Haynes v. Rocky Mount Cycles, Inc.

CourtDistrict Court, E.D. North Carolina
DecidedApril 15, 2024
Docket5:23-cv-00591
StatusUnknown

This text of Haynes v. Rocky Mount Cycles, Inc. (Haynes v. Rocky Mount Cycles, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haynes v. Rocky Mount Cycles, Inc., (E.D.N.C. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION No. 5:23-CV-591-D

KIMBERLY J. HAYNES, as Executrix ) of the ESTATE OF BLANCHE LORENE __ ) CHEELEY (Deceased), and JAMES ) EDMOND CHEELEY, ) Plaintiffs, V. ORDER ROCKY MOUNT CYCLES, INC., et al., Defendants.

On July 25, 2023, Kimberly J. Haynes (“Haynes”), executrix of Blanche Lorene Cheeley’s (“Blanche Cheeley”) estate, and James Edmond Cheeley (“James Cheeley”) (collectively, “plaintiffs”) filed a complaint in Northampton County Superior Court against Rocky Mount Cycles, Inc. f/k/a Black Cat Harley Davidson (“Rocky Mount Cycles”); MS Family Enterprises, Inc. d/b/a Bayside Harley-Davidson; Slaughter, Inc. d/b/a Bayside Harley-Davidson (Portsmith CI); Harley-Davidson, Inc.; Harley-Davidson Motor Company, Inc.; Harley-Davidson Motor Company Group, LLC; Harley-Davidson Motor Company Operations, Inc.; Bosch Brake Components, LLC; Robert Bosch, LLC; Bosch Global Software Technologies Private Limited; and KV Motorcycle Sales Inc. (collectively “defendants”), alleging ten causes of action arising from a fatal motorcycle accident. See [D.E. 1-2] f¥ 103-229. On October 20, 2023, defendants removed the action to this court under diversity jurisdiction and alleged that plaintiffs fraudulently joined Rocky Mount Cycles to defeat diversity. See [D.E. 1] § 7. On November 14, 2023,

. plaintiffs moved to remand [D.E. 28]. On November 22, 2023, and December 5, 2023, defendants

responded in opposition [D.E. 30, 31, 32, 33, 35]. On January 17, 2024, plaintiffs replied [D.E. 37]. As explained below, plaintiffs fraudulently joined Rocky Mount Cycles. Thus, the court dismisses Rocky Mount Cycles as a defendant, has diversity jurisdiction, and denies plaintiffs’ motion to remand. James Cheeley and Blanche Cheeley (‘the Cheeleys”) were citizens and residents of Nash County, North Carolina. See Compl. [D.E. 1-2] FJ 1, 3. On May 8, 2021, the Cheeleys purchased and received a 2021 Harley-Davidson (“HD”) Trike motorcycle (“HD motorcycle”) from Bayside HD in Virginia. See id. 4, 73-75. The Cheeleys registered the HD motorcycle. See id. at 4. On July 23, 2021, the Cheeleys took the HD motorcycle to Rocky Mount Cycles for “warranty repair after noticing an oil leak on the floor of their garage.” Id. at J 79; see [D.E. 1-20] . (work order). On July 23 or 24, 2021, Rocky Mount Cycles repaired the oil leak under the original manufacturer’s warranty. See Compl. 83, 224(a); [D.E. 33-4] 3-4 (service technician affidavit). On July 24, 2021, Rocky Mount Cycles returned the HD motorcycle to the Cheeleys. See Compl. { 83. When Rocky Mount Cycles serviced the HD motorcycle to repair the oil leak, nobody had issued a recall for the 2021 HD Trike motorcycles’ braking systems. See [D.E. 33-4] 6-8; of, [D.E. 33-3] 2. On July 25, 2021, while James Cheeley drove the HD motorcycle and Blanche Cheeley was a passenger, the Cheeleys crashed on I-95 in Northampton County, North Carolina. See Compl. FJ 33, 86-88. As a result of the crash, Blanche Cheeley died, and James Cheeley was seriously injured. See id. at TJ 33, 89-90. Haynes is executrix of Blanche Cheeley’s estate. See id. at § 2. Plaintiffs allege that an undisclosed design defect, flaw, or fault in the HD motorcycle caused the HD motorcycle to pull to the left due to the unintentional and spontaneous activation

of the rear braking system as plaintiffs traveled on I-95. See id. at FJ 33, 40, 41, 48-49, 53-62, □ 91.

On July 25, 2023, plaintiffs filed suit in Northampton County Superior Court, alleging ten claims for relief against numerous defendants, including Harley-Davidson and the Virginia HD dealership. See id. at fj 103-229. Plaintiffs also included Rocky Mount Cycles, a North Carolina corporation, as a defendant. See id. at J] 17, 18, 220-29. Plaintiffs bring a negligence claim and a gross negligence claim against Rocky Mount Cycles for its alleged failure to properly service and inspect the vehicle and its alleged failure to warn plaintiffs of dangers related to an alleged faulty rear brake system. See id. at □□ 220-29. Plaintiffs allege that Rocky Mount Cycles knew about the alleged design defect in the braking system in this HD motorcycle. See id. at [J □□□□□□ Plaintiffs contend that James Cheeley had a similar but non-fatal accident in October 2020 while driving a 2015 HD Trike motorcycle. See id. at J] 53-62. On September 22, 2023, plaintiffs produced to defendants a July 24, 2021 work order □ estimate from Rocky Mount Cycles that confirmed the limited service that Rocky Mount Cycles provided for plaintiffs’ HD motorcycle in July 2021. See [D.E. 1] ¥ 32; [D.E. 1-20]. After defendants received the July 24, 2021 work order estimate from plaintiffs, defendants removed this action to this court. See [D.E. 1]. In removing the action, defendants argued that plaintiffs fraudulently joined Rocky Mount Cycles to defeat diversity jurisdiction because plaintiffs had no possibility of stating a negligence or gross negligence claim against Rocky Mount Cycles. See id. at 25-54. On November 14, 2023, plaintiffs moved to remand. See [D.E. 28]. IL. “[F]ederal courts, unlike most state courts, are courts of limited jurisdiction,” that Congress created “with specified jurisdictional requirements and limitations.” Strawn v. AT&T Mobility

LLC, 530 F.3d 293, 296 (4th Cir. 2008); see Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994).. Removal from state court requires the federal district court to have original jurisdiction over the removed action. See 28 U.S.C. § 1441(a); Lontz v. Tharp, 413 F.3d 435, 439 (4th Cir. 2005). Accordingly, a defendant generally may remove an action to federal court only if the face of the complaint demonstrates diversity jurisdiction or federal question jurisdiction. See 28 U.S.C. § 1441(b). In a case removed from state court, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c). The party seeking removal has the “burden of establishing federal jurisdiction.” Mulcahey v. Columbia Organic Chems. Co., 29 F.3d 148, 151 (4th Cir. 1994); see Hughes v. Wells Fargo Bank, N.A., 617 F. App’x 261, 263 (4th Cir. 2015) (per curiam) (unpublished). “If diversity jurisdiction is challenged, the burden of proof remains on the party invoking federal court jurisdiction, and the citizenship of each real party in interest must be established by a preponderance of the evidence.” Roche v. Lincoln Prop. Co., 373 F.3d 610, 616 (4th Cir. 2004), rev'd on other grounds, 546 U.S. 81 (2005). “Because removal jurisdiction raises significant federalism concerns, [the court] must strictly construe removal jurisdiction.” Mulcahey, 29 F.3d at 151; see Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108 (1941). “If federal jurisdiction is doubtful, a remand is necessary.” Mulcahey, 29 F.3d at 151; see Common Cause v. Lewis, 956 F.3d 246, 252 (4th Cir. 2020); Palisades Collections LLC v. Shorts,

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Sherri Turner v. JP Morgan Chase Bank, N.A.
543 F. App'x 300 (Fourth Circuit, 2013)
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Mattingly v. NORTH CAROLINA RAILROAD COMPANY
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