In Re bridgestone/firestone, Inc., Tires Products Liability Litigation

247 F. Supp. 2d 1071
CourtDistrict Court, S.D. Indiana
DecidedJanuary 10, 2003
DocketIP 00-9373-C B/S, IP 01-5454-C-B/S. MDL No. 1373
StatusPublished

This text of 247 F. Supp. 2d 1071 (In Re bridgestone/firestone, Inc., Tires Products Liability Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re bridgestone/firestone, Inc., Tires Products Liability Litigation, 247 F. Supp. 2d 1071 (S.D. Ind. 2003).

Opinion

247 F.Supp.2d 1071 (2003)

In re BRIDGESTONE/FIRESTONE, INC., TIRES PRODUCTS LIABILITY LITIGATION,
This Order Applies To:
Rodolfo Ortiz Cisneros, Plaintiff,
v.
Bridgestone/Firestone, Inc., et al., Defendants.

Nos. IP 00-9373-C B/S, IP 01-5454-C-B/S. MDL No. 1373.

United States District Court, S.D. Indiana, Indianapolis Division.

January 10, 2003.

*1072 Don Barrett, Barrett Law Office PA, Lexington, MS, Victor Manuel Diaz Jr., Podhurst Orseck Josefsberg & Eaton, Miami, FL, Mike Eidson, Colson Hicks Eidson, Coral Gables, FL, Irwin B. Levin, Cohen & Malad, William E Winingham, Wilson Kehoe & Winingham, Indianapolis, IN, for Plaintiff.

John H. Beisner, O'Melveny & Myers LLP, Washington, DC, Daniel P. Byron, Bingham McHale LLP, Mark Merkle, Krieg Devault LLP, Randall Riggs, Locke Reynolds LLP, Thomas G Stayton, Baker & Daniels, Indianapolis, IN, Mark Herrmann, Jones Day Reavis & Pogue, Thomas S. Kilbane, Squire Sanders & Dempsey LLP, Cleveland, OH, Colin P. Smith, Holland & Knight LLC, Chicago, IL, for Defendants.

ORDER DENYING MOTION TO REMAND AND GRANTING LEAVE TO AMEND

BARKER, District Judge.

This matter is before the Court on the plaintiffs Motion to Remand and for Sanctions and his Motion for Leave to Join Bridgestone/Firestone Canada, Inc. ("motion to amend"). For the reasons set out below, the Motion to Remand and for Sanctions is DENIED. The motion to amend is GRANTED, and the Amended Complaint attached to the motion to amend (at docket number 5927) is deemed filed as of the date of the motion.

Discussion

Motion to Remand

Plaintiff Rodolfo Ortiz Cisneros, alleged in the complaint to be a citizen of Mexico, sued defendants Bridgestone/Firestone, Inc. ("Firestone") (a U.S. corporation with citizenship in Tennessee and Ohio), Bridgestone Corporation ("Bridgestone") (a Japanese corporation), and Firestone Canada, Ltd. ("Firestone Canada") (a Canadian entity) in Texas state court. Firestone removed the action to federal court, asserting federal jurisdiction under 28 U.S.C. § 1332 as a case between a citizen (Firestone) and a citizen of a foreign state (the plaintiff). Firestone, recognizing that section 1332 would not supply jurisdiction for a suit by a foreign citizen against foreign defendants, argued that the presence of Bridgestone and Firestone Canada as defendants should be ignored because they were fraudulently joined. Firestone later established in Mr. Cisneros's deposition in May 2002 that although he is apparently a citizen of Mexico, he is also a permanent resident alien of the United States residing in Texas. On July 9, 2002, Firestone filed an Amended Notice of Removal, asserting that federal jurisdiction also exists (without regard to its fraudulent joinder argument) because under 28 U.S.C. § 1332(a), *1073 a permanent resident alien is "deemed a citizen of the State in which such alien is domiciled." [1] Therefore, section 1332(a)(3) would also supply subject matter jurisdiction because this is a case between "citizens of different States" (the plaintiff, who is deemed to be a citizen of Texas, and Firestone, which is a citizen of Tennessee and Ohio) and "in which citizens or subjects of a foreign state (Bridgestone and Firestone Canada) are additional parties."

We address Firestone's later asserted basis for subject matter jurisdiction first. In 1988, Congress amended section 1332 with the following language:

For the purposes of this section, section 1335, and section 1441, an alien admitted to the United States for permanent residence shall be deemed a citizen of the State in which such alien is domiciled.

("1988 Amendment")

At first blush, application of the 1988 Amendment to the jurisdictional facts at hand would seem to yield a simple conclusion (and one that Firestone accepts without discussion): Because Mr. Cisneros is deemed a citizen of the State of Texas for purposes of section 1332, the federal court has jurisdiction over this case under subsection (a)(3), as it is between "citizens of different States and in which citizens or subjects of a foreign state are additional parties."

The problem is that a number of federal district courts and at least one court of appeals have declined to reach the conclusion that the plain language of the 1988 Amendment would seem to compel. See, e.g., Saadeh v. Farouki, 107 F.3d 52 (D.C.Cir.1997); Matsuda v. Wada, 128 F.Supp.2d 659 (D.Hawai'i 2000); China Nuclear Energy Industry Corp. v. Andersen, 11 F.Supp.2d 1256 (D.Colo.1998); Engstrom v. Hornseth, 959 F.Supp. 545 (D.Puerto Rico 1997); Ozawa v. Miyata, 1997 WL 779047 (N.D. Ill.Dec. 15, 1997). They have done so for three primary reasons. First, applying this language literally could create diversity jurisdiction over a suit brought by one alien against another alien, without an actual U.S. citizen (absent the "deeming" provision) on either side of the litigation. Such an application, those courts have determined, would likely place the 1988 Amendment on a collision course with the diversity clause in Article III of the United States Constitution, which limits federal court diversity jurisdiction to "Controversies ... between citizens of different States ... and between a State, or the Citizens thereof, and foreign States, Citizens or Subjects." Second, courts have examined portions of the legislative history of amendments made to section 1332 in 1988 and concluded that Congress's intent was to limit diversity jurisdiction, not to expand it. The principal purpose of the 1988 Amendment, these courts have determined, was to prevent federal courts from having to hear a dispute between a foreign citizen who is a permanent resident alien of the United States and a U.S. citizen of the same state. In other words, Congress did not want Mr. Cisneros to be able to sue his Brownsville, Texas neighbor in federal district court. Third, some courts have noted that literal application of the 1988 Amendment would abrogate the rule requiring complete diversity in this context,[2] in the absence of any express legislative intent.

*1074 This court was able to locate only two federal appellate decisions that address the application of the 1988 Amendment under facts similar to those presented here.[3] The Seventh Circuit has not decided the issue.[4] In Saadeh, 107 F.3d 52, the D.C. Circuit Court of Appeals held, for the reasons outlined above, that the 1988 Amendment does not confer diversity jurisdiction over an alien on one side, and an alien and a citizen on the other side, regardless of the residence status of the aliens. 107 F.3d at 61. Saadeh, and a few district courts that have followed it, held that even though the language of the 1988 Amendment is not so limited, it should nevertheless be interpreted only to prevent jurisdiction over controversies between resident aliens domiciled in a particular state and citizens of that same state and should never be read to supply jurisdiction. Id. (See also the district court decisions cited in the preceding paragraph.).

The Third Circuit Court of Appeals reached the opposite conclusion in Singh v. Daimler-Benz AG,

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Pittston Coal Group v. Sebben
488 U.S. 105 (Supreme Court, 1988)
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861 F. Supp. 225 (S.D. New York, 1994)
Hideo Matsuda v. Michiko Wada
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Engstrom v. Hornseth
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Ortiz Cisneros v. Bridgestone/Firestone, Inc.
247 F. Supp. 2d 1071 (S.D. Indiana, 2003)

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Bluebook (online)
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