J.R. Laughead, Inc. v. Air Dayco Corp.

942 F. Supp. 339, 1996 U.S. Dist. LEXIS 15400, 1996 WL 599369
CourtDistrict Court, S.D. Texas
DecidedOctober 7, 1996
DocketCivil Action H-96-1919
StatusPublished
Cited by2 cases

This text of 942 F. Supp. 339 (J.R. Laughead, Inc. v. Air Dayco Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.R. Laughead, Inc. v. Air Dayco Corp., 942 F. Supp. 339, 1996 U.S. Dist. LEXIS 15400, 1996 WL 599369 (S.D. Tex. 1996).

Opinion

MEMORANDUM AND ORDER

LAKE, District Judge.

Pending before tbe court is the Motion to Remand (Docket Entry No. 4) of plaintiff, J.R. Laughead, Inc. Laughead argues that the court must remand this action pursuant to 28 U.S.C. § 1447(c) because the Notice of Removal of defendants, Air Dayeo Corp. and Franco D’Agostino, was untimely filed.

I.Background

On April 4,1996, Laughead, a Texas corporation with its principal place of business in Houston, filed a petition in the 61st Judicial District Court of Harris County, Texas. It sought actual and exemplary damages for injuries stemming from Air Dayco’s and D’Agostino’s alleged breach of contract, fraud, and negligent misrepresentation arising out of defendants’ failure to pay a $100,-000 brokerage fee to Laughead upon the sale of a jet aircraft. On June 12, 1996, defendants removed the ease to this court.

II.Standard of Review

“Section 1447(c) provides two grounds for remand: (1) a defect in removal procedure and (2) lack of subject matter jurisdiction.” Burks v. Amerada Hess Corp., 8 F.3d 301, 303 (5th Cir.1993). When considering a motion to remand the removing party bears the burden of showing that removal was proper. Carpenter v. Wichita Falls Indep. Sch. Dist., 44 F.3d 362, 365 (5th Cir.1995); Dancy v. Fina Oil & Chem. Co., 921 F.Supp. 1532, 1534 (E.D.Tex.1996). “‘This extends not only to demonstrating a jurisdictional basis for removal, but also necessary compliance with the requirements of the removal statute.’” Delgado v. Shell Oil Co., 890 F.Supp. 1324, 1341 (S.D.Tex.1995) (quot ing Albonetti v. GAF Corporation-Chemical Group, 520 F.Supp. 825, 827 (S.D.Tex.1981)). Because removal jurisdiction raises “significant federalism concerns,” Umphrey v. Fina Oil & Chem. Co., 921 F.Supp. 434, 436 (E.D.Tex.1996) (citing Willy v. Coastal Corp., 855 F.2d 1160, 1164 (5th Cir.1988), appeal after remand, 915 F.2d 965 (5th Cir.1990), aff'd, 503 U.S. 131, 112 S.Ct. 1076, 117 L.Ed.2d 280 (1992)), courts must construe removal statutes narrowly, with doubts resolved in favor of remand to the state court. Walters v. Grow Group, Inc., 907 F.Supp. 1030, 1032 (S.D.Tex.1995); Jefferson Parish Hosp. Dist. No. 2 v. Harvey, 788 F.Supp. 282, 283-84 (E.D.La.1992). “If there is any doubt that a right to removal exists, ‘ambiguities are to be construed against removal.’ ” Delgado, 890 F.Supp. at 1341 (quoting Samuel v. Langham, 780 F.Supp. 424, 427 (N.D.Tex.1992)).

III.Discussion

The parties agree that removal jurisdiction is proper under 28 U.S.C. § 1441 because complete diversity within the meaning of 28 U.S.C. § 1332 exists between the parties and the amount in controversy exceeds $50,000.00. Laughead attacks the timeliness of defendants’ notice of removal, however, because it was not filed “within thirty days after the receipt by defendant, through service or otherwise, of a copy of the initial pleading_” 28 U.S.C. § 1446(b). Laughead has submitted uncontradicted evi *341 dence demonstrating that it transmitted, via first-class mail, a courtesy copy of the original state court petition to Franco D’Agostino, president of Air Dayeo, at Air Dayco’s mailing address, on April 9, 1996. 1 Although Franco D’Agostino did not personally receive the courtesy copy, Luis D’Agostino, vice-president of Air Dayeo, admits receiving the petition on April 10, 1996. 2 Luis D’Agostino also admits contacting Laughead’s counsel, Bruce D. Oakley, on April 16, 1996, to acknowledge receipt of the original petition. 3 Defendants argue that their removal on June 12, 1996, was nonetheless timely because they first received formal service of process via certified mail on May 18, 1996. 4 Laug-head timely filed its Motion to Remand on July 10,1996, 5 arguing that the relevant date for calculating the commencement of the thirty-day period imposed by § 1446(b) was April 10, 1996, not May 18, 1996, as alleged in Defendants’ Notice of Removal. Laug-head argues that the thirty-day period expired long before June 12, 1996, making the defendants’ removal on that date fatally defective.

Defendants argue that notwithstanding the unambiguous language of § 1446(b), the court should count the thirty-day period mandated by that section from the day a defendant receives a copy of the state court petition only when such receipt was preceded or accompanied by “formal” service of process. The court is not persuaded by this argument because the plain language of § 1446(b) requires a court to measure the thirty-day removal period from when a defendant receives the state court petition “by service or otherwise.” See Walters v. Grow Group, Inc., 907 F.Supp. 1030, 1033 (S.D.Tex.1995) (“The statute means exactly what it says: actual receipt by a defendant of a complaint is sufficient to commence the thirty day period for removal, regardless of the technicalities of state service of process requirements”). Furthermore, although defendants place much rebanee on the legislative history of § 1446(b), “[a]t most the legislative history of the ‘or otherwise’ amendment shows that Congress never considered the problem at hand.” Id. (citing Burr v. Choice Hotels, Int’l, Inc., 848 F.Supp. 93, 94 (S.D.Tex.1994)). Because the focus of § 1446(b) is on receipt — not service — the court joins the growing list of courts that have held the thirty-day period begins upon receipt by the defendant of a copy of the state court petition regardless of whether the complaint arrives before formal service of process has been effected. 6

*342 The thirty-day clock can run from the receipt of the initial pleadings only when that pleading affirmatively reveals on its face that there is diversity of citizenship and that the plaintiff is seeking damages in excess of the minimum jurisdictional amount in federal court. See Chapman v. Powermatic, Inc.,

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942 F. Supp. 339, 1996 U.S. Dist. LEXIS 15400, 1996 WL 599369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jr-laughead-inc-v-air-dayco-corp-txsd-1996.