Arizona Conference of Police and Sheriffs Incorporated v. Storie et al

Filing 12

ORDER granting 7 Plaintiff's Motion to Remand to State Court. Plaintiff's request for an award of attorneys' fees and costs (Doc. 7 ) is granted. On or before March 21, 2014, Plaintiff shall file a motion for attorneys' fees. Signed by Judge David G Campbell on 2/18/14. (Attachments: # 1 Remand Letter). (LSP)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Arizona Conference of Police and Sheriffs,
Inc., an Arizona corporation,
Plaintiffs,

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No. CV13-2631 PHX DGC
ORDER

v.
Michael W. Storie and Jane Doe Storie,
husband and wife et al.,

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Defendants.

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Pending before the Court is Plaintiff’s motion to remand and a request for

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attorneys’ fees and costs pursuant to 28 U.S.C. § 1447(c). Doc. 7. The motions are fully

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briefed and no party has requested oral argument. For the following reasons, the Court

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will grant the motion to remand and the request for attorneys’ fees and costs.

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I.

Background.

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Plaintiff Arizona Conference of Police and Sheriffs (“AZCOPS”) is an Arizona

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corporation serving police officers throughout Arizona. Doc. 1-5 at 1. Defendants are

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former officers and board members of AZCOPS as well as the law firm of one of the

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named Defendants. Doc. 1-5. On October 15, 2012, Plaintiff filed suit in Maricopa

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County Superior Court against Defendants. Doc. 1-4. In its first amended complaint

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filed on December 11, 2013, Plaintiff asserted a variety of state claims against

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Defendants, including breach of fiduciary duty, aiding and abetting tortious conduct,

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interference with contracts and valid business expectancies, and legal malpractice.

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Doc. 1-5. On December 25, 2013, two of the Defendants, Joseph Cameron and Luis

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Ebratt, removed this action to federal court pursuant to 28 U.S.C. § 1441,1 asserting that

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Plaintiff is bringing a claim under the Labor-Management Reporting and Disclosure Act

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(“LMDA”). Doc. 1 at 1-2; 29 U.S.C. § 501. Plaintiff denies pleading any federal claim

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and seeks remand to state court pursuant to 28 U.S.C. § 1447(c). Doc. 7.

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II.

Legal Standard.

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Under 28 U.S.C. § 1441(a), a civil case brought in state court may be removed to

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the federal court in the district where the action is pending if the federal district court

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would have had original jurisdiction. The statute is to be strictly construed against

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removal.

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Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09 (1941).

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presumption” against removal “means that the defendant always has the burden of

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establishing that removal is proper.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir.

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1992). Federal jurisdiction must be rejected, and the case remanded to state court, “if

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there is any doubt as to the right of removal in the first instance.” Id.; see 28 U.S.C.

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§ 1447(c).

See Syngenta Crop Protection, Inc. v. Henson, 537 U.S. 28, 32 (2002);
This “strong

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“Federal courts are courts of limited jurisdiction. They possess only that power

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authorized by Constitution and statute[.]” Kokkonen v. Guardian Life Ins. Co. of Am.,

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511 U.S. 375, 377 (1994). Pursuant to 28 U.S.C. § 1331, district courts have original

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jurisdiction over cases involving a federal question, meaning cases “arising under the

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Constitution, laws, or treaties of the United States.” The federal issue “must be ‘a

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substantial one, indicating a serious federal interest in claiming the advantages thought to

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be inherent in a federal forum.” Provincial Gov’t of Marinduque v. Placer Dome, Inc.,

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582 F.3d 1083, 1086-87 (9th Cir. 2009) (quoting Grable & Sons Metal Prods., Inc. v.

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Defendants’ notice of removal requests removal pursuant to 28 U.S.C. 144(b). Because
this is not the removal statute, the Court will presume Defendants meant to cite 28 U.S.C.
§ 1441. Doc. 1 at 1.
‐ 2 ‐ 

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Darue Eng’g & Mfg., 545 U.S. 308, 314 (2005)).

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III.

Analysis.

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A.

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Plaintiff’s complaint asserts three claims against Defendants Cameron and Ebratt:

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breach of fiduciary duty, aiding and abetting tortious conduct, and interference with

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contracts and valid business expectancies. Doc. 1-5 at 8-11. Cameron and Ebratt do not

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dispute that Plaintiff’s complaint alleges only state law causes of action. Docs. 1, 10.

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Rather, they argue that removal to federal court is appropriate because Plaintiff raised a

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claim under 29 U.S.C. § 501 in its response to Defendants’ motion for summary

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Motion to Remand.

judgment. Doc. 1.

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“The presence or absence of federal-question jurisdiction is governed by the ‘well-

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pleaded complaint rule,’ which provides that federal jurisdiction exists only when a

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federal question is presented on the face of the plaintiff's properly pleaded complaint.”

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Caterpillar Inc. v. Williams, 482 U.S. 386, 392 (1987) (citations omitted). Plaintiff states

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that it is not bringing any claims under federal law (see Doc 1-5; Doc. 7 at 1), and

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Defendants fail to identify any place in Plaintiff’s complaint where a claim relies on

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federal law. Docs. 1, 10. Defendants’ assertion that Plaintiff raised a federal claim in its

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response to a motion does not satisfy the well-pleaded complaint rule. Id. Therefore, this

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Court does not have jurisdiction pursuant to 28 U.S.C. § 1331.

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Cameron and Ebratt argue that removal was appropriate because they have an

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affirmative defense under federal law. Doc. 10 at 2-3. They argue that Plaintiff is

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precluded from filing suit because it failed to timely file a claim under the National Labor

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Relations Act (“NLRA”). Doc. 10 at 2-3. In support of this argument, Defendants cite

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Mesa v. California, 489 U.S. 121 (1989), which they contend supports the proposition

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that “an assertion of a federal defense in a removal petition is sufficient for Article III

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purposes to support jurisdiction.” Doc. 10 at 2-3. The holding in Mesa is not as broad as

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Defendants assert. Mesa specifically applies to 28 U.S.C. § 1442(a), a jurisdictional

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statute that authorizes the removal of cases against federal officers. See Mesa, 489 U.S.

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at 136. Section 1442(a) was not the basis for Defendants’ removal and is not at issue in

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this case.

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Cameron and Ebratt provide no authority to suggest that the NLRA overcomes the

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well-pleaded complaint rule. Therefore, they are subject to the general rule that “[a]

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defense that raises a federal question is inadequate to confer federal jurisdiction.”

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Merrell Dow Pharmaceuticals Inc. v. Thompson, 478 U.S. 804, 808 (1986). The Court

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will grant the motion to remand, and need not address other arguments raised by Plaintiff.

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Doc. 7 at 2-4.

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B.

Request for Fees and Costs.

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Plaintiff seeks an award of attorneys’ fees and costs pursuant to 28 U.S.C.

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§ 1447(c). Doc. 7 at 3. That statute provides that “[a]n order remanding the case may

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require payment of just costs and any actual expenses, including attorney fees, incurred

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as a result of the removal.” 28 U.S.C. § 1447(c). The determination to award fees and

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costs under § 1447(c) is within the discretion of the district court. See Martin v. Franklin

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Capital Corp., 546 U.S. 132, 139 (2005). Costs and fees generally “‘should not be

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awarded when the removing party has an objectively reasonable basis for removal.’”

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Patel v. Del Taco, Inc., 446 F.3d 996, 999 (9th Cir. 2006) (quoting Martin, 546 U.S. at

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136.)

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Given the established understanding of the well-pleaded complaint rule and the

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clear inapplicability of Mesa, Cameron and Ebratt did not have an objectively reasonable

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basis for removal. The Court will grant Plaintiff’s request for attorneys’ fees and costs.

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IT IS ORDERED that the Plaintiff’s motion to remand (Doc. 7) is granted.

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Plaintiff’s request for an award of attorneys’ fees and costs pursuant to 28 U.S.C. §

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1447(c) (Doc. 7) is granted. On or before March 21, 2014, Plaintiff shall file a motion

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for attorneys’ fees pursuant to Local Rule 54.2, along with all supporting materials.

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Dated this 18th day of February, 2014.

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