Johnson v. Micron Technology, Inc.

354 F. Supp. 2d 736, 2005 U.S. Dist. LEXIS 1832, 2005 WL 174577
CourtDistrict Court, E.D. Michigan
DecidedJanuary 24, 2005
Docket04-74263
StatusPublished
Cited by2 cases

This text of 354 F. Supp. 2d 736 (Johnson v. Micron Technology, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Micron Technology, Inc., 354 F. Supp. 2d 736, 2005 U.S. Dist. LEXIS 1832, 2005 WL 174577 (E.D. Mich. 2005).

Opinion

ORDER AND OPINION DENYING DEFENDANTS’ MOTION TO STAY AND GRANTING PLAINTIFF’S MOTION TO REMAND

ROBERTS, District Judge.

I. INTRODUCTION

This matter is before the Court on Plaintiffs Motion to Remand and Defendants’ Motion to Stay Proceedings. Oral argument was held on January 21, 2005. The Court GRANTS Plaintiffs Motion and DENIES Defendants’ Motion.

II. BACKGROUND

Keith Johnson (“Plaintiff’) filed suit against Micron Technology Inc. and other companies which sold and shipped Dynamic Random Access Memory (“DRAM”) and/or products containing DRAM, a commonly used semiconductor memory product. The suit, originally filed in Wayne County Circuit Court on October 5, 2004, seeks class certification and alleges restraint of trade and monopoly in violation of the Michigan Antitrust Reform Act.

Defendants removed the case on November 1, 2004, based on diversity jurisdiction. Subsequently, Defendants filed a notice of potential tag-along action with the Judicial Panel on Multidistrict Litigation (“MDL Panel”) to transfer the case to the Northern District of California. The MDL Panel issued a conditional transfer order on November 19, 2004. On November 24, 2004, Defendants filed this motion to stay proceedings pending transfer. Plaintiff filed the motion to remand on December 1, 2004. Plaintiff also filed a notice of objection to the conditional transfer with the MDL Panel.

The issue presented is the propriety of Defendants’ removal to this Court, which turns on whether the case could originally have been filed in federal court. Plaintiff limits his damage claim to under $75,000, *738 and says, therefore, the amount in controversy requirement cannot be met, thus depriving the Court of original jurisdiction. On the other hand, Defendants claim that the amount in controversy requirement for original jurisdiction purposes can be met if the Court aggregates the claims of poten-, tial class members. Before doing so, however, Defendants urge this Court to stay this proceeding, allow the MDL Panel to decide the transfer issue, and allow the transferee court to rule on the jurisdiction question.

For the reasons stated below, the Court finds that the original jurisdiction, issue must be decided expeditiously. Further, the Court finds that Defendants have not sustained their burden to establish that this case is within the Court’s original jurisdiction, inasmuch as the Court is without authority to aggregate the claims of unnamed class members to establish the requisite amount in controversy for original jurisdiction purposes. Plaintiffs remand motion must be granted.

III. STANDARD OF REVIEW

“Only state-court actions that originally could have been filed in federal court may be removed to federal court by the defendant.” Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987); Husvar v. Rapoport, 337 F.3d 603, 607 (6th Cir.2003). Indeed, 28 U.S.C. § 1441(b) instructs that only those claims may be removed in which the federal courts “have ‘original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States.’ ” Husvar, 337 F.3d at 607 (6th Cir.2003) (quoting 28 U.S.C. § 1441(b)). Removal statutes are to be strictly construed, and “all doubts as to the propriety of removal are resolved in favor of remand.” Coyne v. American Tobacco Co., 183 F.3d 488, 493 (6th Cir.1999). The burden of proving the court’s jurisdiction falls on the defendant who seeks removal. See Rogers v. Wal-Mart Stores, Inc., 230 F.3d 868, 871 (6th Cir.2000).

Also, in evaluating motions to stay, the Sixth Circuit has held that the factors for injunctive relief are considered: 1) whether the applicant has demonstrated a likelihood of success on the merits; 2) whether the applicant will be irreparably injured absent a stay; 3) whether issuance of the stay will substantially injure the other interested parties; and 4) where the public interest lies. Bejjani v. INS, 271 F.3d 670, 688 (6th Cir.2001). None of the four factors is a prerequisite to the issuance of a stay; rather, the Court must balance the four factors in deciding the propriety of a stay. Performance Unlimited v. Questar Publishers, Inc., 52 F.3d 1373, 1381 (6th Cir.1995). However, “a [party] must always demonstrate some irreparable injury before a [stay] may issue.” Friendship Materials, Inc. v. Michigan Brick, Inc., 679 F.2d 100, 104 (6th Cir.1982).

IV. APPLICABLE LAW AND ANALYSIS

A. The Factors To Grant A Stay Have Not Been Met

A transfer can be made by the Judicial Panel on Multidistrict Litigation if the transferor district court has subject matter jurisdiction of the case. Bancohio Corp. v. Fox, 516 F.2d 29 (1975); see also 28 U.S.C. § 1407. While the MDL Panel is not empowered to make determinations of subject matter jurisdiction, both the transferee and transferor courts are empowered to do so when the matter is before them. See id.; see also In re Commonwealth Oil/Tesoro Petroleum Sec. Litigation, 458 F.Supp. 225 (Jud.Pan. Mult.Lit.1978). “A transfer under section 1407 becomes effective when the order granting the transfer is filed in the office of the clerk of the transferee court,” not when the MDL Panel issues a conditional *739 transfer. Manual for Complex Litigation, § 20.131 at 220 (4th Ed.); see also R.P. JPML 1.5 (2001).

Defendants assert that “where the existence of federal jurisdiction is at issue against the backdrop of a pending MDL proceeding, federal courts ordinarily stay their actions in order to permit a single district court, ie., the transferee court designated by the MDL Panel, to decide the common jurisdiction issue.” Def. Resp. Br. Opp’n PI. Mo. Remand at 4-5. To support this assertion, Defendants cite several unpublished cases in which district courts stayed actions to allow the MDL transferee court to resolve pending jurisdictional motions. One of the cited cases is from the Eastern District of Michigan. See D’s Pet Supplies, Inc. v. Microsoft, 2000 U.S. Dist. LEXIS 16482 (E.D.Mich. Feb. 7, 2000)(unpublished).

A Second Circuit case, In re Ivy, 901 F.2d 7 (2d Cir.1990), is also cited by Defendants.

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354 F. Supp. 2d 736, 2005 U.S. Dist. LEXIS 1832, 2005 WL 174577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-micron-technology-inc-mied-2005.