Gonzalez v. U.S. Ctr. for Safesport
Opinion
The Center and USAT removed the case to this Court, (ECF Nos. 1, 12), and Gonzalez timely sought remand (ECF No. 16 ).
2. Remand Standard
Removal from state court to federal court is only appropriate if the action is within the original jurisdiction of the federal court.
"The existence of federal jurisdiction is tested at the time of removal," Adventure Outdoors, Inc. v. Bloomberg ,
3. Analysis
A claim pled under state law "may be removed to federal court in only two circumstances-when Congress expressly so provides ... or when a federal statute wholly displaces the state-law cause of action through complete preemption." Beneficial Nat. Bank v. Anderson ,
The Defendants removed Gonzalez's Florida law claim for declaratory relief under
Gonzalez sought remand, contesting all three jurisdictional bases. (ECF No. 16.) The Court addresses each in turn.
A. Section 220505(b)(9) Does Not Permit Removal By the Center or USAT
The Defendants argue that
Through the Sports Act, Congress granted removal jurisdiction over claims brought against the USOC that "solely relating to" its responsibilities under that statute.
sue and be sued, except that any civil action brought in a State court against the corporation and solely relating to the corporation's responsibilities under this chapter shall be removed, at the request of the corporation, to the district court of the United States in the district in which the action was brought, and such district court shall have original jurisdiction over the action without regard to the amount in controversy or citizenship of the parties involved, and except that neither this paragraph nor any other provision of this chapter shall create a private right of action under this chapter
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The Center and USAT removed the case to this Court, (ECF Nos. 1, 12), and Gonzalez timely sought remand (ECF No. 16 ).
2. Remand Standard
Removal from state court to federal court is only appropriate if the action is within the original jurisdiction of the federal court.
"The existence of federal jurisdiction is tested at the time of removal," Adventure Outdoors, Inc. v. Bloomberg ,
3. Analysis
A claim pled under state law "may be removed to federal court in only two circumstances-when Congress expressly so provides ... or when a federal statute wholly displaces the state-law cause of action through complete preemption." Beneficial Nat. Bank v. Anderson ,
The Defendants removed Gonzalez's Florida law claim for declaratory relief under
Gonzalez sought remand, contesting all three jurisdictional bases. (ECF No. 16.) The Court addresses each in turn.
A. Section 220505(b)(9) Does Not Permit Removal By the Center or USAT
The Defendants argue that
Through the Sports Act, Congress granted removal jurisdiction over claims brought against the USOC that "solely relating to" its responsibilities under that statute.
sue and be sued, except that any civil action brought in a State court against the corporation and solely relating to the corporation's responsibilities under this chapter shall be removed, at the request of the corporation, to the district court of the United States in the district in which the action was brought, and such district court shall have original jurisdiction over the action without regard to the amount in controversy or citizenship of the parties involved, and except that neither this paragraph nor any other provision of this chapter shall create a private right of action under this chapter
" 'Federal courts are courts of limited jurisdiction,' possessing 'only that power authorized by Constitution and statute.' " Gunn v. Minton ,
*1290III, federal courts must "carefully guard[ ]" against expanding their own jurisdiction through "judicial interpretation." Stoneridge Inv. Ps., LLC v. Scientific-Atlanta ,
In line with these principles, the Court declines to expand the Sports Act's jurisdictional grant to cover the Center and USAT. The "Center" and "national governing body" are defined terms under the Sports Act.
Accordingly, section 220505(b)(9) is not a source of federal subject matter jurisdiction in this case, and the Defendants arguments to that end are rejected.
B. "Complete" Preemption is Not a Basis for Jurisdiction in This Case
Next, the Defendants submit that federal question jurisdiction exists in this case under the "complete preemption" doctrine. (ECF No. 12 at pp. 2-3, 7-12 ; ECF No. 17 at pp. 2-9.) Specifically, the Defendants argue that Gonzalez's state law declaratory judgment action "challenges the Center for SafeSport's eligibility decision," (ECF No. 17 at p. 2 ), and that "Congress plainly intended that the Center have exclusive authority to resolve amateur athletic eligibility disputes involving sexual misconduct" under the SSAA, (id. at p. 5). In support of remand, Gonzalez argues that his claim is not completely preempted by the SSAA, in part, because that statute creates no federal cause of action.
For the reasons explained below, the Court agrees with Gonzalez and finds that "complete" preemption is not a source of federal jurisdiction in this case.
i. "Complete" Preemption vs. "Ordinary" Preemption
Two distinct preemption doctrines are arguably raised by the facts of this case: "Complete" preemption,1 and "ordinary" preemption.2 While only "complete" preemption is relevant to adjudication of the Motion, for context and clarity, *1291the Court will briefly describe the nature of both.
"Ordinary" preemption is an affirmative defense that "simply allows a defendant to defeat a plaintiff's state-law claim on the merits by asserting the supremacy of federal law." Strong , 651 F.3d at 1260 n.16. As relevant here, "ordinary" preemption is neither a source of federal subject matter jurisdiction, nor a basis for removal to federal court. Geddes v. Am. Airlines, Inc. ,
"Complete" preemption, on the other hand, is a rarely invoked and "narrowly drawn jurisdictional rule for assessing federal removal jurisdiction when a complaint purports to raise only state law claims." Id. at 1353. The doctrine is a limited exception to the "well-pleaded complaint" rule and requires a determination that "the pre-emptive force of a statute is so 'extraordinary' that it 'converts an ordinary state common law complaint into one stating a federal claim.' " Caterpillar ,
The Supreme Court recognizes complete preemption "hesitatingly," and displays "no enthusiasm" to extend the doctrine into areas of law beyond the Labor Management Relations Act, the Employee Retirement Income Security Act and the National Bank Act. BLAB T.V. of Mobile, Inc. v. Comcast Cable Commc'ns, Inc. ,
So too does the Eleventh Circuit. See, e.g., Ammedie v. Sallie Mae, Inc. ,
A claim may not be removable to federal court based on "complete" preemption, but nonetheless still subject to dismissal under "ordinary" preemption. Geddes ,
Here, the parties dispute whether federal preemption provides a basis for removal in this case. Thus, the preemption doctrine at issue is "complete" preemption, and the Court will assess the parties' positions through that lens.
ii. Gonzalez's Claim is Not "Completely" Preempted by Federal Law
Generally, "[r]emoval jurisdiction based on a federal question is governed by the well-pleaded complaint rule," which permits removal only where "the face of a plaintiff's complaint states a federal question." Ervast , 346 F.3d at 1012. "Complete" preemption, however, "is a narrow exception to the well-pleaded complaint rule" that permits removal of state law claims that are "wholly displaced" by a federal statute's preemptive force. Ct. State Dental Ass'n v. Anthem Health Plans, Inc. ,
"Complete preemption occurs when a federal statute both [1] preempts state substantive law and [2] 'provides the exclusive cause of action for the claim asserted.' " Dial ,
Thus, "complete" preemption only exists where the federal statute at issue creates a federal cause of action or "federal remedy."
The Eleventh Circuit's opinion in Dial is instructive. That court undertook a review of an order denying remand based on the lower court's determination that certain state law claims were "completely" preempted by the Medicare Act.
Dial 's rationale was extended to the Sports Act in Bennett v. USA Water Polo, Inc. , No. 08-23533,
The common thread in Dial and Bennett is that, in each case, the absence of a federal remedy deprived the plaintiff of original federal jurisdiction over the claim, even if pled under federal law. Similarly, here, whether the SSAA provides a federal remedy for Gonzalez is a finding necessary to determine if that statute "completely" preempts Gonzalez's state law claim. See Anderson ,
The Defendants argue that the SSAA "completely" preempts "state law challenges to the Center's eligibility decision[s]." (ECF No. 12 at pp. 6, 8.) Thus, as *1294a threshold matter, the Court must discern whether the SSAA creates a "federal remedy" or cause of action allowing parties to challenge the Center's eligibility determinations in a district court. In doing so, the Court avoids making any determination of whether Gonzalez's state law claim, in fact, challenges the Center's eligibility ruling, or whether the SSAA would "ordinarily" preempt such a claim.
In 2018 Congress enacted the SSAA, designating the Center "as the independent national safe sport organization" for the United States with jurisdiction over the USOC and NGBs to safeguard amateur athletes against emotional, physical and sexual abuse in sports.
But the SSAA creates no avenue through which a federal court can review these eligibility determinations. See
*1295C. The Defendants Fail to Establish Diversity Jurisdiction
Finally, the Defendants argue that the diversity statute,
Removal based on diversity jurisdiction is only proper where the amount in controversy exceeds the sum or value of $ 75,000, exclusive of interest and costs.
In actions seeking declaratory relief, like this one, "it is well established that the matter in controversy is measured by the value of the object of the litigation." Ericsson GE Mobile Commc'ns, Inc. v. Motorola Commc'ns & Elecs., Inc. ,
Courts should not speculate to compensate for a defendant's insufficient allegations of jurisdiction. Williams v. Best Buy Co., Inc. ,
The Defendants argue that the amount in controversy exceeds $ 75,000 because they claim Gonzalez is challenging the Center's eligibility determination, which resulted in a ten-year revocation of his USAT membership, and "more than likely will cost [Gonzalez] more than $ 7,500 per year in" lost revenues from his taekwondo academy. (ECF No. 12 at p. 5.) But this conclusion is speculative and not facially apparent from the complaint. The Defendants, further, submit no evidence to support this bare assertion. Thus, the Court cannot find that the Defendants have satisfied their burden of establishing that the amount in controversy exceeds the jurisdictional threshold.
The Court also rejects the Defendants' alternative request for leave to conduct limited jurisdictional discovery. "Post-removal discovery for purposes of establishing jurisdiction in diversity cases cannot be squared with the delicate balance struck by *1296Federal Rules of Civil Procedure 8(a) and 11 and the policy and assumptions that flow from and underlie them." Lowery v. Ala. Power Co. ,
Just as a plaintiff bringing an original action is bound to assert jurisdictional bases under Rule 8(a), a removing defendant must also allege the factual bases for federal jurisdiction in its notice of removal under § 1446(a). Though the defendant in a diversity case, unlike the plaintiff, may have no actual knowledge of the value of the claims, the defendant is not excused from the duty to show by fact, and not mere conclusory allegation, that federal jurisdiction exists. Indeed, the defendant, by removing the action, has represented to the court that the case belongs before it. Having made this representation, the defendant is no less subject to Rule 11 than a plaintiff who files a claim originally. Thus, a defendant that files a notice of removal prior to receiving clear evidence that the action satisfies the jurisdictional requirements, and then later faces a motion to remand, is in the same position as a plaintiff in an original action facing a motion to dismiss. The court should not reserve ruling on a motion to remand in order to allow the defendant to discover the potential factual basis of jurisdiction. Such fishing expeditions would clog the federal judicial machinery, frustrating the limited nature of federal jurisdiction by encouraging defendants to remove, at best, prematurely, and at worst, in cases in which they will never be able to establish jurisdiction.
...
Post-removal discovery disrupts the careful assignment of burdens and the delicate balance struck by the underlying rules. A district court should not insert itself into the fray by granting leave for the defendant to conduct discovery or by engaging in its own discovery. Doing so impermissibly lightens the defendant's burden of establishing jurisdiction. A court should not participate in a one-sided subversion of the rules. The proper course is remand.
4. Conclusion
Finding no federal jurisdiction under the Sports Act, the "complete" preemption doctrine or the diversity statute, the Court grants the Motion (ECF No. 16 ) and remands this case to the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida. The Clerk is instructed to close this case and take all necessary steps to ensure prompt remand and transfer of this file. All pending motions, if any, are denied as moot.
Done and ordered , in Chambers, at Miami, Florida, on March 18, 2019.
374 F. Supp. 3d 1284 (Gonzalez v. U.S. Ctr. for Safesport) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.