Cinthia Gonzalez v. J.C. Penney Corporation

209 F. App'x 867
CourtCourt of Appeals for the Eleventh Circuit
DecidedOctober 20, 2006
Docket06-12751
StatusUnpublished
Cited by7 cases

This text of 209 F. App'x 867 (Cinthia Gonzalez v. J.C. Penney Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cinthia Gonzalez v. J.C. Penney Corporation, 209 F. App'x 867 (11th Cir. 2006).

Opinion

PER CURIAM:

J.C. Penney Corporation Inc., Eckerd Corporation of Florida, and Jose Tapia appeal an order that awarded attorney’s fees to Cinthia Gonzalez for improvident removal. See 28 U.S.C. § 1447(c). The *868 appellants argue that the district court abused its discretion because the removal was founded on an objectively reasonable basis and that they were unconstitutionally deprived of notice and an opportunity to.be heard. We AFFIRM.

I. BACKGROUND

As a result of an auto accident, Gonzalez filed a complaint in a Florida state court against Tapia and his employer, Eckerd Corporation of Florida, and J.C. Penney Corporation Inc., a Texas corporation, which purportedly owned Eckerd. On August 15, 2005, J.C. Penney removed the action to the United States District Court for the Southern District of Florida on the basis of diversity jurisdiction without any allegation of fraudulent joinder or even any mention of the citizenship of either Tapia or Eckerd. Gonzalez then moved to remand the action to state court for lack of complete diversity because Gonzalez, Tapia and Eckerd were all residents of Florida, and a month later, the district court ordered J.C. Penney to show cause why the motion to remand should not be granted by default.

On November 2, 2005, J.C. Penney filed a motion to dismiss Tapia and Eckerd as dispensable nondiverse parties under Rule 21 of the Federal Rules of Civil Procedure. J.C. Penney argued that, because the accident took place during Tapia’s employment and Eckerd was a wholly-owned subsidiary of J.C. Penney, any liability on the part of Eckerd or Tapia would be subsumed by J.C. Penney. The district court denied the motion of J.C. Penney, remanded the action, and advised J.C. Penney to “seek relief from the alleged misjoinder in state court, and if successful, remove the case to federal court once complete diversity exists.”

On December 2, 2005, Gonzalez moved for $13,600 in attorney’s fees on the ground that the removal was improvident. See 28 U.S.C. § 1447(c). She filed copies of her attorney’s time sheets, her attorney’s affidavit, and an expert affidavit in support of her motion. The matter was referred to a magistrate judge who, after granting several extensions in order for J.C. Penney to file a response, held a hearing on March 8, 2006. J.C. Penney argued that no fees should be awarded but did not dispute Gonzalez’s fee calculation. One day before the hearing, J.C. Penney moved for an extension to retain an attorney’s fees expert.

At the hearing, the magistrate judge ruled that J.C. Penney, Eckerd, and Tapia owed attorney’s fees to Gonzalez, denied their motion for an extension, and allowed their attorney to cross-examine Gonzalez’s expert witness. Based upon his own expertise, the testimony of Gonzalez’s expert, and the attorney’s affidavit and timesheets, the magistrate judge recommended an award of $13,175 in attorney’s fees. The district court adopted the determination of the magistrate judge.

II. STANDARD OF REVIEW

We review the order of a district court awarding attorney fees for improvident removal under section 1447(c) for abuse of discretion. See Bauknight v. Monroe County, 446 F.3d 1327, 1329 (11th Cir. 2006); Legg v. Wyeth, 428 F.3d 1317, 1320 (11th Cir.2005); Fowler v. Safeco Ins. Co. of Am., 915 F.2d 616, 617 (11th Cir.1990). “An abuse of discretion occurs if the judge fails to apply the proper legal standard or to follow proper procedures in making the determination, or bases an award upon findings of fact that are clearly erroneous.” In re Hillsborough Holdings Corp., 127 F.3d 1398, 1401 (11th Cir.1997) (internal citation and quotation omitted).

*869 III. DISCUSSION

J.C. Penny, Eckerd and Tapia raise two arguments on appeal. First, they argue that the district court abused its discretion when it awarded attorney’s fees against them because their removal was founded on an objectively reasonable basis. Second, they argue that they were deprived of notice and an opportunity to be heard on the calculation of attorney’s fees because they were not adequately notified that the amount of attorney’s fees would be determined at the hearing and did not have time to retain an expert or depose Gonzalez’s expert. We address each argument in turn.

A The District Court Did Not Abuse Its Discretion by Awarding Attorney’s Fees to Gonzalez.

Section 1447(c) provides that “[a]n order remanding the case may require payment of just costs and any actual expenses, including attorney’s fees, incurred as a result of the removal.” In Martin v. Franklin Capital Corp., 546 U.S. 132, 126 S.Ct. 704, 163 L.Ed.2d 547 (2005), the Supreme Court explained that “absent unusual circumstances, attorney’s fees should not be awarded when the removing party has an objectively reasonable basis for removal.” Id. at 708. We must balance the desire of Congress “to deter removals sought for the purpose of prolonging litigation and imposing costs on the opposing party, while not undermining Congress’ basic decision to afford defendants a right to remove as a general matter, when the statutory criteria are satisfied.” Id. at 711.

Recently, in Bauknight v. Monroe County, 446 F.3d 1327, 1329 (11th Cir. 2006), we held that a district court did not abuse its discretion when it refused to award fees under section 1447(c). The district court found it objectively reasonable for the defendant to remove based upon a complaint that plausibly presented a ripe section 1983 claim even though the claim eventually proved unripe for resolution. Id. at 1330. Although subject matter jurisdiction proved to be lacking, we agreed with the district court that “without a clear indication that the appellants had [reserved the federal claim] and no authority providing that a defendant could [reserve the claim], removing the case in an effort to preserve its right to a federal forum seems quite reasonable.” Id. at 1331.

J.C. Penney, Eckerd and Tapia argue that removal was objectively reasonable because complete diversity existed between Gonzalez and the “real defendant,” J.C. Penney. We disagree. Although the district court did not explain its reasoning in its order, the record plainly supports its decision.

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209 F. App'x 867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cinthia-gonzalez-v-jc-penney-corporation-ca11-2006.