Franklin v. Pinnacle Entertainment, Inc.

289 F.R.D. 278, 84 Fed. R. Serv. 3d 530, 2012 WL 6728063, 2012 U.S. Dist. LEXIS 182570
CourtDistrict Court, E.D. Missouri
DecidedDecember 28, 2012
DocketNo. 4:12-CV-307 CAS
StatusPublished
Cited by6 cases

This text of 289 F.R.D. 278 (Franklin v. Pinnacle Entertainment, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin v. Pinnacle Entertainment, Inc., 289 F.R.D. 278, 84 Fed. R. Serv. 3d 530, 2012 WL 6728063, 2012 U.S. Dist. LEXIS 182570 (E.D. Mo. 2012).

Opinion

[280]*280 MEMORANDUM AND ORDER

CHARLES A SHAW, District Judge.

This matter is before the Court on defendant Pinnacle Entertainment, Inc.’s (“Pinnacle”) motion for sanctions under Rule 11(b)(3) of the Federal Rules of Civil Procedure. Plaintiffs have responded to the motion and it is fully briefed. For the following reasons, the Court will grant the motion and impose monetary and non-monetary sanctions against plaintiffs’ counsel, Mr. Thomas Carter, and require the filing of an amended complaint.

Background

This case was originally filed in the Circuit Court for the City of St. Louis, State of Missouri, on November 18, 2011, by sixty-seven plaintiffs asserting state law claims for breach of contract, employment discrimination in violation of the Missouri Human Rights Act, Mo.Rev.Stat. § 213.010, et seq., and negligent and/or intentional infliction of emotional distress. The case arises out of the plaintiffs’ layoff from employment at the now-closed President Casino. Pinnacle removed the case to this Court on February 17, 2012, on the basis of diversity of citizenship, 28 U.S.C. §§ 1332(a) and 1441.

Plaintiffs moved to remand on the basis that complete diversity of citizenship did not exist because one plaintiff, Michael Holl, shared Nevada citizenship with Pinnacle. By Order dated March 16, 2012, the Court directed plaintiffs to refile their motion to remand because of serious filing error.1 The Order stated in part that while plaintiffs’ motion to remand was based on the alleged nondiverse citizenship of plaintiff “Michael Holl,” there was no plaintiff named “Michael Holl” listed in the petition. The Court stated that if this was a typographical error, it should be corrected prior to refiling the motion to remand. See Order of March 16, 2012 at 1-2 (Doc. 22). Plaintiffs refiled their motion to remand and continued to refer to plaintiff Michael Holl, but did not seek leave to amend their petition to correct the misnomer. Pinnacle’s opposition to the motion to remand stated that Michael Holl was not a party to the suit, but that Michael Hall and Michael Hull were parties. Pinnacle asserted that it had never employed anyone named Michael Hall or Michael Hull at the President Casino, and provided the affidavit of casino controller Paula Reily to support its assertion. Plaintiffs replied that they had amended their petition by interlineation in state court before Pinnacle was served with process, to change the name of plaintiff Michael Hull to Michael Holl.2

Before the Court ruled on the motion to remand, plaintiffs sought and were granted leave to file an amended complaint that modified some of their claims, added counts for intentional and negligent misrepresentation, and added four plaintiffs.3 In reviewing plaintiffs’ motion to remand, the Court stated:

[A]t the time plaintiffs filed the motion to remand, there was no plaintiff named “Michael Holl” listed in the caption of the removed Petition, but there was a plaintiff named Michael Hull. Although plaintiffs contend they amended their Petition by interlineation in state court to change the name of Michael Hull to Michael Holl, defendant disputes this, and the docket sheet in this case listed plaintiff Michael Hull, not Michael Holl, as a party. In any [281]*281event, plaintiffs omitted plaintiff Michael Hull from the caption of the Amended Petition and added plaintiff Michael Holl.

Order Concerning Removal at 2, n. 2 (Doe. 47). The Court also stated, “Neither the removed Petition nor the amended complaint can be described as a model of pleading clarity. Both are vague and imprecise, and riddled with typographical and grammatical errors.” Id. at 5, n. 4.

The Court determined that the allegations of the removed Petition and Pinnacle’s Notice of Removal were insufficient to establish complete diversity of citizenship. The original Petition did not contain specific allegations as to the parties’ citizenship, but incorporated by reference an undated exhibit entitled “EEOC-Client Information” (the “Exhibit”) that listed most, but not all, of the plaintiffs’ names and addresses. The Court noted that several of the plaintiffs’ names as shown on the Petition did not correspond exactly with the names listed on the Exhibit, and as a result the citizenship of some plaintiffs was unclear.4

The Court concluded,

While these discrepancies [in the plaintiffs’ names] may be the result of typographical errors, defendant must establish that the plaintiffs listed in the Petition are the same persons listed on the Exhibit, or otherwise establish the citizenship of those plaintiffs. In addition, there are three plaintiffs listed in the caption of the removed Petition whose names are not listed on the Exhibit — Linda Schreck, Linda Cotton, and Raymond Wood — and there are no allegations before the Court concerning these plaintiffs’ citizenship. Defendant must establish the citizenship of each of these plaintiffs.

Order Concerning Removal at 7-8.

The Court stated that it was satisfied former plaintiff Michael Hull was no longer a party to the action, because plaintiffs omitted Hull’s name from the caption of the First Amended Petition and replaced it with the name of plaintiff Michael Holl, and because defendant had filed an affidavit stating that no one named Michael Hull ever worked for it. As a result, the Court stated that Pinnacle was not required to attempt to establish Hull’s citizenship. Id. at 8, n. 8.

The Court also noted that several of the plaintiffs’ names listed in the caption of the original Petition were changed in the caption of the First Amended Petition. Specifically, plaintiff Mark Hughes’ name was changed to Michael Hughes, plaintiff Michael Hull’s name was changed to Michael Holl; and plaintiff Raymond Wood’s name was changed to Raymond Woods. Id. at 9. Pinnacle was ordered to establish the citizenship of each of these plaintiffs at the time of filing and the time of removal. Id.

Pinnacle filed its Response to the Order Concerning Removal on May 21, 2012, and provided detailed proof of the citizenship of each plaintiff except for Michael Hall, Michael Hull and Michael Hughes. Pinnacle’s Response stated that it never employed individuals named Michael Hall, Michael Hull and Michael Hughes at the President Casino, and plaintiffs have not contradicted this statement. The Court ultimately determined that complete diversity of citizenship existed and that diversity jurisdiction was proper. See Mem. and Order of June 7, 2012 (Doc. 63).

By letter dated June 21, 2012, Pinnacle informed plaintiffs’ counsel that it believed plaintiffs’ pleadings contained misrepresentations of fact “that a number of the listed plaintiffs are proper plaintiffs in this lawsuit,” and as such were subject to sanctions under Rule 11(b). Pinnacle asked plaintiffs to withdraw the misrepresentations and request leave of Court to correct them, identifying the misrepresentations as follows:

[282]*2821.

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289 F.R.D. 278, 84 Fed. R. Serv. 3d 530, 2012 WL 6728063, 2012 U.S. Dist. LEXIS 182570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-v-pinnacle-entertainment-inc-moed-2012.