Health Administration Responsibility Project
Removal to federal court

• General Federal Jurisdiction Rules

  28 USC 1331 Original Jurisdiction, 'arising under':

  "The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States."

  28 USC 1441(b) - Removal generally

• "Well-Pleaded Complaint" rule

  "A COA 'arises under' federal law & removal is proper, only if a federal question is presented on the face of P's properly pleaded complaint."

  FTB v. Construction Laborer's Vacation Trust 463 US 1, 9-12 (1983)

  Erisa 502(a)(1)(B) claims are Not removable if federal question only in Defense

  "a federal defense to P's state law COA... usually is insufficient to warrant removal..." Gully v. First Nat. Bank, 299 US 109, 115-118 (1936)

  But may still be Preempted in State court

  "...that D might ultimately prove that P's claims are pre-empted under [a federal statute] does not establish that they are removable to federal court." Caterpillar Inc. v. Williams, 482 US 386, 398 (1987)

• "complete preemption" exception to "well-pleaded complaint" rule.

  Call it "CPE"

  "Congress may so completely preempt a particular area that ANY civil complaint raising that select group of claims is necessarily federal in character"

  Met. Life v. Taylor

• Cases where "CPE" NOT applicable, => no removal

  Where ERISA sec. 502 doesn't provide an express COA

  Even if preempted by s.514(a).

  eg: P merely attacks QUALITY of benefits

  Allstate Ins. Co. v. 65 Security Plan

  non-administrative claims.

  eg: claims relating to quality of care

  Dukes v. U.S.Healthcarel

  Medical Quality Control

  Blue Cross v. Travelers

  Medical malpractice by doctor

  Met. Life v. Taylor

  Malpractice of outside psychiatric company

  Lupo v. Human Affairs Int'l Inc., 28 F.3d 269, 272-3 (2d Cir. 1994)

  Federal Employee Health Benefit act claims

  Goepel, 36 F.3d 306, 309-13 (3d Cir. 1994) cert.den.

  Vicarious liability claim v. HMO

  Indep. HMO v. Smith, 733 F.Supp. 983 (E.D.Pa 1990)

  Kearney v. US Healthcare

  Pacificare of OK v. Burrage
  "As for whether [HMO] held [Dr.] out as its agent, ... any reference to the plan to resolve that issue does not implicate the concerns of ERISA preemption."

  Negligent supervision claim

  Elsesser v. Phil. Coll. of Osteopathic Med., 802 F.Supp. 1286 (E.D.Pa 1992)

  State taxation of ERISA trust

  FTB v. Construction Laborer's Vacation Trust, 463 US 1 (1983)

  State fraudulent conveyance claim not compl.preempted by

  Railway Labor Act nor Interstate Commerce Act

  Railway Labor Exec. Ass'n 858 F.2d 936 (3d Cir. 1988)

• Cases where "CPE" WAS applicable, => removal

  Anything within ERISA's s.502 civil enforcement provision

  eg: claims for benefits wrongly denied,

  but state courts have concurrent jurisdiction

  Met. Life v. Taylor

  Malpractice claim v 3d party Utilization Review administrator

  Corcoran v. United Health CareVicarious liability claim v. HMO

  Ricci v. Gooberman, 840 F.Supp. 316 (D.N.J. 1993)

  Butler v. Wu, 853 F. Supp. 125 (D.N.J. 1994)

  Negligent supervision claim

  Altieri v. Cigna Dental, 753 F.Supp. 61 (D. Conn 1990)

  Kearney v. US Healthcare

  refusal to pay for treatment

  Smith v. Dunham-Busch, Inc., 959 F.2d 6 (2d Cir. 1992)

  Improper processing of claims for benefits

  Met. Life v. Taylor

  Calculation of pension benefits

  Lister, 890 F.2d 941 (7th Cir. 1989)

  Demoting an ERISA fiduciary

  Anderson, 11 F.3d 1311, (5th Cir. 19??)

  Collective bargaining agreement under Labor Mgmt Rel Act of 1947

  29 USC 185

• Summary: Case may be removed by D if:

  Complaint raises any federal issue, or

  Reply raises a 'completely preempted' federal issue.

  But Not if reply merely raises a federal issue

• A 1999 5th Circuit case with an excellent discussion is Giles v. NYLCare.