CLAUDIA WILKEN, District Judge.
Plaintiffs move to remand this case to state court. Defendants have filed an opposition and Plaintiffs have filed a reply. Having considered the papers submitted by the parties, the Court grants Plaintiffs' motion.
Plaintiffs make the following factual allegations in their Second Amended Complaint (2AC). Sadlowski began working for Petersen-Dean, Inc. in October 2004. She made complaints—it is not clear to whom—that James Peterson, the owner of both Defendants Petersen-Dean, Inc. and PD Solar, Inc., misused company funds and as a result failed to pay employees in a timely manner. Sadlowski then went on medical leave. She was terminated upon her return from leave, in August 2016. Plaintiff Shalina Jones, Sadlowski's daughter, began working for PD Solar in March 2007. She too was terminated in August 2016.
In February 2017, Plaintiffs filed this lawsuit in Alameda County Superior Court in California alleging violation of the California Fair Employment and Housing Act (FEHA); violation of California Labor Code section 1102.5 prohibiting retaliation against whistleblowers; wrongful termination; violation of California Labor Code sections 201 and 203 concerning payment of wages after termination; and violation of the federal Family and Medical Leave Act (FMLA). In early March 2017, Plaintiffs filed their First Amended Complaint (1AC), which retained their federal causes of action.
On March 24, Defendants removed. On April 3, Plaintiffs' counsel transmitted a draft 2AC to Defendants' counsel dropping the FMLA claim and informing her that he intended to move for remand. The same day, Defendants' counsel responded that she believed the case would still be subject to federal jurisdiction because the Employee Retirement Income Security Act (ERISA) completely preempts state law claims based on an ERISA administrator's failure promptly to provide benefits.
On May 1, Plaintiffs filed the operative 2AC, including neither the FMLA claim nor the claim Defendants' counsel believed preempted by ERISA. The 2AC includes five claims of violations of California's FEHA; a claim of violation of California's Family Rights Act; a claim of whistleblower retaliation in violation of California Labor Code section 1102.5; and wrongful termination. Plaintiffs furthermore assert that neither seeks damages that would involve a federal question or federal preemption. Plaintiffs moved for remand on May 9.
A defendant may remove a civil action filed in state court to federal district court so long as the district court could have exercised original jurisdiction over the matter. 28 U.S.C. § 1441(a). Title 28 U.S.C. § 1447 provides that if at any time before judgment it appears that the district court lacks subject matter jurisdiction over a case previously removed from state court, the case must be remanded. 28 U.S.C. § 1447(c). On a motion to remand, the scope of the removal statute must be strictly construed.
The Ninth Circuit has "long held that post-removal amendments to the pleadings cannot affect whether a case is removable, because the propriety of removal is determined solely on the basis of the pleadings filed in state court."
Because the original complaint and 1AC contained a federal claim, the Court has supplemental jurisdiction over Plaintiffs' state-law claims, 28 U.S.C. § 1367(a), and therefore is not required by 28 U.S.C. § 1447(c) to remand. Because an amended complaint supersedes the original,
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Defendants essentially argue fairness, complaining that Plaintiffs dismissed their federal claims in order to secure remand to state court, and Plaintiffs admit as much. However, at least when a plaintiff did not include federal claims in "bad faith or for the sole purpose of putting defendants through the removal-remand procedure" and "moved for remand with all due speed after removal," this is a permissible tactical decision.
The Court finds that the balance of factors weigh in favor of declining supplemental jurisdiction over Plaintiffs' 2AC and accordingly it will grant Plaintiffs' motion to remand.
For the foregoing reasons, Plaintiffs' motion to remand is GRANTED (Docket No. 16). The clerk shall remand the case to the Superior Court of Alameda County.
IT IS SO ORDERED.