McGill v. Pacific Bell Telephone Co.

139 F. Supp. 3d 1109, 2015 U.S. Dist. LEXIS 140678
CourtDistrict Court, C.D. California
DecidedOctober 15, 2015
DocketCase No. CV 15-06323-BRO (PLAx)
StatusPublished
Cited by5 cases

This text of 139 F. Supp. 3d 1109 (McGill v. Pacific Bell Telephone Co.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGill v. Pacific Bell Telephone Co., 139 F. Supp. 3d 1109, 2015 U.S. Dist. LEXIS 140678 (C.D. Cal. 2015).

Opinion

Proceedings: (IN CHAMBERS) ORDER GRANTING PLAINTIFF’S MOTION TO REMAND [15]

Present: The Honorable BEVERLY ' REID O’CONNELL, United States District Judge 1

I. INTRODUCTION

Before the Court is Plaintiff Steven F. McGill’s (“Plaintiff’) Motion to Remand for lack of subject matter jurisdiction. (Dkt. No. 15.) After considering the papers filed in support of and in opposition to the instant motion, the Court deems this matter' appropriate for decision without oral argument of counsel. See Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. For the reasons set forth below, the Court GRANTS Plaintiffs Motion to Remand.

II. BACKGROUND

a. Factual Background

Plaintiff Steven F. McGill, who is appearing pro se in this matter, commenced this lawsuit in thé Small Claims Division of the Los Angeles County Superior Court on March 3, 2015, against Defendant,1 Plain[1114]*1114tiffs former employer, (Dkt. No. 1, Ex. 1 at 4.) Plaintiff alleges that Defendant owes him' $5,000 because “Defendant cancelled ‘ALL’ insurance benefits without prior notice. Defendant removed Plaintiff from California Life Line Program without justification or notice.” (Id.) Plaintiff claims that he is entitled to recovery because “[a]ll insurance benefits for [his] two children and [himself] are cancelled” and maintains that Defendant should reimburse him for “the cost of buying new insurance plus possible fines.” (Id.)

Defendant’s Notice of Removal, Motion to Set Aside Default Judgment, and briefing in opposition to Plaintiffs Motion to Remand provide additional details regarding the factual context of this dispute. (See Dkt. Nos. 1, 8, 14.) According to Defendant, after Plaintiff retired from his employment with Defendant in 2005, Plaintiff obtained post-employment healthcare benefits through Defendant’s AT&T Umbrella Benefit Plan No. 1 (“Plan”). (Dkt. No. 8 at 3.) Upon becoming eligible for Medicare at the age of 65, the Plan required Plaintiff to enroll in coverage through a private healthcare insurance exchange, AON Retiree Health Exchange (“AON”), in order to maintain coverage beyond December 31, 2014. (Id.)

Defendant alleges that it sent Plaintiff “multiple written communications, reminder postcards, and follow-up telephone inquiries” to advise Plaintiff that his coverage would end in December 2014, unless he took additional action. (Dkt. No. 8 at. 3.) According to Plaintiff, he spoke to • an AT&T Benefits representative who told him to “ignore the letter” from AON because Plaintiffs benefits would remain with AT&T. (Dkt. No. 9 at 2.) After seeking dental care in 2015, Plaintiff discovered that he no longer had medical or dental coverage. (Id.) Plaintiff then telephoned the AT&T Benefits office which informed him that it cancelled his coverage because Plaintiff failed to enroll in AON. (Id.)

b. Procedural History

As discussed, Plaintiff initiated this action in the Small Claims Division of the Los Angeles County Superior Court on March 3, 2015, seeking recovery for the cancellation of his insurance policy without notice, reimbursement of the premiums he continued to pay through April 1, 2015, and the cost of purchasing alternative insurance. (Dkt. No. 1, Ex. 1 at 4-5.) Plaintiff requested that the Small Claims Court attempt service of his claim by certified mail, and requested a return receipt. (Id. at 9.)

After Plaintiff received the certified mail receipt without a signature, Plaintiff filed an amended claim and a second request that the Small Claims Court serve the complaint. (Dkt. No. 1, Ex. 1 at 12.) Plaintiff listed the address of an AT&T retail store as Defendant’s address on his second request for service by certified mail. (Id. at 18.) Plaintiff received a signed certified mail receipt; however, the signature was illegible and no-name was printed in the “received by” section of the receipt. (Id. at 20.) On June 4, 2015, the Clerk of the Los Angeles County Small Claims Court entered default judgment against Defendant. (Dkt. No. 1, Ex. 1 at 21.)

Defendant removed the case to this Court on August 19, 2015. (Dkt. No. 1.) In Defendant’s Notice of Removal, Defendant maintains that this Court, has jurisdiction because Plaintiffs claim is completely preempted by the Employee Retirement Income Security Act of 1974 (“ERISA”). (Dkt. No. 1 at' 3-4.) Defendant alleges that it maintains an employee welfare benefits plan as defined by ERISA, 29 U.S.C. § 1002 et seq., and that Plaintiffs claim “is removable because it relates to insurance benefits arising from an employee welfare benefits plan from Plaintiffs prior employ[1115]*1115ment.” (Id. at 2-3.) Defendant avers that, because Plaintiffs Plan' is regulated by ERISA, Plaintiffs claim is completely preempted and this Court has federal question jurisdiction. (Id. at 3-4.)

On August 27, 2015, Defendant filed a motion to set aside default judgment for ineffective service of. process, (Dkt. No. 8), which the Court granted on September 24, 2015, (Dkt. No. 13).

Plaintiff filed the instant Motion to Remand on September 18, 2015. (Dkt. No; 15.) Plaintiff challenges the action’s removal to federal court, asserting that his claim is not completely preempted by ERISA because “[t]he original suit alleges fraud in the method used to cancel the Plaintiffs insurance benefits by telling him in a recorded phone conversation not to sign with Aon Insurance,” which is not a federal issue. (Dkt. No. 17 at 1.) Defendant timely opposed the motion on September 28, 2015. (Dkt. No. 14.) Plaintiff did not file a reply.

III. LEGAL STANDARD

Remand may be ordered for lack of subject matter jurisdiction or any defect in the removal procedure. 28 U.S.C. § 1447(c). Federal law concerning removal provides that “a motion to remand the case on the basis of any defect other than lack of subject matter jurisdiction must be made within 30 days after the filing of the notice of removal. ... If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the ease shall be remanded.” 28 U.S.C. § 1447(c) (emphasis added). Upon a plaintiffs motion to remand, a defendant bears the burden of establishing proper removal and federal jurisdiction. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir.1992). Federal jurisdiction must be rejected if there is any doubt as to the right of removal. Id. Where there is a doubt regarding the right to removal, “a case should be remanded to state court.” Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir.2003) (citing Gaus, 980 F.2d at 566).

Whether a defendant may rightfully remove a case from a state court to a federal district court is entirely gow erned by statutory authorization by Congress. IAbhart v.

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139 F. Supp. 3d 1109, 2015 U.S. Dist. LEXIS 140678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgill-v-pacific-bell-telephone-co-cacd-2015.