Nicodemus v. Union Pacific Corp.

204 F.R.D. 479, 2001 U.S. Dist. LEXIS 21961, 2001 WL 1598045
CourtDistrict Court, D. Wyoming
DecidedDecember 6, 2001
DocketNos. 01-CV-009-J, 01-CV-099-J
StatusPublished
Cited by22 cases

This text of 204 F.R.D. 479 (Nicodemus v. Union Pacific Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Wyoming primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nicodemus v. Union Pacific Corp., 204 F.R.D. 479, 2001 U.S. Dist. LEXIS 21961, 2001 WL 1598045 (D. Wyo. 2001).

Opinion

ORDER FINDING THAT THIS COURT LACKS SUBJECT MATTER JURISDICTION AND ALTERNATIVELY DENYING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

JOHNSON, Chief Judge.

This Court consolidated the claims of Warren D. Nicodemus and John N. Morris, et al. (“plaintiffs”). Prior to the consolidation, the plaintiffs separately moved for this Court to certify a class of persons whose parcels are encumbered by rights-of-way for railroad purposes. The Court will rule on the motions simultaneously. This Court held a hearing on the class certification motion on November 16, 2001. Following the hearing, this Court reviewed its jurisdiction to adjudicate the claims sua sponte. The Court, having reviewed carefully the briefs of the parties, the applicable law, all matters of record, and being fully advised, finds that it does not have subject matter jurisdiction over plaintiffs’ claims and denies plaintiffs’ motion to certify the class, for the reasons stated below.

BACKGROUND

Since about 1980, Union Pacific has permitted telecommunications companies to install fiber optic cable in the soil underneath land grant railroad rights-of-way, for which it has received, and continues to receive “vast” sums of money. The plaintiffs assert that Union Pacific had no right to permit such activity because Union Pacific owned only a surface easement. These plaintiffs allege that they had the right to grant subsurface easements to the telecommunications companies.

Union Pacific admits that it permitted telecommunication companies to install fiber optic cable in the soil underneath its rights-of-way, but denies that it owned only a surface easement. In order to establish the illegality of Union Pacific’s use of the rights-of-way and to recover their damages against Union Pacific for trespass and unjust enrichment seek to assert claims on behalf of a class composed of:

All persons or entities (except railroads, the United States government, govern[483]*483ments that have treaties with the United States, or state governments) who own land in the United States that is subject to a right-of-way for railroad purposes which was obtained by Union Pacific or its predecessors directly from the United States over the public lands of the United States by virtue of any of the land grant railroad statutes of the United States Congress enacted in the years 1850 through 1874 or by the General Right of Way Act of 1875 and whereon Union Pacific has sold, purported to sell, or leased to other entities or persons the right to install, operate or maintain fiber-optic cable or other telecommunications equipment without obtaining the consent of the landowner and without payment of compensation to the landowner.1

DISCUSSION

The parties have briefed the Court only on the class certification issue. This order will discuss that issue in Section II. In Section I, this Court reviews its basis for jurisdiction. It is well-settled that a federal court has a duty to investigate its jurisdiction and that it has the authority to review subject matter jurisdiction sua sponte. See Louisville & Nashville R.R. v. Mottley, 211 U.S. 149, 29 S.Ct. 42, 53 L.Ed. 126 (1908); State Farm Mutual Automobile Ins. Co. v. Narvaez, 149 F.3d 1269, 1270-71 (10th Cir.1998).

I. SUBJECT MATTER JURISDICTION

Federal courts are courts of limited jurisdiction. See Castaneda v. I.N.S., 23 F.3d 1576, 1580 (10th Cir.1994). That is, a federal court may entertain a case only if there are constitutional and statutory bases for its jurisdiction. See id. The Constitution provides that federal courts may be given jurisdiction over “all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority; — ... to Controversies between two or more States; — between a State and citizens of another State; — between Citizens of different States ...” U.S. Const, art. Ill § 2, cl. 1. From this Constitutional authority, Congress has granted federal courts two bases of jurisdiction: federal question jurisdiction and diversity jurisdiction. See 28 U.S.C. §§ 1331, 1332.

B. FEDERAL QUESTION JURISDICTION

Section 1331, referred to as federal question jurisdiction, allows federal courts to adjudicate a case if the case arises out of federal law. See 28 U.S.C. § 1331. The statute states, “[t]he district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” Id. Since there is both a constitutional and a statutory grant of authority, a federal question analysis is double layered.2

In Gibbons v. Ogden, the Supreme Court held that there is federal jurisdiction under the Constitution when some element of federal law is an “ingredient” of a cause of action. See 9 Wheat. 1, 24, 6 L.Ed. 23 (1824). This grant of authority was broad and arguably empowered federal courts with jurisdiction over any claim that involved federal law. See Wright, Federal Courts 102 (1994).

The Supreme Court has construed Section 1331 more narrowly. It has held that a civil action arises out of federal law when “a suit arises under the law that creates the action.” American Well Works v. Layne & Bowler Co., 241 U.S. 257, 260, 36 S.Ct. 585, 60 L.Ed. 987 (1916). In other words, there is federal question jurisdiction, under Section 1331, if the cause of action arises out of a federal remedy. Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 27-28, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983).

[484]*484In addition to this test, the Supreme Court has suggested that there is another basis for federal question jurisdiction.3 The Court has stated that federal courts may exercise subject matter jurisdiction over a state law claim if an essential element of the state law claim turned on a federal question. See Merrell Dow Pharmaceuticals Inc. v. Thompson, 478 U.S. 804, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986) (district court has subject matter jurisdiction if “plaintiffs right to relief depends on the resolution of a substantial question of federal law”); Franchise Tax Board, 463 U.S. at 1, 103 S.Ct. 2841. When making the determination of whether a non-federal claim turns on a substantial question of federal law, courts should exercise “prudence and restraint.” See Merrell Dow, 478 U.S. at 810, 106 S.Ct. 3229. Restraint is necessary because “determinations about federal jurisdiction require sensitive judgments about congressional intent, judicial power, and the federal system.” Id.

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Bluebook (online)
204 F.R.D. 479, 2001 U.S. Dist. LEXIS 21961, 2001 WL 1598045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicodemus-v-union-pacific-corp-wyd-2001.