City of Martinsville, Virginia v. Express Scripts, Inc.

Procedural entryThis page is a short order in City of Martinsville, Virginia v. Express Scripts, Inc.. Read the opinion of the Court — 128 F.4th 265
Court of Appeals for the Fourth Circuit·Decided April 8, 2025·No. 24-1912·Published

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-1912

CITY OF MARTINSVILLE, VIRGINIA, Plaintiff – Appellee,

v.

EXPRESS SCRIPTS, INC.; OPTUMRX, INC., Defendants – Appellants.

Appeal from the United States District Court for the Western District of Virginia, at Danville. Elizabeth K. Dillon, District Judge. (4:24-cv-00002-EKD)

Argued: December 5, 2024 Decided: February 10, 2025

Before WYNN, RICHARDSON, and HEYTENS, Circuit Judges

Motion for a stay granted by published order. Judge Richardson wrote the order, in which Judge Heytens joined. Judge Wynn wrote a dissenting opinion.

ARGUED: Christopher George Michel, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Washington, D.C., for Appellants. Richard Johan Conrod, Jr., CICALA LAW FIRM PLLC, Dripping Springs, Texas, for Appellee. ON BRIEF: Jonathan G. Cooper, Michael J. Lyle, Eric C. Lyttle, Matthew K. Wasserman, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Washington, D.C.; Emily M. Scott, HIRSCHLER FLEISCHER, PC, Richmond, Virginia, for Appellant Express Scripts, Inc. Brian D. Boone, Charlotte, North Carolina, Matthew P. McGuire, ALSTON & BIRD, LLP,

Raleigh, North Carolina; Turner A. Broughton, WILLIAMS MULLEN, Richmond, Virginia, for Appellant OptumRx, Inc.

ORDER

RICHARDSON, Circuit Judge:

People often say that you shouldn’t have too many cooks in the kitchen. Wise words, particularly around Christmas. But culinary clutter can’t compare to the havoc of multiple courts taking actions in the same case, on the same issues, at the same time. That’s what happened here. Fortunately, there is a rule against it.

The City of Martinsville, Virginia, sued Express Scripts and OptumRx in state court.

But the defendants preferred to plead their case in federal court. So they removed the case to the Western District of Virginia. That didn’t go the way the defendants hoped: The district court sided with the city and ordered that the case be sent back to state court. Yet that didn’t end the matter, for a state court may not proceed after a remand until the remand order is physically mailed to it. 28 U.S.C. § 1447(c). And after the district court issued the remand order—but before the district court got to the post office—Express Scripts and OptumRx noted an immediate appeal challenging the order, as permitted by statute. § 1447(d).

Under Supreme Court precedent, that notice of appeal suspended the district court’s power to act, requiring that the district court halt all proceedings related to the appeal. Coinbase, Inc. v. Bielski, 599 U.S. 736, 741 (2023); Griggs v. Provident Consumer Disc. Co., 459 U.S. 56, 58 (1982). But the district court mailed the remand order anyway. In

doing so, it tried to cook when the kitchen was ours. Therefore, we recognize—as we must—that the district court lacked the authority to mail the remand order because it was automatically stayed under Coinbase from doing so. I. Background In 2018, Martinsville, Virginia, sued several defendants, including Express Scripts and OptumRx. In Martinsville’s telling, the defendants committed public nuisance and hurt the city through their role in the opioid epidemic. The named defendants removed the case to federal court under the Class Action Fairness Act, 28 U.S.C. §§ 1332(d), 1453(b). The district court then remanded it to Virginia, where the case remained until 2024. At that point, defendants again removed to federal court—this time under the federal-officer- removal statute, 28 U.S.C. § 1442. Martinsville opposed this removal and moved to remand a second time. The district court granted the motion and issued a remand order.

But that alone didn’t give the state court a green light. Before the state court could proceed, the clerk for the district court had to first mail it a copy of the order. § 1447(c) (“A certified copy of the order of remand shall be mailed … [t]he State court may thereupon proceed with such case.”). And Express Scripts beat the clerk to the punch, docketing an appeal of the remand order before the order was mailed. It then asked the district court to stay the order pending appeal, citing Coinbase. The district court refused. It read Coinbase narrowly to reach only its factual context of orders compelling arbitration.

Thwarted below, Express Scripts and OptumRx moved this court for the same stay, again citing Coinbase. See Fed. R. App. P. 8(a)(2). We agree with them. The district

court’s logic artificially restricts Coinbase. Under a fairer reading of Coinbase, the district court was automatically stayed from mailing the remand order. II. Discussion Certain federal officers, and those acting under a federal officer, have a statutory right, when sued or prosecuted in state court for official acts, to remove those actions to federal district court. § 1442(a), -(1).1 If they do, but subsequently the district court finds removal improper and orders remand, federal law authorizes an immediate appeal of that decision. § 1447(d) (“[A]n order remanding a case to” state court “pursuant to § 1442” “shall be reviewable by appeal.”).

Like all appeals, this implicates what the Supreme Court has called the “Griggs principle,” which kicks in upon the “filing of a notice of appeal.” Griggs, 459 U.S. at 58. The appeal then “divests the district court of its control over those aspects of the case involved in the appeal.” Coinbase, 599 U.S. at 740–41. Without control, the district court

1

In relevant part, the statute provides:

(a) A civil action or criminal prosecution that is commenced in a State court and that is against or directed to any of the following may be removed by them to the district court of the United States for the district and division embracing the place wherein it is pending:

(1) The United States or any agency thereof or any officer (or any person acting under that officer) of the United States or of any agency thereof, in an official or individual capacity, for or relating to any act under color of such office or on account of any right, title or authority claimed under any Act of Congress for the apprehension or punishment of criminals or the collection of the revenue.

§ 1442. The statute seeks to insulate federal officers from potential hostility in state court by providing them a federal forum. See Willingham v. Morgan, 395 U.S. 402, 405 (1969).

must refrain from further action on those aspects of the case involved in the appeal until the appeal is completed. See id.

How far Coinbase extends is an active subject in the federal appellate courts.

Because it is directly relevant to this appeal, we start by summarizing the case. Coinbase, a cryptocurrency platform operator, was sued by some of its users. Id. at 739. In reply, Coinbase sought to enforce a mandatory arbitration provision in its user agreement against the plaintiff users. Id. at 738. But the district court denied its motion. Id. Coinbase noted an interlocutory appeal of the district court’s denial under the Federal Arbitration Act, 9 U.S.C. § 16(a), and it simultaneously moved in the district court to stay proceedings pending that appeal. Coinbase, 599 U.S. at 739. Despite the appeal, the district court denied Coinbase’s motion, and the Ninth Circuit affirmed. Id.

The Supreme Court reversed. Id. at 747. Its conclusion flowed from an application of the “Griggs principle,” which states that an appeal “divests the district court of its control over those aspects of the case involved in the appeal.” Id. at 740 (quoting Griggs, 459 U.S. at 58). It then added three important clarifications to the Griggs principle that resolve this motion.

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City of Martinsville, Virginia v. Express Scripts, Inc., (4th Cir. 2025).

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