Joseph Anders v. Samsung SDI Co. Ltd.

District Court, C.D. California·Decided August 19, 2022·No. 5:22-cv-00979·Unknown

Opinion

Case 5:22-cv-00979-SPG-KK Document 24 Filed 08/19/22 Page 1 of 13 Page ID #:492

Case No. 5:22-cv-00979-SPG-KK JOSEPH ANDERS, an individual,

Plaintiff, ORDER DENYING PLAINTIFF’S MOTION TO REMAND ACTION TO v. CALIFORNIA SUPERIOR COURT [ECF NO. 15] HOHM TECH, INC., a California Corporation; and DOES 1-100 inclusive,

Defendants.

Before the Court is Plaintiff Joseph Anders’ (“Plaintiff”) motion to remand this action to California Superior Court. (ECF No. 15 (“Motion”)). This matter was originally set for hearing on August 15, 2022. Having considered the parties’ submissions, the relevant law, and the record in this case, the Court finds pursuant to Local Rule 7.15 that the matter is suitable for resolution without oral argument. The Motion has been taken under submission, and, for the reasons stated below, the Court DENIES Plaintiff’s Motion. A. Factual Background Plaintiff, a resident of North Carolina, alleges that the lithium-ion battery used to power his electronic cigarette spontaneously exploded in his pocket, causing second-

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degree burns across his left leg. (ECF No. 1-4 at 3 ¶ 1). The battery at-issue was wrapped in a “Hohm Tech” exterior coating. (ECF No. 15 at 26 ¶ 3). From this, Plaintiff concluded that Hohm Tech, Inc. (“Hohm Tech”), a California corporation, was the manufacturer responsible for the allegedly defective battery. See (id.); (ECF No. 1-4 ¶ 1). On November 17, 2020, Plaintiff filed a Complaint in the California Superior Court for the County of San Bernardino asserting claims of Strict Products Liability and Negligent Products Liability against Hohm Tech and Does 1-100. (ECF No. 1-4 at 2-4). However, on July 30, 2021, Hohm Tech filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Central District of California, Riverside Division (the “Bankruptcy Court”). See In re HOHM Tech, Inc., 6:21-bk-14150-MH (Bankr. C.D. Cal.) (the “Bankruptcy Proceeding”). Plaintiff was thereafter served with a Notice of Stay for these state court proceedings on August 3, 2021. (ECF No. 15 at 26 ¶ 2.b). Before the issuance of the Bankruptcy Court’s Stay, Plaintiff and Hohm Tech had already engaged in considerable discovery. (Id. at 25 ¶ 2.a). By April 1, 2021, Plaintiff had served 36 Requests for Production, 56 Special Interrogatories, and Formal Interrogatories on Hohm Tech. (Id. at 25 ¶ 2.a.ii). Over the course of this discovery, Plaintiff concluded that the allegedly defective battery was manufactured by a Korean entity, Samsung SDI Co., Ltd. (“Defendant”), rather than Hohm Tech. See (id. at 26 ¶ 3, 10 n.1). On September 8, 2021, Plaintiff filed DOE Amendments to the Complaint naming Defendant as “DOE 1” and California corporation Samsung SDI America, Inc. (“Samsung America”) as “DOE 2.” (ECF Nos. 1-11, 1-12). At the time, Plaintiff continued to name Hohm Tech as a co-defendant in the action because he hoped to hold Hohm Tech jointly and severally liable for his alleged harms. See (ECF No. 15 at 21 (“Hohm Tech remained a valid defendant as a link ‘in the chain of production and marketing, from the original manufacturer down through the distributor and wholesaler to the retailer; liability of all such defendants is joint and several.’”) (quoting Kaminski v. W. MacArthur Co., 175 Cal. App. 3d 445, 455-456 (1985))).

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B. Procedural History 1. Plaintiff Begins Negotiations with Defendant On or about September 29, 2021, Samsung America’s counsel (who also serves as Defendant’s counsel) approached Plaintiff regarding Samsung America’s dismissal from the litigation. (ECF No. 19-1 at 2 ¶ 2). Samsung America explained to Plaintiff “that [Samsung America] [was] not a proper defendant because it is not in the chain of distribution for the 18650 lithium-ion battery at issue in this action.” (Id.). Although Plaintiff harbored doubt about Samsung America’s status as a viable defendant, see (ECF No. 15 at 28 ¶ 9 (“Nor is it clear what role, if any, Samsung America played in the distribution of the exploding battery.”)), Plaintiff did not dismiss Samsung America from the suit. On October 4, 2021, Plaintiff served Samsung America with the Complaint and Summons. (ECF No. 1-15). Defendant, however, insisted that it be served in compliance with Hague Convention procedures due to its status as a Korean entity. (ECF No. 15 at 27, ¶ 4). Because of the Hague Convention’s onerous requirements, Plaintiff proceeded to negotiate with Defendant for alternative service procedures. See (id.). On October 11, 2021, Plaintiff offered to dismiss Samsung America from the suit if Defendant accepted service and filed an Answer to the Complaint. See (ECF No. 19-1 at 5). Defendant rejected this offer on October 13, 2022. (Id.). 2. Plaintiff Dismisses Hohm Tech and Samsung America From Suit On October 28, 2021, Samsung America removed the action to the Bankruptcy Court pursuant to 28 U.S.C. § 1452 and Federal Rule of Bankruptcy Procedure 9027. (ECF No. 1-19). Soon thereafter, on November 4, 2021, Samsung America filed a Motion to Dismiss for Failure to State a Claim, which included a Request for Judicial Notice of a decision in another matter holding that Samsung America was not in the chain of production for the lithium-ion batteries at-issue. (ECF No. 15 at 27 ¶ 5). According to Plaintiff, he did not dismiss Samsung America at that time because “Samsung America did not include a

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