Grant v. Chevron Phillips Chemical Co.

309 F.3d 864, 2002 U.S. App. LEXIS 21266, 2002 WL 31269792
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 11, 2002
Docket01-31350
StatusPublished
Cited by73 cases

This text of 309 F.3d 864 (Grant v. Chevron Phillips Chemical Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grant v. Chevron Phillips Chemical Co., 309 F.3d 864, 2002 U.S. App. LEXIS 21266, 2002 WL 31269792 (5th Cir. 2002).

Opinion

WIENER, Circuit Judge:

The captioned case is before us by virtue of the district court’s highly principled certification for immediate interlocutory appeal pursuant to 28 U.S.C. § 1292(b). We are called on to answer an important removal and remand question which (1) arises in the context of diversity jurisdiction under 28 U.S.C. § 1332, (2) is unique to Louisiana class actions because of the state’s statutory scheme, and (3) has polarized the judges of the Eastern District of Louisiana. This question implicates the jurisdictional-amount prong of the test for diversity jurisdiction, and asks:

When considering the class plaintiffs’ motion to remand, can attorney’s fees that the court may allow to class representatives pursuant to Paragraph A. of art. 595 [“art. 595(A)”] of the Louisiana Code of Civil Procedure [“LCCP”] be included in calculating the requisite amount in controversy, absent some other provision of Louisiana law that specifically authorizes the award of attorney’s fees?

To get this divisive question before us under § 1292(b), the district judge denied the motion of the Plaintiffs-Appellants (“class representatives”) to remand the case to the state court in which they filed it as a putative class action against the Defendant-Appellee (“Chevron”), and from which Chevron removed it to the district court. The parties agree, and the facts confirm, that complete diversity exists between the class representatives and Chevron, 1 leaving the amount in controversy as the sole contested issue on appeal.

For the reasons explained below, we answer “yes” to today’s question. And, as none contest that the amount here in controversy crosses § 1332’s threshold of $75,000 when all allowable attorney’s fees are attributed exclusively to the class representatives, we affirm the refusal to remand this case to the state court of origin, and return it to the district court for further proceedings.

I. Facts and Proceedings

Just after noon on the day following an industrial accident at Chevron’s chemical *867 plant in St. James Parish, Louisiana, counsel for the class representatives filed the instant tort action in the state district court for that parish. The petition identifies Chevron as the defendant, the suit as a class action, and the members of the putative class as all persons or entities located within five miles of the plant who may have suffered damages as a result of the incident. The class representatives’ petition asserts Louisiana causes of action in negligence and strict liability, and alleges that “[t]he claims of the plaintiffs herein for compensatory damages are all each [sic] individually less than $74,999.00.” In addition to seeking certification of the class, determination of Chevron’s liability to the class for compensatory damages, and recognition of the right of each individual class member to bring a separate action to establish the quantum of his damages, the petition asks the state court to allow the class representatives to “recover their costs for the prosecution of this class action.”

Chevron removed the case to the Eastern District of Louisiana, asserting that (1) diversity is complete and (2) the amount in controversy is sufficient to support diversity jurisdiction when attorney’s fees allowable under art. 595(A) are attributed to the class representatives pursuant to In re: Abbott Laboratories (“Abbott ”). 2 Art. 595(A) defines the representative parties’ “reasonable expenses of litigation” as “including attorney’s fees.” 3

The class representatives timely filed a motion to remand, insisting that Abbott interpreted art. 595(A) as attributing attorney’s fees to the class representatives only when a separate Louisiana statute (Louisiana Revised Statute § 51:137 in Abbott) authorizes assessing “a reasonable attorney’s fee” to the defendant, over and above compensatory and any other damages. They rely on the facts that (1) no one of them (or any other class member, for that matter) is claiming a quantum of damages in this tort suit that could exceed § 1332’s $75,000 jurisdictional amount threshold for diversity jurisdiction, without including interest and costs such as attorney’s fees, and (2) not only are they not seeking attorney’s fees under any specific Louisiana statute that expressly provides for such recovery, 4 they are not entitled to recover attorney’s fees from the defendant, Chevron, in this ordinary Louisiana tort suit, grounded as it is in negligence and strict liability. 5

The district judge noted and described in detail the division among those judges of his court (including himself) who had considered whether alone, i.e., in the absence of a separate attorney’s fees statute, the attorney’s fees allowable to class representatives under art. 595(A) are includa-ble in calculating the amount in controversy for purposes of diversity jurisdiction, 6 noting which judges had answered “yea” and which “nay.” Rather than perpetuate this intra-district split of authority by rul *868 ing one way or the other on the issue, the court denied the class representatives’ motion to remand and granted Chevron’s motion to certify the question for interlocutory appeal pursuant to § 1292(b).

II. Analysis

A. Standard of Review

When there is complete diversity between all plaintiffs and all defendants, we review de novo an order denying remand to state court on the ground that the amount in controversy exceeds the minimum jurisdictional requirement. 7

B. Background: Removal from State Courts of Louisiana

Subject to specific exceptions not here relevant, Louisiana prohibits a plaintiff from alleging or demanding a specific dollar amount of damages, limiting the prayer for relief to “such damages as are reasonable in the premises.” 8 To accommodate the situation when the removal sought is from a Louisiana court and subject matter jurisdiction is grounded in diversity of citizenship, we have modified the usual rule for determining whether the amount in controversy is present. In such Louisiana situations, we permit the party seeking to maintain federal jurisdiction to establish by a preponderance of the evidence that the amount in controversy exceeds $75,000. 9 When the case is one that has been removed from state court, such party may satisfy this burden in either of two ways: (1) by demonstrating that it is “facially apparent” from the petition that the claim likely exceeds $75,000 or (2) “by setting forth the facts

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Bluebook (online)
309 F.3d 864, 2002 U.S. App. LEXIS 21266, 2002 WL 31269792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grant-v-chevron-phillips-chemical-co-ca5-2002.