Bhandari v. Unison Behavioral Health Group, Inc.

338 F. Supp. 2d 818, 34 Employee Benefits Cas. (BNA) 1535, 2004 U.S. Dist. LEXIS 21575, 2004 WL 2267226
CourtDistrict Court, N.D. Ohio
DecidedOctober 6, 2004
Docket3:04CV7410
StatusPublished
Cited by1 cases

This text of 338 F. Supp. 2d 818 (Bhandari v. Unison Behavioral Health Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bhandari v. Unison Behavioral Health Group, Inc., 338 F. Supp. 2d 818, 34 Employee Benefits Cas. (BNA) 1535, 2004 U.S. Dist. LEXIS 21575, 2004 WL 2267226 (N.D. Ohio 2004).

Opinion

ORDER

CARR, District Judge.

This is an employment discrimination case in which plaintiff primarily claims that defendants: 1) breached an employment contract; 2) engaged in race discrimination against plaintiff; 3) engaged in national origin discrimination against plaintiff; and 4) defamed the plaintiff. The complaint was filed in the Lucas County, Ohio, Court of Common Pleas. Defendant timely removed the case to this court. Pending is plaintiffs motion for remand. For the following reasons, plaintiffs motion shall be denied.

BACKGROUND

Plaintiff is a United States citizen who is a native of India. He is a licensed psychiatrist in the State of Ohio. According to plaintiff, on July 31, 2002, he entered into a written employment contract with Unison Behavioral Health Group, Inc. (Unison), a non-profit mental health care facility. Pursuant to the contract, plaintiff was promoted to the positions of Medical Director and Chief Clinical Officer.

Plaintiff alleges that, on October 6, 2003, in breach of his employment contract with Unison, he was demoted involuntarily. Among other claims, plaintiff specifically pled that he lost benefits due to him under his employment contract.

In his motion to remand, plaintiff contends that his case is not properly removable to this court because, based on his well pled complaint, he did not state a federal cause of action. Plaintiff claims that the only claims for which he sought redress in the state court were state law claims and, therefore, because the parties are not diverse, jurisdiction is not proper in this court. Defendant asserts that removal is proper because plaintiffs claims, which assert entitlement to employee benefits, are preempted by the Employee Retirement Income Security Act (ERISA). 29 U.S.C. § 1001 et seq.

REMOVAL

The removal statute, 28 U.S.C. § 1441, provides: “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or defendants, to the district court of the United States.” District courts have original federal jurisdiction over any case that arises under federal law. 28 U.S.C. § 1331. Generally, a case arises under federal law when an issue of federal law appears on the face of a well-pleaded complaint. Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). Furthermore, it is the general rule that a case does not arise under federal law if the federal issue appears only as a defense. Id.; see also Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987); Franchise Tax Bd. v. Construction Laborers Vacation Trust, 463 U.S. 1, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983).

There is an exception to the well pled complaint rule: the “complete preemption” doctrine. Caterpillar, 482 U.S. at 392-93, 107 S.Ct. 2425. This doctrine holds that, “on occasion, ... the pre-emp-tive force of a statute is so ‘extraordinary’ that it ‘converts an ordinary state common-law complaint into one stating a federal claim for purposes of the well-pleaded complaint rule.’ ” Id. (citing Metropolitan Life Ins. Co., 481 U.S. at 65, 107 S.Ct. 1542).

*821 Once an area of state law has been completely preempted, any claim purportedly based on that law is considered, from its inception, to be a federal claim, and therefore one arising under federal law. Id. (citing Franchise Tax Bd., 463 U.S. at 24, 103 S.Ct. 2841). Therefore, the “well-pleaded complaint rule is not absolute” and if the claim arises exclusively under federal law, the case may be removed regardless of how the claim was pled. Striff v. Mason, 849 F.2d 240, 244 (6th Cir.1988).

State claims are preempted and removable to federal court only when there is a “clearly manifested” intent by Congress to preempt state claims. Metropolitan Life Ins. Co., 481 U.S. at 64, 107 S.Ct. 1542. The party seeking removal bears the burden of establishing its right to remove. Her Majesty the Queen in Right of the Province of Ontario v. City of Detroit, 874 F.2d 332, 339 (1989) (citing Wilson v. Republic Iron & Steel Co., 257 U.S. 92, 97-98, 42 S.Ct. 35, 66 L.Ed. 144 (1921)). Therefore, a removal petition is to be construed strictly with all doubts resolved against removal and in favor of remand. Id.

ERISA PREEMPTION

Where is appears that a claim comes within ERISA, the claim — however pled — is removable because ERISA “completely pre-empts [a] state-law cause of action... even if pleaded in terms of state law.” Aetna Health Inc. v. Davila, — U.S. —, 124 S.Ct. 2488, 2495, 159 L.Ed.2d 312 (2004) (citation omitted). Such claims are “in reality based on federal law.” Id.

ERISA preemption is such that “any state-law cause of action that duplicates, supplements, or supplants the ERISA civil enforcement remedy conflicts with the clear congressional intent to make the ERISA remedy exclusive....” Id. (citations omitted) (emphasis added). ERISA’s preemptive power is such that ordinary state law complaints are converted into federal claims “for purposes of the well-pleaded complaint rule.” Id., 124 S.Ct. at 2496.

A civil action may be brought under ERISA by a participant “to recover benefits due to him under the terms of his plan, [or] to enforce his rights...” 29 U.S.C. § 1132(a)(1)(B) (emphasis added). This provision of ERISA is direct. See Aetna, 124 S.Ct. at 2496. “If a participant. .. believes that benefits promised to him under the terms of the plan are not provided, he can bring suit seeking provision of those benefits.” Id. Furthermore, if an action could have been brought under ERISA and “no other independent legal duty [ ] is implicated by a defendant’s actions,” then ERISA completely preempts the claim. Id.

PLAINTIFF’S COMPLAINT AND ERISA PREEMPTION

Plaintiffs complaint purports to allege only state causes of action in its nine counts.

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Bluebook (online)
338 F. Supp. 2d 818, 34 Employee Benefits Cas. (BNA) 1535, 2004 U.S. Dist. LEXIS 21575, 2004 WL 2267226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bhandari-v-unison-behavioral-health-group-inc-ohnd-2004.