Opinion ID: 2995171
Heading Depth: 1
Heading Rank: 3

Heading: Ill 1992)) (internal quotation marks

Text: omitted). After reviewing the merits of Neuma’s claim, we have found that the language of the Summary Plan Description does not afford Neuma the relief it seeks. However, the claim had at least an arguable chance of success, and we do not believe that in hindsight it should be deemed so obviously lacking in any legal merit as to be characterized as frivolous. Accordingly, we reverse the district court’s decision on this issue. In doing so, we note that a determination as to whether penalties should be awarded under Section 502(c) is a matter left to the discretion of the district court, see 29 U.S.C. sec. 1132(c)(1), and we express no opinion as to whether any penalty would be appropriate in this case. D. Negligent Misrepresentation Claim Count II of Neuma’s complaint is styled as a state law, negligent misrepresentation claim against AMP. It notes that, before Neuma purchased the rights to Larsen’s group life insurance benefits, it requested information from AMP regarding the contours of those benefits. A few days after receiving that information, Neuma purchased the rights in question. Now, in Count II, Neuma alleges that the information provided by AMP omitted material facts and contained false statements of material facts concerning the operation of the Plan as applied to Larsen. R.38 at 5-6. Neuma claims that, in its response, AMP negligently (1) stated incorrectly the amount of Larsen’s life insurance coverage; (2) provided incorrect information regarding how the amount of that insurance could decrease in the future and (3) omitted important information about the extent to which conversion to an individual policy of insurance was available, in the event that AMP terminated Larsen’s coverage. More generally, Neuma claims that it suffered damages by paying valuable consideration for an amount of life insurance benefits that AMP now claims are not provided under the terms of the Plan. Id. at 6. Among other relief, Neuma sought compensatory damages in the amount of $81,600, the full amount of the life insurance benefits for which Larsen enrolled while working at AMP. Having dismissed the federal ERISA claims in the suit, the district court declined to exercise supplemental jurisdiction and dismissed Count II without prejudice, so that it could be filed in state court. Neuma submits that the district court chose the wrong course because it had diversity jurisdiction over this claim and should have retained the claim on that basis. AMP counters by arguing that diversity jurisdiction does not exist because the amount in controversy is below the statutory threshold. AMP comes to this result by arguing first that the allegations in Count II that involve the administration of the benefit plan and monies due under that plan are completely preempted by ERISA. It then claims that dismissal of this count was proper because when stripped of the allegations relating to administration of the Plan, and monies purportedly due under the Plan, [Count II] does not allege diversity jurisdiction. Appellee’s Br. at 19. AMP maintains that the only non-Plan damages would be the consideration which Neuma paid for the assignment and because this amount was not alleged, diversity jurisdiction was not satisfied. Id. We cannot accept AMP’s argument that the allegations in Count II are completely preempted by ERISA. The complete preemption doctrine is an exception to the well-pleaded complaint rule, which normally allows that ’the plaintiff is master of the complaint . . . and that the plaintiff may, by eschewing claims based on federal law, choose to have the cause heard in state court.’ Speciale v. Seybold, 147 F.3d 612, 614 (7th Cir. 1998) (quoting Caterpillar, Inc. v. Will iams, 482 U.S. 386, 398-99 (1987)). This jurisdictional doctrine provides that ’to the extent that Congress has displaced a plaintiff’s state law claim, that intent informs the well-pleaded complaint rule, and a plaintiff’s attempt to utilize the displaced state law is properly recharacterized as a complaint arising under federal law.’ Jass v. Prudential Health Care Plan, Inc., 88 F.3d 1482, 1487 (7th Cir. 1996) (quoting Rice v. Panchal, 65 F.3d 637, 640 n.2 (7th Cir. 1995)). The Supreme Court has held that the civil enforcement provision of ERISA, Section 502(a), completely preempts state law causes of action that fall within the scope of that provision. See Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 67 (1987); see also Speciale, 147 F.3d at 615. Our cases have identified three factors to be used in determining whether a plaintiff’s state law claim is properly characterized as a suit under ERISA’s Section 502(a): (1) whether the plaintiff is eligible to bring a claim under that section, (2) whether the plaintiff’s cause of action falls within the scope of an ERISA provision that the plaintiff can enforce via sec. 502(a), and (3) whether the plaintiff’s state law claim cannot be resolved without an interpretation of the contract governed by federal law. Jass, 88 F.3d at 1487 (internal citations and quotation marks omitted). Neuma’s claim in Count II is that AMP, as the plan administrator, misrepresented the terms and conditions of Larsen’s life insurance program, causing Neuma to purchase the rights to a policy that was far less valuable than it was led to believe. The closest analogue to an ERISA cause of action would appear to be a claim for breach of a fiduciary duty by AMP in negligently misrepresenting the terms of the plan./12 However, when Neuma requested this information, prior to its purchase of Larsen’s right to benefits, it was not a participant or beneficiary to whom AMP would have owed a fiduciary duty. See 29 U.S.C. sec. 1104 (stating that, under ERISA, a fiduciary must discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries); see also Uselton v. Commercial Lovelace Motor Freight, Inc., 940 F.2d 564, 582-83 (10th Cir. 1991). In light of the fact that Neuma’s claim in Count II does not fall within the scope of an ERISA provision that it can enforce via Section 502(a), we do not believe that the claim is completely preempted by ERISA./13 In order to support diversity jurisdiction under 28 U.S.C. sec. 1332, two basic requirements must be satisfied: (1) complete diversity of citizenship between the plaintiffs and the defendants and (2) the proper amount in controversy (more than $75,000). See Del Vecchio v. Conseco, Inc., 230 F.3d 974, 977 (7th Cir. 2000). There is no dispute that diversity of citizenship exists in this case./14 Moreover, aside from its argument regarding complete preemption, AMP does not otherwise challenge Neuma’s allegations with respect to the proper jurisdictional amount at stake. To satisfy diversity jurisdiction, Neuma must demonstrate no more than a good faith, minimally reasonable belief that its claim will result in a judgment in excess of $75,000. See St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89 (1938); Herremans v. Carrera Designs, Inc., 157 F.3d 1118, 1121 (7th Cir. 1998). Neuma has claimed damages of at least $81,600, the amount that it asserts was due under Larsen’s policy based on the representations made by AMP. At this stage in the proceedings, we cannot say to a legal certainty that Neuma’s claim is for less then the statutorily required amount. See Lindland v. United States of Am. Wrestling Ass’n, Inc., 230 F.3d 1036, 1038 (7th Cir. 2000) (citing St. Paul, 303 U.S. at 289).