Abrego v. the Dow Chemical Company

CourtCourt of Appeals for the Ninth Circuit
DecidedApril 4, 2006
Docket06-55109
StatusPublished

This text of Abrego v. the Dow Chemical Company (Abrego v. the Dow Chemical Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abrego v. the Dow Chemical Company, (9th Cir. 2006).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

ANTONIO ABREGO ABREGO, et al.  Plaintiffs-Appellees, v. No. 06-55109 THE DOW CHEMICAL CO, et al.;  D.C. No. CV-05-03608-RGK SHELL OIL COMPANY, d/b/a SHELL CHEMICAL COMPANY, and SHELL OPINION AGRICULTURAL CHEMICAL COMPANY, Defendants-Appellants.  Appeal from the United States District Court for the Central District of California R. Gary Klausner, District Judge, Presiding

Argued and Submitted March 7, 2006—Pasadena, California

Filed April 4, 2006

Before: M. Margaret McKeown and Marsha S. Berzon, Circuit Judges, and Samuel P. King,* Senior District Judge.

Per Curiam Opinion

*The Honorable Samuel P. King, Senior United States District Judge for the District of Hawaii, sitting by designation.

3979 ABREGO v. THE DOW CHEMICAL CO. 3983

COUNSEL

Michael L. Brem, Shirrmeister Diaz-Arrastia Brem LLP, Houston, Texas, argued and was on the briefs for the appel- lants. Gennaro A. Filice, Nicholas D. Kayhan, Richard H. Poulson, Filice Brown Wassa & Mcleod LLP, Oakland, Cali- fornia, were also on the briefs for the appellants.

Howard B. Miller, Girardi & Keese, Los Angeles, California, argued and was on the briefs for the appellees. Walter J. Lack and Elizabeth Lane Crooke, Engstrom Lipscomb & Lack, Los Angeles, California; Thomas V. Girardi, Girardi & Keese, Los Angeles, California; Joe J. Fisher, II, Mark Sparks, and Scott C. Kinsel, Provost Umphrey Law Firm, Beaumont, Texas; and Benton Musslewhite, Law Offices of Benton Musslewhite, Houston, Texas, were also on the briefs for the appellees.

OPINION

PER CURIAM:

The recently enacted Class Action Fairness Act of 2005 (“CAFA”), Pub. L. No. 109-2, 119 Stat. 4, alters the land- scape for federal court jurisdiction over class actions. In addi- tion to traditional class actions, CAFA covers certain other cases involving large numbers of plaintiffs, denominated “mass actions.” Dow Chemical Company (“Dow”) brings this interlocutory appeal,1 pursuant to 28 U.S.C. § 1453(c)(1),2 1 CAFA provides that “a court of appeals may accept an appeal from an order of a district court granting or denying a motion to remand a class 3984 ABREGO v. THE DOW CHEMICAL CO. from the district court’s order remanding this purported “mass action.”

Dow maintains that under CAFA and contrary to preexist- ing removal jurisdiction law: (1) plaintiffs bear the burden of refuting the district court’s removal jurisdiction; (2) a “mass action” is removable regardless of whether there is jurisdic- tion over all plaintiffs whose claims are necessary to qualify the action as a mass action; and (3) the district court must allow jurisdictional discovery to determine the amount in con- troversy. The disputes between the parties on these discrete issues reflect a larger disagreement over whether the changes wrought by CAFA generally are limited to those enunciated in CAFA’s text, or whether courts should infer a broader transformation of jurisdictional principles than the statutory language indicates.

We hold that CAFA did not shift to the plaintiff the burden of establishing that there is no removal jurisdiction in federal court and that Dow did not meet its burden. We therefore affirm the district court’s remand of this action to state court. We save for a later day detailed consideration of CAFA’s muddled “mass action” provisions.

I.

One thousand one hundred and sixty Panamanian banana plantation workers (“the workers”) filed a complaint asserting claims stemming from their alleged exposure to 1, 2-dibromo- 3-chloropropane (“DBCP”), a chemical pesticide sold under

action to the State court from which it was removed if application is made to the court of appeals not less than 7 days after entry of the order.” § 1453(c)(1). Dow’s petition, made on the seventh day following the entry of the district court’s order, was timely and we accepted the appeal. See Bush v. Cheaptickets, Inc., 425 F.3d 683, 685 (9th Cir. 2005) (appeal filed on the seventh day timely under § 1453(c)(1)). 2 All statutory citations henceforward are to title 28, unless otherwise indicated. ABREGO v. THE DOW CHEMICAL CO. 3985 the brand names “Nemagon” and “Fumazone.” The operative complaint alleges that although the Environmental Protection Agency banned almost all DBCP use in the United States in 1979, the defendants continued to distribute and use the pesti- cide on plantations in Panama. The workers allege that they suffered “sterility and other serious injuries” as a result of exposure to the pesticide and seek an unspecified amount of special, general, and punitive damages, pre- and post- judgment interest, and attorneys’ fees and costs.

On May 13, 2005, three weeks after the state court suit commenced, Dow filed a notice of removal with the district court and, ten days later, an amended notice of removal, both pursuant to CAFA. Dow invoked § 1332(d)(11), which pro- vides for federal jurisdiction over “mass actions.” For the pur- poses of CAFA, a “mass action” is “any civil action . . . in which monetary relief claims of 100 or more persons are pro- posed to be tried jointly on the ground that the plaintiffs’ claims involve common questions of law or fact, except that jurisdiction shall exist only over those plaintiffs whose claims in a mass action satisfy the jurisdictional amount requirements under” § 1332(a). § 1332(d)(11)(B). Section 1332(a), in turn, requires that the amount in controversy exceed $75,000. Under subsection (d)(11)(A), an action that qualifies as a mass action will be “deemed to be a class action removable under . . . [§ 1332(d)(2)-(10)] if it otherwise meets the provi- sions of those paragraphs.” § 1332(d)(11)(A). Prominent among the requirements in these specified paragraphs are that the aggregate amount in controversy must exceed $5,000,000, and that the action must satisfy CAFA’s new minimal diver- sity requirements between plaintiffs and defendants. § 1332(d)(2).

The district court ordered Dow to show cause as to whether “[t]he amount in controversy does not exceed $5,000,000, exclusive of interest and costs, and/or the amount in contro- versy for each plaintiff does not exceed $75,000.” Dow responded, arguing that: (1) CAFA shifted the burden of 3986 ABREGO v. THE DOW CHEMICAL CO. establishing whether jurisdiction is proper from the removing defendants to the plaintiffs seeking remand; (2) as long as the action prior to removal involved the claims of more than 100 plaintiffs and more than $5,000,000 in the aggregate, the “mass action” subsection provides for removal jurisdiction and calls for subsequent remand only of the claims of those plaintiffs who do not meet the $75,000 jurisdictional amount requirement; and (3) there should be limited discovery related to the amount in controversy, as “contemplated by Congress in enacting CAFA.”

On October 11, 2005, the district court issued a brief remand order:

[T]he Court finds that Defendant has failed to meet its burden of showing that the action constitutes a “mass action,” as defined by the applicable statute (i.e., there are 100 or more plaintiffs over which this court has jurisdiction that can be proposed to be tried jointly). As such, the Court determines that it lacks subject matter jurisdiction over this case, and remands the action to state court.

Dow appeals this order, reasserting the same arguments pre- sented to the district court.

We review a district court’s remand order de novo. Emrich v. Touche Ross & Co., 846 F.2d 1190, 1194 (9th Cir. 1988); Ansley v. Ameriquest Mortgage Co., 340 F.3d 858, 861 (9th Cir. 2003).

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