Rouse v. United States Steel and Carnegie Pension Fund
Filing
12
OPINION MEMORANDUM AND ORDER: IT IS HEREBY ORDERED that Plaintiffs motion to remand [Doc. No. 10 ] is denied. IT IS FURTHER ORDERED that Defendants Motion to Dismiss, [Doc. No. 8 ], is granted. IT IS FURTHER ORDERED that Plaintiff is given 14 days from the date of this Opinion, Memorandum and Order to file an Amended Complaint.( Response to Court due by 6/5/2015.). Signed by District Judge Henry Edward Autrey on 05/22/2015. (CLK)
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
GLENIS D. ROUSE,
Plaintiff,
vs.
UNITED STATES STEEL AND
CARNEGIE PENSION FUND,
Defendant.
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Case No. 2:15CV9 HEA
OPINION, MEMORANDUM AND ORDER
This matter is before the Court on plaintiff’s motion to remand this action to
the Tenth Judicial Circuit Court, Marion County, Missouri, from which it was
removed, [Doc No 10] and Defendant’s Motion to Dismiss, [Doc No. 8].
Defendants oppose the motion to remand; Plaintiff has not responded to the
Motion to Dismiss.
Facts and Background
On October 15, 2014, Plaintiff filed a three count petition against Defendant
in the Circuit Court of Marion County, alleging Breach of Contract, (Count I),
Unjust Enrichment, (Count II), and Fraud, (Count III).
According to the petition, Plaintiff was employed by Defendant for thirty
years. As part of his employment, Plaintiff and Defendant entered into an
agreement whereby Defendant provided Plaintiff with health insurance under the
USS Insurance Program. Defendant has denied Plaintiff coverage under the
Program. He never received notice of the intention to cancel his insurance
coverage under the Program prior to Defendant’s cancellation of Plaintiff’s policy.
Plaintiff alleges he performed each act required on his part to keep his policy under
the Program in full force and effect. Defendant has failed to provide health
insurance coverage for Plaintiff. Defendant was allegedly required to provide
coverage if Plaintiff continued to work for Defendant for a certain amount of time
and met other employment requirements.
Plaintiff further alleges that Defendant presented the agreement regarding
the Program to Plaintiff as an accurate representation of the requirements and
conditions of the Program, and subsequently has made an allegedly false
representation to Plaintiff that Defendant sent Plaintiff some type of notice
informing him he must reply or his policy under the Program would be cancelled.
Plaintiff never received any type of notice from Defendant.
Motion to Remand
An action is removable to federal court if the claims could have originally
been filed in federal court. 28 U.S.C. § 1441; In re Prempro Products Liability
Litigation, 591F.3d 613, 619 (8th Cir. 2010). “The existence of federal question
jurisdiction is governed by the ‘well-pleaded complaint rule,’ which provides that,
‘federal question jurisdiction exists only when a federal question is presented on
the face of a plaintiff’s properly pleaded complaint.’” Mayfield v. Lutheran Senior
Services, 2009 WL 3526361, *2 (E.D. Mo. Oct. 26, 2009) (citing Avenevoli v.
Lockton Companies, Inc., 2008 WL 509545, *2 (E.D. Mo. Feb 22, 2008)).
Preemption under ERISA is one narrow exception to the well-pleaded
complaint rule. Hutson v. Kohner Props., 2009 U.S. Dist. LEXIS 100359 (E.D.
Mo. Oct. 28, 2009) (citing Prudential Ins. Co. of Am. v. Nat’l Park Med. Ctr., Inc.,
413 F.3d 897, 907 (8th Cir. 2005)). Under ERISA preemption, “a state law cause
of action is subject to removal only where the claim ‘relates to any employee
benefit plan,’ 29 U.S.C. § 1144(a) . . . and the claim seeks to recover benefits due
or enforce rights under the terms of a plan, 29 U.S.C. § 1132(a) [or § 1144(a)],
such that the exclusive cause of action is under federal law.” Avenevoli, 2008 WL
509545, at *3 (citing Neumann v. AT&T Communications, Inc., 376 F.3d 773, 780
(8th Cir. 2004)). The defendant bears the burden of establishing federal jurisdiction
by a preponderance of the evidence. Altimore v. Mount Mercy College, 420 F.3d
763, 768 (8th Cir. 2005). All doubts about federal jurisdiction must be resolved in
favor of remand. In re Bus. Men’s Assurance Co. of Am., 992 F.2d 181, 183 (8th
Cir. 1993).
In the event that the federal court determines that it lacks subject-matter
jurisdiction over a removed action, it must remand the action to the state court
where it originated. 28 U.S.C. § 1447(c).
In the notice of removal, Defendant contends that federal question
jurisdiction exists because Plaintiff’s claims are preempted by ERISA. Its
argument is premised on Plaintiff’s allegations of the agreement whereby
Defendant provided Plaintiff with health insurance under the USS Insurance
Program.
Plaintiff argues that his allegations of fraud in Count III do not depend on or
relate to the Program, rather, the fraud is governed by state law.
Section 514 of ERISA preempts all state laws that “relate to” employee
benefit plans. 29 U.S.C. § 1144(a). ERISA preemption has been interpreted to have
an extremely broad application. Mayfield, 2009 WL 3526361, at *2 (emphasis
added).
“The phrase ‘relate to’ was given its broad common-sense meaning, such
that a state law ‘relate[s] to’ a benefit plan in the normal sense of the phrase, if it
has a connection with or reference to such a plan.” Pilot Life Ins. Co. v. Dedeaux,
481 U.S. 41 (1983). “In those cases where federal courts have decided that
preemption is not mandated, the rationale often advanced is that the state law in
question impacts upon ERISA in an indirect manner that is too tenuous or too
remote to warrant preemption.” Greenblatt v. Budd Co., 666 F.Supp. 735, 741
(E.D.Pa. Aug. 5, 1987).
In the instant case, plaintiff alleges three state law claims: breach of
contract, unjust enrichment and fraud. However, included within these claims, are
allegations that Plaintiff was promised health insurance coverage, complied with
the requirements to receive continued coverage, was denied coverage and did not
receive any notice prior to the cancellation of the coverage. The coverage on
which Plaintiff bases his claims is that provided by his employer and is apparently
contingent upon Plaintiff’s fulfilling requirements of employment with Defendant.
The Court finds that these allegations fall squarely within ERISA preemption.
Thus, although Plaintiff’s petition technically pleads state law causes of action, his
claims “relate to” an ERISA plan as a result of his allegations that Defendant failed
to comply with the Agreement for health coverage under the Plan.
Accordingly, defendant has a right to remove plaintiff’s claims to federal court.
Motion to Dismiss
To withstand a Rule 12(b)(6) motion, a complaint must contain sufficient
factual allegations to Astate a claim to relief that is plausible on its face.@ Bell Atl.
Corp. v. Twombly, 550 U.S. 544, 547 (2007). A[T]hreadbare recitals of the
elements of a cause of action, supported by mere conclusory statements, do not
suffice.@ Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at
555).
Rule 12(b)(6) permits a pre-answer motion to dismiss for Afailure to state a
claim upon which relief can be granted[.]@ Although a complaint need not contain
detailed factual allegations to survive a motion to dismiss under Rule 12(b)(6), it
must contain Aenough facts to state a claim to relief that is plausible on its face.@
Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). AA claim has facial
plausibility when the plaintiff pleads factual content that allows the court to draw
the reasonable inference that the defendant is liable for the misconduct alleged.@
Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). A[A] well-pleaded complaint may
proceed even if it strikes a savvy judge that actual proof of those facts is
improbable, and >that a recovery is very remote and unlikely.= A Twombly, 550 U.S.
at 556 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974)). On a motion to
dismiss under Rule 12(b)(6), courts must accept the plaintiffs factual allegations as
true and construe all inferences in the plaintiff's favor, but need not accept a
plaintiff's legal conclusions. Retro Television Network, Inc. v. Luken Commc'ns,
LLC, 696 F.3d 766, 768B69 (8th Cir.2012). As the moving parties under Rule
12(b)(6), Defendants bear the burden of proving that no claim exists. See 5B
Charles Alan Wright et al., Federal Practice and Procedure ' 1357 (3d ed. 2004)
(AAll federal courts are in agreement that the burden is on the moving party to
prove that no legally cognizable claim for relief exists.@).
Plaintiff’s claims are preempted by ERISA, however, Plaintiff has
failed to set for a claim under ERISA. The civil enforcement provision of ERISA
provides:
A civil action may be brought—(1) by a participant or beneficiary—
(A) for the relief provided for in subsection (c) of this section, or
(B) to recover benefits due to him under the terms of his plan, to enforce his
rights under the terms of the plan, or to clarify his rights to future benefits
under the terms of the plan[.]
29 U.S.C. § 1132(a)(1). Plaintiff’s Petition fails to set forth that he is attempting to
recover benefits due him under the terms of the plan, or that he seeks recovery
under the provisions of 29 U.S.C. § 1132 (a)(1). As such, the Petition must be
dismissed.
For the reasons discussed above,
IT IS HEREBY ORDERED that Plaintiff’s motion to remand [Doc. No.
10] is denied.
IT IS FURTHER ORDERED that Defendant’s Motion to Dismiss, [Doc.
No. 8], is granted.
IT IS FURTHER ORDERED that Plaintiff is given 14 days from the date
of this Opinion, Memorandum and Order to file an Amended Complaint.
Dated this 22nd day of May, 2015.
________________________________
HENRY EDWARD AUTREY
UNITED STATES DISTRICT JUDGE
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