MEMORANDUM OPINION
The plaintiff brings this action to enforce an Employer’s Wage, Expense, Welfare, Pension, Annuity, Vacation and Industry Fund Payment Bond (the “Bond”) executed by the defendant, the Insurance Company of the West (“ICW”), as surety, that guaranteed certain payments due from Refractory Engineering & Construction, Inc. (“RE CON”) pursuant to a collective bargaining agreement. Complaint (“Compl.”) ¶ 1. The plaintiff originally commenced this action in the Superior Court of the District of Columbia (“Superior Court”) on March 4, 2004. However, on April 1, 2004, ICW removed the case from the Superior Court to this Court pursuant 28 U.S.C. § 1441(b). The plaintiff, the International Union of Bricklayers and Allied Craftworkers (“IUBAC”), has now filed a Motion to Remand pursuant to 28 U.S.C. § 1447(c). Currently before the Court are (1) the plaintiffs Memorandum of Points and Authorities in Support of Motion to Remand (“PL’s Mem.”); (2) the defendant’s Response in Opposition to Plaintiffs Motion to Remand (“Def.’s Opp’n”); and (3) the plaintiffs Reply Memorandum in Support of Motion to Remand (“Pl.’s Reply”). For the reasons set forth below, the plaintiffs motion to remand is granted.
I. Background
The plaintiffs complaint seeks to enforce and collect on a bond executed by the defendant. Under the collective bargaining agreement, the plaintiff alleges that RE CON was obligated to make payments to a variety of health, pension, and other funds according to a rate schedule set forth in the collective bargaining agreement for all covered work. Compl. ¶ 6. The defendant, as surety, guaranteed these payments. Id. ¶¶ 1, 8-16. The plaintiff contends that RECON failed to make the payments required by the collective bargaining agreement and therefore, the plaintiff commenced this action against the defendant surety company to enforce the terms of the bond. According to the plaintiffs complaint, “[t]he action arises under the Bond and the laws of the District of Columbia.” Id. ¶ 2. Specifically, the plaintiff seeks an order compelling the defendant to pay the amounts owed by RE CON, in addition to accumulated interest, up to the $100,000 amount provided for by the bond. Id. ¶ 5.
On April 1, 2004, the defendant filed a Notice of Removal of Action Under 28 U.S.C. § 1441(b) (“Defi’s Not. Removal”),
II. The Parties’ Arguments
The plaintiff argues that this matter must be remanded to the Superior Court because the defendant “cannot meet its burden of establishing the existence of a federal question sufficient to confer this Court with subject matter jurisdiction.” Pl.’s Mem. at 5. The plaintiff asserts that its cause of action “is not created by any federal law,” but “rather, ... is created by, and arises under, the language of the bond and District of Columbia law.” Id. The plaintiff further contends that its claim against the defendant “does not require or depend upon the analysis, interpretation, application or construction of the LMRA, other federal statutes pertaining to collective bargaining agreements or any other federal law or provision.” Id. at 7.
The plaintiff relies heavily on a case from the Second Circuit,
Greenblatt v. Delta Plumbing & Heating Corp.,
In response to the plaintiffs motion to remand, the defendant argues that under Section 301 of the LMRA, 29 U.S.C. § 185, state law claims are converted into federal claims “wherever the interpretation of labor contracts is concerned.” Def.’s Opp’n at 4. Under § 301, actions between an employer and a labor organization alleging a violation of a contract “may be brought in any district court of the United States having jurisdiction over the parties.” 29 U.S.C. § 185(b). As a result of this authorization, the defendant opines that § 301 preempts any applicable state law claims and mandates “a removal of the claim to federal court.”
Id.
(citing
Metro. Life Ins. Co. v. Taylor,
III. Standard of Review
Removal of cases to federal court is derived solely from 28 U.S.C. § 1441.
3
See Mulcahey v. Columbia Organic Chems. Co.,
IV. Legal Analysis
The issue before this Court is whether this case presents a federal question that warrants this Court retaining jurisdiction over the plaintiffs claims. For the reasons that follow, it is clear that this matter simply involves the defendant’s obligations, as surety, pursuant to the bond as prescribed under the laws of the District of Columbia, and is not substantially depen-dant on the interpretation of the collective bargaining agreement. Accordingly, this case must be remanded to the Superior Court.
A. Removal pursuant to 28 U.S.C. § 1441
“Only state-court actions that originally could have been filed in the federal court may be removed to federal court by the defendant.”
Caterpillar,
The well-pleaded complaint rule “provides that federal jurisdiction can only exist when a federal question is presented on the face of the plaintiffs properly pleaded complaint.”
Id.
In order to determine if a case presents a federal question pursuant to 28 U.S.C. § 1331, a court first must determine if federal or state law gave rise to the action.
Mulcahey,
Based upon Merrell Dow and other Supreme Court cases, federal courts have fashioned a two-pronged test in order to
Unlike in
Merrell Dow
4
the plaintiffs complaint in this case does not even identify a federal statute as an element of its claim. Rather, the plaintiffs complaint alleges only that its claim arises under “the Bond and the laws of the District of Columbia.” Compl. ¶ 2. Therefore, the plaintiffs complaint does not assert that its right to relief is dependent on any question of federal law. Admittedly, to prove it is entitled to relief under the bond, the plaintiff will have to establish that RECON defaulted on its obligations under the collective bargaining agreement. This is not sufficient to confer jurisdiction to this Court.
See Greenblatt,
In
Greenblatt,
the Second Circuit held that the district court lacked subject matter jurisdiction over a claim initiated by the guardians of an employee benefit fund against a surety company on a bond which guaranteed an employer’s obligations to make benefit payments pursuant to a collective bargaining agreement.
Id.
at 567. In addressing whether federal question jurisdiction was conferred to the district court pursuant to 28 U.S.C. § 1331, the Court held that the “state law claim on the surety bond [did] not present a substantial
Much like the situation in
Greenblatt,
resolution of this case will require the construction of the collective bargaining agreement, which although it is “ ‘a federal contract ... governed and enforceable by federal law,’
Int’l Ass’n of Machinists v. Central Airlines, Inc.,
B. Preemption of State Law Claims
“One corollary to the well-pleaded complaint rule ... is that Congress may so completely pre-empt a particular area that any civil complaint raising this select group of claims is necessarily federal in character.”
5
Metro. Life,
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 of the amount in controversy or without regard to the citizenship of the parties.
29 U.S.C. § 185(a). “[T]he preemptive force of § 301 is so powerful as to displace entirely any state cause of action ‘for violation of contracts between an employer and a labor organization.’ ”
Franchise Tax Bd.,
“Of course, not every dispute concerning employment, or tangentially involving a provision of a collective bargaining agreement, is pre-empted by § 301 or other provisions of the federal labor law.”
Allis-Chalmers,
In
Caterpillar,
the Supreme Court affirmed the Ninth Circuit’s opinion holding that the case had been improperly removed to federal court.
Caterpillar,
In response to the remand petition, Caterpillar asserted “that respondents’ state-law contract claims [were] in reality completely pre-empted § 301 claims, which therefore arise under federal law.”
Id.
at 394,
Furthermore, in
Allis-Chalmers,
the Supreme Court held that an employee’s state law claim of bad faith handling of an insurance claim “should have been dismissed for failure to make use of the griev-
Conversely, in
Lingle,
the Supreme Court reversed the district court’s and Seventh Circuit’s decisions holding that § 301 of the LMRA preempted an employee’s state law retaliatory discharge claim.
Lingle,
Here, this Court concludes that § 301 does not preempt the plaintiffs’ District of Columbia (state law) claim. First, § 301 does not even apply to this case because it permits “[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce ... or between any such labor organizations .... ” 29 U.S.C. § 185(a) (emphasis added). The only signatory to the collective bargaining agreement that is a party in this case is the plaintiff. The defendant (ICW) is not a not a signatory to the collective bargaining agreement, nor is it specifically implicated by the agreement. Instead, the signatories to the collective bargaining agreement are RECON (the employer) and the IUBAC (the labor organization). Accordingly, since a § 301 claim is between an employer and a labor organization, and ICW qualifies as neither, § 301 does not preempt the state law claim in this case.
The defendant asserts that non-parties to a collective bargaining agreement may remove lawsuits arising under § 301 to federal court citing
Wooddell v. IBEW, Local 71,
Again, this case is analogous to
Green-blatt
where the Second Circuit addressed the question of whether an action by the board of trustees of an employee benefit fund against a surety company guaranteeing a bond on an employer’s obligation to make payments to the fund under a collective bargaining agreement raised a federal question.
Greenblatt,
Here, ICW is a surety that is not a party to, much less a beneficiary of, a collective bargaining agreement. ICW has no duties or obligations under the agreement. Rather, any duties and obligations imposed on ICW are based exclusively on the surety agreement. Thus, § 301 does “not provide a cause of action on the bond ...,”
id.
at 572, and cannot be the basis for federal question jurisdiction based on preemption because ' “not every dispute concerning employment, or tangentially involving a provision of a collective bargaining agreement, is preempted by § 301 or other provisions of the federal labor law.”
Allis-Chalmers,
Moreover, even if this Court were to conclude that the defendant surety is a proper party under the plain language of § 301, the legal claims raised by the plaintiff are not substantially dependant upon an interpretation of the collective bargaining agreement.
Bush v. Clark Constr. & Concrete Corp.
illustrates when a state law claim is substantially dependant upon the collective bargaining agreement.
Bush,
Here, no particular article of the collective bargaining agreement makes reference to ICW or its obligations under the bond. The bond is therefore the only document which establishes the duties and obligations of ICW, and it clearly sets forth the conditions giving rise to ICW’s liability. And the bond expresses the potential monetary liability of the surety in no uncertain terms, ie., the liability of the surety will not exceed the penal sum of $100,000. Compl., Ex. 2. Given the fact that the extent of the surety’s liability is well defined by the bond, the defendant’s argument that it is impossible to determine the appropriate damages from the bond alone is groundless. To make that determination, a court must simply determine what contributions RECON failed to make and to what extent the defendant is obligated to make those contributions under the bond. Accordingly, federal question jurisdiction is lacking and this case must be remanded to the Superior Court pursuant to 28 U.S.C. § 1447(c).
C. Attorney’s Fees and Costs
Finally, this Court will address the plaintiffs request that this Court order the defendant to pay the plaintiffs attorney’s fees and costs incurred as a result of improper removal. Under 28 U.S.C. § 1447(c) “[a]n order remanding the case may require payment of just costs and any actual expenses, including attorney fees incurred as a result of the removal.” The authority of the Court to impose such payment on the party opposing removal lies within its discretion.
See Weigert v. Georgetown Univ.,
V. Conclusion
Based on the foregoing, the Court concludes that the defendant has failed to meet its burden of establishing that federal question jurisdiction is vested in this Court. This conclusion is called for because the claims here are based upon state law, not federal law, and any interpretation of federal law will be, at most, minimal. Accordingly, this case must be remanded back to the Superior Court. However, because of the' complex legal questions raised by this matter, the Court declines to exercise its authority to require the defendant to pay the plaintiffs attorney’s fees and costs resulting from the improper removal to this Court.
Notes
. Accordingly, the defendant anticipates filing a motion to transfer this case to the United States District Court for the Central District of California.
. The case pending in the Central District of California was stayed pending a decision by the National Labor Relations Board (''NLRB”) regarding a jurisdictional dispute between the parties,
i.e.,
whether the NLRB or the district court had jurisdiction over the case. Notice of Removal, Ex. 4 at 1. According to the parties, the NLRB's decision that would be issued pursuant to section 10(k) of the LMRA, 29 U.S.C. § 160(k), would resolve this issue.
Id.
at 1-2. On July 24, 2003, the NLRB issued its opinion and concluded that the dispute was not a traditional jurisdictional dispute between two groups of employees, but rather a contractual dispute between the union and RECON over the preservation of bargaining unit work.
Indus., Prof l and Technical Workers Union,
339 N.L.R.B. No. 97,
. 28 U.S.C. § 1441(b) provides in relevant part that "[a]ny civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties.” 28 U.S.C. § 1441(b).
. In
Merrell Dow,
the plaintiffs filed multi-count complaints in state court alleging a variety of common-law claims including, for example, negligence, fraud and breach of warranty.
Id.
at 805,
. "Congress' power to pre-empt state law is derived from the Supremacy Clause of Art. VI of the Federal Constitution.”
Allis-Chalmers Corp. v. Lueck,
. The Supreme Court has held that
“Avco
stands for the proposition that if a federal cause of action completely preempts a state cause of action any complaint that comes within the scope of the federal cause of action necessarily ‘arises under' federal law.”
Franchise Tax Bd.,
