Brand v. Robins Federal Credit Union

969 F. Supp. 778, 1997 U.S. Dist. LEXIS 10352, 1997 WL 401425
District Court, M.D. Georgia·Decided July 15, 1997·No. 5:97-cv-00191·Published·Cited by 1 cases

Opinion

ORDER

OWENS, District Judge.

Before the court is the motion of plaintiffs to remand this case to the State Court of Houston County. The issues to be decided are whether defendants’ notice of removal pursuant to 28 U.S.C. § 1446(b) was timely *779 and whether they are entitled to invoke the alternative removal provisions of 28 U.S.C. § 1442(a)(1).

I. Procedural History

On August 14, 1995, plaintiffs filed a complaint in the State Court of Houston County against the Robins Federal Credit Union (“RFCU”) and Edward Levins. Plaintiffs alleged that Levins unlawfully terminated them in violation of credit union bylaws, illegally interfered with their rights as shareholders, breached a fiduciary duty to them, and wrongfully terminated their employment. All these claims were brought under Georgia law, plaintiffs specifically avowing throughout the proceedings that they did not intend to assert any federal claims.

On November 6, 1996, defendants filed a motion for summary judgment in state court. Defendants argued that plaintiffs as shareholders of RFCU were at-will employees under Georgia law and that their standing as shareholders in RFCU did not alter that status. They also argued that plaintiffs have no private right of action under federal law to challenge their removal by defendant Levins and that their exclusive remedy federal remedy is through an administrative proceeding with the National Credit Union Administration Board.

On April 4, 1997, the state court judge denied defendants’ motion for summary judgment. For several enumerated reasons, the court found that RFCU is a federal agency rather than a private employer and that plaintiffs as a result were not at-will employees under Georgia law. The court reasoned that plaintiffs’ employment status has been determined by the Federal Credit Union Act (“FCUA”), 12 U.S.C. § 1751, et seq. Consequently, it found that their status in the State of Georgia is that of quasi-government employees who under Georgia law have a vested property interest in their employment.

On May 5, 1997, defendants filed a notice of removal to this court pursuant to 28 U.S.C. § 1446(b). They asserted that the state court’s order establishes for the first time federal question jurisdiction under 28 U.S.C. § 1331. Plaintiffs filed a motion to remand this case to the state court, arguing that defendants’ notice of removal was untimely. Plaintiffs contend that their arguments in their state court brief as to the inapplicability of federal law to their ease should have put defendants on notice of the existence of federal questions and causes of actions. Thus, they argue that the thirty-day limitation period for filing a § 1446(b) notice of removal began no later than the time all briefs relating to the motion for summary judgment were filed in state court.

II. Discussion

Title 28 U.S.C. § 1446(a) allows a defendant who desires to remove a civil action from a state court to file in federal district court a notice of removal containing “a short and plain statement of the grounds for removal, together with a copy of all process, pleadings, and orders served on such defendant or defendants in such action.” Removal of a state action to federal court is proper only if the action could have been originally filed in federal court because of the existence of either diversity jurisdiction or a federal question. Caterpillar Inc. v. Williams, 482 U.S. 386, 391-92, 107 S.Ct. 2425, 2429, 96 L.Ed.2d 318 (1987); Lazuka v. Federal Deposit Ins. Corp., 931 F.2d 1530 (11th Cir.1991). However, 28 U.S.C. § 1446(b) further provides:

If the case stated by the initial pleading is not removable, a notice of removal may be filed within thirty days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable, ...

Defendants assert that the state court’s order denying their motion for summary judgment caused this case to become removable by indicating for the first time that the case would be decided with reference to federal law.

The “well-pleaded complaint” rule requires that the basis for federal jurisdiction appear on the face of the complaint. Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 9-10, 103 S.Ct. *780 2841, 2846-47, 77 L.Ed.2d 420 (1983). Plaintiffs stated no basis for federal jurisdiction in their complaint. In their motion for summary judgment, however, defendants stated that Robins Federal Credit Union is a private non-profit corporation chartered by the National Credit Union Administration under the provisions of the FCUA. Defendants argued, in accordance with Montford v. Robins Federal Credit Union, 691 F.Supp. 347 (M.D.Ga.1988), that the FCUA does not provide either an express or an implied private right of action to employees discharged in violation of a credit union’s bylaws. Defendants acknowledge that their raising a federal defense to plaintiffs’ complaint is not sufficient to create federal question jurisdiction or to provide a basis for removal under § 1446(b). See Lazuka, 931 F.2d at 1534.

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Brand v. Robins Federal Credit Union, 969 F. Supp. 778, 1997 U.S. Dist. LEXIS 10352, 1997 WL 401425 (M.D. Ga. 1997).

969 F. Supp. 778 (Brand v. Robins Federal Credit Union) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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