Gabrielle v. Allegro Resorts Hotels

210 F. Supp. 2d 62, 2002 U.S. Dist. LEXIS 11958, 2002 WL 1467431
CourtDistrict Court, D. Rhode Island
DecidedMay 30, 2002
DocketCIV.A. 02-150 ML, CIV.A.02-151 ML
StatusPublished
Cited by6 cases

This text of 210 F. Supp. 2d 62 (Gabrielle v. Allegro Resorts Hotels) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gabrielle v. Allegro Resorts Hotels, 210 F. Supp. 2d 62, 2002 U.S. Dist. LEXIS 11958, 2002 WL 1467431 (D.R.I. 2002).

Opinion

MEMORANDUM AND ORDER DENYING PLAINTIFFS’ MOTIONS TO REMAND

MARTIN, United States Magistrate Judge.

Before the court in the above consolidated cases are the motions of Plaintiffs Na-tale A. Gabrielle (“Gabrielle”) and Lisa Rollins (“Rollins”) (collectively “Plaintiffs”) to remand these actions to the State of Rhode Island Superior Court for Washington County. Plaintiffs contend that in each case the amount in controversy does not exceed $75,000 and that complete diversity is not present because Defendant Trek Tours, Ltd., (“Trek”), is a Rhode Island corporation with offices located in Westerly, Rhode Island. For the reasons explained below, the court concludes that the amount in controversy exceeds $75,000.00 and that the presence of Trek as a defendant does not destroy complete diversity because Trek has been fraudulently joined. Accordingly, the motions to remand must be denied.

*64 Facts 1 and Travel

Plaintiffs are residents of Westerly, Rhode Island, and at the time of the incident alleged in the Complaints were boyfriend and girlfriend. Sometime prior to February 26, 2000, they booked a tour to Jack Tar Village St. Kitts, a resort hotel owned by Allegro Resorts Hotels (“Allegro”). Allegro has offices in Miami, Florida. 2 Plaintiffs used Trek, a Westerly travel agency, and TNT Vacations (“TNT”), a Boston, Massachusetts, company, to book the tour.

Plaintiffs arrived at Jack Tar Village St. Kitts on February 26, 2000, and were given a room on the second floor of the hotel. During the early morning hours of February 29th, a robber entered Plaintiffs’ hotel room. Entry was gained through a balcony door which Gabrielle had left open approximately four inches because the air conditioner prevented him from sleeping. The opening was covered by a screen. Plaintiffs were awakened, and Gabrielle was assaulted by the robber. The assault was witnessed by Rollins. Gabrielle sustained personal bodily injuries and psychological injuries for which he sought medical attention and psychiatric treatment. Rollins was also injured and sought medical attention and psychiatric treatment. 3 Plaintiffs both allege that they have been disabled as a result of their injuries.

Gabrielle filed his Complaint against Allegro, TNT Vacations 4 (“TNT”), and Trek in the Washington County Superior Court on or about February 28, 2002. Rollins filed her similarly worded Complaint on or about the same date. TNT removed both actions to this court on April 1, 2002, pursuant to 28 U.S.C. §§ 1441 and 1446. In the Notice of Removal filed with each case, 5 TNT alleges that this court has original jurisdiction under 28 U.S.C. § 1332(a) (diversity jurisdiction), that the amount in controversy reasonably exceeds $75,000.00, and that diversity of citizenship exists except with respect to Trek which has been fraudulently joined. See Notice of Removal ¶¶ 3, 7. On May 2, 2002, Plaintiffs moved to remand the actions to the state court. TNT filed an opposition to each Motion to Remand on May 6, 2002. The court conducted a hearing on May 23, 2002, and took the matters under advisement. 6

Discussion

I. Amount in Controversy

Plaintiffs challenge TNT’s claim that the amount in controversy exceeds $75,000.00, the minimum jurisdictional amount established by 28 U.S.C. § 1332(a) for diversity cases. The party invoking the jurisdiction of a federal court carries the burden of proving its existence. See Coventry Sew *65 age Assocs. v. Dworkin Realty Co., 71 F.3d 1, 4 (1st Cir.1995); Taber Partners, I v. Merit Builders, Inc., 987 F.2d 57, 60 (1st Cir.1993); Gorman v. Abbott Laboratories, 629 F.Supp. 1196, 1203 (D.R.I.1986). Since TNT removed this case, it has the burden of proving that the amount in controversy exceeds $75,000.00.

A. Standard of Proof

Although there is a difference of opinion among courts as to the standard of proof which a defendant must meet to defeat a plaintiffs motion to remand, see 16 James Wm, Moore, Moore’s Federal Practice § 107.14[2][g][v] (3d ed.1997), this Magistrate Judge has previously determined that, where the complaint does not contain a specific monetary amount, the defendant must show by a prepondérance of the evidence that the amount in controversy satisfies the minimum jurisdictional amount for diversity cases. See Ondis v. Cox Communications Rhode Island, C.A. No. 99-318 ML, Memorandum and Order at 8 (D.R.I. Mar. 30, 2000) (Martin, M.J.). This Magistrate Judge explained in Ondis his reasoning in adopting this standard, and it is not necessary to repeat that discussion here. Accordingly, TNT must show by a preponderance of the evidence that the amount in controversy exceeds $75,000.00.

B. Valuation of Amount in Controversy

The amount in controversy is measured “by a reasonable reading of the value of the rights being litigated.” Angus v. Shiley, Inc., 989 F.2d 142, 146 (3rd Cir.1993). In each Notice of Removal, TNT states that “the amount in controversy reasonably exceeds $75,000.” Notice of Removal' ¶ 16. While acknowledging that the Complaints do not allege a precise amount of damages (the Complaints state only that “the amount in controversy, is such to give [the Rhode Island Superior] Court jurisdiction,”) see Complaints ¶¶ 34, 37, 41, TNT points to allegations in Gabrielle’s Complaint that as a result of being robbed and assaulted in his hotel room, he “sustained personal bodily injuries and psychological injuries,” id. ¶ 26, and “had to seek'medical attention and psychiatric treatment, all of which has resulted in plaintiff being disabled, having emotional problems, and this disability presently continues and will do so indefinitely into the future,” id. ¶27. As for Rollins, TNT points to almost identical allegations in Rollins’ Complaint that as a result of the robbery and assault in her hotel room, she “suffered injuries to herself including psychological injuries,” id.

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Bluebook (online)
210 F. Supp. 2d 62, 2002 U.S. Dist. LEXIS 11958, 2002 WL 1467431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gabrielle-v-allegro-resorts-hotels-rid-2002.