Kathleen Wood v. Crane Co

764 F.3d 316, 2014 U.S. App. LEXIS 15717, 2014 WL 4100565
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 15, 2014
Docket13-1868
StatusPublished
Cited by61 cases

This text of 764 F.3d 316 (Kathleen Wood v. Crane Co) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kathleen Wood v. Crane Co, 764 F.3d 316, 2014 U.S. App. LEXIS 15717, 2014 WL 4100565 (4th Cir. 2014).

Opinion

Affirmed by published opinion. Judge DIAZ wrote the opinion, in which Judge WYNN joined. Judge DUNCAN concurred in the judgment only.

DIAZ, Circuit Judge:

Crane Company, one of many defendants in this asbestos litigation, removed this case to federal court, asserting a federal defense to plaintiff James Joyner’s 1 state tort claims. When Joyner amended his complaint, eliminating the claims underlying that federal defense, the district court remanded to state court. Crane now complains that it should have been given the opportunity to assert a new basis for federal jurisdiction — even though it had declined to do so in a timely fashion. We affirm the district court’s decision to remand.

I.

A.

James Joyner was diagnosed with meso-thelioma in March 2012. His illness allegedly resulted from exposure to asbestos while working as an electrician for the Coast Guard and then in the private sector.

Joyner filed suit in Maryland state court, alleging (1) strict liability for defective design and failure to warn; (2) breach of implied warranty; (3) negligence products liability claims; and (4) aiding and abetting and conspiracy to conceal information about the dangers of asbestos. Joyner named as defendants a number of manufacturers who allegedly supplied asbestos-containing materials with which he came into contact at various points in his career. One of those defendants, Crane Co., allegedly manufactured and supplied asbestos-containing valves and gaskets to the Navy, 2 on whose ships Joyner worked while employed by the Coast Guard.

Crane removed the case to federal court under the federal officer removal statute. See 28 U.S.C. § 1442(a)(1). That provision *319 allows for removal of suits against “[t]he United States or ... any officer ... in an official or individual capacity, for or relating to any act under color of such office.” Id. In support of its position, Crane averred that it would assert the federal contractor defense, as it had supplied the valves in conformance with military specifications. See J.A. 42. Crane’s notice of removal did mention that the valves included gaskets as internal component parts, but Crane did not explicitly assert the defense as related to gaskets. See J.A. 42.

Joyner moved to remand to state court, arguing that Crane’s evidence was insufficient to support its jurisdictional allegations. In the alternative, Joyner moved to sever the valve claims against Crane and to remand the claims against the other defendants-as well as Joyner’s gasket claims against Crane-to state court. At oral argument before the district court, Crane explicitly refused to take a position as to whether the federal contractor defense applied to any gaskets Crane might have supplied. Rather, Crane apparently sought to preserve its contention that the gaskets simply weren’t theirs. See J.A. 2646 (“Crane has a different position with regard to their gasket because it was never, never on the Navy’s QPL [qualified products list] and should never have been used.”); see also J.A. 2732 3 (“To be clear, it is Crane Co.’s position that Mr. Joyner did not work with replacement Cranite gaskets on Navy vessels because Cranite gaskets were not on any government QPL list, and thus were not able to be ordered for use on Navy vessels through the procurement process.”). Crane declined, however, to make an argument in the alternative — that the gaskets “would have been supplied pursuant to detailed government specifications” — until much later in the litigation. J.A. 2732.

In a memorandum opinion and order issued March 7, 2013, the district court found that Crane had sufficiently supported removal pursuant to § 1442(a)(1), focusing on the valve claims. See Joyner v. A.C. & R. Insulation Co., No. CCB-12-2294, 2013 WL 877125 (D.Md. Mar. 7, 2013). It did, however, grant in part Joyner’s motion to sever the valve claims from all the others. The court noted that it could exercise supplemental jurisdiction over the other claims, but largely declined to do so. The court found that state law claims predominated over the claims implicating the federal defense and that Maryland had a strong interest in adjudicating its own state law claims, leading the court to sever the claims against the other defendants. But the court also noted its interest in economy, which weighed against forcing Crane to litigate claims regarding valves in one court and gaskets in another. Thus, the court remanded the claims against the other defendants back to Maryland state court, but retained both claims against Crane.

Shortly thereafter, Joyner filed a “notice of abandonment of claims regarding Crane Co. valves only and request for remand.” J.A. 2722. The notice explained that Joyner was abandoning his claims against Crane with respect to its valves, retaining only his claims involving injuries caused by Crane’s gaskets. See J.A. 2722-23, 2923. Joyner argued that because Crane’s removal to federal court relied on the government contractor defense as to the valves alone, the district court had no subject matter jurisdiction without those claims.

*320 Crane vociferously contested Joyner’s motion, arguing that Joyner was manipulating his complaint to avoid federal jurisdiction and that Federal Rule of Civil Procedure 15 does not permit Joyner to amend his complaint with such precision. Crane also argued that it could assert its federal defense in relation to the gaskets.

The district court addressed these concerns in a memorandum opinion and order on June 6, 2013. See Joyner v. A. C. & R. Insulation Co., No. CCB-12-2294, 2013 WL 2460537 (D.Md. June 6, 2013). The court chose to construe Joyner’s notice of abandonment as a motion to amend his complaint under Rule 15(a). Finding that such an amendment would not prejudice Crane, the district court granted leave to amend. The court found that Crane had not asserted a federal defense with respect to gaskets and that 28 U.S.C. § 1446(b) prevented Crane from asserting it now, well beyond the thirty days that provision grants for notice of removal. The court also explained that any cross-claims for contribution would be irrelevant, as Joyner had forfeited any damages related to the valves. Thus, the defense would not apply as to potential cross-claims from co-defendants. Accordingly, the court remanded Joyner’s remaining claims to Maryland state court.

B.

Crane appeals both the March 7 and June 6 orders, contending that all claims should have remained in federal court. The case is calendared for trial in the Circuit Court for Baltimore City, and we think it belongs there.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
764 F.3d 316, 2014 U.S. App. LEXIS 15717, 2014 WL 4100565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kathleen-wood-v-crane-co-ca4-2014.