Elias v. American National Red Cross

271 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 12437, 2003 WL 21663805
CourtDistrict Court, N.D. Alabama
DecidedJuly 2, 2003
DocketCIV.A. 03-AR-1360-S
StatusPublished
Cited by1 cases

This text of 271 F. Supp. 2d 1370 (Elias v. American National Red Cross) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elias v. American National Red Cross, 271 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 12437, 2003 WL 21663805 (N.D. Ala. 2003).

Opinion

MEMORANDUM OPINION

ACKER, District Judge.

In rapid succession, the court has been assigned two unrelated cases, both of which were removed from a state court by the American National Red Cross (“Red Cross”) pursuant to a specialized jurisdictional statute, 36 U.S.C. § 300105(a)(5). Defendants, Red Cross and June Fletcher (“Fletcher”), removed the above-entitled case from the Circuit Court of Jefferson County, Alabama. Because plaintiffs have chosen not to file a motion to remand, the court examines its subject-matter jurisdiction sua sponte.

Two bases for removal jurisdiction are alleged in the notice of removal. The first is the complete diversity of citizenship between Alan Elias, et al., the plaintiffs, on the one hand, and the Red Cross and Fletcher on the other, plus the fact that the amount in controversy exceeds $75,000. These facts provide a basis for jurisdiction under 28 U.S.C. § 1332 unless the additional fact that Fletcher is an Alabama citizen creates an insurmountable jurisdictional obstacle when and if 28 U.S.C. § 1441(b) is applied. The second asserted jurisdictional basis is the Red Cross’s specialized access to a federal court found in 36 U.S.C. § 300105(a)(5), as construed by the 5 to 4 majority in American National Red Cross v. S.G., 505 U.S. 247, 112 S.Ct. 2465, 120 L.Ed.2d 201 (1992).

Defendants have made no attempt in their notice of removal to invoke the supplemental jurisdiction of the court. Under 28 U.S.C. § 1446(a), it is incumbent upon a removing defendant to set forth in his notice of removal a valid ground for jurisdiction in this court. A federal court cannot be left to guess at its jurisdiction. Therefore, this court will only examine the grounds stated in the notice of removal and will not address the possibility that supplemental jurisdiction exists, although the absence of any reference by the removing defendants to supplemental juris *1372 diction may not have been inadvertent, and instead may have been an acknowledgment that there is no arguable basis for an exercise of supplemental jurisdiction in this case.

The court will discuss the two removal grounds in reverse order. The Supreme Court’s decision in S.G. eliminated the then existing doubt over the Red Cross’s right to remove a case brought against it in a state court. However, S.G. did not remove all doubt over the right of the Red Cross to remove a case in which a separate defendant faces a claim over which the federal court has no independent basis for jurisdiction. It is unsurprising that counsel were unfamiliar with the unpublished opinion of May 28, 2003, in Jeannette C. Young, et al. v. The American National Cross, et al., CV-03-AR-1006-S, in which this very court remanded a very similar case. It, too, had been removed by the Red Cross. It, too, involved a second defendant who was Red Cross’s agent and who had no independent ground for federal jurisdiction. This court did not expect to be faced with the same issue so soon, if ever. In Young the Red Cross did make an effort to invoke this court’s supplemental jurisdiction over the claim brought against its co-defendant. As in the present case, there was no allegation in the notice of removal that the problematic defendant had been fraudulently joined for the purpose of interrupting the Red Cross’s unique right to remove pursuant to 36 U.S.C. § 300105(a)(5). This court did not believe a month ago, and does not believe now, that 36 U.S.C. § 300105(a)(5) is a piggyback statute that invites the Red Cross to remove every case in which it is a party, no matter how many other defendants there are, or on what theories they are sued. If this had been the Supreme Court’s intent in S.G., the Red Cross would necessarily be exempted from the requirement of 28 U.S.C. § 1446 that all served defendants join in the notice of removal. Such an expansion of S.G. would mean that the Red Cross can decide the forum for all parties, even over their objections. Proof that the Red Cross enjoys no exemption from the other rules for removal is found in the Fifth Circuit’s pointed opinion in Doe v. Kerwood, 969 F.2d 165, 167 (5th Cir.1992). There the Fifth Circuit, shortly after S.G. was decided, met head-on and rejected the Red Cross’s argument that “bringing a joint claim against a federally incorporated defendant and other non-federal defendants resulted in endowing the entire matter, including the individual defendants, with a federal character.” Id. at 167-168. Although Fletcher, the Red Cross’s co-defendant in this case, has consented to the removal, she cannot confer jurisdiction on this court by simply riding on the Red Cross’s coattails.

A better argument for tag-along jurisdiction over Fletcher, if there is one, can be fashioned upon defendants’ joint invocation of 28 U.S.C. § 1332, together with plaintiffs’ unprompted contention that 28 U.S.C. § 1441(b) is a procedural matter that can be waived. Plaintiffs’ attempt to relinquish their clear right to try their case in the forum of their original choice, and instead to proceed in this court, is not something that can be allowed to sway the court. As previously stated, the absence of a motion to remand does not remove this court’s obligation to scrutinize its own subject-matter jurisdiction.

The notice of removal in this case makes no attempt to state a way around the express provision in 28 U.S.C. § 1441(b) that removals based on diversity can only take place “if none of the parties in *1373 interest properly joined and served as defendants as a citizen of the State in which such action is brought.” (emphasis supplied). Either these defendants were unaware of § 1441(b) when they removed, or they believed that § 1441(b) is an obscure procedural limitation that plaintiffs would not know about. This court doubts that defendants expected plaintiffs to do what they have done, namely, to ask the court to overlook the fact that Fletcher is an Alabama resident. The question, then, becomes whether § 1441(b) is a matter that can be waived.

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Bluebook (online)
271 F. Supp. 2d 1370, 2003 U.S. Dist. LEXIS 12437, 2003 WL 21663805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elias-v-american-national-red-cross-alnd-2003.