BENJAMIN CRAIG LONG, Plаintiff-Appellee, v. BANDO MANUFACTURING OF AMERICA, INC., Defendant-Appellant.
No. 99-5032
UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT
Argued: October 28, 1999; Decided and Filed: January 13, 2000
2000 FED App. 0018P (6th Cir.)
Before: WELLFORD, MOORE, and GILMAN, Circuit Judges.
RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit Rule 206; File Name: 00a0018p.06
Appeal from the United States District Court for the Western District of Kentucky at Bowling Green. No. 97-00114—Joseph H. McKinley, Jr., District Judge.
COUNSEL
ARGUED: D. Gaines Penn, ENGLISH, LUCAS, PRIEST & OWSLEY, Bowling Green, Kentucky, for Appellant.
MOORE, J., delivered the opinion of the court, in which GILMAN, J., joined. WELLFORD, J. (pp. 14-15), delivered a separate concurring opinion.
OPINION
KAREN NELSON MOORE, Circuit Judge. 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 tеrminated 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, Lоng 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 be subject to disciplinary action if his performance did not improve, culminating in his suspension for three days in March of 1996. Lоng 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 state 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 “[o]ther public policies of this Commonwealth and of the United Statеs 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 thе 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 Dow Pharmaceuticals, Inc. v. Thompson, 478 U.S. 804 (1986), the district court analyzed whether the statutes cited by Long implied a private remedy for their violation and, finding that they did not, concluded that the wrongful discharge claim did not present a federal question invoking the district сourt‘s “arising under” jurisdiction.
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 December 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 plaintiff‘s 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 invоke 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 the district court has original jurisdiction over the action. See
In this case, 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., 3 F.3d 980, 982 (6th Cir. 1993).
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., 814 F.2d 325, 326 (6th Cir. 1987).
Before delving into Bando‘s argument that the district court had federal 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, 390 U.S. 557 (1968). Rather, Bando is arguing that Long‘s wrongful termination claim, without raising an express or implied federal claim, involves a substantial and disputed question of federal law and is therefore suffiсient to invoke the district court‘s “arising under” jurisdiction.
The exact contours of the federal courts’ jurisdiction under
In Christianson v. Colt Industries Operating Corp., 486 U.S. 800 (1988), the Supreme Court further elaborated the circumstances under which a state-law claim “necessarily depends” upon a “substantial question of federal law.” In that case, the Court held that a claim does not “arise under” the federal patent laws if the complaint
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 policy making his discharge unlawful is embodied in federal or state legislative enactments. See, e.g., Grzyb v. Evans, 700 S.W.2d 399, 401 (Ky. 1985). Bando contends that Long relied solely on federal statutes as evincing that public policy, and therefore that the court‘s construction of those federal statutes is essential to a determination of Long‘s claim. This argument is unpersuasive. Long‘s complaint put forth alternate bases in state and federal law for the public policy in contravention of which he was discharged. Lоng‘s initial complaint stated that his “discharge was in violation of the public policy of retaliatory discharge.” J.A. at 16 (Complaint). This statement could be read to refer to
Furthermore, although the question whether a wrongful discharge claim based on federal public policies invokes federal jurisdiction appears 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., 123 F.3d 1308, 1315 (9th Cir. 1997) (finding the federal interest to be insufficient, and noting that state law mirrors the federal policy at issue), cert. denied, 523 U.S. 1117 (1998); Willy v. Coastal Corp., 855 F.2d 1160, 1167-72 (5th Cir. 1988) (finding the federal element in such a claim to be insufficiently substantial and also noting that the plaintiff supported his claim with state as well as federal theories); see also Drake v. Cheyenne Newspapers, Inc., 842 F. Supp. 1403 (D. Wyo. 1994). These precedents suggest that the federal question in Long‘s complaint is insufficiently substantial and disputed to invoke federal jurisdiction.6
C. Propriety of Remand
We also note that the district court had the authority 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. . . . We find this discretion unaffected by the subsequent enactment of
28 U.S.C. § 1367(d) , in the Judicial Improvements Act of 1990 . . . . Section 1367(d) tells 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 plаintiffs 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 discretionаry power to remand survives the adoption of
III. CONCLUSION
For the foregoing reasons, we AFFIRM the district court‘s remand order.
CONCURRENCE
HARRY W.
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 claims 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 contrоlled by Merrell Dow Pharmaceuticals, Inc. v. Thompson, 478 U.S. 804 (1986). That case affirmed this court‘s decision at 766 F.2d 1005 (6th Cir. 1985). Merrell Dow, I believe, despite some ambiguous language, affirmed our holding that “[f]ederal question jurisdiction would, thus, exist only if plaintiffs’ right to relief depended necessarily on a substantial question of federal law.” 766 F.2d at 1006. Merrell Dow cites Justice Holmes’ opinion in American Well Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260 (1916), that a “suit arises under the law that creates the cause of action.” 478 U.S. at 808. It cites with approval Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 9 (1983), that “a case may arise under federal law ‘where the vindication of a right under state law necessarily turned on some construction of federal law.‘” Id. Finally, Merrell Dow emphasized “prudence and restraint in the jurisdictional inquiry,” and that where Congress provided no “private, federal cause of action for the violation [of the federal statute]” relied upon in the complaint, jurisdiction fails, and a federal question is not raised. Id. at 810, 817.
Plaintiff‘s 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 plaintiff‘s wrongful discharge claim. Congress providеd no private 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 cоurt‘s decision. See Miller v. Norfolk & W. Ry. Co., 834 F.2d 556 (6th Cir. 1987).1
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.
