YVONNE GONZALEZ ROGERS, District Judge.
Petitioner Rhonda Day, Executor of the Estate of Wanda G. Silverthorn, brings this petition for return of property against Michael Silverthorn, Metropolitan Life Insurance Company ("MLIC"), and Does 1-20. (Dkt. No. 1 at ECF 10-14 ("Pet.").) Petitioner seeks an order returning to her certain life insurance benefits that were paid from decedent's Federal Employees Group Life Insurance ("FEGLI"). (Id. at ECF 10-11.) Petitioner alleges that these benefits "were wrongfully received by decedent's ex-husband of 27 years." (Id. at 10.) Petitioner originally filed her petition in the California Superior Court, County of Contra Costa on April 12, 2018. (See id.) Respondent MLIC later removed the action to this Court, asserting jurisdiction based on existence of a federal question. (Dkt. No. 1 at ECF 1-6 ("Removal") at 1-2.)
Now before the Court is petitioner's motion to remand.
Petitioner filed the instant action in the Superior Court for Contra Costa County petitioning the court for an order, "pursuant to California Probate Code section 850, et seq., ordering that certain [FEGLI] life insurance benefits shall be returned to her as they were wrongfully received" by decedent Wanda G. Silverthorn's ex-husband, Michael Silverthorn. (Pet. at ECF 11.)
Specifically, petitioner alleges as follows:
Wanda Silverthorn and Michael Silverthorn were married on December 20, 1974. (Pet. at ECF 10.) In August 1990, they separated, and as part of their separation, they signed a Marital Settlement Agreement. (Id.) A key term of that agreement states: "Each party hereto does hereby waive any and all right to inherit the estate of the other at his or her death, or to take property from the other by devise or bequest unless under a Will executed subsequent to the date of this agreement. . . ." (Id. at ECF 10-11.)
In 1985, while married, Wanda completed a Designation of Beneficiary from under her FEGLI, designating Michael as a beneficiary. (Id. at ECF 11) On July 19, 1990, during their separation, Wanda revised the Designation of Beneficiary form removing Michael and designating her twin sister, petitioner Rhonda Day, as the beneficiary. Wanda revised the FEGLI Designation form in her handwriting and had it witnessed by two individuals and initialed by an agent from the Regional Personnel Office; however, she inadvertently did not sign the revised form. (Id.) At the time that Wanda revised the FEGLI Designation form designating petitioner Day as the beneficiary, she also signed a similar form for her Thrift Saving Plan and her Civil Service Retirement designating petitioner as the beneficiary for each. (Id.)
Wanda passed away on July 4, 2017. (Id.) Thereafter, petitioner attempted to collect on the FEGLI benefits "but was declined as the revised Designation was not signed by Wanda[.]" (Id.) FEGLI, instead, issued the insurance benefits to Michael, Wanda's ex-husband of over 30 years, under the original 1985 FEGLI Designation form. (Id.) Michael now refuses to return the FEGLI insurance benefits to petitioner. (Id.)
Respondent MLIC removed the action to this Court on the grounds that petitioner's petition "solely concerns the payment of decedents" FEGLI benefits over which the Court has original jurisdiction pursuant to 5 U.S.C. § 8715. (Removal at 1-2.) MLIC avers that although the petitioner does not set forth any federal claims against the respondents, "the gravamen of the Petition is to have the court reverse MetLife's non-discretionary payment of life insurance benefits that it made pursuant to the strict requirements of the Federal Employees' Group Life Insurance Act ("FEGLIA"), 5 U.S.C. § 8701." (Id. at 2.)
"Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute[.]" Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Accordingly, there is a "strong presumption against removal jurisdiction" when evaluating a motion to remand. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). "The burden of establishing federal jurisdiction is upon the party seeking removal." Emrich v. Touche Ross & Co., 846 F.2d 1190, 1195 (9th Cir. 1988).
A district court has federal question jurisdiction over "all civil actions arising under the Constitution, laws, or treaties of the United States." 28 U.S.C. § 1331. "A case `aris[es] under' federal law . . . if a well-pleaded complaint establishes either that federal law creates the cause of action or that the plaintiff's right to relief necessarily depends on resolution of a substantial question of federal law." Empire Healthchoice Assurance v. McVeigh, 547 U.S. 677, 690 (2006) (internal quotations omitted). A substantial federal question exists where (1) the state law claim necessarily raises a federal issue that is actually disputed; (2) the federal interest in the issue is substantial; and (3) the exercise of federal jurisdiction will not disturb "any congressionally approved balance of federal and state judicial responsibilities." Grable & Sons Metal Products, Inc. v. Darue Engineering & Mfg., 545 U.S. 308, 313 (2005).
As MLIC concedes that petitioner's petition does not include any federal claim, to determine whether petitioner's action arises under federal law, the Court need only evaluate whether her "right to relief necessarily depends on resolution of a substantial question of federal law." See Empire, 547 U.S. at 690. In MLIC's notice of removal and opposition to the instant motion, it argues that this action is removable to this Court because federal statutes regulate the payment of decedent's FEGLI benefits and "FEGLIA pre-empts state law which is inconsistent with the FEGLI contractual provisions."
By contrast, complete preemption does create federal question jurisdiction. Complete preemption occurs when federal law "so completely pre-empt[s] a particular area that any civil complaint raising this select group of claims is necessarily federal in character." Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63 (1987). To date, the Supreme Court has singled out only a handful of statutes for such special treatment. See Avco Corp. v. Machinists, 390 U.S. 557, 561-62 (1968) (holding that Section 301 of the Labor Management Relations Act ("LMRA") pre-empts any state cause of action for violation of contracts between an employer and a labor organization such that these claims are removable to federal court); Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 66-67 (1987) (holding that Section 502 of the Employee Retirement Income Security Act of 1974 ("ERISA") displaces state common law claims such that they are removable to federal court); El Paso Natural Gas Co. v. Neztsosie, 526 U.S. 473, 484-85 (1999) (holding that the Price-Anderson Act not only gives federal courts jurisdiction over tort actions arising out of nuclear accidents but also expressly provides for removal of such actions brought in state court even when they assert only state-law claims); Beneficial Nat. Bank v. Anderson, 539 U.S. 1, 11 (2003) (holding that Sections 85 and 86 of the National Bank Act provide the exclusive cause of action for a claim of usury against a national bank).
In each instance in which the Supreme Court has found complete preemption, "[t]he necessary ground of decision . . . was that the preemptive force of [the section in question] is so powerful as to displace entirely any state cause of action[.]" See e.g., Taylor, 481 at 64. In finding such preemptive force, the Supreme Court looked to language within the respective statutes explicitly attributing jurisdiction to the district courts. See e.g. id. at 65 (noting that the language of the jurisdictional subsection of ERISA's civil enforcement provisions closely parallel that of Section 301 of the LMRA); see also 29 U.S.C. § 1132(f) ("The district courts of the United States shall have jurisdiction, without respect to the amount in controversy or the citizenship of the parties, to grant the relief provided for in subsection (a) of this section in any action.").
Here, MLIC does not point to any authority for finding such preemptive force in the FEGLIA statute.
Accordingly, MLIC has failed to establish that petitioner's petition raises a substantial question of federal law necessary for federal question jurisdiction pursuant to Section 1331.
For the foregoing reasons, the Court
This Order terminates Docket Number 11.