for his protests and threats to
report to the publisher and the Fair Trade Commission that
conduct.

Thus, Soth would be claiming that his discharge was
wrongful even if there had never been a CBA. For what is
implicated here is not the CBA bur the public policy that
Soth sought to vindicate, the Maryland Anti-Trust Act.

In Lingle, supra, and Hawaiian Airlines, Inc. v.
Norris, 512 U.S. 246, 114 S.Ct. 2239, 512 U.S. 246, 114
S.Ct. 2239 (1994), this court has given strong support to the
proposition that Section 301 preemption should not be used
to prevent employees from vindicating rights conferred upon
them from sources other than CBAs. Thus in Norvis, this
court said as follows:

"“[P]urely factual questions" about an employee's
conduct or an employer's conduct and motives do
not “requir[e] a court to interpret any term of a
collective- bargaining agreement." *262 [Lingle,]

486 U.S., at 407, 108 S.Ct. at 1882. The state-law
retaliatory discharge claim [in Norris] turned on just

18

- a

this sort of purely factual question: whether the
employee was discharged or threatened with dis-
charge, and, if so, whether the employer's motive in
discharging her was to deter or interfere with her
exercise of rights under Illinois worker's compensa-
tion law.

While recognizing that "the state-law analysis

might well involve attention to the same factual
considerations as the contractual determination of
whether Lingle was fired for just cause," id., at 408,
108 S.Ct., at 1883, the Court disagreed that "such
parallelism render[ed] the state-law analysis de-
pendent upon the contractual analysis. For while
there may be instances in which the National Labor
Relations Act pre-empts state law on the basis of
the **2249 subject matter of the law in question, S
301 pre-emption merely ensures that federal law
will be the basis for interpreting collective-bargain-
ing agreements, and says nothing about the substan-
tive rights a State may provide to workers when
adjudication of those rights does not depend upon
the interpretation of such agreements. In other
words, even if dispute resolution pursuant to a
collective-bargaining agreement, on the one hand,
and state law, on the other, would require address-
ing precisely the same set of facts, as long as the
state- law claim can be resolved without interpret-
ing the agreement itself, the claim is ‘independent’
of the agreement for S 301 pre-emption purposes."
Id., at 408-410, 108 S.Ct., at 1883.

Norris, supra at 512 U.S. 246, 261-262, 114 S.Ct. 2239,
2248-2249.

Soth submits that it is quite telling that the district
court did nor find his common-law abusive discharge to be

subject to Section 301 preemption.

Soth's position herein is almost precisely that spelled
out in the following passage from the decision of the Court of
Appeals of Maryland in Finch v. Holliday-Tyler Printing,
Inc., 322 Md. 197, 586 A.2d 1275, 6 BNA IER CAS 823, 6
BNA IER CAS 823, 124 Lab. Cas. (CCH) P57,219 (1991):

Lingle requires deference to an arbitration
procedure whenever construction of the CBA is at
issue. Lingle, however, does not require initial
resort to arbitration when there is no need to con-
strue the CBA or when the issue of whether or not
the CBA was violated is irrelevant to the abusive
discharge action. Lingle, 486 U.S. at 413, 108 S.Ct.
at 1885, 100 L.Ed.2d at 423; [***13] cf. Childers
v. Chesapeake & Potomac Telephone Co., 881 F.2d
1259 (4th Cir.1989) (court did not address whether
resolution of state-law claim required interpretation
of CBA but instead held that, as a matter of Mary-
land law, an employee who fails to exhaust contract
remedies cannot bring wrongful discharge claim in
state court).

In this tort action, Finch is not claiming that
Employer had no right to discharge him. The nature
of Finch's abusive discharge claim is that Employer
may have had a right to discharge him under the
CBA but that Employer abused that right because
its motivation was solely to retaliate against him for
filing workers' compensation claims. In DeBleeck-
er v. Montgomery County, 292 Md. 498, 506, 438
A.2d 1348, 1352-53 (1982), a case involving
{[**1280] discharge of an at will public employee
for exercising constitutional rights, we said,

"The common law rule, applicable in
Maryland, is that an employment contract

of an indefinite duration, i.e., at will, can
be legally terminated at the pleasure of

20

RE ee gr eee

either party at any time. The rule is inapplicable, however,
if the decision to terminate the public employment was
[***14] made because of the employee's exercise of
constitutionally protected first amendment rights. Thus,
while it was within the power of the defendants to remove
DeBleecker from his position, their decision to discharge
him 'would not have been lawful if it was made because of
[DeBleecker's] exercise of constitutionally protected first
amendment rights." (Citations omitted.)

[*206] The same reasoning applies to an at will "worker
fired for exercising his statutorily conferred right to file a
workmen's compensation claim." Adler, 291 Md. at 37, 432
A.2d at 468 (citing Frampton v. Central Indiana Gas
Company, 260 Ind. 249, 297 N.E.2d 425 (1973)). In the
case of a contract employee, a claim for abusive discharge
begins with the assumption that it is irrelevant whether the
right to discharge exists under the employment contract.
The issue is whether the employer abused that right.

We have recognized in Maryland that "[a]s a general rule,
parties are free to contract as they wish [but a] contractual
provision that violates public policy is invalid . . . to the
extent of the conflict between the stated public policy
[***]5] and the contractual provision." State Farm Mut. v.
Nationwide Mut., 307 Md. 631, 643, 516 A.2d 586, 592
(1986) (citation omitted). In Ewing, we stated that "the
parties to a collective bargaining agreement are not free to
‘opt out' of legitimate state controls simply by agreeing to
impermissible conditions and claiming federal protection
through pre-emption." 312 Md. at 54, 537 A.2d at 1177. By
the same token, an employer may not abuse its right to
discharge employees by manipulating contract provisions
to circumvent the clear mandate of Maryland public policy.

Finch claims that Employer manipulated the terms of the
21

layoff so that it would reach his seniority level with the
insidious intent of wrongfully discharging him in violation
of Maryland public policy. While it is possible, indeed
probable, that Employer comported with the terms of the
CBA, it does not necessarily follow that the discharge was
not abusive. The Supreme Court recognized this fact in
Lingle, where the Court noted, "even if an arbitrator should
conclude that the contract does not prohibit a particular
discriminatory or retaliatory discharge, [***16] that
conclusion might or might not be consistent with a proper
interpretation of state law." Id. at 413, 108 S.Ct. at 1885,
100 L.Ed.2d at 423.

[*207] In the instant case, there is no need to resort to
arbitration because the issue addressed by arbitration,
whether the layoff procedure was accomplished in
conformity with the CBA, would not itself be determinative
of the wrongful discharge claim. Even if all of the
appropriate CBA layoff procedures were followed and
there was no breach of the CBA, Finch could still recover if
the layoff procedures, although permissible under the CBA,
were utilized solely as a pretext to discharge Finch because
he filed workers' compensation claims. It is not necessary
that Finch first exhaust the CBA grievance procedures.

Furthermore, the Fourth Circuit's reliance on the CBA
for the rule that it concluded was applied in the discharge of
Soth ignores the factual basis for concluding that the
authority invoked in the subject discharge was not the

CBA, as noted supra.

2?
ee

—

The lower courts also have discounted the force of the
‘temporal proximity" between Soth's suspension and his
final disagreement with his superiors over the disputed ad
space.

Furthermore, the reason for Plaintiff's discharge as
expressed in the letter of August 3, 1989, was that Plaintiff
had allegedly been “grossly insubordinate and clearly [had]
violated the terms and conditions of your suspension."
[Emphasis supplied.] Surely a determination of whether of
not Plaintiff was "grossly insubordinate" does not depend
upon any interpretation of the CBA. Indeed, there is
absolutely no language in the excerpt from the CBA that is
included in the record, A. 451, et seq., that defines or even
mentions gross or simple insubordination. Rather, there is
a one-sentence subsection of the sectio: ~n "Job Security"
that reads as follows: “Section 8.3 -- Just and Sufficient
Cause. There shall be no other discharges except for just

and sufficient cause." [Emphasis and bold print in

23

original.]

Also, the tortious interference claim set forth in Count
III was brought against only the individual Defendants, not
the corporate Defendants, as such claims are delimited by
Maryland law. See, e.g., Continental Cas. Co. v. Mirabile,
52 Md.App. 387 (1982), cert. denied 294 Md. 652 (1982),
and Marrs v. Marriott Corp., 830 F. Supp. 274, 282-283
(D.Md. 1992).

It is instructive also that Plaintiff never sought relief for
a breach of the CBA, which as noted supra would have
been barred by limitations in any event, but rather for
interference with his "economic and employment
relations."

Petitioner submits that there was never any need to
interpret the CBA in order to determine Plaintiff's tortious
interference claim.

Furthermore, and the court's determination of Section

301 preemption of the tortious interference claims is

24

inconsistent with the court's determination that it had only

supplemental jurisdiction of the abusive discharge claim,

set forth in Count I.

This inconsistency is particularly puzzling when it is
considered that the abusive discharge and tortious
interference claims are identical except that the individual
Defendant-actors are alleged, for the tortious interference
claim, to have acted for their own, private purposes and not
in furtherance of any interest of the corporate Defendants.
Obviously, if the CBA need not be interpreted in order to
determine whether Plaintiff's discharge was motivated by a
desire to retaliate in violation of public policy, then the
same determination, without regard to the CBA, could be
made with respect to acts of the individual Defendants that
are alleged to have been perpetrated for personal reasons.

Finally, the district court's conclusion that the

tortious interference claim was preempted by Section 301

25

would wreak havoc with Maryland's common law doctrine

of abusive discharge. If Section 301 preemption insulates
individual managers from liability, on a tortious
interference theory, for effecting for private purposes a
discharge that violates public policy, then, on what
principled basis could an employer be liable for a discharge
that violates public policy?

In sum, Soth submits that it was error for the district
court to have denied his motion to remand because of the
perceived "total preemption" of Section 301. The court
should have recognized that it lacked subject matter

jurisdiction of the case raising only State law claims.

Conclusion.
This case demonstrates the need for this Court to fortify
the requirement that the standard for removal be strictly
applied, and the further need to buttress the State courts’

opportunity to accommodate variations in the rights of

26

ee ee se

Conclusion.

This case demonstrates the need for this Court to

fortify the requirement that the standard for removal be

strictly applied, and the further need to buttress the State

courts’ opportunity to accommodate variations in the
rights of employees as those rights are conferred in
various jurisdictions.

For the foregoing reasons, Petitioner urges that
this Court issue its writ of certiorari to reverse or vacate
the Fourth Circuit's affirmance and to order remand of

the instant cases to the State court.

D. JOSEPH MAY*
GLEN M. FALLIN
Suite 173

549 Ritchie Highway
Severna Park, MD 21146
410-465-3382

*Counsel of Record

--- F.3d ----
1998-1 Trade Cases P 72,145,

1998-1 Trade Cases P 72,445
Unpublished Disposition

(Cite as: 1998 WL 225140 (4th Cir.(Md.)))

Edward D. SOTH, Jr., Plaintiff-Appellant,

Vv.

BALTIMORE SUNPAPERS, INCORPORATED, a
Maryland Corporation; The Baltimore Sun
Company, a Maryland Corporation; Diana M.
Murphy, formerly known as Diana M. Zinda, individually
and in her corporate capacity as Vice President for
Advertising and Marketing; Jack Ross, individually and in
his official corporate capacity as Classified Advertising
Manager; John Kidwell, individually and in his corporate
capacity as Automotive Manager; James Born, individually
and in his corporate capacity as Automotive Supervisor,

Defendants-Appellees.
Edward D. SOTH, Jr., Plaintiff-Appellant,
v.

BALTIMORE SUNPAPERS, INCORPORATED, a
Maryland Corporation; The Baltimore Sun Company, a
Maryland Corporation; Diana M. Murphy, formerly known
as Diana M. Zinda, individually and in her corporate capacity
as Vice President for Advertising and Marketing; Jack Ross,
individually and in his official corporate capacity as
Classified Advertising Manager; John Kidwell, individually
and in his corporate capacity as Automotive Manager; James
Born, individually and in his corporate capacity as
Automotive Supervisor,

Defendants-Appellees.

Nos. 96-2385, 96-2390.

United States Court of Appeals, Fourth Circuit.
Argued: April 9, 1998.
Decided: May 4, 1998.
Appeals from the United States District Court for the District
of Maryland, at Baltimore, (CA-94-1349-Y, CA-94-1350-Y);
Joseph H. Young, Senior District Judge.

ARGUED: Glen Marcus Fallin, Westminster, Maryland, for
Appellant.

Darrell Robert VanDeusen, KOLLMAN & SHEEHAN, P.A.,
Baltimore, Maryland, for Appellees.

ON BRIEF: Randi A. Klein, KOLLMAN & SHEEHAN,
P.A., Baltimore, Maryland, for Appellees.

Before NIEMEYER, WILLIAMS, and MOTZ, Circuit
Judges.

OPINION

PER CURIAM:

*1 This consolidated appeal arises from two suits originally
filed by Edward D. Soth, Jr., in the Circuit Court for
Baltimore City against his former employer, Baltimore
Sunpapers, Inc. and the Baltimore Sun Company, and four of
the Sunpapers’ former or current managers (collectively the
Defendants). The two suits alleged identical state law claims
of abusive discharge, violations of the Maryland Antitrust
Act, tortious interference with contract, and civil conspiracy.
One of the suits, however, also contained a retaliation claim

pursuant to 42 U.S.C.A. § 1981 (West 1994). The Defendants

A-2

removed both suits on the basis that Soth's state law claims

were completely preempted by § 301 of the Labor
Management Relations Act, 29 U.S.C.A. § 185(a) (West
1978). The district court granted Soth's request to withdraw
his § 1981 claim and consolidated the suits for consideration
of Soth's motion to remand and the Defendants' motion for
summary judgment. Soth appeals the district court's order
denying Soth's motion to remand and granting summary
judgment in favor of the Defendants on all of Soth's claims.
Finding no error, we affirm.

We review a district court's grant of summary judgment de
novo. See Higgins v. E.I. DuPont de Nemours & Co., 863
F.2d 1162, 1167 (4th Cir.1988). Summary judgment is
appropriate "if the pleadings, depositions, answers to
interrogatories, and admissions on file, together with the
affidavits, if any, show that there is no genuine issue as to
any material fact and that the moving party is entitled to a
judgment as a matter of law.' Fed.R.Civ.P. 56(c); see also
Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548,
91 L.Ed.2d 265 (1986). In considering whether summary

judgment is proper, all inferences to be drawn from the

underlying facts must be viewed in the light most favorabie
to the non-moving party. See Anderson v. _iberty Lobby,
Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202
(1986). Viewed in the light most favorable to Soth, the facts

are as follows.

Soth was employed in September of 1987 by the Sunpapers
as an automotive advertising sales representative. His
primary duty was selling advertising space in the Baltimore
Sun, the Evening Sun, and the Sunday Sun to specific
automotive dealership accounts within a certain geographical
area. Soth's immediate supervisor was James Born. Born
reported to automotive sales manager John Kidwell, who
reported to the classified advertising manager, Jack Ross,
who reported to the vice-president of advertising and
marketing, Diana Murphy-- the four individual defendants

named in Soth's complaint.

Soth's employment was governed by a Collective Bargaining

Agreement (CBA) between the Washington-Baltimore

Newspaper Guild (the union) and the Baltimore Sun
Company. Article VIII of the CBA provided that an
employee may not be discharged except for just and
sufficient cause. Article XX, § 20.1, governing conflicts of
interest and the right to engage in outside activities, provided:
o*2 Employees shall be free to engage in any activities
outside their working hours which do not constitute service
for any interest or publication in competition with the[Sun].
No employee, without permission of the [Sun], shall use in
the course of such activities any material or featured title of
the [Sun] or exploit in any way the employee's connection
with the [Sun].

(3.A. at 402.)

On July 30, 1990, the Sunpapers learned that Soth was
engaging in advertising in violation of the CBA's clause
restricting employees from engaging in outside activities in

competition with the Sunpapers.

Soth was seefi at Brown's Toyota dealership by George

Stinebaugh who handled the Sunpapers' account there. Soth

A-5

ee
_e ee eee ee ee ee lL eee — —_

admitted that he was meeting with the General Manager of

Brown's to discuss the possibility of a future business
relationship in case he ever left the Sunpapers. Soth concedes
that since 1989, he performed "print coordination" services
and prepared “rough layouts" for placement in newspapers
other than the Sunpapers for the Beal GMC Truck, Al Packer
Lincoln Mercury, and Harco Oldsmobile dealerships. In
exchange for these advertising services, Beal provided Soth
with a 1987 GMC Jimmy Truck; Al Packer paid him $1,000
a month; and Harco paid him $750 per month. Soth earned
the equivalent of approximately $24,000.00 per year for his

outside advertising work.

On July 31, Soth was notified in writing that he was being
placed on a five- day suspension without pay. Jack Ross, one
of Soth's supervisors, reviewed the suspension letter with
him. Defendants claim that during his suspension, Soth
placed two advertisements for his personal advertising
clients. Soth claims that the work he did during the

suspension was for the Sunpapers and was in response to a

telephone call made by one of his coworkers, Rich Watkins,

on behalf of Soth's direct supervisor, Born. Soth concedes,

however, that during his suspension he called the Harford
County Sun, one of the Sunpapers' suburban editions, and in
‘structed the newspaper to rerun a Harco Oldsmobile
dealership advertisement that he had prepared a week earlier.
On August 3, 1990, Soth was notified in writing that he was
being discharged immediately for gross insubordination for
violating the terms of his suspension by continuing to engage
in the activity of outside advertising by placing ads in the
Baltimore Sun and the Harford County Sun on behalf of
Harco Oldsmobile.

Soth challenged his discharge through the grievance and
binding arbitration provisions of the CBA. On March 25,
1991, the arbitrator, after a two-day hearing and testimony
from fourteen witnesses, determined that the employer “had
just and sufficient cause" for suspending and discharging
Soth, and that Soth was not deprived of due process by the
employer. (J.A. at 399.) On August 19, 1991, Soth filed an
unfair labor practice charge with the NLRB, claiming that the

Sunpapers had terminated him and refused to reinstate him

A-7

pe

because of his activities on behalf of the

Washington-Baltimore News Guild. The NLRB Regional
Director determined that Soth's charge did not warrant the
issuance of a complaint because it was untimely. Soth
appealed that decision, but the NLRB confirmed the
Regional Director's determination that the charge had not
been timely filed and that further proceedings were therefore
barred. Soth next filed charges with the EEOC and the
American Arbitration Association which were also dismissed

as untimely.

+3 Soth then filed a complaint in the United States District
Court for the District of Maryland. The district court
dismissed Soth's complaint on October 13, 1992, for lack of
subject matter jurisdiction, failure to state a claim pursuant to
Fed.R.Civ.P. 12(b)(6), and for failure to serve the summons
and complaint within 120 days from filing pursuant to
Fed.R.Civ.P. 4(j). Soth then filed the two suits in the Circuit
Court for Baltimore City which were removed by the

Defendants and are presently before us. In those suits Soth

claimed that the real reason for his discharge was retaliation

for his opposition, six months prior to his termination, to the
Sunpapers' decision to offer one automobile dealership a
full-page, front-of-section advertisement at one-half of the
price that another dealership had regularly paid for it, which
Soth believed violated Maryland's Antitrust Act. Specifically,
Soth claims that the placement of this advertisement
constituted price discrimination and that he was discharged
because he threatened to tell the publisher of the Sunpapers
and the FTC.

The district court cenied Soth's motion to remand,
determining that federal jurisdiction over the consolidated
Suits was proper notwithstanding Soth's withdrawal of his §
1981 claim because Soth's claim for tortious interference
with contract was completely preempted by § 301(a) of the
Labor Management Relations Act of 1947, 29 U.S.C.A. §
185(a) (West 1978). [FN*] The district court exercised
supplemental jurisdiction over Soth's remaining state law
claims. See 28 U.S.C.A. § 1367 (West 1999). The district
court held that Soth's claim for tortious interference with

contract was barred by the six month statute of limitations for

§ 301 claims. As to Soth's claims under the Maryland

Antitrust Act, the district court concluded that Soth had not
raised a genuine issue of material fact as to whether a
- monopoly power existed and was maintained im the relevant
market through the Sunpapers' half- price discounting of one
advertisement on one day. Furthermore, the district judge
stated that no evidence of competitive injury had been
introduced in support of Soth's price discrimination claim.
The district court noted that Soth's claim for abusive
discharge required Soth to demonstrate that he was
discharged in violation of a clear mandate of public policy,
see Adler v. American Standard Corp., 291 Md. 31, 432 A.2d
464, 473 (Md.1981), and that his conspiracy claim required a
showing that the Sunpapers had agreed to commit an
unlawful act, see Yousef v. Trustbank Savings, 81 Md.App.
527, 568 A.2d 1134, 1139 (Md.Ct.Spec.App.1990). Because
the district court concluded that the Sunpapers did not violate
the Maryland Antitrust Act, it followed that there was no
violation of public policy and no unlawful act. Accordingly,
the district court granted summary judgment for the
Defendants on all of Soth's claims.

FN* These suits present an exception to the general rule that
"federal preemption defenses do noi ordinarily permit federal

courts to exercise subject matter jurisdiction over claims that
a plaintiff predicates on state law." See Custer v. Sweeney,
89 F3d 1156, 1165 (4th Cir.1996). The exception is
“complete preemption" and that has only been found in a few
cases, including § 301 of the Labor Management Relations
Act. See Avco Corp. v. Aero Lodge No. 735, Int'l Assoc. of
Machinists, 390 U.S. 557, 560, 88 S.Ct. 1235, 20 L.Ed.2d
126 (1968).

We have reviewed the record, briefs, and pertinent case law
in this matter, and we have had the benefit of oral argument.
Our careful review persuades us that the rulings of the district
court were correct. Accordingly, we affirm on the reasoning
set forth in the district court's thorough opinion. See Soth v.
The Baltimore Sun Co., No. Y-94-1349 (D.Md. July 18,

1996).

*4 AFFIRMED

A-11

--- F.Supp. ----
(Cite as: 1996 WL 941821 (D.Md.))

Edward D. SOTH, Jr.

BE *
THE BALTIMORE SUN CO., et al.
Edward D. SOTH, Jr.

Vv.

THE BALTIMORE SUN CO., et al.
No. CIV. Y-94-1349, CIV. Y-94-1350.
United States District Court,

D. Maryland.

July 18, 1996.

Glen M. Fallin, Esquire, Westminster, Maryland, counsel for
Plaintiff.
Darrell R. VanDuesen, Esquire, Baltimore, Maryland;
Charles J. Kesslein, Esquire, Baltimore, Maryland, counsel
for Defendants.
MEMORANDUM OPINION

YOUNG, Senior J.

*] Edward D. Soth, Jr. filed two suits in the Circuit Court
for Baltimore City against his former employer, The
Baltimore Sun Co., and four of its former or current
managers (collectively “The Sun") alleging abusive
discharge, tortious interference with contract, civil
conspiracy, and violations of the Maryland Antitrust Act. In
one of the cases Soth also asserted a claim for discriminatory

retaliation under 42 U.S.C. § 1981. Defendants removed both

cases to this court, arguing that federal jurisdiction existed

over the state law claims because of preemption under 29
U.S.C. § 185{a) or supplemental jurisdiction under 28 U.S.C.
§ 1367. Two motions, Plaintiff's Motion for Remand and
Defendants' Motion for Summary Judgment, are now
pending.

3
Soth was hired by The Sun on September 15, 1987 as an
advertising sales representative. He was a member of the
Washington-Baltimore Newspaper Guild, Local No. 35 of
the National Newspaper Guild, AFL-CIO ("the Guild") and
the terms and conditions of his employment agreement with
The Sun were provided by a collective bargaining agreement
("CBA") between The Sun and the Guild. The CBA provided
that employees could not be discharged without just cause
and provided a procedure for the arbitration of grievances. In
addition, the CBA addressed outside activities by employees
as follows:
Employees shall be free to engage in any activities
outside their working hours which do not constitute
service for any interest or publication in competition
with the Publisher. No employee, without permission
of the Publisher, shall use in the course of such
activities any material or featured title of the

Publisher or explain in any way the employee's
connection with the Publisher.

Team me

i |

Article XX, section 20.1. Soth was assigned to persuade
specific automobile dealers to place advertisements in The
Sun's papers. In this capacity he prepared layouts, handled
proofs, and advised them how to best spend their money in

The Sun.

Beginning in August 1989 Soth prepared advertisements and
coordinated their placement in newspapers that were not
owned by The Sun. On July 30, 1990, Soth visited a
dealership and solicited the preparation and placement of
automobile advertisements in newspapers. He states that he
was exploring the possibility of the dealer hiring him if he
left The Sun. The following day he was suspended by The
Sun. The suspension letter stated in part that "[bly your own
admission, you are attempting to act as an advertising agency
and are soliciting customers of The Baltimore Sun Company
as potential clients." At that time, he was shown a letter dated
April 16, 1987, which forbade employees of The Sun to
“work in any capacity for a company or business with which
the Company is in competition ...." Soth claims that he did

not know of the non-competition rule until he received the

A-14

letter. On August 3, 1990, Soth was discharged for
continuing to violate the non-competition rule during the

probationary period.

*2 Soth challenged the termination through the grievance
and binding arbitration provisions of the CBA. The arbitrator
found that Soth's outside employment conflicted with his
employment as an advertising sales representative for The
Sun and that there was just cause for his Suspension and
discharge. Soth then filed various charges with the-National
Labor Relations Board, the Equal Employment Opportunity
Commission, the American Arbitration Association, and the
United States District Court for the District of Maryland
(Civ. No. HAR-91-2762). Each forum dismissed the charges.
Soth then filed two actions in the Circuit Court for Baltimore
City which were timely removed to this court on May 20,
1994.

II.

A.
Soth seeks remand of case number Y-94-1350, arguing that

it does not set forth a federal claim and the parties are not

A-15

diverse. Soth also seeks to withdraw his claim under 42

U.S.C. § 1981 in Y-94-1349, leaving only state law claims,
and seeks remand on the ground that the Court is without
jurisdiction. This Court will grant Soth permission to
withdraw the section 1981 claim. The two cases now raise

identical claims [FN1] and will be analyzed together.

In response to Soth's motion, The Sun argues that some or
all of the state claims are preempted under section 301 (a) of
the Labor Managemen: Relations Act of 1947, 29 U.S.C. §
185(a), and were properly removed under the "complete
preemption" doctrine. See Avco Corp. v. Aero Lodge No.
735, 390 U.S. 557, 88 S.Ct. 1235, 20 L.Ed.2d 126 (1968),
reh'g denied, 391 U.S. 929, 88 S.Ct. 1801, 20 L.Ed.2d 670
(1968). Section 301(a) grants federal courts jurisdiction over
controversies involving CBAs. 29 U.S.C. 185(a). If the
resolution of a state tort claim requires interpretation of a
CBA, then that claim is preempted by section 301. Lingle v.
Norge Div. of Magic Chef, Inc., 486 U.S. 399, 405- 406, 108
S.Ct. 1877, 100 L.Ed.2d 410 (1988). Applying this test, the

Lingle court held that a claim of retaliatory discharge brought

A-16

-

under a state law protecting employees from discharge for

filing workers' compensation claims was not preempted by
section 301. Id. at 407. The court reasoned that the issue of
whether or not the employer had a non-retaliatory reason for
the discharge raised a factual question that did not involve
interpretation of the CBA itself, even when the agreement
protected employees from discharge except for just cause and

provided a procedure for arbitration of grievances. Id.

In McCormick v. AT & T Technologies, Inc., 934 F.2d 531
(4th Cir.1991) (en banc), cert. denied, 502 U.S. 1048, 112
S.Ct. 912, 116 L.Ed.2d 813 (1992), the Fourth Circuit
applied the Lingle test in holding that section 301 preempted
claims for intentional infliction of emotional distress,
negligent infliction of emotional distress, conversion and
negligence in care of bailment arising out of the employer's
cleaning out of the employee's locker. Noting- that the
plaintiff had to prove wrongful conduct for each claim and
that the required degree of care varies according to the
circumstances of each case, including the contractual

relationship between the parties, the court held the state

A-17

claims referred to implied duties in the contract and were

therefore preempted. Id. at 536-37.

*3 Thus the question before this Court is whether analysis of

the state law claims requires interpretation of the CBA

between The Sun and the Guild.

Count III alleges The Sun tortiously interfered with Soth's
contractual rights. To maintain a claim for intentional
interference, Soth must prove that a third party intentionally
induced a breach of an existing contract. Macklin v. Robert
Logan Assoc., 334 Md. 287, 297, 639 A.2d 112 (1994). The
CBA must be reviewed to determine if it was an existing
contract at the time Soth was discharged and if The Sun
breached any duty provided in the agreement. Because the
intentional interference claim cannot be maintained
independently from the CBA, it is preempted by section 301.
See International Union, UMWA v. Covenant Coal Corp.,
977 F.2d 895, 899 (4th Cir.1992) (intentional interference
claim under Virginia law preempted by section 301).

Accordingly, this Court has jurisdiction over Count III.

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Counts I, [FN2] II, and IV set forth various state law claims

concerning the circumstances under which Soth was
discharged. This Court has supplemental jurisdiction over
these claims under 28 U.S.C. § 1367 because they stem from
"a common nucleus of operative fact." See Shanaghan v.
Cahill, 58 F.3d 106, 109 (4th Cir.1995); White v. County of
Newberry, South Carolina, 985 F.2d 168, 171 (4th Cir.1993).
Accordingly, this Court has jurisdiction over all the claims

and Soth's Motion to Remand will be denied.

B.
The Sun seeks summary judgment on all counts, contending
that the claims are either preempted by 29 U.S.C. § 185(a)
and untimely under that statute or are unsupported by the
undisputed facts in this case. Summary judgment is proper "if
the pleadings, depositions, answers to interrogatories, and
admissions on file, together with the affidavits, if any, show
that there is no genuine issue as to any material fact and that
the moving party is entitled to a judgment as a matter of
law." Fed.R.Civ.P. 56(c). The party seeking summary

judgment bears the initial burden of showing that there is an

A-19

absence of evidence to support the non-moving party's case.

Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548,
91 L.Ed.2d 265 (1986). In response, the non-moving party, in
this case Soth, “may not rest upon the mere allegations or
denials of the adverse party's pleadings, but ... must set forth
specific facts showing that there is a genuine issue for trial."

Fed.R.Civ.P. 56(e).

As discussed above, Count III is preempted by section
301(a) of the Labor Management Relations Act, 29 U.S.C. §
185(a). Soth filed this suit in state court three and one-half
years after his termination, long after the six-month statute of
limitations for section 301 claims. See DelCostello v. Int'l
Brotherhood of Teamsters, 462 U.S. 151, 169, 103 S.Ct.
2281, 76 L.Ed.2d 476 (1983). Because of the untimeliness of
this claim, The Sun is entitled to summary judgment on

Count III.

Count II alleges violation of Maryland Antitrust Act,
Md.Code Ann. Comm. Law §§ 11-204(a)(2)-(3), stemming

from The Sun's offer of a premium advertisement to Norris

_

A-20

Ford on March 18, 1990, at half the price previously charged
the Al Packer Ford dealership. These sections of the Act
makes it unlawful for a company to "[m]Jonopolize, attempt
to monopolize, or combine or conspire with one or more
other persons to monopolize any part of the trade or
commerce within the State" or to "[d]irectly or indirectly
discriminate in price among purchasers of commodities or
services of like grade and quality" if the discrimination will
substantially lessen competition or tend to create a
monopoly. Id. Federal antitrust law is used to interpret these
provisions, which mirror section 2 of the Sherman Act and
section 13(a) of the Robinson- Patman Act respectively. See
id. § 11-202(a)(2); Natural Design, Inc. v. Rouse Co., 302
Md. 47, 485 A.2d 663 (1984). A monopolization claim
requires a showing of monopoly power in the relevant market
and willful acquisition or maintenance of that power. United
States v. Grinnell Corp., 384 U.S. 563, 570-71, 86 S.Ct.
1698, 16 L.Ed.2d 778 (1966). The Sun explains that it
offered a full-page advertisement in the classified section to

Norris Ford at half the rate previously charged Packer Ford

because no dealership was willing to pay the previous rate

nT

and a Norris Ford advertisement from the week before was
the only advertisement suitable for adaptation to the full page
format. Soth states in his affidavit that the discount was
offered to secure employment for the spouse of a Sun
employee and to punish Packer Ford for seeking modification
of its contract, but these allegations are not sufficient to
support his theory that one day of discounting one
advertisement was a willful acquisition or maintenance of
monopoly power. his uncorroborated statement does not

present a genuine issue of fact under this prong of Count II.

*4 A price discrimination claim requires a showing of
competitive injury. Texaco, Inc. v. Hasbrouck, 496 U.S. 543,
556, 110 S.Ct. 2535, 110 L.Ed.2d 492 (1990); Md.Code Ann.
Comm. Law § 11-204(a)(3)(i)-(iii). Again, Soth has offered
no evidence to show that the competition between Norris
Ford and Packer Ford has diminished because Norris Ford
was charged a lower price on one advertisement.
Furthermore, the Act sensibly recognizes that price

fluctuations due to market conditions, as here, are not

antitrust violations. Md.Code Ann. Comm. Law §

11-204(b)(5). Because there is no issue of material fact under

this prong of Count II, The Sun is entitled to summary

judgment as to Count II.

Count I alleges abusive discharge, which requires Soth to
show he was discharged in violation of a "clear mandate of
public policy ...." Adler v. American Standard Corp., 291
Md. 31, 47, 432 A.2d 464 (1981). Count IV alleges
conspiracy, which requires Soth to prove that The Sun agreed
to commit an “unlawful act." See Yousef v. Trustbank
Savings, 81 Md.App. 527, 538, 568 A.2d 1134 (1990). Since
The Sun did not violate the Maryland Antitrust Act, there
was no violation of public policy and no unlawful act.
Accordingly, The Sun is entitled to summary judgment as to

Counts I and IV.

Il.
For the foregoing reasons Plaintiff's Motion to Remand is
denied and Defendants' Motion for Summary Judgment is
granted.

FN1. It is not mere coincidence that the two cases raise
essentially the same claims. Counsel for Soth has admitted in

A-23

other litigation that he regularly files two actions in state
court which are identical save that one has the federal claims
omitted in an attempt to defeat defendants' removal rights.
See DiCarlo v. Baltimore County, Maryland, No.
MJG-95-556 (Nov. 13, 1995) (imposing costs under 28
U.S.C. § 1927 against counsel).

FN2. To maintain a claim for abusive discharge in Maryland,
Soth must show that he was discharged in violation of a
“clear mandate of public policy ...." Adler v. American
Standard Corp., 291 Md. 31, 47, 432 A.2d 464 (1981). The
public policy allegedly violated is provided by Maryland
Antitrust law. Relying on McCormick, supra, The Sun argues
that the wrongfulness of the discharge is determined by the
CBA because Article 8 ofo the CBA governs disputes
between the Sun and its employees and an arbitrator found
just cause to fire Soth. This argument is foreclosed by Lingle,
supra, which also reviewed a CBA with these provisions but
held that a claim alleging discharge in retaliation for
exercising a statutory right is not preempted because the
employer's motivation for firing the employee is a “purely
factual question." Lingle, supra, at 407.

29 U.S.C.A. S 185

[Current through P.L. 105-175, approved 5-11-98]
> UNITED STATES CODE ANNOTATED

> TITLE 29. LABOR
> CHAPTER 7--LABOR-MANAGEMENT RELATIONS

O SUBCHAPTER IV--LIABILITIES OF AND RESTRICTIONS
S> 185. Suits by and against labor organizations
(a) Venue, amount, and citizenship

Suits for violation of contracts between an employer and a
labor organization representing employees in an industry
affecting commerce as defined in this chapter, or between
any such labor organizations, 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.

* *& *
(c) Jurisdiction

For the purposes of actions and proceedings by or against
labor organizations in the district courts of the United States,
district courts shall be deemed to have jurisdiction of a labor
organization (1) in the district in which such organization
maintains its principal office, or (2) in any district in which
its duly authorized officers or agents are engaged in
representing or acting

for employee members.

A-25

eat nd |

ANNOTATED CODE OF MARYLAND
*** THIS SECTION IS CURRENT THROUGH THE 1995
SUPPLEMENT
*** (1995 REGULAR SESSION) ***
COMMERCIAL LAW
TITLE 11. TRADE REGULATION
SUBTITLE 2. ANTITRUST
Md. COMMERCIAL LAW Code Ann. @ 11-204 (1995)

Section 11-204. Prohibited conduct; unlawful contracts,
combinations, and conspiracies

(a) Prohibited conduct. -- A person may not:

(1) By contract, combination, or conspiracy with one
or more other persons, unreasonably restrain trade or
commerce;

(2) Monopolize, attemp! to monopolize, or combine
or conspire with one or more other persons to monopolize
any part of the trade or commerce within the State, for the
purpose of excluding competition or of controlling, fixing, or
maintaining prices in trade or commerce;

(3) Directly or indirectly discriminate in price
among purchasers of commodities or services of like grade
and quality, if the effects of the discrimination may:

(i) Substantially lessen competition;

(ii) Tend to create a monopoly in any line of trade
or commerce; or

(iii) Injure, destroy, or prevent competition with
any person who grants or knowingly receives the benefit of
the discrimination or with customers of either of them;

(4) In the course of commerce, pay or contract for

the payment of anything of value to or for the benefit of a
customer of the person as compensation for or in
consideration of any service or facility furnished by or
through the customer in connection with the processing,
handling, sale, or offering for sale of any service or
commodity manufactured, sold, or offered for sale by the
person, unless the payment or consideration is available on
proportionally equal terms to all other customers competing
in the distribution of the service or commodity;

(5) Discriminate in favor of one purchaser against
another purchaser of a commodity bought for resale, with or
without processing, by contracting to furnish, furnishing, or
contributing to the furnishing of any service or facility
connected with the processing, handling, sale, or offering for
sale of the commodity on terms not accorded to all

purchasers on proportionally equal terms; or

(6) Lease or make a sale or contract for the sale of a
patented or unpatented commodity or service for use,
consumotion, enjoyment, or resale, or set a price charged for
the coimodity or service or discount from or rebate on the
price, on the condition, agreement, or understanding that the
lessee or purchaser will not use or deal in the commodity or
service of a competitor of the lessor or seller, if the effect oi
the lease, sale, or contract for sale or the condition,
agreement, or understanding may:

(i) Substantially ‘essen competition; or

(ii) Tend to create a monopoly in any line of trade
or commerce.

(b) Conduct not prohibited. -- Subsection (a) (3)
through (6) of this section does not prevent:

(1) Differentials which make only due allowance for
differences in the cost of manufacture, sale, or delivery
resulting from the differing methods cr quantities in which
the commodity or service is sold or delivered to a purchaser;

A-27

(2) A person engaged in selling a commodity or
service from selecting his own customers in bona fide
transactions and not in restraint of trade;

(3) A person engaged in selling a commodity or
service from granting employee discounts to his own bona
fide employees;

(4) A seller from introducing evidence to rebut a
case brought under subsection (a) (3) through (6) of this
section to show that his lower price or the furnishing of
services or facilities to a purchaser was made in good faith to
mect an equally low price of a competitor, or the services or
facilities furnished by a competitor; or

(5) Price changes, from time to time, in response to
changing conditions affecting the market for or the
marketability of a commodity, which changing conditions
include an actual or imminent deterioration of a perishable
commodity, obsolescence of a seasonal commodity, distress
sales under court process, or sales in good faith in
discontinuance of business in the commodity.

HISTORY: An. Code 1957, art. 83, @ 38; 1975>ch. 49, @ 3;
ch. 522; 1992, ch. 22, @ 1.

NOTES:

EFFECT OF AMENDMENTS. --The 1992 amendment,
approved Apr. 7, 1992, and effective from date of enactment,
substituted "Subsection (a) (3) through (6) of this section
does" for "Subsections (a) (3) through (a) (6) of this section
do" in the introductory language of (b); and substituted
“subsection (a) (3) through (6)" for “subsections (a) (3)
through (a) (6)" in (b) (4).

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ce

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386003_0979%3A1. Public record. Not legal advice.
