Byes v. Chrysler Corporation

CourtDistrict Court, E.D. Louisiana
DecidedOctober 30, 2021
Docket2:17-cv-00427
StatusUnknown

This text of Byes v. Chrysler Corporation (Byes v. Chrysler Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Byes v. Chrysler Corporation, (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

CLARA BYES CIVIL ACTION

VERSUS NO. 17-427

CHRYSLER CORPORATION, et al. SECTION: AG@(5)

ORDER AND REASONS

In this litigation, Plaintiff Clara Byes (“Plaintiff”) alleges that she was injured after her vehicle suddenly accelerated uncontrollably and her airbag failed to deploy when she hit a tree.1 On September 30, 2016, Plaintiff filed a Petition in the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana, against Defendants Chrysler Corporation (“Chrysler”) and Takata Corporation (“Takata”), as manufacturers of the allegedly defective and unreasonably dangerous vehicle and airbag.2 On November 30, 2016, Plaintiff filed an Amended Petition naming as Defendants: FCA US LLC (“FCA”), the corporate parent for Chrysler; TK Holdings, Inc. (“TK Holdings”), the corporate parent for Takata; and Ray Brandt Dodge, Inc. d/b/a Ray Brandt Dodge Chrysler Jeep (“Ray Brandt”), the automobile dealership which allegedly sold the Chrysler 300C vehicle to Plaintiff.3 Pending before the Court are two Motions to Remand by Plaintiff.4 Plaintiff’s first “Motion to Remand” was filed on February 13, 2017.5 Before the Court ruled on the first Motion, on June

1 Rec. Doc. 1-2 at 1. 2 Id. 3 Id. at 19. 4 Rec. Docs. 13, 33. 5 Rec. Doc. 13. 26, 2017, Defendant TK Holdings, Inc. filed a Notice of Bankruptcy and a Notice of Automatic Stay pursuant to Section 362(a) of the Bankruptcy Code.6 On August 14, 2017, before ruling on Plaintiff’s first Motion to Remand, this Court administratively stayed the case pending resolution of TK Holdings’ bankruptcy proceedings. In the Court’s Order staying the case, the Court

instructed the parties to file a motion to reopen the case and lift the stay in the event circumstances change.7 Rather than file a motion to reopen the case and lift the stay, on May 3, 2021, Plaintiff filed a second “Motion to Remand.”8 In the her second Motion, Plaintiff represents that the bankruptcy proceedings have ended.9 Defendant FCA filed its opposition to Plaintiff’s second Motion to Remand on June 22, 2021.10 Accordingly, the Court will construe this Motion as Plaintiff’s request to reopen the case and lift the stay. Having considered the motions, the memoranda in support and in opposition, the record, and the applicable law, the Court reopens the case, lifts the stay, grants Plaintiff’s first Motion to Remand, and remands this case as to state court.

I. Background A. Factual Background In this litigation, Plaintiff alleges that she was operating her Chrysler 300C vehicle manufactured by Chrysler on October 2, 2015, when, suddenly and without warning, her vehicle

6 Rec. Doc. 18. 7 Rec. Doc. 23. 8 Rec. Doc. 33. 9 Id. 10 Rec. Doc. 35. accelerated uncontrollably.11 Plaintiff asserts that she was forced to use her emergency brake, which caused her vehicle to slam into a tree.12 According to Plaintiff, the airbag manufactured by Takata did not deploy upon impact.13 Plaintiff brings her cause of action under the Louisiana Products Liability Act (“LPLA”) for the injuries caused by the allegedly defective and unreasonably dangerous vehicle and airbag.14

B. Procedural Background On September 30, 2016, Plaintiff filed a Petition for Damages in the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana, against Chrysler and Takata.15 On November 30, 2016, Plaintiff filed an Amended Petition for Damages naming FCA, TK Holdings, and Ray Brandt as Defendants.16 On January 18, 2017, FCA removed the case to this Court pursuant to this Court’s diversity jurisdiction under 28 U.S.C. § 1332(a).17 FCA asserts that Plaintiff, a Louisiana citizen, is completely diverse from Defendants FCA and TK Holdings.18 FCA further argues that Plaintiff fraudulently joined Ray Brandt, a Louisiana citizen, as FCA contends that Plaintiff has no possibility of recovery against Ray Brandt.19

11 Rec. Doc. 1-2 at 1. 12 Id. 13 Id. at 2. 14 Id. 15 Id. 16 Id. at 19. 17 Rec. Doc. 1 at 1. 18 Id. 19 Id. at 4–6. On February 13, 2017, Plaintiff filed her first Motion to Remand, which was set for submission on March 13, 2017.20 On March 7, 2017, FCA filed an opposition.21 TK Holdings filed an opposition on March 7, 2017.22 Before the Court ruled on the first Motion, on June 26, 2017, Defendant TK Holdings, Inc. filed a Notice of Bankruptcy and a Notice of Automatic Stay pursuant to Section 362(a) of the Bankruptcy Code.23 In accordance with the automatic stay, the

Court stayed this action and ordered the parties to file a motion to reopen the case “if circumstances change.”24 No party ever moved to reopen the case. Instead, Plaintiff filed her second Motion to Remand on May 3, 2021.25 In the second Motion, Plaintiff asserts that the bankruptcy proceedings against TKA have been dismissed.26 Defendant FCA filed its opposition to Plaintiff’s second Motion on June 22, 2021. Accordingly, the Court construes the second Motion to Remand as the Plaintiff’s request to lift the stay. II. Parties= Arguments A. FCA’s Notice of Removal

In FCA’s Notice of Removal, FCA contends that removal of this matter from state court is proper pursuant to this Court’s diversity jurisdiction under 28 U.S.C. § 1332(a).27 FCA avers that:

20 Rec. Doc. 13. 21 Rec. Doc. 14. 22 Rec. Doc. 16. 23 Rec. Doc. 18. 24 Rec. Doc. 23. 25 Rec. Doc. 33. Plaintiff initially filed the motion to remand on April 26, 2021, Rec. Doc. 29. However, that filing was flagged as deficient by the Clerk of Court. 26 Rec. Doc. 33 at 1. 27 Rec. Doc. 1 at 1. (1) Plaintiff is a citizen of Louisiana; (2) FCA is a Delaware limited liability company with its principal place of business in Michigan and whose members are citizens of Delaware, New York, the Netherlands, and the United Kingdom;28 and (3) TK Holdings is a Delaware corporation with its principal place of business in Michigan.29 Thus, FCA asserts that FCA and TK Holdings are diverse from Plaintiff.30

FCA argues that, while Plaintiff’s Amended Petition for Damages also names Ray Brandt, a Louisiana citizen, as a Defendant, the joinder of Ray Brandt was improper because Ray Brandt cannot be held liable under the LPLA.31 In particular, FCA points out that Plaintiff alleges in her Amended Petition that Ray Brandt “sold the defective vehicle to Plaintiff” and “knew or should have known about the malfunctioning vehicle and did not warn Plaintiff about the defects in the vehicle.”32 However, FCA contends that the LPLA “establishes the exclusive theories of liability for manufacturers for damage caused by their products,” and thus applies exclusively to manufacturers.33 FCA concedes that the LPLA can apply to a seller of a product “who exercises control over or influences a characteristic of the design, construction or quality of the product that

28 Id. at 3. In particular, FCA contends that its sole member is FCA North America Holdings LLC, a Delaware limited liability company with its principal place of business in New York. Id. at 3. FCA states that FCA North America Holdings LLC’s sole member is Fiat Chrysler Automobiles N.V., a publicly traded company formed in the Netherlands with its principal place of business in London, England. Id. According to FCA, “[u]nder 28 U.S.C § 1332(c)(1), Fiat Chrysler Automobiles is a citizen of the Netherlands and the United Kingdom, and under controlling Fifth Circuit precedent, FCA US LLC and FCA North America Holdings LLC are, therefore, also citizens of the Netherlands and the United Kingdom.” In sum, FCA argues that neither FCA nor its members are citizens of Louisiana. Id. 29 Id.

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Byes v. Chrysler Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byes-v-chrysler-corporation-laed-2021.