In Re Asbestos Products Liability Lit.(no. Vi)

801 F. Supp. 2d 337
Procedural entryThis page is a short order in In Re Asbestos Products Liability Lit.(no. Vi). Read the opinion of the Court — 770 F. Supp. 2d 736
District Court, E.D. Pennsylvania·Decided May 16, 2011·No. MDL No. 875. Civil Action No. 11-02636·Published

Opinion

801 F.Supp.2d 337 (2011)

In re: ASBESTOS PRODUCTS LIABILITY LITIGATION (NO. VI).
David and Frances Graver
v.
Various, Defendants.

MDL No. 875. Civil Action No. 11-02636.

United States District Court, E.D. Pennsylvania.

May 16, 2011.

Robert E. Paul, Paul Reich & Myers, PC, Philadelphia, PA, for David and Frances Graver.

Bernard L. Levinthal, Medford J. Brown, III, Goldfein & Joseph, Richard L. Walker, II, Kelley Jasons McGowan Spinelli & Hanna LLP, Leroy J. Janiczek, Reilly, Janiczek & McDevitt, PC, John P. McShea, McShea Tecce PC, Philadelphia, PA, for Defendants.

MEMORANDUM

EDUARDO C. ROBRENO, District Judge.

Before the Court is Plaintiff's Motion to Remand (doc. no. 3) and removing Defendant, Allentown Cement Company's, Response (doc. no. 11.)

I. BACKGROUND

Plaintiff David B. Graver was diagnosed with mesothelioma on May 24, 2010. (Pl.'s Reply, doc. no. 17, at 1.) Plaintiffs, David B. Graver and his wife, Frances Graver, filed a complaint against various Defendants alleging injury due to asbestos exposure in the Philadelphia Court of Common Pleas on June 25, 2010. (Id. at 1.) Plaintiffs were scheduled to commence trial in the Court of Common Pleas of Philadelphia County on April 18, 2011, as part of a trial group with other similarly-situated plaintiffs. However, Defendant Allentown Cement Company ("Defendant") filed a Notice of Removal in the instant case on the same day. (See doc. no. 1.)

*338 Defendant's Notice of Removal avers that there is complete diversity between the parties; Plaintiffs are citizens of Pennsylvania and no remaining Defendant is subject to personal jurisdiction in Pennsylvania. (Def.'s Removal, doc. no. 1, at 3.) Defendant argues that the case became diverse, and therefore removable, on April 11, 2011,[1] when Philadelphia Court of Common Pleas Judge Sandra Mazer Moss granted summary judgment in favor of Crown Cork & Seal, the last remaining Pennsylvania Defendant in the case. (Pl.'s Mot. to Remand, doc. no. 3, at 3.).[2] Alternatively, Defendant argues that the Pennsylvania Defendants were fraudulently joined. Defendant avers that it filed a timely notice of removal pursuant to 28 U.S.C. § 1446(b), as it was filed within thirty days "from which it may first be ascertained that the case is one which is or has become removable" and was filed within a year of the commencement of the action.[3]

Plaintiffs respond that the case did not become removable on April 11, 2011, because only a voluntary dismissal of a non-diverse defendant causes a case to become removable. Plaintiffs note that they opposed Defendant Crown Cork & Seal's motion for summary judgment and "resisted any attempt" to dismiss it from the case. (Id.) Plaintiffs request immediate remand,[4] costs and fees in the amount of $100,000 and sanctions, as Plaintiffs allege that there was no legitimate basis for Defendant Allentown Cement Company's removal. (Id. at 2.) Plaintiffs deny that Defendant Crown Cork & Seal was fraudulently joined.

II. ANALYSIS

A. The Voluntary Rule

1. A Majority of Courts Apply the Voluntary/Involuntary Distinction

Plaintiff's Motion to Remand avers that the instant case is not removable pursuant *339 to the "voluntary/involuntary" rule (hereinafter the "voluntary rule"), which holds that an action which is nonremovable when commenced can become removable only by voluntary act of plaintiff.

Indeed, "the great weight of authority holds that [a case only becomes removable] where the non-diverse defendant is dropped as the result of some voluntary action by plaintiff." American Dredging Co. v. Atlantic Sea Con. Ltd., 637 F.Supp. 179, 181 (D.N.J.1986) (emphasis added). The purpose of the voluntary rule is two-fold:

First, it contribute[s] to judicial economy, because after an involuntary removal, the plaintiff may appeal the dismissal in state court, and success on appeal would lead to the reinstatement of the non-diverse party, destroying federal jurisdiction and compelling remand to the state court. Second, it recognizes the general principle of deference to the plaintiff's choice of forum. Allowing removal only when the plaintiff voluntarily dismisses a defendant ensures that the plaintiff will not be inappropriately forced out of state court without his consent.
Greco v. Beccia, 2001 WL 121887 at *2 (M.D.Pa. Feb. 13, 2001)(quoting Pender v. Bell Asbestos Mines, Ltd., 46 F.Supp.2d 937, 940-41 (E.D.Mo.1999)).

The Third Circuit Court of Appeals has not squarely addressed the issue,[5] but the "trend among the district courts in the Third Circuit, as illustrated by Greco, has been to require dismissal of a non-diverse defendant by voluntary act of the plaintiff as the basis for removal." Rubino v. Genuardi's Inc., 2011 WL 344081 at *6 (E.D.Pa. Jan. 31, 2011) (Baylson, J.). Indeed, all district courts in the Third Circuit to consider the issue have upheld the voluntary rule. See Greco, supra; Rubino, supra; American Dredging Co., supra; Cook v. Pep Boys-Mannie, Moe & Jack, Inc., 641 F.Supp. 43 (E.D.Pa.1985); Abels v. State Farm Fire & Cas. Co., 694 F.Supp. 140, 145 (W.D.Pa.1988). Most recently, in Rubino, the district court sua sponte inquired as to whether the involuntary dismissal of a non-diverse defendant vested the court with subject matter jurisdiction. Rubino, 2011 WL 344081 at *5. The court found that the voluntary rule precluded a finding of subject matter jurisdiction, and remanded the case. Id.

Additionally, all Circuit Court of Appeals addressing the issue have adopted the voluntary rule. See Poulos v. Naas Foods, Inc., 959 F.2d 69, 72 (7th Cir.1992); Quinn v. Aetna Life & Casualty Co., 616 F.2d 38, 40 n. 2 (2d Cir.1980); In re: Iowa Mfg. Co. of Cedar Rapids, 747 F.2d 462 (8th Cir.1984); Self v. General Motors Corp., 588 F.2d 655 (9th Cir.1978); DeBry v. Transamerica Corp., 601 F.2d 480 (10th Cir.1979); Insinga v. LaBella, 845 F.2d 249, 252 (11th Cir.1988); see also 14B Wright & Miller § 3723 ("Federal Courts generally hold that when a plaintiff voluntarily drops from the state court action a party whose presence would defeat diversity, the case becomes removable even though diversity of citizenship did not exist when the state court action was commenced.. . .").

Defendant responds that, based on a plain reading of the statute, the voluntary rule did not survive the 1949 amendment to 28 U.S.C. § 1446(b), which, for the first *340 time, allowed removal of a case not initially removable. See supra, fn. 3 for relevant text.

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In Re Asbestos Products Liability Lit.(no. Vi), 801 F. Supp. 2d 337 (E.D. Pa. 2011).

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