Abraham v. St. Croix Renaissance Group, L.L.L.P.

719 F.3d 270, 58 V.I. 788, 2013 WL 2128539, 2013 U.S. App. LEXIS 9899
CourtCourt of Appeals for the Third Circuit
DecidedMay 17, 2013
Docket13-1725
StatusPublished
Cited by41 cases

This text of 719 F.3d 270 (Abraham v. St. Croix Renaissance Group, L.L.L.P.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abraham v. St. Croix Renaissance Group, L.L.L.P., 719 F.3d 270, 58 V.I. 788, 2013 WL 2128539, 2013 U.S. App. LEXIS 9899 (3d Cir. 2013).

Opinion

OPINION

(May 17, 2013)

SMITH, Circuit Judge.

The St. Croix Renaissance Group, L.L.L.P. (SCRG) sought leave under the Class Action Fairness Act (CAFA), 28 U.S.C. § 1453(c)(1), to appeal *791 an order of the District Court of the Virgin Islands remanding a civil action to the Superior Court of the Virgin Islands. We granted SCRG’s request. Because we conclude that the civil action here is not a removable “mass action” under CAFA, we will affirm the order of the District Court.

I.

In early 2012, “[m]ore than 500 individual plaintiffs” sued SCRG in the Superior Court of the Virgin Islands. On February 2, 2012, SCRG removed the civil action to the District Court of the Virgin Islands. SCRG, which was the only named defendant in the action, asserted that the civil action was a “mass action” under CAFA, making it removable under 28 U.S.C. §§ 1332(d)(ll)(A) and 1453(b). 1 Thereafter, 459 plaintiffs filed a first amended complaint (referred to for simplicity’s sake as “the complaint”). 2 Most of the 459 plaintiffs were citizens of the United States Virgin Islands. Several plaintiffs, however, were citizens of various states.

*792 SCRG purchased a former alumina refinery on the south shore of St. Croix in 2002. The plaintiffs alleged that “[f]or about thirty years, an alumina refinery located near thousands of homes on the south shore of the island of St. Croix was owned and/or operated by a number of entities.” According to the complaint, the “facility refined a red ore called bauxite into alumina, creating enormous mounds of the by-product, bauxite residue, red mud, or red dust.”

From the beginning of the alumina refinery’s operations, hazardous materials, including chlorine, fluoride, TDS, aluminum, arsenic, molybdenum, selenium, as well as coal dust and other particulates were buried in the red mud, and the red mud was stored outdoors in open piles that at times were as high as approximately 120 feet and covered up to 190 acres of land.

In addition to these hazardous materials, friable asbestos was present. All of the substances described were dispersed by wind and disseminated as a result of erosion.

According to the plaintiffs, SCRG purchased the refinery site knowing that the loose bauxite and piles of red mud “had the propensity for particulate dispersion when exposed to wind” that would be “inhaled by [p]laintiffs, deposited onto [plaintiffs’ persons, and real and personal properties, and deposited into the cisterns that are the primary source of potable water for many [p]laintiffs.” Yet SCRG “did nothing to abate it, and instead, allowed the series of the continuous transactions to occur like an ongoing chemical spill.” SCRG “failed to take proper measures to control those emissions[.]” With regard to the friable asbestos, the plaintiffs alleged that SCRG discovered its presence, concealed its existence, and did nothing to remove it from the premises. The plaintiffs averred that the improper maintenance of the facility, inadequate storage and containment of the various hazardous substances, as well as failure to remediate the premises, caused them to sustain physical injuries, mental anguish, pain and suffering, medical expenses, damage to their property and possessions, loss of income and the capacity to earn income, and loss of the enjoyment of life.

The plaintiffs asserted six causes of action against SCRG:

• Count I: Abnormally Dangerous Condition
• Count II: Public Nuisance
*793 • Count III: Private Nuisance
• Count IV: Intentional Infliction of Emotional Distress
• Count V: Negligent Infliction of Emotional Distress
• Count VI: Negligence. 3

In addition to money damages, the plaintiffs sought injunctive relief to end the ongoing release of hazardous substances and to remediate the property.

In October of 2012, the plaintiffs moved to remand their civil action to the Superior Court, claiming that the District Court lacked federal subject-matter jurisdiction. The plaintiffs asserted that the removal had been improper because § 1332(d)(11)(B)(ii)(I) excluded their action from the definition of “mass action.” This section of CAFA excludes from “mass action[s]”

any civil action in which — (I) all of the claims in the action arise from an event or occurrence in the State in which the action was filed, and that allegedly resulted in injuries in that State or in States contiguous to that State. 4

28 U.S.C. § 1332(d)(11)(B)(ii)(I). From the plaintiffs’ perspective, their civil action satisfied the criteria for this exclusion because “every operative incident occurred in St. Croix and caused injury and damages to the [plaintiffs’ persons and property in St. Croix.” Each plaintiff’s claim arose “from an event or occurrence in St. Croix” that happened “at a single location, the alumina refinery.” In addition, the plaintiffs argued that their civil action had been improvidently removed because it qualified as a uniquely local controversy excepted from removal under § 1332(d)(4)(A) or (B).

SCRG opposed the motion to remand. It argued that the plaintiffs had interpreted the statute to exclude from mass actions claims that arise in “one location” instead of as a result of “an event or occurrence” as set forth in the statute. 28 U.S.C. § 1332(d)(11)(B)(ii)(I). SCRG asserted that the exclusion for “an event or occurrence” did not apply because it requires a single incident and the plaintiffs’ complaint alleged that “there *794 were multiple events and occurrences over many years.” It emphasized that the exclusion “requires that to avoid removal there had to have been just ‘an event or occurrence’ — a ‘single’ event or occurrence.”

On December 7, 2012, the District Court granted the plaintiffs’ motion to remand this action to the Superior Court of the Virgin Islands. Abraham v. St. Croix Renaissance Grp., L.L.L.P., No. 12-11, 2012 U.S. Dist. LEXIS 173648 (D.V.I. Dec. 7, 2012). The District Court considered several district court decisions that addressed whether an action qualified as a mass action.

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719 F.3d 270, 58 V.I. 788, 2013 WL 2128539, 2013 U.S. App. LEXIS 9899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abraham-v-st-croix-renaissance-group-lllp-ca3-2013.