Weinberg v. Sprint Corp.

165 F.R.D. 431, 1996 U.S. Dist. LEXIS 4661, 1996 WL 172560
CourtDistrict Court, D. New Jersey
DecidedApril 10, 1996
DocketCivil Action No. 96-354 (AMW)
StatusPublished
Cited by23 cases

This text of 165 F.R.D. 431 (Weinberg v. Sprint Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weinberg v. Sprint Corp., 165 F.R.D. 431, 1996 U.S. Dist. LEXIS 4661, 1996 WL 172560 (D.N.J. 1996).

Opinion

OPINION

PISANO, United States Magistrate Judge:

Before the Court are two motions: first, defendant Sprint Corporation has moved the Court for a stay pending resolution of its application for assignment of the case by the Judicial Panel for Multidistrict Litigation. Plaintiff Martin Weinberg has opposed this [435]*435motion and moved the Court to remand the action to the New Jersey Superior Court, Bergen County, the court from which defendant removed the suit. Defendant has opposed this motion, and the Court heard oral argument on March 25,1996.

BACKGROUND

In his complaint, plaintiff Martin'Weinberg (“Weinberg”) alleges that defendant Sprint Corporation (“Sprint”) utilizes deceptive and misleading advertising and promotional practices in order to lure customers to use its services. The Complaint alleges that Sprint affirmatively promotes the rate of 10 cents per minute for telephone calls, citing advertisements for the “Sprint Sense” program in which Sprint states that both in-state and out-of-state calls cost 10 cents per minute. Plaintiff claims that the advertisements and promotions do not disclose that Sprint engages in “rounding up,” a practice through which Sprint charges more than 10 cents per minute for any call which does not last precisely one minute. When billing customers for long distance telephone service, Sprint allegedly “rounds up” the time charged to the next full minute, thereby raising the rate from the advertised 10 cents to up to 6 dollars per minute.

Plaintiffs Complaint was filed in Bergen County on December 12, 1995 and asserts counts for fraud, negligent misrepresentation, and violation of New Jersey’s Consumer Fraud Act, N.J.S.A, 56:8-1 et seq. Sprint removed the action to this Court on January 23, 1996, basing federal jurisdiction on its contention that plaintiffs claims are preempted by and arise under the Federal Communications Act of 1934,47 U.S.C. § 151 et seq. Sprint then moved the Court for a stay of proceedings pending consideration by the Judicial Panel for Multidistrict Litigation (“JPML”) of its motion to transfer this and three similar actions to the United States District Court for the Western District of Missouri pursuant to 28 U.S.C. § 1407. Plaintiff Weinberg opposes this motion and argues that the Court should remand the action to state court because it lacks federal subject matter jurisdiction over the suit. In opposing Weinberg’s motion to remand, Sprint asserts that both federal question and diversity jurisdiction exist, enabling this Court to retain jurisdiction and stay the proceedings pending the JPML’s resolution of the transfer.

DISCUSSION

I. MOTION TO REMAND

The general federal removal statute permits a defendant in a state court action to remove the suit to federal district court if federal ■ subject matter jurisdiction existed when the complaint was initially filed. See 28 U.S.C. § 1441(a). The removing defendant must establish that federal jurisdiction exists and that removal is proper. Boyer v. Snap-on Tools Corp., 913 F.2d 108, 111 (3d Cir.1990), cert. denied, 498 U.S. 1085, 111 S.Ct. 959, 112 L.Ed.2d 1046 (1991). Following removal, the district court may remand the action back to state court “[i]f at any time before final judgment it appears that [it] lacks subject matter jurisdiction.” 28 U.S.C. § 1447(c).

Plaintiff Weinberg argues that the Court lacks federal subject matter jurisdiction over this matter and therefore seeks remand to state court. When presented with such an argument, the removing defendant must shoulder the burden of establishing the validity of the removal and the existence of federal jurisdiction. Boyer, 913 F.2d at 111. Sprint argues that the Court has subject matter jurisdiction over this action based upon both federal question jurisdiction and diversity of citizenship.

A. Federal Question Jurisdiction

Federal district courts are courts of limited jurisdiction, and a civil action brought in state court may be removed to federal court only if the plaintiff originally could have filed the complaint in federal court. 28 U.S.C. § 1441. Section 1331 of Title 28 states that district courts “shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. A case “arises under” a federal law when an essential element of the plaintiffs cause of action depends for its resolution upon the validity, [436]*436construction, or effect of federal law. Franchise Tax Board v. Construction Laborers Vacation Trust for Southern California, 463 U.S. 1, 9-11, 103 S.Ct. 2841, 2846-47, 77 L.Ed.2d 420 (1983).

The well-pleaded complaint rule requires the existence of federal question on the face of the plaintiffs complaint in order for the ease to be removable under § 1441. Spellman v. Meridian Bank (Delaware), — F.3d —, —, 1995 WL 764548 at *2 (3d Cir.1995) (citing Gully v. First National Bank, 299 U.S. 109, 112-13, 57 S.Ct. 96, 97-98, 81 L.Ed. 70 (1936)). Based on the premise that the plaintiff is the master of the complaint, the rule “provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiffs properly pleaded complaint.” Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 2429, 96 L.Ed.2d 318 (1987). Thus “[j]urisdiction may not be sustained on a theory that the plaintiff has not advanced,” Merrell Dow Pharm., Inc. v. Thompson, 478 U.S. 804, 809 n. 6, 106 S.Ct. 3229, 3233 n. 6, 92 L.Ed.2d 650 (1986), and a plaintiff may “ ‘avoid federal jurisdiction by exclusive reliance on state law.’ ” Spellman, — F.3d at —, 1995 WL 764548 at *2 (quoting Caterpillar, 482 U.S. at 392, 107 S.Ct. at 2429).

Applying these principles, the Court concludes that the plaintiffs case as plead in the Complaint lacks federal jurisdiction. As set forth in the Complaint, plaintiffs claims are based upon New Jersey common law and statutory law, without reference to federal law. These claims relate solely to Sprint’s alleged misrepresentations in its promotional advertisements and do not depend on any provision of federal law for their resolution.

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Bluebook (online)
165 F.R.D. 431, 1996 U.S. Dist. LEXIS 4661, 1996 WL 172560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinberg-v-sprint-corp-njd-1996.