Kline v. Security Guards, Inc.

386 F.3d 246, 21 I.E.R. Cas. (BNA) 1589, 175 L.R.R.M. (BNA) 3038, 2004 U.S. App. LEXIS 20963, 2004 WL 2239685
Court of Appeals for the Third Circuit·Decided October 6, 2004·No. No. 03-3404, 03-3610, 03-3620·Published·Cited by 23 cases

Opinion

STAPLETON, Circuit Judge.

Daulph Kline and Terry Kline brought suit in the Court of Common Pleas of Berks County, in the Commonwealth of Pennsylvania, against Dana Corporation (“Dana”), Security Guards, Inc. (“SGI”), and Radio Maintenance, Inc. (“RMI”; collectively, the “Defendants”) asserting numerous claims arising under Pennsylvania law. Defendants thereafter removed the case to the United States District Court for the Eastern District of Pennsylvania, contending that Appellants’ claims were completely preempted by § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185. RMI was ultimately dismissed as ,a party and judgment was en-. tered in favor of Dana and SGI. This appeal followed. Because we conclude that the District Court did not have subject matter jurisdiction over any of the state law claims asserted in the complaint, we will vacate the judgment and remand to the District Court with instructions to re[250] turn this case to the Pennsylvania Court of Common Pleas.

I.

This case arises out of Dana’s alleged surveillance of its hourly employees at one of its facilities in Reading, Pennsylvania. Dana, a Virginia corporation, is a manufacturer of automobile and truck assembly components. During the relevant period, its hourly employees working at the facility were represented by the United Steel Workers of America, Local 3733 (the “Union”) and were subject to a Collective Bargaining Agreement (“CBA”) between Dana and the Union.

On September 28, 1998, Dana installed an audio and video surveillance system in an entryway at its Reading facility. The system was allegedly purchased from, and installed by, RMI. It consisted of two cameras with built-in microphones, a monitor with a built-in speaker, and a twenty-four hour video cassette recorder. The system enabled Dana to monitor the entryway, which was the location at which its hourly employees were required to “punch-in.” The cameras automatically sent video and audio signals to the monitor, which was located in a guard booth adjacent to the entryway. The guard booth was operated by employees of SGI, a Pennsylvania corporation, which had contracted with Dana since 1989 to provide it with security services. The SGI guards operating the booth reported to, and were supervised by, Dana managers.

Approximately one week after installation of the system, two hourly employees at the Reading facility, Terry and Daulph Kline, learned from certain SGI guards operating the guard booth that the surveillance system had the capacity to transmit to the monitor oral communications taking place in the entryway. The Klines then reported this fact to their Union representatives. Over the course of the following weeks, the Union made inquiries of Dana’s management concerning its use of the surveillance system. These inquiries resulted in the removal of the system on October 29,1998.

Terry and Daulph Kline filed a complaint against Defendants in the Court of Common Pleas of Berks County, in the Commonwealth of Pennsylvania, asserting, in sixty-nine counts, (1) claims under the Pennsylvania Wire Tapping and Electronic Surveillance Control Act (the “Wiretap Act”), 18 Pa. Cons.Stat. § 5725; (2) claims under the Pennsylvania Private Detective Act of 1953 (the “Detective Act”), Pa. Stat. Ann. tit. 22, § 26; and (3) various Pennsylvania common law tort causes of action, including invasion of privacy.1 Shortly [251] thereafter, Defendants removed the case to the District Court for the Eastern District of Pennsylvania and filed motions to dismiss. The Klines filed a motion to remand. The District Court, without opinion, denied both the Defendants’ motions to dismiss and the Klines’ motion to remand. Accordingly, the District Court retained jurisdiction and allowed the matter to proceed.2 This appeal was filed following the entry of final judgment

II.

We are presented with a final order of a District Court to review. Accordingly, we have appellate jurisdiction. 28 U.S.C. § 1291. It is not clear, however, that the District Court had subject matter jurisdiction to enter that judgment, and we are obliged to raise and resolve that jurisdictional issue before addressing the merits of this appeal. Exxon Mobil Corp. v. Saudi Basic Industries Corp., 364 F.3d 102, 104 (3d Cir.2004).

According to Dana and SGI, the District Court possessed subject matter jurisdiction because at least three categories of Appellants’ claims were completely preempted by § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185:(1) the Wiretap Act claims; (2) the tort law invasion of privacy claims; and (3) the tort law negligent or reckless supervision claims. Appellants insist, however, that the LMRA was not implicated in any of their claims. We agree with Appellants that subject matter jurisdiction was lacking.3

A.

“Only state-court actions that originally could have been filed in federal court may be removed to federal court by the defendant.” Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). If Appellants’ case could not have been filed originally in federal court, then removal under 28 U.S.C. § 1441 was improper and Appellants would be entitled to the remand they initially requested. See Roxbury Condo. Assoc., Inc. v. Anthony S. Cupo Agency, 316 F.3d 224, 227 (3d Cir.2003) (“Removal jurisdiction under section 1441 is ... wholly derived from original federal jurisdiction.”); see also 28 U.S.C. § 1447(c) (“If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.”). Here, diversity jurisdiction under 28 U.S.C. §, 1332 was unavailable because SGI is a Pennsylvania corporation and the Klines were both Pennsylvania citizens. Accordingly, we must determine whether federal question jurisdiction existed under 28 U.S.C. § 1331. See Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425 (“Absent diversity of citizenship, federal-question jurisdiction is required [for removal].”).

As the Supreme Court explained in Caterpillar:

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Kline v. Security Guards, Inc., 386 F.3d 246, 21 I.E.R. Cas. (BNA) 1589, 175 L.R.R.M. (BNA) 3038, 2004 U.S. App. LEXIS 20963, 2004 WL 2239685 (3d Cir. 2004).

386 F.3d 246 (Kline v. Security Guards, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Kline v. Security Guards, Inc.
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