Federal District Court Upholds Federal Court Jurisdiction In Cargo Theft Case Based On Preemption

In a case against Fedex arising out of the theft of gold bars and coins by Fedex employees, the US District Court for the Western District of Oklahoma rejected the plaintiff's bid to remand the case to state court, and upheld federal court jurisdiction based on both diversity and federal question grounds.

As to federal question jurisdiction, the court found that plaintiff's complaint pleading state law negligence and conversion claims are preempted by federal common law. The court held that a claim for stolen goods transported by a common air carrier is governed by federal common law. The court rejected plaintiff's "well-pleaded complaint" argument that the claims on their face allege purely state law claims arising out of FedEx's conduct in negligently investigating the criminal conduct of its employees, rather than its status as an air carrier. The court found that plaintiff's claims alleging FedEx's ratification of the employees' conduct are directly connected to FedEx's role as an air carrier. The court also found that diversity of citizenship existed as between the plaintiff and Fedex, and that the two...