Daniel Quinn v. Southern California Edison Company

District Court, C.D. California·Decided August 22, 2025·No. 2:25-cv-02624·Unknown

Opinion

O JS-6

United States District Court Central District of California

DANIEL QUINN, Case № 2:25-cv-02624-ODW (KSx)

Plaintiff, ORDER DENYING PLAINTIFF’S v. MOTION TO REMAND [13]; AND COMPANY et al., MOTION TO DISMISS [10]

Defendants.

Plaintiff Daniel Quinn filed this action in state court against his former employers, Defendants Southern California Edison Company and Edison International (collectively, “SCE”). (Declaration Robert S. Blumberg ISO Notice Removal Ex. A (“Complaint” or “Compl.”), ECF No. 1-2.) SCE removed the action. (Notice Removal (“NOR”), ECF No. 1.) Quinn now moves to remand, (Mot. Remand (“MTR”), ECF No. 13), and SEC moves to dismiss the Complaint, (Mot. Dismiss (“MTD”), ECF No. 10). For the reasons that follow, the Court DENIES Quinn’s Motion to Remand and GRANTS SCE’s Motion to Dismiss.1

1 Having carefully considered the papers filed in connection with the motions, the Court deemed the matters appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. II. BACKGROUND2 Quinn was employed by SCE as a Nuclear Technical Specialist at SCE’s San Onofre Nuclear Generating Station (“SONGS”) from 1979 until his retirement in 2009. (Compl. ¶ 25.) SCE provided a written employment benefit discount to eligible employees and retirees. (Id. ¶ 26.) For SCE employees and retirees residing outside of SCE service territories, SCE provided a twenty-five percent reimbursement for their electric service (the “Electric Service Reimbursement Benefit” or “ESR Benefit”). (Id. ¶ 27.) Quinn received the ESR Benefit while he was employed with SCE pursuant to his employee benefits plan and following his retirement pursuant to his written retirement benefits plan. (Id. ¶¶ 30–31.) Quinn relied upon the ESR Benefit to mitigate his electric service costs. (Id. ¶ 41.) On or about October 22, 2022, SCE notified Quinn that the ESR Benefit would be discontinued effective January 1, 2023. (Id. ¶ 32.) Based on these allegations, Quinn initiated this action against SCE in state court. (Compl.) Quinn asserts eight causes of action, for: (1) age discrimination under the Fair Employment and Housing Act (“FEHA”), (2) unpaid wages in violation of California Labor Code (“Labor Code”) section 200, et seq., (3) breach of contract, (4) breach of fiduciary duty, (5) breach of implied covenant of good faith and fair dealing, (6) civil penalties under California Private Attorneys General Act (“PAGA”), Labor Code section 2698, (7) unfair business practices in violation of California Business and Professions Code section 17200, et seq., and (8) declaratory relief. (Id. ¶¶ 50–103.) SCE then removed the action to this Court. (NOR.) Quinn now moves to remand, and SCE moves to dismiss the Complaint. (MTR; MTD.) The motions are fully briefed. (Opp’n MTR, ECF No. 18; Reply ISO MTR, ECF No. 20; Opp’n MTD, ECF No. 12; Reply ISO MTD, ECF No. 17.) 2 All factual references derive from Quinn’s Complaint or attached exhibits, unless otherwise noted, and well-pleaded factual allegations are accepted as true for purposes of this Motion. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). The Court must have subject-matter jurisdiction to consider SCE’s Motion to Dismiss. Accordingly, the Court first addresses Quinn’s Motion to Remand. A. Legal Standard Federal courts have subject matter jurisdiction only as authorized by the Constitution and Congress. U.S. Const. art. III, § 2, cl. 1; Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). A suit filed in state court may be removed to federal court only if the federal court would have had original jurisdiction over the suit. 28 U.S.C. § 1441(a). One avenue to federal original jurisdiction is an action that arises under the Constitution, laws, or treatises of the United States. Id. § 1331. There is a strong presumption that a court is without jurisdiction until affirmatively proven otherwise. Fifty Assocs. v. Prudential Ins. Co. of Am., 446 F.2d 1187, 1190 (9th Cir. 1970); see Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (“Federal jurisdiction must be rejected if there is any doubt as to the right of removal in the first instance.”). When an action is removed from state court, the removing party bears the burden of demonstrating that removal is proper. Corral v. Select Portfolio Servicing, Inc., 878 F.3d 770, 773 (9th Cir. 2017). Removal is strictly construed, and any doubt as to removal is to be resolved in favor of remand. Id. at 773–74. B. Discussion SCE removed this action pursuant to 28 U.S.C. § 1331 based on alleged federal enclave jurisdiction and complete preemption under the Employee Retirement Income Security Act (“ERISA”) § 502(a), 29 U.S.C. § 1132(a). (NOR ¶¶ 11–19.) The Court begins, and ends, its jurisdictional analysis by addressing whether Quinn’s state law claims are preempted by ERISA. To remove a case based on ERISA preemption, a removing party “must show either that the state-law causes of action are completely preempted by § 502(a) of ERISA, or that some other basis exists for federal question jurisdiction.” Marin Gen. Hosp. v. Modesto & Empire Traction Co., 581 F.3d 941, 945 (9th Cir. 2009). “Even where a complaint alleges only state law claims, if these claims are entirely encompassed by § 502(a), the complaint is converted from a state common law complaint into a federal claim for purposes of the well-pleaded complaint rule.” McGill v. Pac. Bell Tel. Co., 139 F. Supp. 3d 1109, 1116 (C.D. Cal. 2015). “When a federal statute[, such as ERISA,] wholly displaces the state-law cause of action through complete pre-emption, the state claim can be removed.” Aetna Health Inc. v. Davila, 542 U.S. 200, 207–08 (2004) (cleaned up). Quinn first argues that SCE cannot remove the action based on an affirmative defense such as federal preemption. (MTR 4–5.) While a preemption defense may not ordinarily give rise to removal jurisdiction, it does in this instance as “Congress has clearly manifested an intent to make causes of action within the scope of the civil enforcement provisions of [ERISA] removable to federal court.” Metro. Life Ins. Co. v. Taylor, 481 U.S. 58, 66 (1987). Accordingly, “[c]ommon law claims filed in state court that are preempted by ERISA are subject to removal to federal court under the well-pleaded complaint rule.” Crosby v. Cal. Physicians’ Serv., 279 F. Supp. 3d 1074, 1080 (C.D. Cal. 2018) (citing Metro. Life, 481 U.S. at 67). Section 502(a)(1)(B) provides that a participant or beneficiary may bring a civil action “to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan.” 29 U.S.C. § 1132(a)(1)(B). The Supreme Court, in Davila, established a two-prong test “to det

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