Carroll v. Vivid Seats LLC

CourtDistrict Court, N.D. Texas
DecidedFebruary 13, 2025
Docket3:25-cv-00127
StatusUnknown

This text of Carroll v. Vivid Seats LLC (Carroll v. Vivid Seats LLC) 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
Carroll v. Vivid Seats LLC, (N.D. Tex. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

CHARLOTTE CARROLL, § § Plaintiff, § § V. § No. 3:25-cv-127-X-BN § VIVID SEATS, LLC, § § Defendant. § FINDINGS, CONCLUSIONS, AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE On the morning of January 17, 2025, Defendant Vivid Seats, LLC, invoking the Court’s federal question subject-matter jurisdiction, removed a lawsuit that Plaintiff Charlotte Carroll filed pro se in a Dallas County, Texas state court. See Dkt. No. 1. United States District Judge Brantley Starr referred the removed lawsuit to the undersigned United States magistrate judge for pretrial management under 28 U.S.C. § 636(b) and a standing order of reference. Four days after Vivid Seats removed to federal court, Carroll moved to remand, (1) stating that she filed an amended complaint in the state court to delete the federal claims that allowed Vivid to remove this lawsuit (which she attaches to the motion to remand) and (2) invoking a recent decision of the United States Supreme Court, Royal Canin U. S. A., Inc. v. Wullschleger, 604 U.S. 22 (2015). See Dkt. No. 7. As ordered, Vivid Seats responded, and Carroll replied. See Dkt. Nos. 8, 14, & 15. For the reasons set out below, the motion to remand should be denied. Legal Standards A defendant may remove an action filed in state court to federal court if the

action is one that could have originally been filed in federal court. See 28 U.S.C. § 1441(a). But the federal courts’ jurisdiction is limited, so they generally may only hear a case of this nature if it involves a question of federal law or where diversity of citizenship exists between the parties. See 28 U.S.C. §§ 1331 & 1332. And, for removals that are defective based on violations of the removal statute’s provisions and limitations – that is, where “removal was improper, [but] the

exercise of subject matter jurisdiction was not,” Cox, Cox, Filo, Camel & Wilson, L.L.C. v. Sasol N. Am., Inc., 544 F. App’x 455, 456 n.6 (5th Cir. 2013) – “[a] motion to remand … must be made within 30 days after the filing of the notice of removal under [28 U.S.C. §] 1446(a),” 28 U.S.C. § 1447(c). But, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” Id.

Analysis Applicable to Vivid Seats’s removal, subject matter jurisdiction under Section 1331 typically “exists when ‘a well-pleaded complaint establishes either that federal law creates the cause of action or that the plaintiff’s right to relief necessarily depends on resolution of a substantial question of federal law.’” Borden v. Allstate Ins. Co., 589 F.3d 168, 172 (5th Cir. 2009) (quoting Franchise Tax Bd. v. Constr. Laborers Vacation Tr., 463 U.S. 1, 27-28 (1983)); see also In re Hot-Hed Inc., 477 F.3d 320, 323 (5th Cir. 2007) (“A federal question exists ‘if there appears on the face of the complaint some substantial, disputed question of federal law.’” (quoting Carpenter v. Wichita Falls

Indep. Sch. Dist., 44 F.3d 362, 366 (5th Cir. 1995))). And, “when a federal claim appears on the face of the complaint, dismissal for lack of subject matter jurisdiction is only proper in the case of a frivolous or insubstantial claim, i.e., a claim which has no plausible foundation or which is clearly foreclosed by a prior Supreme Court decision.” Copeland v. E*Trade Cap. Mgmt., L.L.C., No. 24-10658, 2025 WL 66732, at *2 (5th Cir. Jan. 10, 2025) (per curiam) (cleaned up; quoting Young v. Hosemann, 598 F.3d 184, 188 (5th Cir. 2010) (quoting

Bell v. Health-Mor, Inc., 549 F.2d 342, 344 (5th Cir. 1977))). Carroll’s state court petition attached to the notice of removal, alleging that Vivid Seats violated the Americans with Disabilities Act (“ADA”), a federal statute, asserts more than an insubstantial violation of federal law, to support the Court’s jurisdiction under Section 1331. See Farooq v. Nucor Bus. Tech., Inc., No. 3:24-cv-920- N-BN, 2024 WL 2805928, at *2 (N.D. Tex. Apr. 25, 2024) (“[A] plaintiff’s citing a

federal statute and alleging facts to support a violation of that statute is enough to carry a removing defendant’s burden to show a foundation for a nonfrivolous and not insubstantial violation of federal law.” (citing Chapman v. ADT LLC, No. 3:22-cv- 2188-D-BN, 2023 WL 6299861, at *2 (N.D. Tex. Aug. 25, 2023) (“Chapman expressed at the outset of her state court petition that this is an action at law and in equity to redress violations of Title VII of the Civil Rights Act of 1964, and then alleged facts to show how Title VII applies to her claims. And, by including factual allegations that imply the applicability of the federal statute cited in the state court petition, Chapman alleged more than the existence of a frivolous or insubstantial federal

question, and thereby alleged a basis for jurisdiction under Section 1331.” (cleaned up)), rec. adopted, 2023 WL 6300577 (N.D. Tex. Sept. 27, 2023))), rec. accepted, 2024 WL 2804933 (N.D. Tex. May 31, 2024). But, according to Carroll, Royal Canin requires remand because, on the evening of January 17, 2025, she filed an amended complaint in the state court deleting all federal law claims. See Dkt. No. 7-1 (reflecting that the pleading was filed in the state court at 7:16 p.m. on January 17).

In Royal Canin, the Supreme Court, affirming the judgment of the United States Court of Appeals for the Eighth Circuit, held that remand is required where a plaintiff amends a complaint to delete the federal-law claims that allowed for removal to federal court. As the Court summed up its decision: The earliest version of that suit contained federal-law claims and therefore was properly removed to federal court. The additional state- law claims were sufficiently related to the federal ones to come within that court’s supplemental jurisdiction. But when Wullschleger amended her complaint, the jurisdictional analysis also changed. Her deletion of all federal claims deprived the District Court of federal-question jurisdiction. And once that was gone, the court’s supplemental jurisdiction over the state claims dissolved too. Wullschleger had reconfigured her suit to make it only about state law. And so the suit became one for a state court. Royal Canin, 604 U.S. at 43-44; see, e.g., Joel v. Howard Univ., Civ. A. No. 24-1655 (LLA), 2025 WL 358769, at *2 (D.D.C. Jan. 31, 2025) (“As the Supreme Court recently explained, after amendment, ‘[t]he amended complaint becomes the operative one; and in taking the place of what has come before, it can either create or destroy [federal] jurisdiction.’ Here, Ms. Joel has abandoned her claims arising under federal law, which were the basis for Howard University’s removal to this court. ‘Her deletion

of all federal claims deprived [this court] of federal-question jurisdiction.

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Related

Borden v. Allstate Insurance
589 F.3d 168 (Fifth Circuit, 2009)
Young v. Hosemann
598 F.3d 184 (Fifth Circuit, 2010)
In Re Hot-Hed Inc.
477 F.3d 320 (Fifth Circuit, 2007)

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Carroll v. Vivid Seats LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carroll-v-vivid-seats-llc-txnd-2025.