Castellanos v. U.S. Long Distance Corp.

928 F. Supp. 753, 1996 U.S. Dist. LEXIS 8483, 1996 WL 338814
CourtDistrict Court, N.D. Illinois
DecidedJune 17, 1996
Docket96 C 1645
StatusPublished
Cited by12 cases

This text of 928 F. Supp. 753 (Castellanos v. U.S. Long Distance Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castellanos v. U.S. Long Distance Corp., 928 F. Supp. 753, 1996 U.S. Dist. LEXIS 8483, 1996 WL 338814 (N.D. Ill. 1996).

Opinion

MEMORANDUM OPINION AND ORDER

ALESIA, District Judge.

Now before the court are plaintiffs motion to remand this action to state court and motion for attorney fees and costs, both pursuant to 28 U.S.C. § 1447(c). Plaintiff Hugo A. Castellanos, on behalf of himself and others similarly situated, filed a four-count complaint in the Circuit Court of Cook County seeking relief under Illinois common and statutory law. Defendants removed the action to this court claiming that plaintiff had “actually pled a violation of federal law in an area in which federal regulation occupies the field and precludes state interference.” For the reasons set forth below, plaintiffs motion to remand is granted and his motion for attorney fees and costs is denied.

As alleged in the plaintiffs complaint, the defendants U.S. Long Distance Corp., U.S. Long Distance, Inc., Zero Plus Dialing, Inc., and U.S. Billing, Inc. provide long distance telephone service and related services throughout the United States. In the usual course of business, local telephone companies disconnect or transfer a consumer’s long distance carrier when requested by the consumer or when requested by a long distance telephone service. The local telephone com *755 pany generally charges the consumer a connect and disconnect fee for each change in long distance carriers. The plaintiff alleges, however, that the defendants have changed tens of thousands of consumers’ long distance telephone carriers from the consumers’ choice to U.S. Billing and/or U.S. Billing, Inc. without the consent of those consumers (a process known as “slamming”). Plaintiff asserts that he and others similarly situated were damaged, inter alia, by having their contracts for long-distance service tortiously interfered with, by paying defendants’ higher long distance charges, by paying or being required to pay reconnect charges to their original long distance carriers, and by having their financial credit damaged or threatened. Plaintiff alleges two claims under Illinois common law for fraud and tortious interference with contract and two statutory claims under the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1 et seq., and the Illinois Uniform Deceptive Trade Practices Act, 815 ILCS 510/1 et seq.

As stated above, defendants have removed the case to this court arguing preemption by federal law. Plaintiff, meanwhile, has moved to remand this action to state court and requested attorney fees and costs as a result of wrongful removal pursuant to 28 U.S.C. § 1447(e).

Under 28 U.S.C. § 1441, “any civil action brought in a State court of which the district court of the United States have original jurisdiction, may be removed by the defendant or defendants, to the district court of the United States ...” 28 U.S.C. § 1441(a). Whether removal was proper in this case depends upon whether this court has “federal question” jurisdiction under 28 U.S.C. § 1331. Federal question jurisdiction extends to “all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331.

When deciding whether a case warrants removal because a federal question is involved, a federal court must principally determine if the “plaintiffs well-pleaded complaint raises issues of federal law.” Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63, 107 S.Ct. 1542, 1546, 95 L.Ed.2d 55 (1987); Franchise Tax Board of Cal. v. Construction Laborers Vacation Trust for Southern Cal, 463 U.S. 1, 9-12, 103 S.Ct. 2841, 2846-48, 77 L.Ed.2d 420 (1983). The underlying premise of the well-pleaded complaint rule is that a plaintiff is the master of his or her case and has the right to choose whether to rely on state or federal law. Caterpillar, Inc. v. Williams, 482 U.S. 386, 391, 107 S.Ct. 2425, 2429, 96 L.Ed.2d 318 (1987). A defendant cannot create a federal question by asserting an issue of federal law in a pleading or in a petition for removal. Id. On the other hand, removal is proper if the plaintiff has attempted to avoid a federal forum by drafting an essentially federal claim in terms of state law (the “artful pleading doctrine”). Federated Department Stores, Inc. v. Moitie, 452 U.S. 394, 397 n. 2,101 S.Ct. 2424, 2427 n. 2, 69 L.Ed.2d 103 (1981).

In this case, Castellanos’ complaint does not allege a federal claim and Castellanos has not drafted an essentially federal claim in terms of state law. Rather, the first half of plaintiffs complaint alleges common law fraud and tortious interference with contract, neither of which raises an issue of federal law on the face of the complaint. The Illinois statutes under which plaintiff also sues establish conditions, without reference to federal law, under which liability attaches. Accordingly, the court holds, and defendants do not dispute, that the plaintiffs complaint in this case purported to raise only state law causes of action.

Where the parties are in dispute is whether the doctrine of “complete preemption” applies in this case. This is an “independent corollary” to the well-pleaded complaint rule. It provides that, in certain circumstances, the pre-emptive force of a federal 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.’” Caterpillar, 482 U.S. at 393, 107 S.Ct. at 2430 (1987) (quoting Taylor, 481 U.S. at 65, 107 S.Ct. at 1547). Once an area of state law has been completely preempted, any claim purportedly based on that law is considered, from its inception, a federal claim, and therefore arising under *756 federal law. Id.; Franchise Tax Board, 463 U.S. at 24, 103 S.Ct. at 2854. The Seventh Circuit has found complete preemption under only Section 301 of the Labor Management Relations Act and Section 502(a) of ERISA. Rice v. Panchal, 65 F.3d 637 (7th Cir.1995); Ready Transportation, Inc. v. Best Foam Fabricators, Inc., 919 F.Supp. 310, 315 (N.D.Ill.1996).

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Bluebook (online)
928 F. Supp. 753, 1996 U.S. Dist. LEXIS 8483, 1996 WL 338814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castellanos-v-us-long-distance-corp-ilnd-1996.