Opinion ID: 454350
Heading Depth: 3
Heading Rank: 2

Heading: Removal Based on Federal Question

Text: 31 Alternatively, Northwestern asserts that this case was properly removed because a federal question was raised in its counterclaim. Northwestern and Microdata brought the counterclaim under section 502 of ERISA, 29 U.S.C. Sec. 1132, seeking a declaration that they had performed all the obligations they owed to plaintiffs under ERISA. They claim that this presents an independent basis for federal jurisdiction and for removal. We disagree. 32 A case arises under federal law only if the federal question appears on the face of the plaintiff's well-pleaded complaint. See Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 9-12, 103 S.Ct. 2841, 2846-2848, 77 L.Ed.2d 420 (1983); Taylor v. Anderson, 234 U.S. 74, 75-76, 34 S.Ct. 724, 724, 58 L.Ed. 1218 (1914); Louisville & Nashville Railroad v. Mottley, 211 U.S. 149, 152, 29 S.Ct. 42, 43, 53 L.Ed. 126 (1908). The federal question must be disclosed upon the face of the complaint, unaided by the answer or by the petition for removal. Gully v. First National Bank, 299 U.S. 109, 113, 57 S.Ct. 96, 98, 81 L.Ed. 70 (1936). [A] right or immunity created by the Constitution or laws of the United States must be an element, and an essential one, of the plaintiff's cause of action. Id. at 112, 57 S.Ct. at 97 (citations omitted). 9 We have held that [r]emovability cannot be created by defendant pleading a counter-claim presenting a federal question.... Rath Packing Co. v. Becker, 530 F.2d 1295, 1303 (9th Cir.1975), aff'd on other grounds sub nom., Jones v. Rath Packing Co., 430 U.S. 519, 97 S.Ct. 1305, 51 L.Ed.2d 604 (1977); accord Paxton v. Weaver, 553 F.2d 936, 941-42 (5th Cir.1977); La Chemise Lacoste v. Alligator, Co., 506 F.2d 339, 343-45 (3d Cir.1974), cert. denied, 421 U.S. 937, 95 S.Ct. 1666, 44 L.Ed.2d 94 (1978). But see Duncan v. First National Bank, 597 F.2d 51, 55 n. 3 (5th Cir.1979); Wong v. Bacon, 445 F.Supp. 1177, 1185-87 (N.D.Cal.1977). 33 A straight-forward application of the well-pleaded complaint rule persuades us that removal jurisdiction does not exist. Plaintiffs sued under state law; they did not allege that their claims were based on federal law. Although the issue of whether plaintiffs' claims are preempted by federal law is present in this case, defendants have raised it only as a defense and have not asserted to this court or to the district court that preemption provides a basis for federal jurisdiction. 10 The federal question defendants raise in their counterclaims does not provide a basis for removal.