Jackie Saldana v. Glenhaven Healthcare LLC ( 2022 )


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  •                 FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    JACKIE SALDANA; CELIA SALDANA;            No. 20-56194
    RICARDO SALDANA, JR.; MARIA
    SALDANA, as individuals and as               D.C. No.
    successors and heirs to Ricardo           2:20-cv-05631-
    Saldana, deceased,                          FMO-MAA
    Plaintiffs-Appellees,
    v.                         OPINION
    GLENHAVEN HEALTHCARE LLC, a
    California corporation; CARAVAN
    OPERATIONS CORP., a California
    corporation; MATTHEW KARP, an
    individual; BENJAMIN KARP, an
    individual,
    Defendants-Appellants.
    Appeal from the United States District Court
    for the Central District of California
    Fernando M. Olguin, District Judge, Presiding
    Argued and Submitted October 21, 2021
    Pasadena, California
    Filed February 22, 2022
    2           SALDANA V. GLENHAVEN HEALTHCARE
    Before: Ryan D. Nelson and Lawrence VanDyke, Circuit
    Judges, and Karen E. Schreier, * District Judge.
    Opinion by Judge Schreier
    SUMMARY **
    Federal Subject Matter Jurisdiction
    The panel affirmed the district court’s order remanding
    a removed case to state court for lack of federal subject
    matter jurisdiction.
    Relatives of Ricardo Saldana, who allegedly died from
    COVID-19 at Glenhaven Healthcare nursing home, sued
    Glenhaven and other defendants in California state court,
    alleging state-law causes of action based on the allegation
    that Glenhaven failed to adequately protect Saldana.
    Glenhaven removed the case to federal court.
    Affirming the district court’s order granting plaintiffs’
    motion to remand the case to state court, the panel rejected
    Glenhaven’s argument that the district court had three
    grounds for federal jurisdiction. First, the panel held that the
    district court lacked jurisdiction under the federal officer
    removal statute, 
    28 U.S.C. § 1442
    , because Glenhaven did
    not act under a federal officer or agency’s directions when it
    *
    The Honorable Karen E. Schreier, United States District Judge for
    the District of South Dakota, sitting by designation.
    **
    This summary constitutes no part of the opinion of the court. It
    has been prepared by court staff for the convenience of the reader.
    SALDANA V. GLENHAVEN HEALTHCARE                      3
    complied with mandatory directives to nursing homes from
    the Centers for Medicare and Medicaid Services, the Centers
    for Disease Control and Prevention, and the Department of
    Health and Human Services. Glenhaven’s status as a critical
    infrastructure entity did not establish that it acted as a federal
    officer or agency, or that it carried out a government duty.
    Second, the panel held that plaintiffs’ claims were not
    completely preempted by the Public Readiness and
    Emergency Preparedness Act, which provides immunity
    from suit when the HHS Secretary determines that a threat
    to health constitutes a public health emergency, but provides
    an exception to this immunity for an exclusive federal cause
    of action for willful misconduct. In March 2020, the
    Secretary issued a declaration under the PREP Act “to
    provide liability immunity for activities related to medical
    countermeasures against COVID-19.” The panel held that
    the HHS Office of General Counsel’s Advisory Opinion on
    complete preemption was not entitled to Chevron deference
    because it was an opinion on federal court jurisdiction.
    Instead, the panel applied the two-part test set forth in City
    of Oakland v. BP PLC, 
    969 F.3d 895
     (9th Cir. 2020). The
    panel concluded that in enacting the PREP Act, Congress did
    not intend to displace the non-willful misconduct claims
    brought by plaintiffs related to the public health emergency,
    nor did it provide substitute causes of action for plaintiffs’
    claims. Thus, the federal statutory scheme was not so
    comprehensive that it entirely supplanted state law causes of
    action.
    Third, the panel held that the district court did not have
    jurisdiction under the embedded federal question doctrine,
    under which federal jurisdiction over a state law claim will
    lie if a federal issue is necessarily raised, actually disputed,
    substantial, and capable of resolution in federal court
    4         SALDANA V. GLENHAVEN HEALTHCARE
    without disrupting the federal-state balance approved by
    Congress.
    COUNSEL
    Lann G. McIntyre (argued), Lewis Brisbois Bisgaard &
    Smith LLP, San Diego, California; Kathleen M. Walker,
    Lewis Brisbois Bisgaard & Smith LLP, Los Angeles,
    California; for Defendants-Appellants.
    Adam R. Pulver (argued), Allison M. Zieve, and Scott L.
    Nielson, Public Citizen Litigation Group, Washington, D.C.;
    Scott C. Glovsky, Law Offices of Scott C. Glovsky,
    Claremont, California; for Plaintiffs-Appellees.
    Mark E. Reagan and Jeffrey Lin, Hooper Lundy & Bookman
    P.C., San Francisco, California, for Amici Curiae California
    Association of Health Facilities and American Health Care
    Association.
    Eric M. Carlson, Justice in Aging, Los Angeles, California,
    for Amicus Curiae Justice in Aging.
    SALDANA V. GLENHAVEN HEALTHCARE                       5
    OPINION
    SCHREIER, District Judge:
    Glenhaven Healthcare LLC, Caravan Operations Corp.,
    Matthew Karp, and Benjamin Karp (collectively,
    Glenhaven) appeal the district court’s order remanding this
    case to state court for lack of federal subject matter
    jurisdiction. We have jurisdiction under 
    28 U.S.C. § 1447
    (d), and affirm. 1
    I. FACTUAL AND PROCEDURAL BACKGROUND
    Ricardo Saldana was a resident of Glenhaven Healthcare
    nursing home from 2014 to 2020. Saldana died at the
    Glenhaven nursing home on April 13, 2020, allegedly from
    COVID-19. In June 2020, four of Saldana’s relatives, Jackie
    Saldana, Celia Saldana, Ricardo Saldana, Jr., and Maria
    Saldana (the Saldanas), sued Glenhaven in California
    Superior Court for Los Angeles County. The Saldanas allege
    that Glenhaven failed to adequately protect Ricardo Saldana
    from the COVID-19 virus. The complaint states four state-
    law causes of action: elder abuse, willful misconduct,
    custodial negligence, and wrongful death.
    Glenhaven removed the case to the United States District
    Court for the Central District of California in June 2020, and
    the Saldanas moved to remand the case to state court. The
    district court found that it did not have subject matter
    jurisdiction to hear the case and granted the Saldanas’
    motion to remand. Glenhaven appeals, arguing that the
    district court has three independent grounds for federal
    1
    We also GRANT the pending motions for judicial notice. Docket
    18; Docket 22.
    6          SALDANA V. GLENHAVEN HEALTHCARE
    jurisdiction: federal officer removal, complete preemption of
    state law, and the presence of an imbedded federal question.
    We agree with the district court and affirm.
    II. STANDARD OF REVIEW
    We review questions of statutory construction and
    subject matter jurisdiction de novo. City of Oakland v. BP
    PLC, 
    969 F.3d 895
    , 903 (9th Cir. 2020). When the federal
    officer removal statute, 
    28 U.S.C. § 1442
    , is one ground for
    removal, § 1447(d) permits appellate review of a district
    court’s entire remand order. BP P.L.C. v. Mayor of Balt.,
    
    141 S. Ct. 1532
    , 1538 (2021). “If at any time before final
    judgment it appears that the district court lacks subject
    matter jurisdiction, the case shall be remanded.” 
    28 U.S.C. § 1447
    (c).
    III. DISCUSSION
    A. Federal Officer Removal
    1. Legal Standard
    Under 
    28 U.S.C. § 1442
    (a)(1), the federal officer
    removal statute, an action commenced in state court may be
    removed to federal court when it is “against or directed to
    . . . : [t]he United States or any agency thereof or any officer
    (or any person acting under that officer) of the United States
    or of any agency thereof, in an official or individual capacity,
    for or relating to any act under color of such office . . . .” The
    “basic purpose” of the statute “is to protect the Federal
    Government from the interference with its operations that
    would ensue were a State able, for example, to arrest and
    bring to trial in a State court for an alleged offense against
    the law of the State, officers and agents of the Government
    acting within the scope of their authority.” Watson v. Philip
    SALDANA V. GLENHAVEN HEALTHCARE                     7
    Morris Cos., Inc., 
    551 U.S. 142
    , 150 (2007) (cleaned up).
    The federal officer removal statute is to be “liberally
    construed,” but “a liberal construction nonetheless can find
    limits in [the statute’s] language, context, history, and
    purposes.” 
    Id. at 147
    .
    To remove a state court action under the federal officer
    removal statute, a defendant must establish that “(a) it is a
    person within the meaning of the statute; (b) there is a causal
    nexus between its actions, taken pursuant to a federal
    officer’s directions, and plaintiff’s claims; and (c) it can
    assert a colorable federal defense.” Stirling v. Minasian,
    
    955 F.3d 795
    , 800 (9th Cir. 2020) (quoting Fidelitad, Inc. v.
    Insitu, Inc., 
    904 F.3d 1095
    , 1099 (9th Cir. 2018)). Here, the
    parties do not dispute that each defendant is a “person” under
    the statute. See 
    1 U.S.C. § 1
     (“person” includes
    “corporations, companies, associations, firms, partnerships
    . . . as well as individuals”). Defendants seeking removal
    “still bear the burden of proving by a preponderance of the
    evidence that the colorable federal defense and causal nexus
    requirements for removal jurisdiction are factually
    supported.” Lake v. Ohana Mil. Cmtys., LLC, 
    14 F.4th 993
    ,
    1000 (9th Cir. 2021) (cleaned up).
    2. Whether Glenhaven Acted Under a Federal
    Officer’s Directions
    To determine whether there was a causal nexus between
    Glenhaven’s actions and the Saldanas’ claims, the court first
    considers whether Glenhaven’s actions were taken
    “pursuant to a federal officer’s directions,” Stirling, 955 F.3d
    at 800, or while “acting under that officer.” 
    28 U.S.C. § 1442
    (a)(1). A person or entity who acts under a federal
    officer or agency is one “‘who lawfully assist[s]’ a federal
    officer ‘in the performance of his official duty’” and is
    “authorized to act with or for [federal officers or agents] in
    8         SALDANA V. GLENHAVEN HEALTHCARE
    affirmatively executing duties under . . . federal law.”
    Watson, 
    551 U.S. at 143
     (cleaned up). The relationship
    between a federal officer or agency and a person or entity
    “acting under” the officer or agency “typically involves
    subjection, guidance, or control.” 
    Id. at 152
    . But “simply
    complying” with a law or regulation is not enough to “bring
    a private person within the scope of the statute.” 
    Id.
     In
    Watson the Supreme Court stated:
    A     private     firm’s     compliance     (or
    noncompliance) with federal laws, rules, and
    regulations does not by itself fall within the
    scope of the statutory phrase “acting under” a
    federal “official.” And that is so even if the
    regulation is highly detailed and even if the
    private firm’s activities are highly supervised
    and monitored.
    
    Id. at 153
    . “The upshot is that a highly regulated firm cannot
    find a statutory basis for removal in the fact of federal
    regulation alone.” 
    Id.
    Glenhaven argues that the federal government
    “conscript[ed] . . . private entities like Glenhaven to join in
    the fight [against COVID-19] through detailed and specific
    mandatory directives to nursing homes on the use and
    allocation of PPE, the administration of COVID-19 testing,
    intervention protocols, and virtually every other aspect of the
    operations of nursing homes during the pandemic.” Though
    it acknowledges that compliance with federal laws,
    regulations, and rules does not “by itself” bring a defendant
    under the federal officer removal statute, Glenhaven claims
    that the “unprecedent[ed] circumstances” of COVID-19
    resulted in federal directives and operational control
    SALDANA V. GLENHAVEN HEALTHCARE                     9
    amounting to more than compliance with government
    regulations.
    Glenhaven points to memoranda it received from the
    Centers for Medicare and Medicaid Services (CMS), the
    Centers for Disease Control and Prevention (CDC), and the
    Department of Health and Human Services (HHS) during the
    COVID-19 pandemic to show that the “federal government
    and its agencies . . . became hyper-involved in the operational
    activities of nursing facilities in response to the pandemic.”
    But the agency communications Glenhaven relies on show
    nothing more than regulations and recommendations for
    nursing homes, covering topics such as COVID-19 testing,
    use and distribution of personal protective equipment, and
    best practices to reduce transmission within congregate living
    environments. For example, one CMS memo identifies what
    healthcare staff “should” do in response to the pandemic, and
    it states what CMS “expects,” “encourages,” “advise[s],” and
    “recommend[s].” Similarly, a CDC communication cited by
    Glenhaven identifies “recommendations” and steps that
    healthcare centers “should” take. Another memorandum
    published by the California Department of Public Health
    states that the agency “ensure[s] compliance with state
    licensing laws and federal certification regulations” on behalf
    of CMS. Licensing and Certification Program, Cal. Dep’t of
    Pub. Health (Dec. 17, 2020), https://www.cdph.ca.gov/Progr
    ams/CHCQ/LCP/Pages/LandCProgramHome.aspx. Without
    more than government regulations and recommendations,
    Glenhaven has failed to establish that it was “acting under” a
    federal official, and it has not identified a duty of the federal
    government that it performed.
    Glenhaven also claims that, as a nursing home, its
    designation as part of the national critical infrastructure
    necessarily means that it acted on behalf of a federal official
    10        SALDANA V. GLENHAVEN HEALTHCARE
    or that it carried out a government duty. The Saldanas do not
    dispute that nursing homes, including Glenhaven, are part of
    the nation’s critical infrastructure. Glenhaven relies on a
    memorandum from the Cybersecurity and Infrastructure
    Security Agency (CISA) stating that the list of critical
    infrastructure workers was developed as “guidance” to “help
    state and local jurisdictions and the private sector identify
    and manage their essential workforce while responding to
    COVID-19.” CISA Releases Guidance on Essential
    Critical Infrastructure Workers During COVID-19,
    Cybersecurity & Infrastructure Sec. Agency (Oct. 25,
    2021), https://www.cisa.gov/news/2020/03/19/cisa-release
    s-guidance-essential-critical-infrastructure-workers-during
    -covid-19. Notably, the memorandum also states that the
    national critical infrastructure list “does not impose any
    mandates on state or local jurisdictions or private
    companies,” such as Glenhaven. 
    Id.
    “It cannot be that the federal government’s mere
    designation of an industry as important—or even critical—
    is sufficient to federalize an entity’s operations and confer
    federal jurisdiction.” Buljic v. Tyson Foods, Inc., 
    22 F.4th 730
    , 740 (8th Cir. 2021); see also Maglioli v. All. HC
    Holdings LLC, 
    16 F.4th 393
    , 406 (3d Cir. 2021). Thus,
    Glenhaven’s status as a critical infrastructure entity does not
    establish that it acted under a federal officer or agency, or
    that it carried out a government duty.
    Glenhaven has failed to substantiate its claims that it was
    conscripted to assist a federal officer or agency in
    performance of a government duty or that it was authorized
    to act for a federal officer. All that Glenhaven has
    demonstrated is that it operated as a private entity subject to
    government regulations, and that during the COVID-19
    pandemic it received additional regulations and
    SALDANA V. GLENHAVEN HEALTHCARE                  11
    recommendations from federal agencies. Thus, Glenhaven
    was not “acting under” a federal officer or agency as
    contemplated by the federal officer removal statute. And
    because Glenhaven did not act under a federal officer, there
    is no causal nexus that allows removal under 
    28 U.S.C. § 1442
    .
    B. Preemption Under the PREP Act
    1. Legal Standard
    Glenhaven argues that this case was properly removed to
    federal court because the Saldanas’ claims are completely
    preempted by the Public Readiness and Emergency
    Preparedness (PREP) Act, 42 U.S.C. §§ 247d-6d, 247d-6e.
    “Complete preemption is ‘really a jurisdictional rather than
    a preemption doctrine, as it confers exclusive federal
    jurisdiction in certain instances where Congress intended the
    scope of a federal law to be so broad as to entirely replace
    any state-law claim.’” Dennis v. Hart, 
    724 F.3d 1249
    , 1254
    (9th Cir. 2013) (emphasis added) (quoting Marin Gen. Hosp.
    v. Modesto & Empire Traction Co., 
    581 F.3d 941
    , 945 (9th
    Cir. 2009)). Put another way, “[c]omplete preemption . . .
    applies only where a federal statutory scheme is so
    comprehensive that it entirely supplants state law causes of
    action.” Retail Prop. Tr. v. United Bhd. of Carpenters &
    Joiners of Am., 
    768 F.3d 938
    , 947 (9th Cir. 2014) (quoting
    Dennis, 724 F.3d at 1254). To determine whether a claim is
    completely preempted, the court asks whether Congress
    “(1) intended to displace a state-law cause of action, and (2)
    provided a substitute cause of action.” City of Oakland,
    969 F.3d at 906 (citing Hansen v. Grp. Health Coop.,
    
    902 F.3d 1051
    , 1057 (9th Cir. 2018)). Complete preemption
    is “rare.” Hansen, 902 F.3d at 1057 (quoting Retail Prop.
    Tr., 768 F.3d at 947). The Supreme Court has identified only
    three complete preemption statutes: § 301 of the Labor
    12        SALDANA V. GLENHAVEN HEALTHCARE
    Management Relations Act, § 502(a) of the Employee
    Retirement Income Security Act of 1974 (ERISA), and
    §§ 85 and 86 of the National Bank Act. City of Oakland,
    969 F.3d at 905–06.
    Complete preemption is an exception to the well-pleaded
    complaint rule. Id. at 905. Under the well-pleaded complaint
    rule, a civil action arises under federal law for purposes of
    federal question jurisdiction when a federal question appears
    on the face of the complaint. Id. at 903 (citing Caterpillar
    Inc. v. Williams, 
    482 U.S. 386
    , 392 (1987)). Under the rule,
    removal must be based on the plaintiff’s claims and cannot
    be based on a defendant’s federal defense. 
    Id.
     at 903–04. But
    the exception for complete preemption, the “artful-pleading
    doctrine[,] . . . allows removal where federal law completely
    preempts a plaintiff’s state-law claim.” Id. at 905 (quoting
    Rivet v. Regions Bank of La., 
    522 U.S. 470
    , 475 (1998)).
    2. The PREP Act
    Passed by Congress in 2005, the PREP Act provides that
    “a covered person shall be immune from suit and liability
    under Federal and State law with respect to all claims for loss
    caused by, arising out of, relating to, or resulting from the
    administration to or the use by an individual of a covered
    countermeasure . . . .” 42 U.S.C. § 247d-6d(a)(1). Both
    “covered countermeasure” and “covered person” are terms
    defined in the Act. See § 247d-6d(i)(1)–(2). The PREP Act
    is invoked when “the [HHS] Secretary makes a
    determination that a disease or other health condition or
    other threat to health constitutes a public health emergency,
    or that there is a credible risk that the disease, condition, or
    threat may in the future constitute such an emergency . . . .”
    § 247d-6d(b)(1). The Secretary “controls the scope of
    immunity through the declaration and amendments, within
    the confines of the PREP Act.” Maglioli, 16 F.4th at 401.
    SALDANA V. GLENHAVEN HEALTHCARE                   13
    The Secretary’s declaration “may specify[] the manufacture,
    testing, development, distribution, administration, or use of
    one or more covered countermeasures.” § 247d-6d(b)(1).
    The PREP Act created the Covered Countermeasure Process
    Fund to compensate “eligible individuals for covered
    injuries directly caused by the administration or use of a
    covered countermeasure pursuant to such declaration . . . .”
    § 247d-6e(a).
    Section 247d-6d(d)(1) provides that “the sole exception
    to the immunity from suit and liability of covered persons
    . . . shall be for an exclusive Federal cause of action against
    a covered person for death or serious physical injury
    proximately caused by willful misconduct . . . by such
    covered person.” Such an action “shall be filed and
    maintained only in the United States District Court for the
    District of Columbia.” § 247d-6d(e)(1). The term “willful
    misconduct” is defined in the Act. § 247d-6d(c)(1)(A). An
    individual may not bring a suit under § 247d-6d(d)(1) unless
    the individual has exhausted the remedies available under
    § 247d-6e(a), the Covered Countermeasure Process Fund.
    § 247d-6e(d)(1).
    In March 2020, the Secretary issued a declaration under
    the PREP Act “to provide liability immunity for activities
    related to medical countermeasures against COVID-19.”
    Declaration Under the Public Readiness and Emergency
    Preparedness Act for Medical Countermeasures Against
    COVID-19, 
    85 Fed. Reg. 15,198
    , 15,198 (Mar. 17, 2020).
    The declaration provided immunity for covered persons for
    the use of covered measures, including “any antiviral, any
    other drug, any biologic, any diagnostic, any other device, or
    any vaccine, used to treat, diagnose, cure, prevent, or
    mitigate COVID-19 . . . .” 
    Id. at 15,202
    . The Secretary has
    issued subsequent amended declarations throughout the
    14        SALDANA V. GLENHAVEN HEALTHCARE
    pandemic. See Seventh Amendment to Declaration Under
    the Public Readiness and Emergency Preparedness Act for
    Medical Countermeasures Against COVID-19, 
    86 Fed. Reg. 14,462
     (Mar. 16, 2021).
    3. Whether the PREP Act is a Complete Preemption
    Statute
    Glenhaven’s complete preemption argument relies on
    the HHS Secretary’s and the HHS Office of General
    Counsel’s respective conclusions that the PREP Act is a
    complete preemption statute. Fifth Amendment to the
    Declaration Under the Public Readiness and Emergency
    Preparedness Act for Medical Countermeasures Against
    COVID-19, 
    86 Fed. Reg. 7874
     (Feb. 2, 2021); Dep’t Health
    & Hum. Servs., General Counsel Advisory Opinion 21-01
    (Jan. 8, 2021). But “[c]omplete preemption is really a
    jurisdictional rather than a preemption doctrine[.]” Dennis,
    724 F.3d at 1254 (internal quotation omitted). And an
    agency’s opinion on federal court jurisdiction is not entitled
    to Chevron deference. Dandino, Inc. v. U.S. Dep’t of
    Transp., 
    729 F.3d 917
    , 920 n.1 (9th Cir. 2013). Thus,
    Glenhaven’s reliance on the Advisory Opinion is misplaced
    and not a sufficient basis to establish complete preemption
    and thus federal jurisdiction.
    Instead of deferring to an opinion of the Office of
    General Counsel, this court applies the two-part test
    articulated in City of Oakland: (1) did Congress intend to
    displace a state-law cause of action and (2) did Congress
    provide a substitute cause of action? 969 F.3d at 906.
    Turning to the statute’s text, the PREP Act states that it
    provides immunity under certain conditions for “covered
    person[s]” who use “covered countermeasure[s].” 42 U.S.C.
    § 247d-6d(a)(1). Subsection (d) is the only subsection that
    explicitly states that there shall be an “exclusive Federal
    SALDANA V. GLENHAVEN HEALTHCARE                   15
    cause of action,” limited to claims against “covered persons”
    for “willful misconduct,” as the terms are defined in the Act.
    § 247d-6d(d). The provision of one specifically defined,
    exclusive federal cause of action undermines Glenhaven’s
    argument that Congress intended the Act to completely
    preempt all state-law claims related to the pandemic. The
    text of the statute shows that Congress intended a federal
    claim only for willful misconduct claims and not claims for
    negligence and recklessness. § 247d-6d(c)(1)(B). An
    administrative compensation fund, not an exclusive federal
    cause of action, provides the only redress for claims brought
    under the Act, other than those alleging “willful
    misconduct.” The PREP Act neither shows the intent of
    Congress to displace the non-willful misconduct claims
    brought by the Saldanas related to the public health
    emergency, nor does it provide substitute causes of action
    for their claims. Thus, under this court’s two-part test, the
    PREP Act is not a complete preemption statute.
    Glenhaven argues that the PREP Act may preempt one
    of the Saldanas’ claims—the second cause of action under
    state law for willful misconduct. Whether the claim is
    preempted by the PREP Act turns on whether any of the
    conduct alleged in the complaint fits the statute’s definitions
    for such a claim. But finding that one claim may be
    preempted is different than finding that the “federal statutory
    scheme is so comprehensive that it entirely supplants state
    law causes of action,” such as the Saldanas’ other causes of
    action for elder abuse, custodial negligence, and wrongful
    death. Retail Prop. Tr., 768 F.3d at 947 (emphasis added)
    (quoting Dennis, 724 F.3d at 1254); see also Caterpillar,
    
    482 U.S. at 393
     (distinguishing between complete
    preemption and raising a federal defense); Toumajian v.
    Frailey, 
    135 F.3d 648
    , 654 (9th Cir. 1998) (distinguishing
    between complete preemption and “conflict preemption” of
    16        SALDANA V. GLENHAVEN HEALTHCARE
    a particular claim). Thus, the district court’s remand order
    for lack of federal subject matter jurisdiction based upon
    complete preemption was proper.
    C. Embedded Federal Question
    Glenhaven argues that the district court has jurisdiction
    under the embedded federal question doctrine. Under this
    doctrine, “federal jurisdiction over a state law claim will lie
    if a federal issue is (1) necessarily raised, (2) actually
    disputed, (3) substantial, and (4) capable of resolution in
    federal court without disrupting the federal-state balance
    approved by Congress.” Gunn v. Minton, 
    568 U.S. 251
    , 258
    (2013). The well-pleaded complaint rule applies when
    determining whether the embedded federal question doctrine
    applies. Cal. Shock Trauma Air Rescue v. State Comp. Ins.
    Fund, 
    636 F.3d 538
    , 542 (9th Cir. 2011).
    Here, the Saldanas’ complaint states four causes of
    action: elder abuse, willful misconduct, custodial
    negligence, and wrongful death. The claims in the complaint
    are raised under California law and do not raise questions of
    federal law on the face of the complaint. Glenhaven seeks to
    raise a federal defense under the PREP Act, but a federal
    defense is not a sufficient basis to find embedded federal
    question jurisdiction. Provincial Gov’t of Marinduque v.
    Placer Dome, Inc., 
    582 F.3d 1083
    , 1090 (9th Cir. 2009).
    Glenhaven argues that the Saldanas’ willful misconduct
    claim raises a federal issue under the PREP Act. Glenhaven
    does not identify how a right or immunity created by the
    PREP Act must be an essential element of the willful
    misconduct claim as stated in the complaint. On its face, the
    issue is not a “substantial” part of the Saldanas’ complaint
    because, according to the complaint, only some of the steps
    Glenhaven allegedly took, and did not take, may have
    SALDANA V. GLENHAVEN HEALTHCARE                   17
    involved a “covered person,” under the PREP Act. Thus,
    remand is proper because the complaint does not present an
    embedded federal question.
    IV. CONCLUSION
    Glenhaven did not act under a federal officer or carry out
    a federal duty when it provided care to Ricardo Saldana. The
    PREP Act does not completely preempt the Saldanas’
    claims, and the possible preemption of one claim cannot be
    determined by this court or the district court. And there is no
    embedded federal question in the Saldanas’ complaint. Thus,
    the district court lacked subject matter jurisdiction, and the
    suit was properly remanded to state court.
    AFFIRMED.