Chong v. Sunrise Restaurants, LLC

CourtDistrict Court, W.D. Texas
DecidedMarch 23, 2023
Docket3:22-cv-00365
StatusUnknown

This text of Chong v. Sunrise Restaurants, LLC (Chong v. Sunrise Restaurants, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chong v. Sunrise Restaurants, LLC, (W.D. Tex. 2023).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS EL PASO DIVISION

§ MAURICIO CHONG, § § Plaintiff, § § EP-22-CV-00365-FM v. § § SUNRISE RESTAURANTS, LLC d/b/a § DENNY’S, § § Defendant.

ORDER GRANTING PLAINTIFF’S MOTION TO REMAND Before the court is “Plaintiff’s Motion to Remand” (“Motion”) [ECF No. 4], filed November 7, 2022, by Mauricio Chong (“Plaintiff”). Therein, Plaintiff requests that this court remand this cause back to County Court at Law Number Three, in El Paso County, Texas, and requests attorney’s fees and costs.1 Sunrise Restaurants, LLC d/b/a Denny’s (“Defendant”) responded requesting remand be denied and removal effectuated, and requests fees and costs.2 After due consideration of the motions and applicable law, the motion is GRANTED. I. BACKGROUND This dispute begins with a slip and fall occurring on or about September 21, 2019.3 Plaintiff, allegedly, entered the restaurant and slipped and fell on water striking his head and sustaining a variety of injuries.4 Plaintiff filed his original complaint on September 14, 2021,

1 “Plaintiff’s Motion to Remand” (“Mot.”) 18, ECF No. 4, filed Nov. 7, 2022. 2 “Defendant’s Response to Plaintiff’s Motion to Remand” 15, ECF No. 5, filed Nov. 22, 2022. 3 “Plaintiff’s Original Petition and Jury Demand” 2, ECF No. 5–1, filed Nov. 22, 2022. 4 Id. requesting monetary relief of “no more [than] $74,500.00” for medical expenses, treatments, lost wages, pain and suffering, mental anguish, etc.5 On January 7, 2022, the Plaintiff provided his disclosures to the Defendant which included a general statement that his damages would be “past and future pain and suffering, past and future mental anguish, and past and future emotional distress.”6

On May 6, 2022, Plaintiff sent a post-complaint settlement demand letter which calculated the Plaintiff’s total damages to be around $326,714.20, and offered to settle the matter, at that time, for $74,000.00.7 Following failed settlement talks, Plaintiff’s deposition occurred on May 12, 2022 where he made general statements that he is “not the same person anymore” and his “personal life. . . suffered because of this incident.”8 The case was mediated on September 30, 2022 and was unsuccessful.9 On October 5, 2022 the Plaintiff amended his petition changing only his damage allegations to: “over $250,000 but not more than $1,000,000.00.”10 Following notice of the amended complaint, the Defendant filed its notice of removal on October 14, 2023; one year and thirty days after commencement of the lawsuit.11 The Plaintiff then timely filed his motion for

remand.

5 Id. at 5–6. 6 Mot. at 4. 7 Id. at 4–5. 8 Id. at 6. 9 Id. 10 Id. at 7. 11 Id. II. LEGAL STANDARD Title 28 U.S.C. Section 1441(a) (“Section 1441”) allows for the removal of civil actions brought in a state court over which a district court has original jurisdiction.12 “A federal district court may exercise original jurisdiction over any civil action that either satisfies diversity requirements or that arises under the federal constitution, statutes, or treaties.”13 “Thus, under

§ 1441, removal is proper only when the court has original jurisdiction over at least one asserted claim under either federal question or diversity jurisdiction.”14 Title 28 U.S.C. Section 1446 (“Section 1446”) governs the procedure for removal. Under Section 1446(b)(1), “notice of removal of a civil action or proceeding shall be filed within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceedings is based.”15 Alternatively, if an initial pleading is not removable, 28 Section 1446(b)(3) states, “a notice of removal may be filed within 30 days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable.”16 Finally, Section 1446(c)(1)

disallows removal for diversity actions “more than 1 year after commencement of the action,

12 28 U.S.C. § 1441(a). 13 Energy Mgmt. Servs., L.L.C. v. City of Alexandria, 739 F.3d 255, 258–59 (5th Cir. 2014) (citing 28 U.S.C. §§ 1331, 1332, 1369). 14 Id. at 259. 15 28 U.S.C. § 1446(b). 16 28 U.S.C. § 1446(b)(3). unless the district court finds that the plaintiff has acted in bad faith in order to prevent a defendant from removing the action.”17 Removal raises significant federalism concerns.18 The removing party bears the burden of showing federal jurisdiction exists and removal was proper.19 Any doubts regarding whether federal jurisdiction is proper are resolved against removal.20

III. DISCUSSION The dispute boils down to the following issues: (1) was the Defendant put “on notice” to remove following any of the Plaintiff’s alleged “other papers” during the course of discovery, (2) was the Defendant procedurally barred from removal based on 1446(c)(1), and (3) if the Defendant was procedurally barred, did the Plaintiff commit “bad faith” as to overcome the one year requirement of 1446(c)(1). A. The Defendant was put On Notice Following the Plaintiff’s May 6, 2022, Demand Letter.

The parties concede that complete diversity exists and that the amount in controversy does exceed the minimum requirement for federal jurisdiction. However, the Plaintiff makes the argument that the Defendant’s opportunity to remove came and passed at multiple points while the Defendant argues that their removal is timely because they were not put on notice until the first amended complaint and that the Plaintiff’s bad faith contributed to their removal occurring after the one-year time bar on diversity jurisdiction removals. The Plaintiff states that the Defendant was put on notice that the amount in controversy was met, and the action removable, on four

17 28 U.S.C. § 1446(c)(1). 18 Gutierrez v. Flores, 543 F.3d 248, 251 (5th Cir. 2008). 19 De Aguilar v. Boeing Co., 47 F.3d 1404, 1408 (5th Cir. 1995). 20 Acuna v. Brown & Root, Inc., 200 F.3d 335, 339 (5th Cir. 2000). separate occasions during the first year of litigation: (1) September 14, 2021 when the original complaint was filed, (2) January 7, 2022 when Plaintiff provided his initial disclosures, (3) May 6, 2022 when Plaintiff sent his post-complaint demand letter, and (4) May 12, 2022 when Plaintiff’s deposition occurred. Three of these did not provide notice of removability but the post- complaint demand letter did put the Defendant on notice for removal.

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Bluebook (online)
Chong v. Sunrise Restaurants, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chong-v-sunrise-restaurants-llc-txwd-2023.