Ekeya v. Shriners Hospital for Children, Portland

258 F. Supp. 3d 1192
CourtDistrict Court, D. Oregon
DecidedJuly 10, 2017
DocketCase No. 3:17-cv-195-SI
StatusPublished
Cited by5 cases

This text of 258 F. Supp. 3d 1192 (Ekeya v. Shriners Hospital for Children, Portland) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ekeya v. Shriners Hospital for Children, Portland, 258 F. Supp. 3d 1192 (D. Or. 2017).

Opinion

OPINION AND ORDER

Michael H. Simon, District Judge

Plaintiff Kay Ekeya (“Ekeya”) asserts employment-related claims under Oregon law against her former employer, Shriners Hospital for Children, Portland (“Shriners Portland”), and the Hospital Administrator of Shriners Portland, John C. Patchin (“Patchin”) (collectively, “Defendants”)! Ekeya alleges that Shriners Portland retaliated against her by terminating her employment after she reported that her immediate supervisor had violated patient privacy rights by allowing a news reporter into the hospital to take and publish photographs in areas not generally open to the public. Ekeya also alleges that Patchin aided and abetted the unlawful retaliation by Shriners Portland. Ekeya is a citizen of the State of Washington, Shriners Portland is a Colorado non-profit corporation, and Patchin is a citizen of the State of Oregon. Plaintiff commenced this action in state court in Oregon, and Defendants timely removed the case to federal court, asserting diversity jurisdiction. In an effort to avoid the forum defendant rule, which prohibits removal when a defendant is a citizen of the forum state, Defendants argue that Plaintiff cannot state a color-able claim against Patchin and, thus, he has been fraudulently joined. From this, Defendants argue that Patchin’s presence does not preclude removal. Before the Court are Plaintiffs motion to remand, arguing that Patchin has not been fraudulently joined, and Defendants’ motion to dismiss Plaintiffs claim against Patchin.

STANDARDS

A. Removal, the Forum Defendant Rule, and Remand

A civil action generally may be removed from state court to federal court if the federal district court would have had origi[1195]*1195nal, subject matter'jurisdiction over the case. 28 U.S.C. § 1441(a). Subject matter jurisdiction may be based on either federal question jurisdiction or diversity jurisdiction. 28 U.S.C. §§ 1331, 1332. .Diversity jurisdiction exists over all civil actions when the amount in controversy exceeds $75,000 and- there is -complete diversity among all plaintiffs and. defendants. 28 U.S.C. § 1332(a)(1). “[Diversity jurisdiction does not exist unless each defendant is a citizen of a different State from each plaintiff.” Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365, 373, 98 S.Ct. 2396, 57 L.Ed.2d 274 (1978) (emphasis in original). A civil action otherwise removable on the basis of diversity jurisdiction, however, “may not be removed if any of the parties in interest properly joined arid served as defendants is a citizen of the State in which such action is brought.” 28 U.S.C. § 1441(b)(2); see also Lincoln Prop. Co. v. Roche, 546 U.S. 81, 84, 126 S.Ct. 606, 163 L.Ed.2d 415 (2005) (“Defendants may remove an action on the basis-of diversity of citizenship if there is complete diversity between all named plaintiffs and all named defendants, and no defendant is a citizen of the forum State.”) (emphasis added). This latter clause is known as the “forum defendant rule.”

A motion to remand is the proper procedure for a plaintiff to use when challenging removal. 28 U.S.C. § 1447; see also Moore-Thomas v. Ala. Airlines, Inc., 553 F.3d 1241, 1244 (9th Cir. 2009). Because federal courts are courts of limited jurisdiction, the removal, statute is strictly construed, and courts resolve any doubt in favor of remand. Provincial Gov’t of Marinduque v. Placer Dome, Inc., 582 F.3d 1083, 1087 (9th Cir. 2009); Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (per curiam). In other words, there is a “strong presumption” against removal jurisdiction. Hunter v. Philip Morris USA, 582 F.3d 1039, 1042 (9th Cir. 2009) (citation and quotation marks omitted). The party seeking removal bears the burden of establishing that removal is proper. Moore-Thomas, 553 F.3d at 1244.

B. Fraudulent Joinder

When considering diversity jurisdiction, an exception “to the requirement of cornplete diversity is where a nondiverse defendant has been ‘fraudulently joined.’”1 Morris v. Princess Cruises, Inc., 236 F.3d 1061, 1067 (9th Cir. 2001). If a defendant has been fraudulently joined, “the district court may ignore the presence of that defendant for the purpose of establishing diversity.” Hunter, 582 F.3d at 1042. There is, however, a “general presumption against fraudulent joinder.” Hamilton Materials, Inc. v. Dow Chem. Corp., 494 F.3d 1203, 1206 (9th Cir. 2007). Further, a defendant bears a heavy burden of demonstrating fraudulent joinder by “clear and convincing evidence.” Id. Thus, a removing defendant asserting fraudulent joinder must overcome “both the strong presumption against removal jurisdiction and the general presumption against fraudulent joinder.” Hunter, 582 F.3d at 1046 (citation and quotation marks omitted).

A “joinder is fraudulent when a plaintiffs failure to state a cause of action against the resident defendant is obvious according to the applicable state [1196]*1196law.” Allen v. Boeing Co., 784 F.3d 625, 634 (9th Cir. 2015); McCabe v. Gen. Foods Corp., 811 F.2d 1336, 1339 (9th Cir. 1987). “[I]f there is a possibility that a state court would find that the complaint states a cause of action against any of the resident defendants, the federal court must find that the joinder was proper and remand the case to the state court.” Hunter, 582 F.3d at 1046 (quotation marks and citation omitted) (emphasis added).

In many circumstances,. a court will consider only the plaintiffs pleadings to determine removability. When fraudulent joinder is at issue, however, a court may go “somewhat further.” Ritchey v. Upjohn Drug Co., 139 F.3d 1313, 1318-19 (9th Cir. 1998). A defendant seeking removal is “entitled to present the facts showing the joinder to be fraudulent.” McCabe, 811 F.2d at 1339. Thus, when determining whether there has been fraudulent joinder, a court may conduct a “summary inquiry” that goes beyond the pleadings. Allen, 784 F.3d at 634. Such an inquiry, however, “is appropriate only to identify the presence of discrete and undisputed facts that would preclude plaintiffs recovery against the in-state defendant.” Id. (quoting Hunter, 582 F.3d at 1044 (quoting Smallwood v. Illinois Cent. R.R. Co.,

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258 F. Supp. 3d 1192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ekeya-v-shriners-hospital-for-children-portland-ord-2017.