BJB CO. v. Comp Air Leroi

148 F. Supp. 2d 751, 2001 U.S. Dist. LEXIS 8336, 2001 WL 690447
CourtDistrict Court, N.D. Texas
DecidedJune 14, 2001
Docket7:01-cv-00122
StatusPublished
Cited by4 cases

This text of 148 F. Supp. 2d 751 (BJB CO. v. Comp Air Leroi) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BJB CO. v. Comp Air Leroi, 148 F. Supp. 2d 751, 2001 U.S. Dist. LEXIS 8336, 2001 WL 690447 (N.D. Tex. 2001).

Opinion

*752 ORDER

CUMMINGS, District Judge.

On this day the Court considered Plaintiff, BJB Company’s Motion to Remand, filed May 18, 2001. Third-Party Defendant Silvan Industries, Inc. filed a Memorandum in Opposition to Plaintiffs Motion to Remand on June 7, 2001. After consideration of the relevant argument and evidence, the Court GRANTS Plaintiffs Motion to Remand.

I.

Background

The instant action was filed on June 29, 2000, by Plaintiff against Defendant, Comp Air Leroi, in the 106th District Court of Garza County, Texas. Almost one year later, on March 14, 2001, Defendant filed a Third-Party Petition in the 106th District Court in and for Garza County, Texas, against Third-Party Defendant, Silvan Industries, Inc. (“Silvan”), alleging that Silvan was liable to Defendant/Third-Party Plaintiff for indemnification against Plaintiffs claims. On March 23, 2001, Defendant/Third-Party Plaintiff filed an Amended Third-Party Petition alleging additional indemnity claims against Third-Party Defendants Techne International, Techne International, Inc., and Techne International, Ltd. Subsequently, Silvan filed a Notice of Removal on April 19, 2001, removing the action to this Court, alleging diversity of citizenship under 28 U.S.C. § 1332. Thereafter Plaintiff filed the instant Motion to Remand.

II.

Discussion

The Court finds the removal of the instant action to be improvident and unauthorized under either 28 U.S.C. § 1441(a) or (c).

A. 28 U.S.C. § 1441(a)

28 U.S.C. § 1441(a) provides that:

Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district 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. For purposes of removal under this chapter, the citizenship of defendants sued under fictitious names shall be disregarded.

The question thus arises whether third-party defendants may be considered “defendants” within the meaning of § 1441(a). For guidance on this issue, courts have turned to the Supreme Court’s instructive opinion in Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 61 S.Ct. 868, 85 L.Ed. 1214 (1941). There, the Court concluded the counter-defendant/plaintiff was not a “defendant” under § 1441(a) and instructed courts to construe § 1441 strictly. Id. at 108-09, 61 S.Ct. 868.

While circuit courts have not directly addressed the issue of whether § 1441(a) permits removal by third-party defendants, district courts throughout the country have, in relative unison, determined that third-party defendants are not defendants within the meaning of § 1441(a), often citing to the Supreme Court’s admonition in Shamrock to strictly construe § 1441. See Johnston v. St. Paul Fire & Marine Ins. Co., 134 F.Supp.2d 879, 880 (E.D.Mich.2001); Sturman v. Rush-Presbyterian-St. Luke’s Med. Ctr., 128 F.Supp.2d 1141, 1142 (N.D.Ill.2001); Estate of Pilsnik v. Hudler, 118 F.Supp.2d 905 (E.D.Wis.2000); Brookover Fin. Servs., Inc. v. Beckley, 56 F.Supp.2d 782, 787 (W.D.Ky.1999); Galen-Med, Inc. v. Owens, 41 F.Supp.2d 611, 614 (W.D.Va. *753 1999); Loyola Med. Prac. Plan v. Tromiczak, 10 F.Supp.2d 943, 943-44 (N.D.Ill.1998); Wormley v. S. Pac. Transp. Co., 863 F.Supp. 382, 386 (E.D.Tex.1994); Starr v. Prairie Harbor Dev. Co., Inc., 900 F.Supp. 230, 232 (E.D.Wis.1995); Kaye Assocs. v. Bd. of Chosen Freeholders— Cnty. of Gloucester, 757 F.Supp. 486, 487-90 (D.N.J.1991); Easton Fin. Corp. v. Allen, 846 F.Supp. 652, 653-54 (N.D.Ill.1994); Hayduk v. United Parcel Serv., Inc., 930 F.Supp. 584 (S.D.Fla.1996); Jefferson v. Cardoza, 139 F.R.D. 561 (D.Mass.1991); Schmidt v. Ass’n of Apt. Owners of Marco Polo Condo., 780 F.Supp. 699 (D.Hawai’i 1991); Univ. of Chi. Hosp. & Med. Ctr. v. Rivers, 701 F.Supp. 647 (N.D.Ill.1988); Elsis v. Hertz Corp., 581 F.Supp. 604 (E.D.N.Y.1984); Share v. Sears, Roebuck & Co., 550 F.Supp. 1107 (E.D.Pa.1982); Knight v. Hellenic Lines, Ltd., 543 F.Supp. 915 (E.D.N.Y.1982); Friddle v. Hardee’s Food Sys., Inc., 534 F.Supp. 148 (W.D.Ark.1981); Fiblenski v. Hirschback Motor Lines, Inc., 304 F.Supp. 283 (E.D.Ark.1969); White v. Baltic Conveyor Co., 209 F.Supp. 716 (D.N.J.1962). This view is further supported by Moore’s Federal Practice. 16 § 107.11[1][b][iv] (3d ed.1997).

The logic in denying third-party defendants an opportunity to remove an action from state court was aptly stated in Lowe’s of Montgomery, Inc. v. Smith, 432 F.Supp. 1008, 1012 (M.D.Ala.1977). Allowing removal by a third-party defendant brings into a federal court a suit between the original parties which has no independent basis for federal jurisdiction. This is an unwarranted extension of the federal judicial power. Id. Thus, permitting third party removal allows a party unconnected with the original action to force the plaintiff into the federal forum despite any possible efforts to plead out of federal court.

Silvan cites to Central of Georgia Railway Co. v. Riegel Textile Corp., 426 F.2d 935 (5th Cir.1970), to support its proposition that removal is proper under § 1441(a). The Court, however, finds Rie-gel distinguishable from the instant action. In Riegel, the Fifth Circuit considered whether a third-party defendant to an action in which the third-party complaint was severed from the original action could properly remove the third-party action to federal court. Id. at 936. In that limited instance, the Fifth Circuit determined that removal was proper because the defendant in the severed action was “as much a defendant as if an original action had been brought against him.” Id. at 938.

The Court agrees that under the limited circumstances of Riegel, a third-party defendant has a right of removal. However, as stated above, Riegel is different from the instant action. In the instant action the third-party claim has not been severed from the original plaintiffs claims. Therefore, the Court finds Riegel

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148 F. Supp. 2d 751, 2001 U.S. Dist. LEXIS 8336, 2001 WL 690447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bjb-co-v-comp-air-leroi-txnd-2001.