Case Notes

Plaintiff Family Video Movie Club Inc. (Family Video) leased a commercial property in Texas to defendant Lovejoy Flower and Gift Shop (Lovejoy). Family Video claimed Lovejoy was in default under the lease and sought to recover the premises through a state-law forcible detainer cause of action. Lovejoy then sought removal of the case to the U.S. District Court for the District of Kansas, claiming that the federal court had jurisdiction based on the fact that Family Video was illegally selling CBD products in violation of federal law, and that these illegal sales adversely affected tenant Lovejoy's business. Lovejoy alleged that this harm justified its failure to pay rent in accordance with the terms of the lease, and that because the sale of CBD is illegal under federal law, the case presented a federal question for the court.

The District Court noted that when a petition contains no federal questions, removal of a case is not proper even if a federal defense will be made. See, Caterpillar Inc. v. Williams, 482 U.S. 386 (1987). "Plaintiff's state court petition does not contain  a reference to federal law," stated the court here. "To the contrary, the petition is based solely on a Texas state cause of action. Defendant claims that the court has federal jurisdiction because plaintiff is 'in violation of the commercial lease agreement by illegally selling CBD products, adversely affecting the Defendant['s] business, according to 21 U.S.C. section 811 and 812.' (Doc. 1-2, at 2.) But at most, defendant's reference to these federal statutes is either a counterclaim or a defense to why defendant should not pay plaintiff under the lease or be evicted." Since neither a counterclaim nor a defense can confer jurisdiction on a federal court, the District Court remanded the cause of action to the Texas Justice Court.