Banks v. Housing Authority

32 F. Supp. 3d 1296, 2014 WL 3439165, 2014 U.S. Dist. LEXIS 98209
CourtDistrict Court, N.D. Georgia
DecidedJuly 9, 2014
DocketCivil Action No. 1:14-CV-1281-AT
StatusPublished

This text of 32 F. Supp. 3d 1296 (Banks v. Housing Authority) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banks v. Housing Authority, 32 F. Supp. 3d 1296, 2014 WL 3439165, 2014 U.S. Dist. LEXIS 98209 (N.D. Ga. 2014).

Opinion

ORDER

AMY TOTENBERG, District Judge.

This case is before the Court on Plaintiffs’ Motion to Remand [Doc. 7]. For the reasons set forth below, the Court GRANTS Plaintiffs’ Motion.

I. BACKGROUND

Plaintiffs filed this action in the Superior Court of DeKalb County, Georgia on April 3, 2014. (See Doc. 1-1 at 3-13, Compl.) Plaintiffs are low-income residents of De-Kalb County and are participants in the Housing Choice Voucher Program pursuant to Section 8 of the U.S. Housing Act of 1937, 42 U.S.C. § 1437f. (Compl. ¶1.) Plaintiffs allege that they were wrongfully terminated from the Section 8 Program by Defendant Housing Authority of DeKalb County without a fair hearing in violation of the Housing Act and both the United States and Georgia Constitutions. (Id. ¶ 2.)

Along with their Complaint, Plaintiffs also filed a Motion for Temporary Restraining Order and Interlocutory Injunction on April 3, 2014. (See Doc. 1-1 at 34-49, Mot., for TRO.) On April 4, 2014, the Superior Court granted Plaintiffs’ Motion for TRO, reinstating Plaintiffs’ Section 8 Housing Choice Voucher assistance for a period of 30 days and set the case down for a follow-up hearing on April 21, 2014. (See Doc. 1-2, Order.)

On the morning of the scheduled hearing on April 21, 2014, Defendants filed their Verified Answer and Affirmative Defenses. (See Doc. 1-3, Answer.) According to Plaintiffs’ motion, the April 21 hearing on Plaintiffs’ request for an interlocutory injunction was a full day eviden-tiary hearing. (Johnson Aff. ¶¶ 12-23.) Each of the Plaintiffs testified and were thoroughly .cross-examined by Defendants. (Id. ¶¶ 16, 19.) Rather than present their own affirmative evidence in opposition to the injunction, Defendants made a motion to dismiss pursuant to O.C.G.A. § 9-11-41, and presented legal argument that Plaintiffs had failed to show that they were entitled to relief. (Id. ¶ 21.) At the conclusion of the hearing, the Superior Court denied the Defendants’ motion to dismiss and ruled that the terms of the TRO/interlocutory injunction would be continued pending final trial in the action. (Id. ¶23.) The Superior Court entered a written order on April 25, 2014. (See Doc. 7-2, Order.)

Defendants filed their Notice of Removal in this Court on April 29, 2014. (See Doc. 1.) Plaintiffs timely moved to remand this matter back to the Superior Court on May 29, 2014, arguing that Defendants waived their right to remove the case to federal court.

II. DISCUSSION

In order to remand an action to state court, a plaintiff must identify a defect in the defendant’s removal. “One such defect, commonly referred to as litigating on the merits, effectively waives the defendant’s right to remove a state court action to federal court.” Yusefzadeh v. Nelson, Mullins, Riley & Scarborough, LLP, 365 F.3d 1244, 1246 (11th Cir.2004); see also Fain v. Biltmore Sec., Inc., 166 F.R.D. 39, 40 (M.D.Ala.1996) (stating “the right to remove a case to federal court [1298]*1298may be waived by acts taken in the state court, subsequent to the creation of the right to remove, that indicate the defendant has invoked the jurisdiction of the state court”). The Eleventh Circuit noted:

“A state court defendant may lose or waive the right to remove a case to a federal court by taking some substantial offensive or defensive action in the state court action indicating a willingness to litigate in that tribunal before filing a notice of removal with the federal court ... [wjaiver will not occur, however, when the defendant’s participation in the state action has not been substantial or was dictated by the rules of that court....”

Yusefzadeh, 365 F.3d at 1246 (quoting Charles A. Wright, et. al., 14B Federal Practice & Procedure § 3721 (2003)).

Whether the state court defendant has waived his right to remove based on “active participation must be made on a case-by-case basis.” Id. (citing Hill v. State Farm Mutual Automobile Ins. Co., 72 F.Supp.2d 1353, 1354 (M.D.Fla.1999)). Two factors that may guide the court’s determination of whether a defendant has waived the right to remove a case to federal court are: “1) whether the actions taken by the Defendants in the state court were for the purpose of preserving the status quo, or did they manifest an intent to litigate on the merits in state court and 2) whether the removal can be characterized as an appeal from an adverse judgment of the state court.” Fain, 166 F.R.D. at 40-41 (citing Bolivar Sand Co. v. Allied Equipment, Inc., 631 F.Supp. 171, 173 (W.D.Tenn.1986), Scholz v. RDV Sports, Inc., 821 F.Supp. 1469 (M.D.Fla.1993), and In re 73rd Precinct Station House in Borough of Brooklyn, City of New York, 329 F.Supp. 1175 (D.C.N.Y.1971)). In support of the first factor, “actions that may result in a disposition on the merits of the state court action, in whole or in part,” are sufficient to evidence the requisite intent to litigate on the merits. Bolivar Sand Co., 631 F.Supp. at 173. As to the second factor, courts have found that “if a potentially dispositive motion, such as a motion to dismiss, is made and argued by the defendant, the state court’s adverse decision cannot be ‘appealed’ to [federal] Court by way of removal.” Fain, 166 F.R.D. at 42; Bolivar Sand Co., 631 F.Supp. at 173; see also Heery Intern., Inc. v. DeKalb County School Dist., Ga., 1:10-cv-3835-RWS, 2011 WL 336856, *2 (N.D.Ga. Jan. 31, 2011) (noting in remand order that defendant who waited until after the state court expressed its intent to grant plaintiffs’ requested relief before seeking removal was “in effect [ ] attempting in [federal] Court to have a second bite at the apple [and] to escape the intended ruling of the Superior Court”).

In Yusefzadeh, the Eleventh Circuit reversed a district court’s sua sponte remand, finding that the Defendant’s single act of filing a motion to dismiss in state court prior to removal, as required by state law, did not result in a waiver of its right to remove to federal court.1 Id. at 1246-1247. The Court reasoned that it could not find that the defendant “took substantial offensive or defensive actions [1299]*1299in state court” by filing a responsive brief in state court and then seeking removal to federal court where the defendant “did not schedule a hearing on [its] motions to dismiss prior to seeking removal and the state court had not ruled on [the] motions to dismiss prior to [defendant] removing the case.” Id. at 1247. Under those circumstances, the Eleventh Circuit found that a defendant had not waived its right to remove the action to federal court. Id.

Plaintiffs assert that during the 30 day period following the filing of Plaintiffs’ Complaint during which Defendants had to exercise their right of removal under 28 U.S.C. § 1447

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Related

Yusefzadeh v. Nelson, Mullins, Riley & Scarborough, LLP
365 F.3d 1244 (Eleventh Circuit, 2004)
Scholz v. RDV Sports, Inc.
821 F. Supp. 1469 (M.D. Florida, 1993)
Bolivar Sand Co., Inc. v. Allied Equipment, Inc.
631 F. Supp. 171 (W.D. Tennessee, 1986)
Hill v. State Farm Mutual Automobile Insurance
72 F. Supp. 2d 1353 (M.D. Florida, 1999)
In Re 73rd Precinct Station House, Borough of Brooklyn
329 F. Supp. 1175 (E.D. New York, 1971)
Fain v. Biltmore Securities, Inc.
166 F.R.D. 39 (M.D. Alabama, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
32 F. Supp. 3d 1296, 2014 WL 3439165, 2014 U.S. Dist. LEXIS 98209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banks-v-housing-authority-gand-2014.