PITTSBURGH – A federal court has dismissed without prejudice a contractual dispute between two busing companies, in advance of future refiling in the Allegheny County Court of Common Pleas.
Pennsylvania Coach Lines, Inc. of Elizabeth first filed suit in the U.S. District Court for the Western District of Pennsylvania on July 30 versus Student Transportation of America, LLC, of Wall Township, N.J.
The plaintiff alleged tortious interference and unfair competition related to defendant STA’s hiring of its former employee bus drivers, and sought injunctive relief.
The basis for the complaint being filed in federal court was diversity of jurisdiction between the parties, though defendant STA would counter-argue that both parties to this matter are Pennsylvania corporations – and therefore, no diversity exists sufficient to invoke the federal court’s jurisdiction.
“However, early on in the litigation it came to light that the defendant in the initial complaint was improperly named, insofar as Student Transportation of America, LLC (a Delaware corporation) is not an ongoing company and has no employees,” U.S. District Court for the Western District of Pennsylvania Judge Robert J. Colville said.
After informing the court of its intent to do so, STA filed a motion to amend case caption on Jan. 21, removing Student Transportation of America, LLC (a Delaware corporation) from the case. As all parties were in agreement, the motion was granted.
The defendant then filed a motion on Feb. 2 for the case to be sent to the Allegheny County Court of Common Pleas, for lack of subject matter jurisdiction.
Colville found the evidence to be persuasive enough to grant the motion.
“Based on the evidence, as opposed to inference or argument, before the Court, the only hiring and employing entity was STA of Pennsylvania. STA has attached to its motion the individual driver payroll information, listing STA of Pennsylvania, Inc., 1870 Washington Pike, Suite 505, Bridgeville, PA 15017 as the payor, and represents, without opposition from plaintiff, this is the case for all drivers hired by defendant. STA also has attached the Incorporation Certification, which shows STA of Pennsylvania, Inc. is a Pennsylvania corporation,” Colville said.
Colville found that the case should no longer reside in a federal court.
“In this case, plaintiff has not met its burden and alleged any facts which establish federal jurisdiction over this case. Other than the testimony of Mr. Finchner, which does not support jurisdiction or meet plaintiff’s burden, plaintiff merely argues that the motion is untimely and leads to inefficiency in the form of ‘sunk costs,” Colville said.
“Of course, regarding untimeliness, the question of whether the court has subject matter jurisdiction may be addressed by the court at any time. In addition, discovery propounded and obtained in this matter would in all likelihood be at the parties’ disposal in any subsequent matter, as opposed to ‘sunk costs.’ Accordingly, in the absence of complete diversity among the parties, the following order is entered.”
Colville then dismissed the case without prejudice for lack of subject matter jurisdiction, in advance of refiling in the Allegheny County Court of Common Pleas.
For counts of tortious interference with contract and unfair competition, the plaintiff is seeking a preliminary injunction enjoining Student Transportation of America, LLC from interfering with any of PA Coach’s contracts with its current and former drivers, including but not limited to by soliciting, hiring, and/or employing any drivers in violation of their retention bonus and non-compete agreements, as well as any other such relief as this Court may deem just and proper.
The plaintiff is represented by Ray F. Middleman and Lindsay C. Kennedy of Eckert Seamans Cherin & Mellott, in Pittsburgh.
The defendant is represented by Maria Greco Danaher of Ogletree Deakins Nash Smoak & Stewart, also in Pittsburgh.
U.S. District Court for the Western District of Pennsylvania case 2:20-cv-01139
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com