Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, United States Court of Appeals, for the Fourth Circuit

228 F.3d 331
CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 8, 2000
Docket97-1409
StatusUnpublished

This text of 228 F.3d 331 (Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, United States Court of Appeals, for the Fourth Circuit) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, Interstate Petroleum Corporation v. Robert C. Morgan, D/B/A Green Acres Gas and Grocery Vickie L. Morgan, D/B/A Green Acres Gas and Grocery, United States Court of Appeals, for the Fourth Circuit, 228 F.3d 331 (4th Cir. 2000).

Opinion

228 F.3d 331 (4th Cir. 2000)

INTERSTATE PETROLEUM CORPORATION, Plaintiff-Appellee,
v.
ROBERT C. MORGAN, d/b/a Green Acres Gas and Grocery; VICKIE L. MORGAN, d/b/a Green Acres Gas and Grocery, Defendants-Appellants.
Interstate Petroleum Corporation, Plaintiff-Appellant,
v.
Robert C. Morgan, d/b/a Green Acres Gas and Grocery; Vickie L. Morgan, d/b/a Green Acres Gas and Grocery, Defendants-Appellees.
UNITED STATES COURT OF APPEALS, FOR THE FOURTH CIRCUIT.

No. 97-1409, No. 97-1481.

Argued: May 5, 1998.
Decided: September 8, 2000.

Appeals from the United States District Court for the Northern District of West Virginia, at Wheeling.

Frederick P. Stamp, Jr., Chief District Judge. (CA-95-2-5)COUNSEL ARGUED: Alan Gordon McGonigal, BAILEY, RILEY, BUCH & HARMAN, L.C., Wheeling, West Virginia, for Appellants. Steven William Zoffer, DICKIE, MCCAMEY & CHILCOTE, Wheeling, West Virginia, for Appellee. ON BRIEF: Arch W. Riley, Sr., BAI-LEY, RILEY, BUCH & HARMAN, L.C., Wheeling, West Virginia, for Appellants.

Before WIDENER and WILKINS, Circuit Judges, and James H. MICHAEL, Jr., Senior United States District Judge for the Western District of Virginia, sitting by designation.

Vacated and remanded with instructions. Judge Widener wrote the opinion, in which Senior Judge Michael joined. Judge Wilkins wrote a dissenting opinion.

OPINION

WIDENER, Circuit Judge:

This appeal arises from judgment on a jury verdict in favor of Interstate Petroleum Corporation (Interstate). Robert C. Morgan and Vickie L. Morgan appeal, asserting that the district court lacked sub-ject matter jurisdiction over the case. In addition, the Morgans con-tend that Interstate's claim for money damages should not have been presented to the jury. Interstate cross-appeals the district court's enial of its motion for attorneys' fees. We are of opinion that the dis-trict court did not have subject matter jurisdiction over this case. Accordingly, its judgment is vacated and the case remanded for dis-missal for that reason. We do not address the Morgans' damages argument or Interstate's cross-appeal for attorneys' fees.

I.

On April 29, 1993, Interstate and the Morgans d/b/a Green Acres Gas and Grocery entered a franchise agreement whereby Interstate, as franchisor, agreed to sell BP brand gasoline and petroleum products to the Morgans, as franchisees. The terms of the agreement also allowed the Morgans to operate their service station under the BP logo and required the Morgans to obtain a $31,500 irrevocable letter of credit from which Interstate could draw amounts due and unpaid under the contract. The Morgans failed to obtain the required letter of credit, and on December 5, 1994, following a series of negotiations, Interstate notified the Morgans of its intent to terminate the franchise agreement based on their nonperformance. Then, on December 12, 1994, the Morgans signed a mutual consent to a method of termination, providing that the Morgans would deliver a $20,000 letter of credit to Interstate by January 4, 1995, and would make monthly payments to Interstate in satisfaction of an earlier note.

After the Morgans failed to comply with the termination agreement, Interstate brought suit in federal court, claiming breach of contract. Interstate's complaint claimed subject matter jurisdiction based on federal question jurisdiction, 28 U.S.C. § 1331, and the Petroleum Marketing Practices Act (Petroleum Act), 15 U.S.C.§§ 2801-2841.1 Interstate sought injunctive relief and other relief, including damages, attorneys' fees, and costs. The Morgans then filed a motion to dismiss under Federal Rule of Civil Procedure 12(h)(3),2 asserting that the district court lacked subject matter jurisdiction because the Petroleum Act did not authorize actions brought by a franchisor against a franchisee. The district court denied the Morgans' motion, and the case proceeded to trial. Following trial, the jury awarded Interstate $42,901.50 in damages. The Morgans then made several post-trial motions, including another motion to dismiss under Rule 12(h)(3). In their post-trial motion to dismiss, the Morgans again asserted that the district court lacked jurisdiction, but relied on a new theory. In this motion, the Morgans asserted that the district court did not have jurisdiction because Interstate's complaint did not include a request for declaratory relief. The district court denied the motion to dismiss, and the Morgans appealed. We have jurisdiction pursuant to 28 U.S.C. § 1291.

II.

In the Morgans' pre-trial motion to dismiss, they argued that the district court had no federal question jurisdiction over Interstate's suit because the Petroleum Act does not authorize a cause of action for claims brought by franchisors against franchisees. 15 U.S.C. § 2805(a).3 On appeal, the Morgans, however wisely, seek to de-emphasize the initial jurisdictional argument and instead contend that federal courts have jurisdiction over franchisors' suits, but only if the franchisor seeks declaratory relief.

Regardless of the nature of the Morgans' argument, the Supreme Court has stated that it is the "special obligation" of appellate courts to evaluate their own subject matter jurisdiction and the jurisdiction of the district court under review. Bender v. Williamsport Area School Dist., 475 U.S. 534, 541 (1986). In fact, we must consider questions regarding jurisdiction whenever they are raised and even sua sponte. Plyler v. Moore, 129 F.3d 728, 731 n.6 (4th Cir. 1997), cert. denied, 524 U.S. 945 (1998). Accordingly, this case must be dismissed if we conclude that the district court lacked subject matter jurisdiction, even if for reasons other than those now emphasized by the Morgans on appeal.

Neither party contends that the facts of this case support an exercise of the court's diversity jurisdiction. Therefore, the district court had subject matter jurisdiction only if the action arose "under the Constitution, laws, or treaties of the United States." 28 U.S.C. § 1331. Under the well-pleaded complaint rule, federal question jurisdiction exists only when a federal question appears on the face of plaintiff's properly pleaded complaint. Louisville & Nashville Railroad Co. v. Mottley, 211 U.S. 149, 153 (1908).

Interstate's complaint asserts that federal question jurisdiction exists based on the Petroleum Act. 15 U.S.C. § 2801 et seq. This claim of jurisdiction is not well taken. The provision of the Petroleum Act depended on provides that "[a] franchisee may maintain a civil action against [a] franchisor." 15 U.S.C.§ 2805(a) (emphasis added). However, the Petroleum Act does not provide a similar cause of action for franchisors. Accordingly, Interstate's claims do not fall within the jurisdictional grant of the Act, and the district court had no jurisdiction over Interstate's action against the Morgans.

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