Benjamin Craig Long v. Bando Manufacturing of America, Inc.Benjamin Craig Long v. Bando Manufacturing of America, Inc.
Lead Opinion
MOORE, J., dеlivered the opinion of the court, in which GILMAN, J., joined. WELLFORD, J. (p. 762), delivered a separate concurring opinion.
OPINION
In this appeal, the defendant-appellant, Bando Manufacturing of America, Inc. (“Bando”), challenges the district court’s finding that it did not have original federal question jurisdiction over one of plaintiff-appellee Benjamin Craig Long’s claims and asks this court to reverse the district
I. BACKGROUND
Long was employed by Bando from February of 1989 until he was terminated in May of 1996. In 1992, Gates Rubber Company (“Gates”), a competitor, sued Bando, alleging various forms of anticompetitive activity, including appropriation of Gates’s trade secrets. Gates also charged that Bando had concealed or destroyed information relevant to its competitive strategies and trade secrets. In the summer of 1995, less than a year before he was terminated but several years after the Gates litigation had ended, Long reported to Matt Adams, the vice president of Bando, that he saw Adams and James Blankenship, the president of Bando, taking “stuff’ to the trash dumpsters just before the 1992 inspection of the Bando facilities by Gates. In that same year and the following year, Long received two poor performance reviews and several warnings that he would bе subject to disciplinary action if his performance did not improve, culminating in his suspension for three days in March of 1996. Long was finally discharged in May of 1996 based on a finding that he had falsified a production schedule. After his discharge, Long attempted to aid Gates in reopening its motion for sanctions against Bando on the ground that Bando had concealed and destroyed documents relevant to the trade secrets litigation.
Long filed suit in Kentucky statе court on April 30, 1997, alleging that he was terminated as a result of his refusal to acquiesce in the “cover up” of the company’s theft of trade secrets. He alleged due process violations under the U.S. and Kentucky Constitutions, “reverse discrimination” in violation of Title VII, and discharge “in violation of the public policy of retaliatory discharge.” J.A. at 16 (Complaint). Bando removed the case, relying on Long’s federal due process and Title VII claims as the basis for federal jurisdiction. Long then amended his complaint, adding that “[ojther public policies of this Commonwealth and of the United States which have been violated by the Defendant’s wrongful termination of the Plaintiff include, but are not limited to” the policies embodied in four federal criminal statutes:
The district court granted Bando’s motion for summary judgment as to Long’s federal due process claim. The district court also denied Long’s motion to remand for lack of subject matter jurisdiction, finding that it had subject matter jurisdiction. Finally, the district court found that none of the remaining claims (wrongful discharge in violation of public policy, breach of contract, and defamation) raised a substantial federal question and therefore, declining to exercise its supplemental jurisdiction, remanded the case to the state court. In particular, the district court found that naming four federal statutes as evidence of public policy in the complaint did not convert Long’s state wrongful discharge claim into a federal claim. Relying on the Supreme Court’s opinion in Merrell Doio Pharmaceuticals, Inc. v. Thompson,
Bando filed a motion to alter or amend the district court’s judgment, alleging that the district court erred in concluding that Long’s wrongful discharge claim did not raise a substantial federal question giving rise to original federal question jurisdiction in the district court. In its Dеcember 8, 1998 order, the district court acknowledged that it had erred in its analysis of whether Long’s wrongful discharge claim provided a basis for original federal question jurisdiction. The court recognized that, even if it determined, first, that there was no implied private cause of action for the violation of the federal statutes listed in Long’s complaint, it must still consider, second, “whether the state law wrongful discharge [claim] ‘necessarily turned’ upon a question of federal law.” J.A. at 32 (D.Ct.Op.). If the claim necessarily turned on a question of federal law, the district court acknowledged, it could find that it had federal question jurisdiction, without applying the “implied remedy” test. Nonetheless, the district court still found that, on the facts of this case, there was no substantial, disputed question of federal law in the plaintiffs claim sufficient to invoke the district court’s “arising under” jurisdiction and therefore denied Bando’s request to alter or amend its prior judgment remanding the case to the state court. Bando timely appealed that ruling to this court. We now hold that, although a complaint that does not state a federal cause of action may in some cases invoke federal jurisdiction, the federal statutes cited in Long’s wrongful discharge claim were insufficient to provide federal question jurisdiction.
II. ANALYSIS
In order to invoke the district court’s removal jurisdiction, a defendant must show that thе district court has original jurisdiction over the action. See
In this ease, the parties do not allege diversity of citizenship. Removal jurisdiction was thus based on
A. Reviewability of the Remand Order
This court has jurisdiction to review the district court’s decision to remand Long’s state law claims. The parties did not raise this issue, but, because it is a jurisdictional matter, we consider it sua sponte. See, e.g., In re General Motors Corp.,
Although the plain language of
B. The Existence of Federal Question Jurisdiction
This court reviews de novo a district court’s decision regarding subject matter jurisdiction. See Hilliard v. United States Postal Serv.,
Before delving into Bando’s argument that the district court had fеderal question jurisdiction over Long’s wrongful termination claim, it is helpful to understand what Bando is not arguing. Bando is obviously not arguing that Long’s wrongful discharge claim is a federal claim; it is clear that wrongful discharge is a state-law cause of action. Nor is it arguing that Long’s complaint attempts to imply a private right of action under the listed federal criminal statutes, thereby stating a federal cause of action. Finally, it is not arguing that Long’s state-law claim is completely preempted by federal law, which would mean that Long had stated a federal claim whether he intended to or not. See, e.g., Avco Corp. v. Aero Lodge No. 735, Int’l Ass’n of Machinists,
The exact contours of the federal courts’ jurisdiction under
In Christianson v. Colt Industries Operating Corp.,
In light of Christianson, it is clear that the resolution of a federal question is not necessary or essential to the resolution of Long’s wrongful discharge claim. Bando argues that under Kentucky law, a plaintiff must demonstrate that the public poliсy making his discharge unlawful is embodied in federal or state legislative enactments. See, e.g., Grzyb v. Evans,
Furthermore, although the question whether a wrongful discharge claim based on federal public policies invokes federal jurisdiction aрpears to be one of first impression in this circuit, other circuits have held that such claims do not belong in federal court. See Campbell v. Aerospace Corp.,
C. Propriety of Remand
We also note that the district court had the authоrity to remand rather than dismiss Long’s state-law claims under
Carnegie-Mellon was decided before
Whether to remand or dismiss is a matter normally left to the discretion of the district court, see Carnegie-Mellon,484 U.S. at 357 ,108 S.Ct. at 622-23 . We find this discretion unaffected by the subsequent enactment of28 U.S.C. § 1367(d) , in the Judicial Improvements Act of 1990....Section 1367(d) tolls the state statute of limitations on any state claim over which a federal court has exercised supplemental jurisdiction until 30 days after its dismissal. It thus reduces one concern expressed in Carnegie-Mellon — 'that plaintiffs would lose their claims if their case were dismissed rather than remanded. Other concerns remain, however, such as convenience to the parties and a faster resolution of the case. We find no indication in the legislative history of the Judicial Improvements Act that Congress intended to limit the district court’s discretion to remand in a case removed from state court.
Id. at 1267 (citation omitted). Furthermore, most circuits, including this one, have assumed that the discretionary power to remand survives the adoption of
III. CONCLUSION
For the foregoing reasons, we AFFIRM the district court’s remand order.
Notes
. In other words, Long claimed that he was terminated for his refusal to participate in the company’s theft of trade secrets ("stolen goods” under
.
. The holding of Thermtron, limiting the prohibition on review of remand orders to those remands that are based on a lack of subject matter jurisdiction, was recently reaffirmed in Quackeribush v. Allstate Ins. Co.,
. Christianson dealt with the scope of the Federal Circuit’s patent-law jurisdiction under
. Long himself has not mentioned K.R.S. 61.102; in his brief, he mentioned the Kentucky Trade Secrets Act, K.R.S. 365.880 to 365.990 (1990), as the original basis fоr his wrongful discharge claim.
.Bando also argues that the standard for finding a "substantial” federal question is extremely low; however, the cases that it cites for this proposition dealt with the standard for finding federal jurisdiction based on an express or implied private federal cause of action. Those cases simply state that when a plaintiff attempts to bring a claim under a federal statute, that claim need only be non-frivolous in order to invoke federal jurisdiction: it need not, in other words, even be sufficient to avoid dismissal under
.
. We observe that both Camegie-Mellon and this case deal only with the question whether
Concurrence Opinion
concurring.
I concur in the result reached in this case, but would base this decision on a more straightforward rationale. My conclusion is that plaintiff Long’s claims of wrongful discharge simply did not sufficiently raise a federal question in order to provide jurisdiction in the district court. I agree with my colleague, Judge Moore, at the outset that the burden in this case is upon plaintiff and that removal statutes are strictly construed. Plaintiff must show that he is relying on a claim “arising under the Constitution ... or laws of the United States.”
I also agree with Judge Moore’s analysis that we have jurisdiction to review the action taken by the district court, and that remand was within the sound discretion of the district court once lack of a federal question was determined.
The substance of Long’s сlaims against his former private employer is clearly wrongful discharge essentially by a state action since no federal employment discrimination law action is asserted. Nor does defendant Bando claim federal preemption under the circumstances of this case.
There are several reasons why I believe this case is essentially controlled by Merrell Dow Pharmaceuticals, Inc. v. Thompson,
Plaintiffs right to relief did not necessarily depend on any of the federal statutes relied upon in the complaint. There was no substantial question of federal law presented. None of the federal statutes cited (and discussed by the district court) created plaintiffs wrongful discharge claim. Congress provided no рrivate federal remedy for plaintiff with respect to 'any of these statutes. There was no implied federal cause of action created by or necessarily springing from any federal statute cited. The district court, in short, exercised prudence and restraint in denying federal jurisdiction. I am not persuaded by Bando’s attempts to distinguish Merrell Dow, and I find no basis under the several principles expressed and approved in that case to overturn the district court’s decision. See Miller v. Norfolk & W. Ry. Co.,
I see no need to pursue any state law rationale asserted by Bando to create jurisdiction in this case. I would, accordingly, AFFIRM the district court.
. I see no conflict with the decision in this case with Milan Express Co. v. Western Surety Co.,