Beard v. Lehman Bros. Holdings, Inc.

458 F. Supp. 2d 1314, 2006 U.S. Dist. LEXIS 66996, 2006 WL 2661170
CourtDistrict Court, M.D. Alabama
DecidedSeptember 15, 2006
DocketCivil Action 2:06-CV-653-WHA
StatusPublished
Cited by12 cases

This text of 458 F. Supp. 2d 1314 (Beard v. Lehman Bros. Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beard v. Lehman Bros. Holdings, Inc., 458 F. Supp. 2d 1314, 2006 U.S. Dist. LEXIS 66996, 2006 WL 2661170 (M.D. Ala. 2006).

Opinion

MEMORANDUM OPINION

ALBRITTON, Senior District Judge.

I. INTRODUCTION

This cause is before the court on a Motion to Remand (Doc. # 11), filed by the Plaintiff, Ben F. Beard. The Plaintiff originally filed a Complaint in this case in the Circuit Court of Pike County, Alabama on June 21, 2006. The Plaintiff asserts the following claims: fraudulent misrepresentation (Counts One and Five), suppression of material facts (Count Two), deceit (Count Three), fraudulent deceit (Count Four), and civil conspiracy (Count Six).

Michael E. Jones, the attorney for Defendants Lehman Brothers Holdings, Inc. d/b/a Lehman Capital, Peter R. Kern, Oak Asset Management, LLC, and Midland Loan Services, Inc., signed a Notice of Removal as such attorney and filed it on July 21, 2006, removing the case to this court. The Notice of Removal also contained signatures of Terry L. Butts, co-counsel for the aforementioned defendants, and David B. Anderson, counsel for Defendants Jolly Roger, LLC, Jolly Roger I, Inc., Capital Seven Recovery, LLC, Peter Fahey, and Larry W. Carlson, such signatures being in their names but shown as signed “by LF.” While the Defendants allege that Butts and Anderson had authorized their signatures upon the Notice of Removal, it is undisputed that these signatures were not authentic, but were signed by Jones’s assistant.

For reasons to be discussed, the Motion to Remand is due to be GRANTED.

II. MOTION TO REMAND STANDARD

Federal courts are courts of limited jurisdiction. See Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994); Burns v. Windsor Insurance Co., 31 F.3d 1092, 1095 (1994); Wymbs v. Republican State Executive Committee, 719 F.2d 1072, 1076 (11th Cir.1983), cert. denied, 465 U.S. 1103, 104 S.Ct. 1600, 80 L.Ed.2d 131 (1984). As such, federal courts only have the power to hear cases that they have been authorized *1317 to hear by the Constitution or the Congress of the United States. See Kokkonen, 511 U.S. at 377, 114 S.Ct. 1673. Because federal court jurisdiction is limited, the Eleventh Circuit favors remand of removed cases where federal jurisdiction is not absolutely clear. See Burns, 31 F.3d at 1095.

III. FACTS

The facts, as they pertain to the Motion to Remand, are as follows:

On July 21, 2006, a Notice of Removal was filed, allegedly on behalf of all Defendants, removing the present case to this court. The Notice of Removal indicated the appearance of Terry L. Butts and Michael E. Jones as “Attorneys for Defendants Lehman Brothers Holdings, Inc. d/b/a Lehman Capital, Midland Loan Services, Inc., Peter R. Kern, and Oak Asset Management, LLC,” as well as David B. Anderson, Ryan K. Cochran and Deanna Weidner, as “Attorneys for Capital Seven Recovery, LLC, Jolly Roger I, Inc. n/k/a Jolly Roger, LLC, Peter Fahey, and Larry Carlson.” This Notice of Removal bears the signature of Michael E. Jones; the signatures of Terry L. Butts and David B. Anderson, however, were written by a third party identified only as “LF” (subsequently identified as Leesa Fleming, an assistant to Michael E. Jones).

On August 8, 2006, a Notice of Correction was filed by Debra P. Hackett, Clerk of the United States District Court, Middle District of Alabama. This Notice of Correction advised the parties that the Notice of Removal filed on July 21, 2006 contained improper signatures, as a third party is not allowed to sign another’s name. The Notice of Correction also referenced an amended Notice of Removal filed on August 8, 2006, bearing the legitimate signatures of all three defense attorneys, Terry L. Butts, Michael E. Jones, and David B. Anderson. This amended Notice of Removal was filed approximately forty-seven (47) days after the service of the complaint on the first-served defendants, Lehman Brothers Holdings, Inc. d/b/a Lehman Capital and Midland Loan Services, Inc., on June 22, 2006.

IV. DISCUSSION

Title 28 U.S.C. Section 1446 governs the procedure for removal of cases from state to federal court. Defendants must file a Notice of Removal, signed pursuant to Rule 11 of the Federal Rules of Civil Procedure and containing the grounds for removal, together with a copy of all process, pleadings and orders served upon such defendants, in the district court of the United States for the district and division within which such action is pending. See 28 U.S.C. § 1446(a). The removal statute further mandates that, where the case stated by the initial pleading is removable:

The notice of removal of a civil action or proceeding shall be filed within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based, or within thirty days after the service of the summons upon the defendant if such initial pleading has then been filed in court and is not required to be served on the defendant, whichever period is shorter.

28 U.S.C. § 1446(b).

This court previously has noted that “[a] court must strictly construe the requirements of the removal statute, as removal constitutes an infringement on state sovereignty.” Newman v. Spectrum Stores, Inc., 109 F.Supp.2d 1342, 1345 (M.D.Ala.2000); see also York v. Horizon Fed. Sav. & Loan Ass’n, 712 F.Supp. 85, 87 (E.D.La.1989); Adams v. Aero Servs. Int’l, Inc., 657 F.Supp. 519, 521 (E.D.Va. 1987). Furthermore, “[f|ailure to comply *1318 with the requirements of the removal statute generally constitutes adequate grounds for remand.” Newman, 109 F.Supp.2d at 1345; see also Adams, 657 F.Supp. at 521. Where a plaintiff challenges the suitability of a defendant’s removal petition, the burden of confirming that removal was proper falls upon the defendant. Newman, 109 F.Supp.2d at 1345; see also Kisor v. Collins, 338 F.Supp.2d 1279, 1281 (N.D.Ala.2004) (“Statutes that limit federal jurisdiction are always strictly construed against the removing party, and there is no shame in a plaintiffs insistence on full and complete compliance with them by a defendant who wants to flee to federal court.”).

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458 F. Supp. 2d 1314, 2006 U.S. Dist. LEXIS 66996, 2006 WL 2661170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beard-v-lehman-bros-holdings-inc-almd-2006.