Joyce Johnson v. MFA Petroleum Company

701 F.3d 243, 2012 WL 5990288, 2012 U.S. App. LEXIS 24791
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 3, 2012
Docket12-1464
StatusPublished
Cited by48 cases

This text of 701 F.3d 243 (Joyce Johnson v. MFA Petroleum Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joyce Johnson v. MFA Petroleum Company, 701 F.3d 243, 2012 WL 5990288, 2012 U.S. App. LEXIS 24791 (8th Cir. 2012).

Opinions

MURPHY, Circuit Judge.

On behalf of an asserted class Joyce Johnson, a citizen of Missouri, brought this action in state court against gasoline station operators MFA Petroleum, Casey’s General Stores, and QuikTrip Corporation (the operators) under the Missouri Merchandising Practices Act (the state act), Mo.Rev.Stat. § 407.020, alleging the defendants misrepresent the grade of gas pumped at their stations. Casey’s General Stores removed the case to the federal district court asserting that Johnson’s claim was completely preempted by the Petroleum Marketing Practices Act (PMPA), 15 U.S.C. § 2801 et seq., or, alternatively, that there was diversity jurisdiction under the Class Action Fairness Act (CAFA), 28 U.S.C. § 1711 et seq. Johnson moved to remand, denying that her claim was completely preempted and also asserting that it fell within CAFA’s local controversy exception to federal jurisdiction. The district court concluded that Johnson’s claim was completely preempted by PMPA and denied her motion to remand to state court. Johnson appeals, and we reverse and remand.

I.

Joyce Johnson is a consumer of premium grade gasoline in Missouri. She alleges [246]*246that the operators misrepresent the grade of gasoline sold at their stations from “single hose blender pumps.” This type of pump dispenses all available grades of gas through a single hose and nozzle after a purchaser pushes a designated button to obtain the grade each prefers. Johnson alleges that when a purchaser of premium gas uses a pump immediately after someone else has purchased a lower grade, the premium customer actually receives up to one half gallon of lower grade gas still remaining in the hose. According to Johnson, the use of this type of pump violates a Missouri statute which prohibits “[t]he act, use or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerce.” Mo.Rev.Stat. § 407.020.

Johnson’s complaint was pled as a class action on behalf of all other citizens of Missouri who have purchased premium gasoline at one of the operators’ gas stations. She seeks damages and injunctive relief on behalf of the class. Both Johnson and MFA Petroleum are citizens of Missouri, while Casey’s General Stores is a citizen of Iowa and QuikTrip is a citizen of Oklahoma.

Casey’s General Stores removed the case to the district court, alleging two grounds for federal question jurisdiction. First, Casey’s contended that there was federal question jurisdiction under the doctrine of complete preemption. See Beneficial Nat'l Bank v. Anderson, 539 U.S. 1, 123 S.Ct. 2058, 156 L.Ed.2d 1 (2003). According to Casey’s, Johnson’s allegations “attack the disclosure of octane labels on [the operators’] fuel pumps,” a subject regulated by Subchapter II of PMPA. 15 U.S.C. §§ 2821, 2824. The operators assert that a preemption provision in Sub-chapter II, which prevents states from adopting laws with respect to “any act or omission” regulated by the subchapter, completely preempts Johnson’s claim. Id. § 2824(a). Second, Casey’s asserts that diversity jurisdiction exists under CAFA. It argues that all potential class members are citizens of Missouri while two of the three defendants are not, the class seeks damages exceeding CAFA’s $5 million threshold, and the complaint contemplates a class size of at least 100 persons. See 28 U.S.C. § 1332(d)(2), (5).

All of the parties filed motions in the district court. The operators moved to dismiss for failure to state a claim, asserting that Johnson’s claim was expressly preempted and that alternatively the operators were entitled to a safe harbor defense because they had been acting in accordance with Missouri state requirements for the pricing of their gasoline. Johnson moved to remand to state court. She argued that the doctrine of complete preemption does not apply to this case because the argument raised by the operators is merely a federal defense which does not provide federal question jurisdiction. Johnson also argues that removal was improper under CAFA because her claim fell under the statute’s “local controversy” exception. See 28 U.S.C. § 1332(d)(4)(A).

The district court denied Johnson’s motion to remand and granted the operators’ motion to dismiss. The court determined that it had federal question jurisdiction because it concluded that Johnson’s claim was completely preempted by PMPA and that dismissal was therefore required. The district court declined to address the alternative question of whether there would be diversity jurisdiction over the case under CAFA.

Johnson appeals the dismissal of the case, renewing the arguments she made in [247]*247the district court questioning the availability of complete preemption here. She also urges this court to consider the merits of whether her claim fits within the local controversy exception to federal jurisdiction under CAFA. The operators respond that the district court correctly ruled that Johnson’s claim is completely preempted and properly dismissed the case. If its earlier decision were to be reversed, however, the operators urge this court to direct the district court to develop the record to determine whether federal jurisdiction exists under CAFA.

Johnson argues that the district court erred by deciding that her claim is completely preempted and that there is federal question jurisdiction here. She contends that the district court was mistaken in its analysis of preemption, confusing the separate and distinct doctrines of ordinary and complete preemption. A significant difference exists between these doctrines since ordinary preemption would raise a defense against Johnson’s state law claim, but it would not provide for federal jurisdiction. The “existence of a federal question is an issue of law which we review de novo.” Gaming Corp. of Am. v. Dorsey & Whitney, 88 F.3d 536, 542 (8th Cir.1996).

II.

As master of the complaint, a state plaintiff can generally avoid removal to federal court by alleging only state law claims. Gaming Corp., 88 F.3d at 542 (citing Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987)). Under the well pleaded complaint rule, a federal question must appear on the face of the plaintiffs complaint in order to create federal question jurisdiction. Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425. If the plaintiffs action is brought under state law, the case may not be removed under federal question jurisdiction even if federal law were to provide a defense, and “even if both parties concede that the federal defense is the only question truly at issue.” Id.

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Bluebook (online)
701 F.3d 243, 2012 WL 5990288, 2012 U.S. App. LEXIS 24791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joyce-johnson-v-mfa-petroleum-company-ca8-2012.