Alexander v. A.P. Green Industries, Inc.

44 F. Supp. 2d 368, 1999 U.S. Dist. LEXIS 4928
CourtDistrict Court, D. Maine
DecidedMarch 18, 1999
DocketLead Civil Docket No. 98-368-P-H; Nos. 2:98-369, 2:98-370, 2:98-371, 2:98-372, 2:98-373, 2:98-374, 2:98-375, 2:98-376, 2:98-377, 2:98-378
StatusPublished
Cited by2 cases

This text of 44 F. Supp. 2d 368 (Alexander v. A.P. Green Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. A.P. Green Industries, Inc., 44 F. Supp. 2d 368, 1999 U.S. Dist. LEXIS 4928 (D. Me. 1999).

Opinion

ORDER ON PLAINTIFFS’ MOTION FOR REMAND

HORNBY, Chief Judge.

The plaintiffs, all residents of Maine, have moved to remand these removed asbestos cases to state court for lack of diversity subject matter jurisdiction. The issue is whether a Maine defendant (who destroys diversity) was fraudulently joined. Because the removing defendants have not satisfied their burden of proving fraudulent joinder, the plaintiffs’ motions to remand are Granted. The plaintiffs’ motions for costs are Denied.

Facts

The plaintiffs filed state-court complaints against various manufacturers and sellers of asbestos-containing products for damages allegedly caused by exposure to > asbestos. All of the plaintiffs are Maine citizens, and in all cases, the exposure in question allegedly came from materials being used at a Maine shipyard belonging to Bath Iron Works (BIW).

All of the defendants are corporations who were manufacturers or sellers of asbestos-containing materials used at the BIW shipyard. With one exception, all of the defendants are incorporated and have their principal places of business in states other than Maine. The lone Maine defendant is a distributor, W.L. Blake & Co. (“Blake”), a Maine corporation with its principal place of business here.

The defendants removed the lawsuit to this court, premising removal jurisdiction upon diversity of citizenship. A diversity suit is removable, however, only if two conditions are met: the suit must be within the court’s original jurisdiction, see 28 U.S.C. § 1441(a), and therefore must satisfy the requirements of 28 U.S.C. § 1332, and no defendant can be a citizen of the state in which the plaintiff filed the action, see 28 U.S.C. § 1441(b). Blake’s presence in the suit defeats both conditions for removal. The defendants contend that removal is nonetheless proper, arguing that [370]*370the plaintiffs fraudulently joined Blake simply in order to defeat removal. The defendants claim that each plaintiff has no evidence of working with or near any Blake products — asbestos-containing or otherwise. See Defs.’ Notice of Removal at ¶ 2 & n. 1.

The plaintiffs moved to remand on the ground that this court lacks jurisdiction. In support of that claim, each plaintiff asserts that he or she “joined W.L. Blake as a defendant because it supplied asbestos insulation materials to Bath Iron Works in the [decade or decades] covering the period of [each relevant employee’s] employment at the shipyard.” Pis.’ Mot. to Remand at ¶ 3.

Discussion

A. Legal StaNdards Governing Claims Of Fraudulent Joinder

There is no First Circuit precedent establishing the standards for evaluating a defendant’s fraudulent-joinder challenge to the pleaded citizenship of the parties. But the First Circuit has made clear in Coventry Sewage Associates v. Dworkin Realty Co., 71 F.3d 1 (1st Cir.1995), what the standards are for dealing with a challenge to the pleaded amount in controversy, the other component of diversity jurisdiction. There, the Circuit looks to (i) whether the complaint on its face shows to a legal certainty that the claim cannot reach the jurisdictional minimum; and (ii) if the complaint asserts the jurisdictional minimum, whether evidence received on a motion to dismiss or remand shows to a legal certainty that the damages never could have met this part of the plaintiffs claim. The latter inquiry has as its “primary concern” the plaintiffs good faith, objectively viewed. Id. at 6. According to an earlier jurisdictional amount case, objective bad faith can be proven by showing that the pleader attached to known facts a significance that no reasonable person familiar with the applicable law would attach, see Jimenez Puig v. Avis Rent a Car Sys., 574 F.2d 37, 40 (1st Cir.1978) (holding that the jurisdictional amount requirement was not satisfied where the claim “could [not] objectively have been viewed as worth [the jurisdictional amount]” by “anyone familiar with the applicable law,” even though the court could not “say that [the] plaintiff acted in deliberate bad faith”).

The Coventi"y standards derive clearly and directly from Saint Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 58 S.Ct. 586, 82 L.Ed. 845 (1938), where the Supreme Court held that the plaintiffs complaint controls if it is asserted in good faith, and that mere inability to recover on the claim for the jurisdictional amount does not in itself establish the pleader’s bad faith. See id. at 288-89, 58 S.Ct. 586. Under St. Paul, an inadequate amount in controversy ousts the federal court’s jurisdiction in only two cases: (i) where it appears to a legal certainty from the face of the complaint that the plaintiff cannot recover the amount claimed, or (ii) where it appears from proofs — also to a legal certainty — that the plaintiff never was entitled to recover the amount claimed and that the claim was pretextual for the purpose of conferring federal jurisdiction. See id. at 289, 58 S.Ct. 586.

There is no reason that the standards for determining diversity jurisdiction should differ according to whether citizenship (fraudulent joinder) or jurisdictional amount is being evaluated. The policy concerns in both cases are the same. First, federal courts should rigorously enforce the mandates of the statutes that regulate their jurisdiction, both protecting the statutory right to proceed in federal court and enforcing the limits that Congress has placed on the scope of federal jurisdiction. See Wecker v. National Enameling & Stamping Co., 204 U.S. 176, 185-86, 27 S.Ct. 184, 51 L.Ed. 430 (1907) (stating that federal courts should be vigilant to protect the right to proceed in federal court); Coventry, 71 F.3d at 4 (noting that courts should rigorously enforce the limits that Congress has placed on [371]*371diversity jurisdiction). Second, “preliminary jurisdictional determinations should neither unduly delay, nor unfairly deprive a party from, determination of the controversy on the merits. As a policy matter, the ‘which court’ determination ought to be made with relative dispatch so that the parties may proceed to resolution of the dispute’s merits.” Coventry, 71 F.3d at 4 (citations omitted).

Moreover, vintage Supreme Court case-law on fraudulent joinder is consistent with the First Circuit’s approach to the jurisdictional amount. In Chesapeake & Ohio Railway Co. v. Cockrell, 232 U.S. 146, 34 S.Ct. 278, 58 L.Ed.

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44 F. Supp. 2d 368 (D. Maine, 1999)

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Bluebook (online)
44 F. Supp. 2d 368, 1999 U.S. Dist. LEXIS 4928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-ap-green-industries-inc-med-1999.