US Telecom, Inc. v. Hubert

678 F. Supp. 1500, 9 Employee Benefits Cas. (BNA) 2161, 1987 U.S. Dist. LEXIS 12748, 46 Empl. Prac. Dec. (CCH) 38,089, 1987 WL 35511
CourtDistrict Court, D. Kansas
DecidedNovember 24, 1987
DocketCiv. A. 87-2344
StatusPublished
Cited by11 cases

This text of 678 F. Supp. 1500 (US Telecom, Inc. v. Hubert) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
US Telecom, Inc. v. Hubert, 678 F. Supp. 1500, 9 Employee Benefits Cas. (BNA) 2161, 1987 U.S. Dist. LEXIS 12748, 46 Empl. Prac. Dec. (CCH) 38,089, 1987 WL 35511 (D. Kan. 1987).

Opinion

MEMORANDUM AND ORDER

EARL E. O’CONNOR, Chief Judge.

This matter is before the court on the motion of defendant Lothar W. Hubert [hereinafter “Hubert”] to dismiss or, in the alternative, to transfer a declaratory judgment action brought by plaintiff US Sprint Communications Company [hereinafter “Sprint”] and its partners, US Telecom, Inc., and GTE Communications Services, Inc. [hereinafter “GTE”].

The pertinent facts are as follows: On August 20, 1982, Hubert was hired to work in Burlingame, California, as a supervising engineer by GTE, a predecessor of Sprint. Following formation of the Sprint partnership, Hubert was informed by a letter dated June 30,1986, that he would continue to be employed in Burlingame and that he was “eligible to participate in the employee benefit programs offered by US Sprint.” Hubert worked in the broadband lease administration division of Sprint. This division, according to a complaint Hubert filed in California state court, has moved to Kansas City, Missouri. In the fall of 1986, Hubert began reporting to Bijan Moaveni [hereinafter “Moaveni”], director of the engineering group located in Kansas City. On October 15, Hubert wrote Moaveni, expressing surprise and displeasure regarding the asserted fact that Hubert’s subordinate, Ed Koert [hereinafter “Koert”], had assumed Hubert’s position. Koert, who is approximately twenty years younger than Hubert, subsequently moved to Kansas city. On January 5, 1987, Robert Leedum [hereinafter “Leedum”], a manager in Sprint’s regional personnel office in California, told Hubert he would be laid off, effective January 23. Sprint, asserting that Hubert’s position had been eliminated, dismissed him on that date.

On February 23, Hubert’s lawyer wrote Sprint, alleging that Hubert’s dismissal was a contractual breach, a tort, or an action motivated by age discrimination. The letter included a settlement offer, and it stated that Hubert would prefer to resolve the matter without litigation.

In April, Hubert filed an action with the California Department of Fair Employment and Housing^ alleging age discrimination in violation of California law. On June 3, 1987, the department issued a notice of case closure, giving Hubert the right to bring a private action.

On July 14, Sprint, which administers its employee welfare benefit plan in Kansas, filed a declaratory judgment action in this court, seeking a decision that the Employee Retirement Income Security Act [hereinafter “ERISA”] controlled any claim regarding the plan, that there was no employment contract, that the termination was not tortious, and that Sprint owed Hubert only those benefits provided in the plan. Process was served on Hubert on July 16.

On the same day, Hubert filed an action in the San Mateo County, California Superi- or Court. The action alleged breach of an employment contract, tortious and contractual breach of a covenant of good faith, age discrimination in violation of California Gov.Code Section 12941, fraud and misrepresentation, and intentional infliction of emotional distress. Hubert’s complaint further alleged that factors motivating Sprint’s termination decision were his age and the avoidance of payment of pension benefits.

*1503 Hubert subsequently filed this motion under Federal Rule of Civil Procedure 12 to dismiss or transfer Sprint’s declaratory judgment action. Specifically, he contends that this court lacks personal and subject matter jurisdiction or, in the alternative, that the interests of justice compel dismissal or a transfer of venue.

I. Subject Matter Jurisdiction.

Initially, a brief examination of the law regarding declaratory judgments and subject matter jurisdiction is necessary. The Declaratory Judgment Act allows an interested party in a situation with actual controversy to have its rights and other legal relations declared by a federal court upon proper pleading. See 28 U.S.C. § 2201. The Act confers no additional subject matter jurisdiction on federal courts; rather, jurisdiction must be afforded by another federal statute. Bard v. Seamans, 507 F.2d 765, 767 (10th Cir.1974) (citing Shelly Oil Co. v. Phillips Petroleum Co., 339 U.S. 667, 70 S.Ct. 876, 94 L.Ed. 1194 (1950)). In other words, jurisdiction attaches if there is a federal question or diversity of citizenship. First Nat’l Bank of Shawnee Mission v. Roeland Park State Bank & Trust Co., 357 F.Supp. 708 (D.Kan.1973). If the cause of action that would have been brought, absent the declaratory action, could have proceeded in federal court, the federal court has subject matter jurisdiction over the declaratory action. Id. (citing Wright, Federal Courts (2d ed. 1970) at p. 61).

Section 510 of ERISA states as follows:

It shall be unlawful for any person to discharge, fine, suspend, expel, discipline, or discriminate against a participant or beneficiary for exercising any right to which he is entitled under the provisions of an employee benefit plan, ... or for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan____

29 U.S.C. § 1140. We need not question whether there is an actual controversy or speculate whether an action brought by Hubert would state a claim under ERISA, as we may focus on his California complaint. The complaint alleges that factors motivating his dismissal were his age and Sprint’s avoiding payment of pension benefits. These allegations state a cause of action under ERISA section 502(a)(1)(B), which provides that “[a] civil action may be brought by a participant or beneficiary to recover benefits due to him under the terms of the plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan.” 29 U.S.C. § 1132(a)(1)(B).

This court has subject matter jurisdiction over Sprint’s declaratory judgment action concerning the ERISA cause under section 502(e)(1), which states:

Except for actions under subsection (a)(1)(B) of this section, the district courts of the United States shall have exclusive jurisdiction of civil actions under this title brought by the Secretary or by a participant, beneficiary, or fiduciary. State courts of competent jurisdiction and district courts of the United States shall have concurrent jurisdiction of actions under subsection (a)(1)(B) of this section.

29 U.S.C. § 1132(e)(1). See Clorox Co. v. U.S. District Court for the Northern District of California,

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678 F. Supp. 1500, 9 Employee Benefits Cas. (BNA) 2161, 1987 U.S. Dist. LEXIS 12748, 46 Empl. Prac. Dec. (CCH) 38,089, 1987 WL 35511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-telecom-inc-v-hubert-ksd-1987.