Holmes v. Fresenius Kidney Care of Tuskegee

CourtDistrict Court, M.D. Alabama
DecidedJune 4, 2021
Docket3:20-cv-00853
StatusUnknown

This text of Holmes v. Fresenius Kidney Care of Tuskegee (Holmes v. Fresenius Kidney Care of Tuskegee) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes v. Fresenius Kidney Care of Tuskegee, (M.D. Ala. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA EASTERN DIVISION

STEVEN HOLMES and ) PAULETTE HOLMES, ) ) Plaintiffs, ) ) v. ) CIVIL ACT. NO. 3:20-cv-853-ECM ) (WO) FRESENIUS KIDNEY CARE ) OF TUSKEGEE, et al., ) ) Defendants. )

MEMORANDOM OPINION AND ORDER

I. INTRODUCTION The pending motions to amend/correct complaint, (doc. 14), and to remand, (doc. 15), require this Court to determine whether it has diversity jurisdiction over this case.1 In defense of subject matter jurisdiction, Bio-Medical Applications of Alabama, Inc. d/b/a Fresenius Kidney Care (“BMA”) notes, “[t]he removal process was created by Congress to protect defendants. Congress did not extend such protection with one hand and with the other give plaintiffs a bag of tricks to overcome it.” (Doc. 17 at 9) (citing Legg v. Wyeth, 428 F.3d 1317, 1325 (11th Cir. 2005)). But before a defendant can accuse the plaintiff of deploying its “bag of tricks” to divest the court of federal jurisdiction, the prerequisites for diversity subject matter jurisdiction must have existed at the time of removal. BMA and

1 Also pending before the Court are the Defendants’ motion for guidance from the court, (doc. 26), and the Plaintiffs’ motion for entry of a scheduling order, (doc. 27). For the following reasons, they are both denied as moot. Shirley Blevins Carrington (collectively “Defendants”) argue that Steven and Paulette Holmes (“Plaintiffs”) fraudulently joined a non-diverse defendant and are now attempting to destroy diversity by amending their complaint. True as this might be, the Defendants’

focus on complete diversity between the parties neglects the other requirement for diversity jurisdiction—the satisfaction of the $75,000 amount in controversy requirement. For the following reasons, the Plaintiffs’ motion to amend/correct Complaint, (doc. 14), is due to be DENIED, and the motion to remand, (doc. 15), is due to be GRANTED. II. STANDARD OF REVIEW

Pursuant to § 1332, federal courts “shall have jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between citizens of different States.” 28 USCA § 1332(a)(1). Nevertheless, federal courts are courts of limited jurisdiction and therefore possess only the power authorized by the Constitution or statute. Kokkonen v. Guardian Life Ins. Co. of Am., 511

U.S. 375, 377 (1994). Courts should presume that a case lies outside of this limited jurisdiction, and the burden of establishing the contrary should be upon the party asserting jurisdiction. Id. Although a defendant has the statutory right to remove in certain situations, the plaintiff is still the master of his claim. Burns v. Windsor Ins. Co., 31 F.3d 1092, 1095 (11th Cir. 1994). For that reason, the defendant’s right to remove and the plaintiff’s right

to choose his forum are “not on equal footing.” Id. Accordingly, the defendant’s removal burden is a heavy one. Id. III. PROCEDURAL HISTORY AND FACTS On March 1, 2019, Steven Holmes arrived at the Fresenius Kidney Care Dialysis Clinic in Tuskegee, Alabama. (Doc. 1-1 at 2). Holmes was in a wheelchair, and employees

of the clinic attempted to help him out of the chair. Holmes fell and was seriously injured. He was taken to the East Alabama Medical Center and was later admitted to Jackson Hospital in Montgomery. He sustained “back injuries and other injuries.” (Id.). On September 15, 2020, Holmes and his wife Paulette Holmes filed a suit for negligence and wantoness in the Circuit Court of Macon County, Alabama. In the

complaint (“operative complaint”), they named Fresenius Kidney Care of Tuskegee, Shirley Blevins Carrington, and seven unnamed defendants who are “residents of the State of Alabama who attempted to seat Steven Holmes in a dialysis chair . . . but who negligently and/or wantonly allowed him to fall, injuring himself . . . .” (Id. at 1). They sought compensatory and punitive damages. (Id. at 3).

On October 21, 2020, BMA, a non-resident corporation,2 with the consent of Carrington removed the case to federal court based on federal diversity jurisdiction. (Doc. 1 at 1–3). In their notice of removal, in addition to the existence of the requisite amount in controversy, the Defendants argued complete diversity existed because Carrington, an Alabama resident, had been fraudulently joined to destroy complete diversity. (Id. at 3–4).

On November 20, 2020, the Plaintiffs filed two motions: a motion to amend/correct the complaint, (doc. 14), and a motion to remand the case back to state court, (doc. 15). In

2 Defendant BMA is a Delaware corporation with its principle place of business in Massachusetts. (Doc. 1 at 3). their motion to amend, the Plaintiffs argued that they were entitled to amend their complaint to “[c]orrect the description of the type of negligence of Shirley Blevins Carrington” and “[s]ubstitute for Fictitious Defendant A . . . Sondra Doe.” (Doc. 14 at 2).

They argued, therefore, the Court should remand the case back to state court because complete diversity does not exist. (Doc. 15). IV. DISCUSSION For this Court to have jurisdiction over this case, it must determine whether the Defendants have cleared three hurdles. First, Defendants must show the Plaintiffs should

not be able to amend their complaint. Second, Defendants must show that Shirley Carrington was fraudulently joined. And finally, they must show the requisite amount in controversy exists. If the Plaintiffs prevail at any of these junctures then the case must be remanded back to state court. This Court will begin at the first hurdle in the path to federal diversity jurisdiction: whether the Plaintiffs may amend their complaint.

A. Amending Complaint The Plaintiffs argue that they should be allowed to amend their complaint to clarify the cause action against Carrington and to substitute “Sondra Doe” as one of its fictitious defendants. They argue that the Court should allow them to do so because other courts in this Circuit have found that denying a motion to amend to correct the name of a non-diverse

party after removal was an abuse of discretion. (Doc. 14 at 4–6) (citing Dever v. Family Dollar Stores of Ga., LLC, 755 F. App'x 866, 869–70 (11th Cir. 2018)). In response, the Defendants argue that the proposed amended complaint is categorically different from the operative complaint, and the new and completely different theories against Carrington are solely for the purpose of avoiding federal jurisdiction. (Doc. 17 at 6). In most cases, courts “should freely give leave [to amend a complaint] when justice

so requires.” See Fed. R. Civ. P. 15(a)(2). But when a plaintiff tries to amend the pleadings to add additional defendants after removal, courts are afforded more discretion. “If after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction, the court may deny joinder, or permit joinder and remand the action to the State court.” 28 U.S.C.A. § 1447(e). The removal statute has been interpreted

to mean that courts should more closely scrutinize “an amended pleading that would name a new nondiverse defendant in a removed case.” Dever v. Fam. Dollar Stores of Georgia, LLC, 755 F. App'x 866, 869 (11th Cir. 2018). Specifically, “district courts should also balance the defendant’s interests in maintaining the federal forum.” Id. The Eleventh Circuit has not explicitly spoken on how “a district court should decide whether to permit

or deny joinder of a nondiverse defendant after removal.” Id.

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Holmes v. Fresenius Kidney Care of Tuskegee, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-v-fresenius-kidney-care-of-tuskegee-almd-2021.