242 F. Supp. 3d 1186
D. Kan.2017Background
- Velma Christensen owns land in Miami County, Kansas, leased to James Cummings; a railroad easement (now BNSF) runs diagonally across the property and originally included two large box-culvert tunnels allowing livestock/equipment to cross.
- In July 2015 Christensen granted BNSF and SEMA a temporary access easement for railroad repairs; defendants replaced the box culverts with six smaller round pipes that no longer accommodate crossings.
- Christensen attempted to terminate the temporary easement in October 2015; defendants continued work and plaintiffs filed suit in state court asserting trespass, fraud, breach of contract, and seeking an injunction requiring restoration of an accessway (large culverts).
- BNSF removed to federal court asserting federal-question jurisdiction based on complete preemption by the Interstate Commerce Commission Termination Act (ICCTA); SEMA joined removal.
- The district court concluded the ICCTA does not completely preempt plaintiffs’ state-law easement/injunction claim, remanded the case to state court, and declined to decide defendants’ motions to dismiss.
- The court denied plaintiffs’ request for removal-related attorney fees, finding removal unreasonable but not objectively unreasonable given sparse controlling precedent.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal court has jurisdiction via federal-question because ICCTA completely preempts state easement/injunction claim | Christensen: claim is state-law (easement); removal improper; remand required | BNSF: ICCTA completely preempts plaintiffs’ injunction claim, creating federal-question jurisdiction | Court: No complete preemption; remand granted for lack of subject-matter jurisdiction |
| Whether ICCTA provides an exclusive federal cause of action covering plaintiffs’ relief | Plaintiffs: ICCTA does not supply a federal cause of action for restoring access under railroad | Defendants: ICCTA (and regulations) displace state law and foreclose state remedies | Court: ICCTA’s remedial/administrative scheme does not provide an exclusive federal cause of action for these easement claims |
| Whether defendants’ removal was objectively unreasonable (award of fees under 28 U.S.C. §1447(c)) | Plaintiffs: removal was unreasonable; fee award appropriate | Defendants: removal was defensible given unsettled precedent on ICCTA complete preemption | Court: Removal was likely unreasonable but not objectively unreasonable; fees denied |
| Whether district court should resolve defendants’ motions to dismiss before remand | Plaintiffs: remand requested so state court can decide state-law motions | Defendants: removal put motions before federal court | Court: Declined to rule on motions to dismiss; left them to state court post-remand |
Key Cases Cited
- Devon Energy Prod. Co. v. Mosaic Potash Carlsbad, Inc., 693 F.3d 1195 (10th Cir.) (explains well-pleaded complaint rule and limits of federal-defense removal)
- Beneficial Nat’l Bank v. Anderson, 539 U.S. 1 (2003) (explains that a federal defense based on preemption does not support removal)
- Aetna Health Inc. v. Davila, 542 U.S. 200 (2004) (discusses when a federal statute's comprehensive scheme supports complete preemption)
- Metro. Life Ins. Co. v. Taylor, 481 U.S. 58 (1987) (cautions that complete preemption is an extraordinary doctrine to be applied narrowly)
- Martin v. Franklin Capital Corp., 546 U.S. 132 (2005) (standards for awarding fees on remand under §1447(c))
- Schmeling v. NORDAM, 97 F.3d 1336 (10th Cir.) (articulates complete-preemption framework in circuit precedent)
- Griffioen v. Cedar Rapids & Iowa City Ry. Co., 785 F.3d 1182 (8th Cir.) (holds ICCTA express preemption does not alone authorize federal-question jurisdiction via complete preemption)
- Tres Lotes LLC v. BNSF Ry. Co., 61 F. Supp. 3d 1213 (D.N.M.) (refuses to apply ICCTA complete preemption to an easement/injunction claim)
- Shupp v. Reading Blue Mountain & Northern R.R., 850 F. Supp. 2d 490 (M.D. Pa.) (similar holding that ICCTA does not completely preempt easement-based injunctive claims)
