Holman v. Johnson & Johnson

600 B.R. 6
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedMay 22, 2019
DocketCase No. 19ap00645
StatusPublished
Cited by1 cases

This text of 600 B.R. 6 (Holman v. Johnson & Johnson) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holman v. Johnson & Johnson, 600 B.R. 6 (Ill. 2019).

Opinion

Honorable Deborah L. Thorne, United States Bankruptcy Judge

Introduction & Background

This matter comes before the court upon Cheryl Holman's ("Holman") motion to remand certain removed state law claims back to state court. Holman is the administrator of the estate of Elaine Cook ("Cook"), deceased. Holman is suing Johnson & Johnson ("J & J") (and others) on various legal theories, all arising under state law, to recover damages against J & J for its role in allegedly causing cancer-related injuries to Cook. The injuries allegedly arise out of exposure to talc used in J & J's products.

J & J allegedly acquired most or all of its talc from Imerys, a company now in bankruptcy in the District of Delaware.1 J & J argues that removal of the state law claims to this court is proper under 28 U.S.C. § 1452(a) due to the pending Imerys bankruptcy case and the existence of "related to" bankruptcy jurisdiction over the state law claims under 28 U.S.C. § 1334(b). For the following reasons, this court disagrees and orders that the claims be remanded to the Circuit Court of Cook County.

Discussion

I. Removal, Jurisdiction, and the Power to Enter an Order Remanding the State Law Claims

J & J has removed the claims to this court under 28 U.S.C. § 1452(a). This statute provides in pertinent part that "[a] party may remove any claims or cause of action in a civil action ... to the district court for the district where such civil action is pending , if such district court has jurisdiction of such claim or cause of action under section 1334 of this title." 28 U.S.C. § 1452(a) (emphasis added). Accordingly, removal under section 1452(a) is appropriate only if subject matter jurisdiction under section 1334 exists over the removed claims.

Subject matter jurisdiction exists under section 1334(b) over claims "related to" a pending bankruptcy case. 28 U.S.C. § 1334(b).2 The district court has referred *10subject matter jurisdiction over "related to" claims to this court. 28 U.S.C. § 157(a) ; N.D. Ill. L.R. 40.3.1(a).3 Accordingly, the claims were properly removed to this court in the first instance, and this court may therefore pass on the propriety of the removal. See 28 U.S.C. § 157(a) ; N.D. Ill. L.R. 40.3.1(a) ; Fed. R. Bankr. P. 9001(3), 9027(a)(1) ; Gianakas v. Exchange Nat'l Bank of Chicago (In re Gianakas) , 56 B.R. 747, 751-52 (N.D. Ill. 1985) ; City of Joliet v. Bank One, Chicago, N.A. (In re Green) , 210 B.R. 556, 558 (Bankr. N.D. Ill. 1997). The fact that Imerys's bankruptcy case is pending in Delaware and not in this district is irrelevant. 28 U.S.C. § 1452(a) ("where such civil action is pending") (emphasis added); Engra, Inc. v. Gabel (In re Engra, Inc.) , 86 B.R. 890, 893 (S.D. Tex. 1988).

If subject matter jurisdiction under section 1334(b) is lacking, the claims must be remanded back to state court. 28 U.S.C. § 1447(c) ("If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded .") (emphasis added); Hernandez v. Brakegate, Ltd. , 942 F.2d 1223, 1225-26 (7th Cir. 1991) ; see also 28 U.S.C. § 1452(a) (noting that removal is only proper if the court has jurisdiction under section 1334 ). This court has subject matter jurisdiction to consider its own jurisdiction. Bayo v. Napolitano , 593 F.3d 495, 500 (7th Cir. 2010) ("[A] federal court always has jurisdiction to determine its own jurisdiction.") (quotations and citations omitted). And this court has the power to issue an order remanding the claims back to state court, even if the underlying claims being remanded are non-core state law claims being brought by a non-debtor against a non-debtor (as is the case here). See, e.g. , Podkolzin v. Amboy Bus Co. , 402 B.R. 539, 543 n.5 (E.D.N.Y. 2009) ; Scherer v. Carroll , 150 B.R. 549, 552 (D. Vt. 1993) ; Rachmale v. Conese , 515 B.R. 567, 569 n.2 (Bankr. E.D. Mich. 2014) ; Citcorp Savings of Ill. v. Chapman (In re Chapman)

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Bluebook (online)
600 B.R. 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holman-v-johnson-johnson-ilnb-2019.