Ackerman v. Exxonmobil Corp.

734 F.3d 237, 2013 WL 4008699, 2013 U.S. App. LEXIS 16336
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 7, 2013
Docket12-1103
StatusPublished
Cited by40 cases

This text of 734 F.3d 237 (Ackerman v. Exxonmobil Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ackerman v. Exxonmobil Corp., 734 F.3d 237, 2013 WL 4008699, 2013 U.S. App. LEXIS 16336 (4th Cir. 2013).

Opinions

Affirmed by published opinion. Chief Judge TRAXLER wrote the opinion, in which Judge GREGORY concurred.

Judge DUNCAN wrote a separate opinion concurring in the judgment.

TRAXLER, Chief Judge:

ExxonMobil Corporation (“Exxon”) and John R. Hicks (together, “Defendants”) appeal a district court order abstaining from exercising jurisdiction under the Colorado River doctrine in a case brought against Defendants. See Colorado River Water Conservation Dist. v. United States, 424 U.S. 800, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976). Finding no reversible error, we affirm.

I.

In June 2004, hundreds of residents of Fallston, Maryland, filed a putative class action (the “Koch ” action) against Defendants in Maryland state court. The complaint alleged several state law causes of action for the contamination of their properties by gasoline and the gasoline additive methyl tertiary-butyl (“MTBE”) from an Exxon station that Hicks operated.

Exxon later removed the case by invoking federal officer jurisdiction, see 28 U.S.C. § 1442(a), and it was transferred to the Multidistrict Litigation Panel and assigned to the Southern District of New York. See In re MTBE Prods. Liab. Litig., 399 F.Supp.2d 340, 344 (S.D.N.Y.2005). However, in May 2007, the United States Court of Appeals for the Second Circuit determined in an unrelated case that the history of MTBE production and marketing did not support federal officer removal. See In re MTBE Prods. Liab. Litig., 488 F.3d 112, 130 (2d Cir.2007) (holding that the federal officer removal statute did not support removal because “the defendants have not met their burden of providing ‘candid, specific and positive’ allegations that they were acting under federal officers when they added MTBE” (citation omitted)). Accordingly, Koch was remanded to the Harford County Circuit Court.

In February 2010, the state-court judge granted the Koch Plaintiffs’ request for class certification. On June 16, 2011, however, the judge reconsidered sua sponte his earlier grant of certification and decer-tified the class. On October 26, 2011, the state-court judge met with counsel in chambers and asked the Koch Plaintiffs to [247]*247file a new action for the former class members so that he could consolidate it with the existing one and thereby adjudicate the claims of the named plaintiffs in Koch as well as the former class members. As a result, on November 2, 2011, more than 750 former class members filed a new action in the Harford County Circuit Court. The new action (the “Ackerman” action) alleged the same facts and state law claims as Koch. That same day, the Koch Plaintiffs informed the judge that they planned to amend their complaint.

On November 18, 2011, the court informed the parties that it would “issue, at some point, some sort of an Order of Consolidation” that combined the two cases. J.A. 136. Ten days later, the court told counsel that it had delayed issuing the consolidation order only because it was still considering certain questions concerning the logistics of trial.

On November 29, 2011, Defendants removed Ackerman from state court under authority of the Energy Policy Act of 2005, Pub L. No. 109-58, § 1503, 119 Stat. 594, 1076 (2005), which authorizes the removal of MTBE-related claims and actions filed after August 8, 2005. On December 1, 2011, the Koch Plaintiffs then amended their state-court complaint to add all the individual plaintiffs named in Ackerman. After the Koch complaint was amended to add the Ackerman plaintiffs, the Defendants did not remove Koch or ask the state court to strike the amendment.

The same day the Koch Plaintiffs amended their state-court complaint, the Ackerman Plaintiffs filed a motion in federal court seeking to remand that case to state court, arguing that removal was time-barred and that the Defendants waived their right to remove by litigating for several years in state court. Alternatively, the Ackerman Plaintiffs requested that the district court abstain under the Colorado River doctrine, which permits federal courts, under exceptional circumstances, to refrain from exercising jurisdiction in deference to pending, parallel state proceedings. See Colorado River, 424 U.S. at 817-18, 96 S.Ct. 1236.

The district court denied the remand motion, see Ackerman v. ExxonMobil Corp., 821 F.Supp.2d 811, 814-15 (D.Md. 2012), but granted the motion to abstain. When concluding that abstention was proper, the district focused in large part on the length of time that the Koch action had been pending in state court and the progress that had been made on the case in the state system. See id. at 820. As the district court noted, the Koch case had proceeded in state court for years before the Ackerman claims were extracted and separately re-filed, and extensive discovery efforts had been conducted over the course of those years. Document discovery began in 2006, and the parties have since conducted numerous depositions, including depositions of named and proposed class representatives; served and responded to numerous interrogatories; requested and produced hundreds of thousands of pages of documents and photographs. Balancing these facts and the other relevant factors against its own duty to exercise jurisdiction, the district court ultimately concluded that “this litigation presents the rare, exceptional circumstances when wise judicial administration counsels abstention.” Id. at 821. The court therefore stayed Ackerman pending the resolution of the Koch proceedings in state court.

The Defendants now appeal, arguing that the district court erred by granting the Plaintiffs’ motion to abstain. The Plaintiffs have not cross-appealed the deni[248]*248al of the motion to remand.1

II.

“Despite what may appear to result in a duplication of judicial resources, the rule is well recognized that the pendency of an action in the state court is no bar to proceedings concerning the same matter in the Federal court having jurisdiction.” McLaughlin v. United Va. Bank, 955 F.2d 930, 934 (4th Cir.1992) (internal quotation marks and alteration omitted). “Indeed, with regard to parallel state and federal proceedings, the Supreme Court has held, over and over, as have we, that in the usual case the federal courts must hear the cases that fall within their jurisdiction.” Id.; see Colorado River, 424 U.S. at 817, 96 S.Ct. 1236 (emphasizing the “virtually unflagging obligation of the federal courts to exercise the jurisdiction given them”).

The duty to exercise jurisdiction, however, is not absolute; “federal courts may decline to exercise their jurisdiction, in otherwise exceptional circumstances, where denying a federal forum would clearly serve an important countervailing interest.” Quackenbush v. Allstate Ins. Co.,

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734 F.3d 237, 2013 WL 4008699, 2013 U.S. App. LEXIS 16336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ackerman-v-exxonmobil-corp-ca4-2013.