Gruber v. Estate of Marshall

229 F. Supp. 3d 1245, 2017 U.S. Dist. LEXIS 7135, 2017 WL 169088
CourtDistrict Court, D. Kansas
DecidedJanuary 17, 2017
DocketCase No. 16-cv-4152-DDC-GLR
StatusPublished
Cited by3 cases

This text of 229 F. Supp. 3d 1245 (Gruber v. Estate of Marshall) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gruber v. Estate of Marshall, 229 F. Supp. 3d 1245, 2017 U.S. Dist. LEXIS 7135, 2017 WL 169088 (D. Kan. 2017).

Opinion

MEMORANDUM AND ORDER

Daniel D. Crabtree, United States District Judge

This matter comes before the court on Judgment^Creditor Kai Gruber’s Motion to Remand. Doc. 16. Garnishees United States Aircraft Insurance Group (“USAIG”) and United States Aviation Underwriters, Inc. have filed a Memorandum in Opposition to the Motion to Remand. Doc. 19. And, Judgment-Creditor Kai Gruber has filed a Reply. Doc. 20. After considering the parties’ arguments, the court grants the motion and remands the case to the District Court of Riley County, Kansas.

I. Factual and Procedural Background

The following facts are either taken from the Petition that Judgment-Creditor Kai Gruber, as personal representative of the Estate of Christopher S. Gruber, on behalf of the next-of-kin of Christopher S. Gruber (“Gruber Estate”) filed in the District Court of Riley County, Kansas, on December 29, 2014 (Doc. 15-2 at 1-17), or from the state court record in that lawsuit (id. at 1-661).

On April 7, 2013, a plane piloted by Ronald Marshall crashed in Oklahoma, killing Mr. Marshall and his passenger, Christopher S. Gruber. On December 29, 2014, Mr. Gruber’s wife, Kai Gruber, filed a wrongful death action on her own behalf and for the Gruber Estate against the Estate of Ronald Marshall (“Marshall Estate”) in the District Court of Riley County, Kansas. After a bench trial, District Judge Meryl D. Wilson of the District Court of Riley County entered a judgment against the Marshall Estate for $11,588,548.89.

The Gruber Estate, as judgment creditor, filed a Request for Garnishment1 on August 4, 2016, naming the Marshall Estate as the Judgment Debtor and the Marshall Estate’s insurers—USAIG and United States Aviation Underwriters, Inc.—as Garnishees. That same day, the Riley County District Court issued an Order of Garnishment. Counsel for the Gruber Estate served the Order of Garnishment on August 8, 2016.

On August 17, 2016, Garnishees served their Answer, denying that they possessed [1247]*1247any property, funds, credits or other indebtedness belonging or owing to the Marshall Estate. Their Answer thus denied that Garnishees were indebted to the Gruber Estate for the judgment in the underlying lawsuit. Kan. Stat. Ann. § 60-738(a) authorized the Gruber Estate to file “a reply disputing any statement in the answer of the garnishee” within “14 days after the garnishee makes the answer and sends it to the judgment creditor and judgment debtor.” So, any timely reply was due on or before August 31, 2016.

But, the Gruber Estate did not file a reply within the statutory time requirement. Instead, on September 16, 2016, the Gruber Estate filed a Motion for Leave to File a Reply Out of Time to Garnishees’ Answer. The Gruber Estate alleged in its Motion for Leave that Garnishees negligently or in bad faith failed to settle the Gruber Estate’s wrongful death claim against the Marshall Estate. The Gruber Estate explained that the Marshall Estate had assigned a bad faith/negligent failure to settle claim to the Gruber Estate and, thus, the Gruber Estate was seeking payment of the judgment entered against the Marshall Estate from Garnishees. The Gruber Estate conceded that it had failed to file a timely Reply to the Garnishees’ Answer, and asserted that the omission constituted excusable neglect under Kan. Stat. Ann. § 60-206(b)(1)(B).

The Gruber Estate attached its proposed Reply to the Motion for Leave. The proposed Reply states that the Gruber Estate contests Garnishees’ contention that they are not indebted to the Gruber Estate. The proposed Reply alleges that Garnishees mishandled the insurance claim arising out of Mr. Gruber’s death in the airplane crash. And, the proposed Reply accuses the Garnishees of acting negligently or in bad faith by failing to settle the claim within insurance policy limits. Before the District Court of Riley County ruled on the Motion for Leave, Garnishees removed the action to this court on September 23, 2016. Doc. 1.

II. Legal Standard

“Federal courts are courts of limited jurisdiction; they must have a statutory basis for their jurisdiction.” Dutcher v. Matheson, 733 F.3d 980, 984 (10th Cir. 2013) (quoting Rural Water Dist. No. 2 v. City of Glenpool, 698 F.3d 1270, 1274 (10th Cir. 2012)). Under 28 U.S.C. § 1441, a defendant may remove to federal court “any civil action brought in a State court of which the district courts of the United States have original jurisdiction.” 28 U.S.C. § 1441.

The governing federal removal statutes require a defendant to remove an action “within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based.... ” 28 U.S.C. § 1446(b)(1). But, “if the case stated by the initial pleading is not removable,” the defendant must remove the action to federal court “within 30 days after receipt of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable.” 28 U.S.C. § 1446(b)(3).

The Tenth Circuit has explained that “[t]he failure to comply with these express statutory requirements for removal can fairly be said to render the removal ‘defective’ and justify a remand.” Huffman v. Saul Holdings Ltd. P’ship, 194 F.3d 1072, 1077 (10th Cir. 1999) (quoting Snapper, Inc. v. Redan, 171 F.3d 1249, 1253 (11th Cir. 1999)); see also Farm City Ins. Co. v. Johnson, 190 F.Supp.2d 1232, 1236 (D. Kan. 2002) (explaining that “the 30-day time requirement for removal is mandatory” but “not jurisdictional”); Wichita Fed. [1248]*1248Savings & Loan Assoc. v. Black, No. 89-1089-K, 1989 WL 60141, at *1 (D. Kan. May 10, 1989) (“The time limitations established by § 1446(b) are mandatory and must be strictly applied.”)

When determining whether the action is removable under federal statute, the removing party bears the burden to establish the propriety of removal from the state to the federal court. Baby C v. Price, 138 Fed.Appx. 81, 83 (10th Cir. 2005); Huffman, 194 F.3d at 1079.

III. Analysis

In their Notice of Removal, Garnishees allege that their removal is proper because diversity jurisdiction exists under 28 U.S.C. § 1332(a).

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229 F. Supp. 3d 1245, 2017 U.S. Dist. LEXIS 7135, 2017 WL 169088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gruber-v-estate-of-marshall-ksd-2017.