Atlantic Coast Marine Group, Inc. v. Willis

210 F. Supp. 3d 807, 2016 A.M.C. 2684, 2016 WL 5408113, 2016 U.S. Dist. LEXIS 132916
CourtDistrict Court, E.D. North Carolina
DecidedSeptember 28, 2016
DocketNO. 4:16-CV-182-FL
StatusPublished
Cited by1 cases

This text of 210 F. Supp. 3d 807 (Atlantic Coast Marine Group, Inc. v. Willis) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Coast Marine Group, Inc. v. Willis, 210 F. Supp. 3d 807, 2016 A.M.C. 2684, 2016 WL 5408113, 2016 U.S. Dist. LEXIS 132916 (E.D.N.C. 2016).

Opinion

ORDER

Louise W. Flanagan, United States District Judge

This matter is before the court on plaintiffs’ motion to remand this action to the Superior Court of Carteret County, North Carolina pursuant to 28 U.S.C. § 1447(c). (DE 22). The issues raised have been briefed fully and, in this posture, are ripe for ruling. For the reasons that follow, plaintiffs’ motion to remand is granted.

[809]*809BACKGROUND

Plaintiffs and defendants are citizens of North Carolina, and each is engaged in the business of boat towing and marine salvage. (Def.’s Br., DE 26, 2). On July 28, 2015, plaintiffs filed a complaint in the Superior Court for Carteret County, North Carolina alleging that defendants engaged in acts of defamation when defendants expressed negative opinions about plaintiffs’ competency and experience on an internet boating forum and on a radio station that boaters use for maritime purposes. (Compl., DE 1 Ex. A, 2-6). On May 31, 2016, plaintiffs filed an amended complaint adding two defendants an additional claim for relief. (Am. Compl., DE 1 Ex. H, 1-6). On June 28, 2016, defendants filed with this court a notice of removal pursuant to 28 U.S.C. § 1441 based upon admiralty jurisdiction. (DE 1). On July 20, 2016, plaintiffs filed the instant motion to remand (DE 22). In support of remand, plaintiffs argue that the “saving-to-suitors” clause of 28 U.S.C. § 1333(1) entitles plaintiffs to have their case heard in state court, or, in the alternative, that plaintiffs’ defamation claims are not within the scope of federal admiralty jurisdiction.

COURT’S DISCUSSION

A. Removal and Remand

A civil action which is brought in state court, but over which federal courts have original jurisdiction, may be removed by a defendant to the federal district court embracing the place where the action is pending. 28 U.S.C. § 1441(a). “Because removal jurisdiction raises significant federalism concerns, [federal courts] must strictly construe removal jurisdiction. If federal jurisdiction is doubtful, a remand is necessary.” Mulcahey v. Columbia Organic Chems. Co., 29 F.3d 148, 151 (4th Cir. 1994) (internal citations omitted). This presumption against removal jurisdiction places the “burden of establishing federal jurisdiction ... upon the party seeking removal.” Id.

28 U.S.C. § 1333 confers original jurisdiction upon the federal district courts to adjudicate admiralty and maritime cases. It provides:

The district courts shall have original jurisdiction, exclusive of the courts of the States, of:
(1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are entitled.

28 U.S.C. 1331(1). In this manner, the “saving-to-suitors” clause of § 1333(1) preserves a plaintiff’s right to a common law remedy “in all cases where the common law is competent to give it.” Leon v. Galceran, 78 U.S. 185, 11 Wall. 185, 191, 20 L.Ed. 74 (1870); see In re Lockheed Martin Corp., 503 F.3d 351, 354 (4th Cir. 2007). The common law is “competent” in admiralty cases proceeding in personam but not those proceeding in rem. Madruga v. Superior Court of California, 346 U.S. 556, 560-61, 74 S.Ct. 298, 98 L.Ed. 290 (1954). Thus, “while federal courts have exclusive jurisdiction over in rem actions, federal and state courts have concurrent jurisdiction over in personam actions, and the effect of the [saving-to-suitors] clause is to give an in personam plaintiff the choice of proceeding in an ordinary civil action, rather than bring a libel in admiralty.” Lockheed at 354,. Accordingly, the saving-to-suitors clause gives a maritime plaintiff the option to pursue in personam claims in federal court as maritime claims, in state court as legal claims, or in federal court as legal claims if an independent basis for federal court jurisdiction exists. Id. at 356.

The general removal' statute, 28 U.S.C. § 1441(a), states:

“Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the [810]*810district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.”

(emphasis added). The saving-to-suitors clause constitutes an express limitation on defendants’ statutory right of removal under § 1441. Compare 28 U.S.C. § 1331 (“The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States), with 28 U.S.C. § 1333 (“The district courts shall have original jurisdiction, exclusive of the States, of: (1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.”) (emphasis added); see A.E.A. ex rel. Angelopoulos v. Volvo Penta of the Americas, 77 F.Supp.3d 481, 491 (E.D.V.A. 2015) (holding that that the saving-to-suitors clause bars removal under the current version of § 1441); see also Romero v. International Terminal Operating Co., 358 U.S. 354, 370-71, 79 S.Ct. 468, 3 L.Ed.2d 368 (1959) (holding that the saving-to-suitors clause preserves “the historic option of a maritime suitor pursuing a common-law remedy to select his forum, state or federal ... ”). Thus, where a plaintiff has chosen to file an in personam action in state court, the saving-to-suitors clause prevents removal of the matter to federal court.

Defendants argue that Congress abrogated the traditional rule prohibiting removal of savings clause actions when it amended the general removal statute, 28 U.S.C. § 1441, in 2011. (Pl.’s Br„ DE 26, 14). Before Congress passed the Federal Courts Jurisdiction and Venue Clarification Act of 2011, the general removal statute stated the following:

Any civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties.

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210 F. Supp. 3d 807, 2016 A.M.C. 2684, 2016 WL 5408113, 2016 U.S. Dist. LEXIS 132916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-coast-marine-group-inc-v-willis-nced-2016.