Grynberg Production Corp. v. British Gas, P.L.C.

149 F.R.D. 135, 26 Fed. R. Serv. 3d 1037, 1993 U.S. Dist. LEXIS 7788, 1993 WL 197818
District Court, E.D. Texas·Decided June 8, 1993·No. No. 1:92-CV-0496·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER GRANTING GRYNBERG PRODUCTION CORPORATION’S MOTION FOR LEAVE TO AMEND PLEADINGS, DENYING MOTION FOR DISCRETIONARY REMAND, AND GRANTING MOTION FOR VOLUNTARY DISMISSAL

SCHELL, District Judge.

CAME ON TO BE CONSIDERED plaintiff Grynberg Production Corporation’s (“Grynberg”) Motion for Leave to Amend Pleadings, and Grynberg’s Motion for Discretionary Remand or, in the Alternative, for Voluntary Dismissal, and the court, after reviewing the Motions, is of the opinion that the Motion for Leave to Amend Pleadings should be GRANTED, the Motion for Discretionary Remand should be DENIED, and the Motion for Voluntary Dismissal should be GRANTED.

I. BACKGROUND

This case has already been the subject of an extensive removal battle. This court ultimately determined that the specific performance, injunction, and conversion claims in Grynberg’s well-pleaded complaint supported federal question jurisdiction and therefore the entire case was removable. “Memorandum Opinion and Order Denying Grynberg Production Corporation’s Motion to Remand,” signed March 19, 1993. Grynberg seeks to amend its complaint to delete those claims that the court found supported jurisdiction. After amendment, Grynberg seeks a discretionary remand to state court, and in the event the remand is denied, Grynberg moves to voluntarily dismiss. Also pending before the court are several motions to dismiss or for summary judgment filed by British Gas, p.l.c., Jack Gregory, and British Petroleum Operating Co., (BP”).

II. AMENDMENT OF THE COMPLAINT

Both sides seem to be laboring under the assumption that Grynberg actually needs [137]*137leave of court to amend its complaint. However, Fed.R.Civ.P. 15(a) provides that “[a] party may amend the party’s pleading once as a matter of course at any time before a responsive pleading is served....” The Fifth Circuit has held that:

The term “responsive pleading” should be defined by reference to the definition of “pleading” in Rule 7(a), which includes neither a motion to dismiss nor a motion for summary judgment____ Accordingly, neither a motion to dismiss not a motion for summary judgment extinguishes a plaintiffs right to amend a complaint.

Zaidi v. Ehrlich, 732 F.2d 1218, 1219-20 (5th Cir.1984); accord, McGruder v. Phelps, 608 F.2d 1023, 1025 (5th Cir.1979); Barksdale v. King, 699 F.2d 744, 746-47 (5th Cir.1983). Furthermore, “[w]hen, as in this case, a plaintiff who has a right to amend nevertheless petitions the court for leave to amend, the court should grant the petition.” Zaidi, 732 F.2d at 1220.

Of the parties remaining in the lawsuit, only TransWorld Resources Corporation (“TransWorld”) has answered. Atlantic Richfield Company, Inc., had answered prior to removal. It was dismissed with prejudice by stipulation. None of the parties opposing the amendment have served a responsive pleading.

The rule is ... that “[wjhere some but not all defendants have answered, plaintiff may amend as of course claims asserted solely against the non-answering defendants. ...” [I]f the amendment affects all defendants or one or more of those that have not responded, then it is generally held that a “responsive pleading” has not been served for purposes of Rule 15(a) and plaintiff may amend his complaint as of course with regard to those defendants that have not answered.

Barksdale, 699 F.2d at 747. Consequently, Grynberg may amend as a matter of right with regard to all parties except TransWorld. As to that claim, TransWorld has not filed any opposition to the proposed amendment, and the court sees no reason not to permit the amendment.

III. DISCRETIONARY REMAND

The amended complaint no longer includes the injunction, specific performance, and conversion claims. So amended, Grynberg’s complaint no longer contains the claims that supported federal question jurisdiction under 28 U.S.C. § 1331. Grynberg acknowledges that the amendment of a complaint to delete all federal claims does not deprive the court of subject matter jurisdiction. Henry v. Independent Am. Sav. Ass’n, 857 F.2d 995, 998 (5th Cir.1988). Instead, Grynberg moves for a discretionary remand under the authority of Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 108 S.Ct. 614, 98 L.Ed.2d 720 (1988). Under Cohill, a district court has discretion to remand a case when all federal claims have been eliminated and only state law claims remain.

The court refuses to remand this case for several reasons. First, although only state law claims remain, some of the issues still presented in this case do touch on federal interests relating to international relations. For example, the court noted in the March 19, 1993 order that the federal act of state doctrine might be implicated in Grynberg’s breach of tort duty claims against British Gas. These claims remain in the complaint. Although a federal defense does not support original subject matter jurisdiction, its possible presence in the case may nevertheless implicate “uniquely federal” interests. The federal nature of this issue and possibly others favors retention of this case. See Cohill, 484 U.S. at 350 n. 7, 108 S.Ct. at 619 n. 7.

Second, Grynberg’s attempts to evade a federal forum justify retention. Grynberg’s original petition was clearly removable. Grynberg candidly admits that the sole purpose of deleting its federal claims is to obtain a remand to state court. In Cohill, the Supreme Court observed:

Petitioners’ concern appears to be that a plaintiff whose suit has been removed to federal court will be able to regain a state forum simply by deleting all federal-law claims from the complaint and requesting that the district court remand the case____ A district court can consider whether the plaintiff has engaged in any manipulative tactics when it decides whether to remand [138]*138a case. If the plaintiff has attempted , to manipulate the forum, the court should take this behavior into account in determining whether the balance of factors to be considered under the pendent jurisdiction doctrine support a remand in the case.

484 U.S. at 357, 108 S.Ct. at 622-23; accord Jones v. Houston Indep. Sch. Dist., 979 F.2d 1004, 1007 (5th Cir.1992) (district court may deny remand when plaintiffs sole apparent motive in amending the complaint is to seek remand); Boelens v. Redman Homes, Inc., 759 F.2d 504, 507 (5th Cir.1985) (same).

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Grynberg Production Corp. v. British Gas, P.L.C., 149 F.R.D. 135, 26 Fed. R. Serv. 3d 1037, 1993 U.S. Dist. LEXIS 7788, 1993 WL 197818 (E.D. Tex. 1993).

149 F.R.D. 135 (Grynberg Production Corp. v. British Gas, P.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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