Stokes v. Bechtel North American Power Corp.

614 F. Supp. 732
District Court, N.D. California·Decided July 1, 1985·No. C-84-8038 JPV·Published·Cited by 14 cases

Opinion

*735 ORDER GRANTING PLAINTIFF’S MOTION TO REMAND ACTION TO STATE COURT

VUKASIN, District Judge.

INTRODUCTION

Plaintiff Charles Stokes is a nuclear engineer who was hired in November of 1982 by defendants [collectively, “Bechtel”] as a field engineer at the Diablo Canyon Nuclear Power Plant [“Diablo Canyon” or the “Plant”] in San Luis Obispo, California. Under the terms of his employment agreement, Stokes was to identify and report on quality assurance deficiencies in the pipe support and pipe stress designs at the Plant. He claims that he diligently and satisfactorily performed his duties; nonetheless, his employment with Bechtel was terminated on October 14, 1984, allegedly in retaliation for his refusal to suppress information concerning quality assurance problems and design miscalculations at Diablo Canyon.

Plaintiff’s first amended complaint was filed in California Superior Court for the County of San Francisco on November 14, 1984. Bechtel was served on November 28, 1984, and filed its petition for removal the following December 28. The complaint states seven causes of action: (1) breach of contract; (2) breach of the covenant of good faith and fair dealing; (3) wrongful discharge; (4) negligent misrepresentation; (5) infliction of emotional distress; (6) tortious conspiracy to interfere with contractual relations; and (7) violations of California Public Utilities Code § 2106. It is apparently uncontested that all but plaintiff’s claim for wrongful discharge are properlypled state law causes of action. Defendants contend, however, that this third cause “arises under” federal statutes regulating the field of nuclear power safety and that it is accordingly preempted by such statutes. On the theory that this preemption vests removal jurisdiction in this Court, Bechtel urges the Court to hear plaintiff’s remaining claims under the exercise of its pendent jurisdiction.

Plaintiff has now moved to remand this action to state court. For the reasons detailed below the court hereby issues its Order granting the motion to remand. 1

DISCUSSION

1. Removal Jurisdiction of this Court

Because the federal courts are courts of limited jurisdiction, the removal statutes, 28 U.S.C. § 1441 et seq., must be given a strict construction, and the burden of establishing federal jurisdiction is upon the removing party. See Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09, 61 S.Ct. 868, 872, 85 L.Ed. 1214 (1941); see also Hunter v. United Van Lines, 746 F.2d 635, 639 (9th Cir.1984); Salveson v. Western States Bankcard Assoc., 731 F.2d 1423, 1426 (9th Cir.1984). It is axiomatic that a case arises under federal law only if a federal question appears on the face of plaintiff’s well-pleaded complaint; 2 there is no federal question jurisdiction even if a properly-raised defense is predicated on federal law. See, e.g., Gully v. First National Bank, 299 U.S. 109, 57 S.Ct. 96, 81 L.Ed. 70 (1936); Louisville & Nashville R. R. v. Mottley, 211 U.S. 149, 29 S.Ct. 42, 53 L.Ed. 126 (1908). Because removal jurisdiction exists only if jurisdiction would originally have been proper in federal court, the rule of the well-pleaded complaint applies to removal cases as well. Hunter, supra, 746 F.2d at 639, citing Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983).

*736 Thus, to a considerable degree, a plaintiff is the master of his complaint: he is free to ignore a federal cause of action— even if the facts upon which his claims are based would give rise to such a cause — and rest the complaint solely on state law. Garibaldi v. Lucky Food Stores, 726 F.2d 1367, 1370 (9th Cir.1984); cf The Fair v. Kohler Die & Specialty Co., 228 U.S. 22, 26, 33 S.Ct. 410, 411, 57 L.Ed. 716 (1913). Great weight is therefore given to plaintiffs chosen forum, and any legitimate doubts as to the existence of federal jurisdiction must be resolved against removal and in favor of remand. See generally la Moore & Ringle, Moore’s Federal Practice, II 0.157[1. — 3] at p. 43 and n. 23.

Bechtel concededly could not have removed the present action to this Court on the basis of the literal recitals of plaintiffs state law complaint. The theory upon which defendants postulate federal jurisdiction, in synopsis, is that Stokes’ third cause of action is in fact preempted by federal atomic energy statutes, particularly the Energy Reorganization Act of 1974, as amended, 42 U.S.C. §§ 5801 et seq., and that the so-called “artful pleading” doctrine empowers this Court to recharacterize that claim as a federal cause of action. As a secondary argument, Bechtel submits that federal law respecting nuclear safety will of necessity be implicated in any adjudication of plaintiff’s complaint and hence is an essential element of his purported state law claims.

2. “Artful Pleading’’ and Federal Preemption

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Stokes v. Bechtel North American Power Corp., 614 F. Supp. 732 (N.D. Cal. 1985).

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