Link Telecommunications, Inc. v. Sapperstein

119 F. Supp. 2d 536, 2000 U.S. Dist. LEXIS 18582, 2000 WL 1685028
District Court, D. Maryland·Decided November 8, 2000·No. CIV. H-00-2101·Published·Cited by 20 cases

Opinion

MEMORANDUM OPINION

ALEXANDER HARVEY, II, District Judge.

Plaintiff Link Telecommunications, Inc. (“Link”) is a Maryland corporation which does technical and business consulting work for the wireless communications industry. On August 5, 1999, Link filed a nine count complaint in the Circuit Court for Anne Arundel County (“the St^te Court”). Link Telecommunications, Inc. v. Sapperstein, et al., Case No. C-1999-56827 (Cir. Ct. for Anne Arundel County). Six defendants were named in the complaint, as follows: Mark Sapperstein, Shore Communications, West Shore Communications, Inc., 28 Walker Associates, LLC, Jay Winer and Communications, Inc. 1

It is alleged in the complaint that Link engaged in a series of transactions and discussions with the defendants regarding Link’s business plan for a new microwave communications system to serve an area from Ocean City through Salisbury and into the Baltimore area. According to Link, it was led to believe throughout these discussions that it would enter into a business partnership with the defendants in order to jointly develop and manage the new network. Link claims that instead the defendants misappropriated and wrongly converted and used its business *538 plan for their own benefit without ever compensating Link.

On July 11, 2000, four of the defendants filed in this Court a Notice of Removal, alleging that plaintiffs claims in this case arise under the federal Copyright Act, 17 U.S.C. § 102(a). 2 Presently pending in the case is a motion to remand and an amended motion to remand filed by plaintiff Link. 3 Memoranda in support of and in opposition to plaintiffs amended motion to remand have been filed by the parties. 4

The Court has now had an opportunity to review the pleadings and memoranda, including pleadings filed by the parties in the State Court. No hearing is deemed necessary. See Local Rule 105.6. For the reasons stated herein, plaintiffs amended motion to remand will be granted.

I

State Court Procedural History

On October 13, 1999, defendants filed in tlje State Court a motion to dismiss plaintiffs complaint primarily on the ground that “the claims in the Complaint are necessarily preempted by either the Federal Copyright Act of 1976, or by the Maryland Uniform Trade Secrets Act.” Before the State Court had ruled on that motion, Link filed an amended complaint on January 14, 2000. 5 On January 27, 2000, the defendants filed a motion to dismiss the amended complaint based on essentially the same grounds asserted in their original motion to dismiss.

On May 1, 2000, oral argument was heard on defendants’ motion to dismiss before Judge Michael E. Loney of the Circuit Court for Anne Arundel County. On May 4, 2000, Judge Lonely issued a Memorandum Opinion granting defendants’ motion to dismiss Counts VI and VII of the amended complaint, but denying defendants’ motion to dismiss the other Counts. The Court specifically denied defendants’ motion to dismiss the amended complaint on the ground of preemption, stating:

A justiciable controversy clearly exists between the parties concerning the alleged conversion of plaintiffs proposal and ideas. Moreover, a factual dispute exists as to whether plaintiffs “proposal” was a tangible medium sufficient to bring it under the jurisdiction of the Federal Copyright Act. (Slip op. at 5).

Thereafter, on June 14, 2000, defendants completed the taking of the deposition of Link’s President, George Chamberlain. 6 Defendants’ Notice of Removal was filed in this Court on July 11, 2000. According to defendants, the Notice of Removal was timely filed under 28 U.S.C. § 1446(b) because it occurred within thirty days of the date of Chamberlain’s deposition.

II

Applicable Principles of Law (a) Jurisdiction

“At the core of the federal judicial system is the principle that the federal courts are courts of limited jurisdiction.” Libhart v. Santa Monica Dairy Co., 592 F.2d 1062, 1064 (9th Cir.1979). Federal courts “possess only that power authorized *539 by Constitution and statute, which is not to be expanded by judicial decree. It is to be presumed that a cause lies outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994).

Pursuant to 28 U.S.C. § 1331, “[t]he district courts ... have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” Under 28 U.S.C. § 1441(a), “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division ... where such action is pending.” Accordingly, an action filed in a state court that presents a question arising under federal law may be removed to federal district court “without regard to the citizenship or residence of the parties.”

In order to determine if an action arises under federal law, a court must apply the well-pleaded complaint rule. Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). This rule “provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiffs properly pleaded complaint.” Id. Since “[t]he well-pleaded complaint rule applies to the original jurisdiction of the district courts as well as to their removal jurisdiction,” Franchise Tax Bd. of Cal. v. Construction Laborers Vacation Trust for S. Cal., 463 U.S. 1, 10 n. 9, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983), a plaintiff “may avoid federal jurisdiction by exclusive reliance on state law” in pleading its case. Caterpillar, Inc., 482 U.S. at 392, 107 S.Ct. 2425.

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Link Telecommunications, Inc. v. Sapperstein, 119 F. Supp. 2d 536, 2000 U.S. Dist. LEXIS 18582, 2000 WL 1685028 (D. Md. 2000).

119 F. Supp. 2d 536 (Link Telecommunications, Inc. v. Sapperstein) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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