Burden v. General Dynamics Corp.

60 F.3d 213, 1995 U.S. App. LEXIS 20638, 1995 WL 428063
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 4, 1995
Docket94-10925
StatusPublished
Cited by200 cases

This text of 60 F.3d 213 (Burden v. General Dynamics Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burden v. General Dynamics Corp., 60 F.3d 213, 1995 U.S. App. LEXIS 20638, 1995 WL 428063 (5th Cir. 1995).

Opinion

WIENER, Circuit Judge:

In this employment discrimination ease, Plaintiff-Appellant Jimmy L. Burden 1 appeals from the district court’s denial of his motion for remand to the state court and from its subsequent grant of summary judgment dismissing his claim as against Homer Davis and Frank Riney who, together with their employer, General Dynamics Corporation (General Dynamics), Burden had sued for, inter alia, intentional infliction of emotional distress. Finding no reversible error in the district court’s determination that it had diversity jurisdiction because the non-diverse defendants, Davis and Riney, had been fraudulently joined, and agreeing with that court’s take-nothing summary judgment *215 dismissing Burden’s claims against Davis and Riney, we affirm.

I

FACTS AND PROCEEDINGS

Burden was hired in 1967 by the Fort Worth Division of General Dynamics. In the summer of 1992, General Dynamics informed Burden that his position with the company would be reclassified from a management position to a non-managerial personnel position. Riney, as Vice President of the Contract Estimating and Business Management Department, made the decision to reclassify Burden’s job as part of an effort to reduce the General Dynamics work force. Davis— who, as Vice President of the Estimating Department, reported directly to Riney — implemented Riney’s plan for job reclassifica-tions within the company.

Prior to the reclassification of his position, Burden served as Director of Administration and Operations. On August 3, 1992, Burden’s job was reclassified to the “staff” position of Estimating Specialist. Although he experienced a sharp decline in his job duties, Burden retained his previous pay grade, salary, and parking space. Effective December 31, 1992, the fifty-seven year-old Burden voluntarily retired from General Dynamics.

Burden, a Texas resident, originally filed suit in state court, seeking to recover damages against Riney, Davis, and General Dynamics for age discrimination in violation of the Texas Human Rights Act (the Act) and for negligent and intentional infliction of severe emotional distress. General Dynamics is incorporated in Delaware and has its principal place of business in Virginia. Riney and Davis are citizens and residents of Texas.

The defendants removed the case to district court based on complete diversity of citizenship, alleging that Riney and Davis had been fraudulently joined to defeat diversity jurisdiction. Burden filed a motion to remand the case to state court, contending that the district court lacked jurisdiction because Burden’s action did not involve claims arising under the Constitution, treaties, or laws of the United States and because complete diversity did not exist among the parties. Not surprisingly, Burden insisted that Riney and Davis were not fraudulently joined to defeat removal to federal court.

The district court denied Burden’s motion to remand the case to state court, finding on the basis of the state court pleadings, affidavits, and other evidentiary materials, that no reasonable basis existed for predicting that Burden could recover against Riney and Davis in a Texas court. The district court concluded that the joinder of Riney and Davis was fraudulent and that their presence in the action should be disregarded for removal purposes. In its ruling denying the motion to remand, the court recognized that Burden had abandoned his claims for negligent infliction of emotional distress, for which no cause of action exists in Texas. In addition, the court observed that Burden had also abandoned his claims against Riney and Davis for age discrimination in violation of the Act. Burden had not pleaded that Riney and Davis were employers for purposes of the Act and had not named Riney and Davis in the discrimination charge filed with the Texas Commission on Human Rights. The district court subsequently granted summary judgment in favor of all defendants on Burden’s claims for intentional infliction of emotional distress, and rendered a final Rule 54(b) judgment dismissing only Davis and Riney as defendants in this case. 2

II

ANALYSIS

A. STANDARD OF REVIEW

This appeal is interlocutory: Although the district court granted summary judgment to all defendants on Burden’s emotional distress claims, it entered final judgment of dismissal *216 as to Davis and Riney only. The court did not dismiss General Dynamics as a defendant in the case.

A district court’s refusal to remand an action to the state court is ordinarily not a final order and cannot be reviewed unless the court enters a final judgment. 3 The district court in the instant case, however, expressed its intent to enter a final and appealable judgment, pursuant to Rule 54(b), in favor of Riney and Davis — but not General Dynamics — in its order granting summary judgment, stating that “there is no just reason for delay in, and [the court] hereby directs, entry of final judgment as to the dismissal of plaintiffs’ claims against defendants Davis and Riney.” 4 As Burden appeals from the entry of judgment ordering that he take nothing against Riney and Davis and dismissing his claims against them, we review the denial of the motion to remand and the grant of summary judgment as to Riney and Davis only.

Our review of the district court’s decision to deny the motion to remand to state court is de novo, as it is a question of law. In determining the validity of a claim of fraudulent joinder, the district court “must evaluate all of the factual allegations in the light most favorable to the plaintiff, resolving all contested issues of substantive fact in favor of the plaintiff.” 5 The court must also resolve all ambiguities in the controlling state law in the plaintiffs favor. 6 If the plaintiff has any possibility of recovery under state law against the party whose joinder is questioned, then the joinder is not fraudulent in fact, or law. 7 We do not determine whether the plaintiff will actually or even probably prevail on the merits of the claim, but look only for a possibility that the plaintiff might do so. 8

In reviewing a grant of summary judgment, we apply the same standards as those that govern the district court in its determination. 9 Summary judgment must be granted if the court, viewing the facts and inference's in the light most favorable to the non-moving party, determines that “there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” 10 The moving party must demonstrate by competent evidence that no issue of material fact exists. 11

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Bluebook (online)
60 F.3d 213, 1995 U.S. App. LEXIS 20638, 1995 WL 428063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burden-v-general-dynamics-corp-ca5-1995.