Boyd v. Diebold, Inc.

97 F.R.D. 720, 36 Fed. R. Serv. 2d 651, 1983 U.S. Dist. LEXIS 17298
CourtDistrict Court, E.D. Michigan
DecidedApril 29, 1983
DocketCiv. No. 82-71871
StatusPublished
Cited by11 cases

This text of 97 F.R.D. 720 (Boyd v. Diebold, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyd v. Diebold, Inc., 97 F.R.D. 720, 36 Fed. R. Serv. 2d 651, 1983 U.S. Dist. LEXIS 17298 (E.D. Mich. 1983).

Opinion

MEMORANDUM OPINION

RALPH M. FREEMAN, Senior District Judge.

This matter is before the Court on plaintiff’s motion to amend his complaint and motion to remand. Plaintiff alleges that he was injured while employed as a security officer at Detroit Bank and Trust when a steel vault door closed on him. He also alleges that defendant Diebold, Inc. sold, installed, and contracted to maintain the vault door. The complaint asserts claims against Diebold for negligence, breaches of express and implied warranties, and strict liability in tort. The action was originally filed in Wayne County Circuit Court on April 27, 1982, but was removed to this Court by Diebold on May 20, 1982. The petition for removal alleges that there is diversity of citizenship because plaintiff is a citizen of Michigan and Diebold is a citizen of Ohio.

Plaintiff moves to amend his complaint pursuant to Rules 15 and 20 to add Robert Golightly as a defendant. The proposed amended complaint alleges that Golightly was the regional service manager for Die-bold and asserts claims against him for negligent supervision of the servicemen working under his control. It also alleges that Golightly is a citizen of Michigan. Plaintiff asserts that he learned about Golightly’s role during Golightly’s deposition taken on February 2, 1983.

Plaintiff’s motion to remand is conditioned upon the granting of his motion to amend. If Golightly is added as a defendant, plaintiff contends that this Court will lack subject matter jurisdiction because both plaintiff and Golightly are citizens of Michigan.

These two motions raise the issue of whether plaintiff may amend his complaint after removal to add a defendant whose citizenship destroys the diversity jurisdiction of this Court which existed at the time of removal. Whether an action has been properly removed under 28 U.S.C. § 1447(b) is determined as of the time of removal and the time of the commencement of the action. See, e.g., Holloway v. Pacific Indemnity Co., 422 F.Supp. 1036 (E.D.Mich. 1976) . 1A Moore’s Federal Practice ¶ 0.157[12]. In this case, plaintiff does not contend that the removal of the action was improper or that the Court lacked diversity jurisdiction at the time of removal. Once an action has been properly removed, however, plaintiff may not do anything to defeat federal jurisdiction and force a remand to state court. St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 58 S.Ct. 586, 82 L.Ed. 845 (1938); Comstock v. Morgan, 165 F.Supp. 798 (D.Mo.1958). Some courts have indicated that this principle prevents a plaintiff from amending his complaint after removal to add non-diverse defendants. See, e.g., Skinner v. American Oil Co., 470 F.Supp. 229 (S.D.Iowa 1979); Perimeter Lighting, Inc. v. Karlton, 456 F.Supp. 355 (N.D.Ga.1978); Nash v. Hall, 436 F.Supp. 633 (W.D.Okl.1977); Barrett v. McDonald’s of Oklahoma City, 419 F.Supp. 792 (W.D.Okl.1976). Other courts, though, have indicated that plaintiff may amend his complaint to add non-diverse defendants who are indispensable or necessary parties to the action under Rule 19. In such cases the action is remanded to state court. See, e.g., Stanhope v. Ford Motor Credit Co., Inc., 483 F.Supp. 275 (W.D.Ark.1980); South Panola Consolidated School District v. O’Bryan, 434 F.Supp. 750 (N.D.Miss. 1977) . Cf. Harper Financial Corp. v. Hanson Oil Corp., 403 F.Supp. 1405 (W.D.Tenn. 1975) (amendment adding non-diverse parties changed nature of the action).

At the hearing on the motions on March 21, 1983, the Court requested that each party file a supplemental brief on the issue of whether Golightly is a necessary or indispensable party to this action under Rule 19. Plaintiff argues in its brief that Golightly is a necessary party under Rule 19(a)(1) because plaintiff cannot obtain complete relief in Golightly’s absence. Diebold concedes that Golightly is a proper party, but asserts [722]*722that he is neither a necessary nor indispensable party because plaintiff can obtain complete relief in his absence. Diebold contends that it would be liable for any negligence of Golightly because such negligence would necessarily arise out of acts performed by Golightly within the scope of his employment. It further argues that persons who are jointly and severally liable for an injury are not regarded as necessary or indispensable parties.

The Court concludes that Golightly is neither a necessary nor indispensable party, but is merely a proper party. Plaintiff’s argument that complete relief cannot be obtained in Golightly’s absence misconstrues Rule 19(a)(1), which refers to relief as between the persons already parties and not relief between a party and the absent party whose joinder is sought. See 3A Moore’s Federal Practice ¶ 19.07-1[1]. The Court finds that complete resolution of the dispute between plaintiff and Diebold does not require the joinder of Golightly. See United States v. Arlington, 669 F.2d 925, 929 (4th Cir.1982). Furthermore, it is clear that persons whose liability is joint and several are not indispensable or necessary parties to an action against one of them merely because of the joint and several liability. See, e.g, Herpich v. Wallace, 430 F.2d 792 (5th Cir.1970); Letmate v. Baltimore & Ohio Ry. Co., 311 F.Supp. 1059 (D.Md.1970); Debbis v. Hertz Corp., 269 F.Supp. 671 (D.Md.1967); 3A Moore’s Federal Practice ¶19.07[1].

Since the Court has determined that Go-lightly is merely a proper party to this action, the specific issue raised by these motions is whether plaintiff may amend his complaint after removal to add a defendant who is merely a proper party and whose citizenship destroys the diversity jurisdiction of this Court which existed at the time of removal. Plaintiff contends that the amendment should be allowed under Rule 15, which relates to amended pleadings, and Rule 20, which relates to permissive joinder of parties. There is conflicting authority on this issue. In In re Merrimack Mutual Fire Insurance Co., 587 F.2d 642 (5th Cir. 1979), the Fifth Circuit ruled that a district court lacks discretion to allow the joinder of non-indispensable parties whose joinder after removal would destroy diversity. Id. at 647 n. 8. This ruling was based on a broad interpretation of Thermtron Products, Inc. v. Hermansdorfer, 423 U.S. 336, 96 S.Ct. 584, 46 L.Ed.2d 542 (1976), a case in which the Supreme Court held that a district court’s order to remand because of its calendar congestion did not state a reason falling within the exclusive grounds for remand stated in 28 U.S.C. § 1447(c). Although the Fifth Circuit conceded that the district court could remand after allowing the addition of indispensable non-diverse parties, it extended the Thermatron case to prohibit the district court from exercising its discretion under Rule 20 to permit the addition after removal of a non-diverse defendant who is not indispensable.

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Bluebook (online)
97 F.R.D. 720, 36 Fed. R. Serv. 2d 651, 1983 U.S. Dist. LEXIS 17298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyd-v-diebold-inc-mied-1983.