Kelvin Spencer v. Specialty Foundry Products Inc.

953 F.3d 735
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 17, 2020
Docket19-14427
StatusPublished
Cited by12 cases

This text of 953 F.3d 735 (Kelvin Spencer v. Specialty Foundry Products Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelvin Spencer v. Specialty Foundry Products Inc., 953 F.3d 735 (11th Cir. 2020).

Opinion

Case: 19-14427 Date Filed: 03/17/2020 Page: 1 of 19

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 19-14427 ________________________

D.C. Docket No. 2:18-cv-01023-MHH

KELVIN SPENCER, et al.,

Plaintiffs - Appellees,

versus

SPECIALTY FOUNDRY PRODUCTS INC., et al.,

Defendants - Appellants.

________________________

Appeal from the United States District Court for the Northern District of Alabama ________________________ (March 17, 2020)

Before MARTIN, ROSENBAUM, and NEWSOM, Circuit Judges.

MARTIN, Circuit Judge:

Kelvin Spencer and 229 other former workers at the Grede Foundry in

Bessemer, Alabama (collectively, the “Plaintiffs”) say they were harmed by Case: 19-14427 Date Filed: 03/17/2020 Page: 2 of 19

exposure to hazardous and harmful chemical substances released and formed at the

foundry. The foundry is now out of business, so the Plaintiffs filed suit in

Alabama state court against ten entities that manufactured, sold, supplied, and

distributed the products they believe harmed them (the “Defendants”).1 One

Defendant removed the case to federal court, citing the Class Action Fairness Act

of 2005 (“CAFA”), Pub. L. No. 109-2, 119 Stat. 4 (codified in scattered sections of

28 U.S.C.), as the basis for removal. The Plaintiffs moved to remand the case back

to state court. The District Court granted their motion, finding that the Plaintiffs’

action falls within the local event exception to CAFA’s grant of federal

jurisdiction, 28 U.S.C. § 1332(d)(11)(B)(ii)(I). The Defendants sought leave to

appeal, which we granted pursuant to 28 U.S.C. § 1453(c).

After careful consideration, and with the benefit of oral argument, we vacate

the District Court’s grant of the motion to remand.

I.

A. FACTUAL BACKGROUND

From an unknown date until its closing in 2016 or 2017, the Grede Foundry

“engaged in the making of foundry casted metal parts and related moulding,

1 The Plaintiffs’ complaint also asserts claims against up to 450 fictitious party defendants. We use the term “Defendants” to refer to the named defendants. Although one Defendant—Fairmount-Santrol, Inc.—was dismissed from the case by joint stipulation on January 25, 2019, our use of “Defendants” refers to all parties named on the other side of the “v.” from the Plaintiffs at any point in this litigation.

2 Case: 19-14427 Date Filed: 03/17/2020 Page: 3 of 19

coring, and finishing processes.” All 230 Plaintiffs worked at the foundry for some

period of time and claim to have been harmed by the use of the Defendants’

products. Not all Plaintiffs worked at the foundry at the same time, nor were their

jobs the same. For example, one Plaintiff who started at the foundry in 1997

worked in the “core room” and drove a forklift to unload delivery trucks. Another

Plaintiff started at the foundry in 1981 and left in 2015. This Plaintiff was a

supervisor and, from approximately 1995 until 2015, assisted in the ordering of

chemicals to be used at the foundry.

The Defendants marketed, manufactured, distributed, and sold products used

at the foundry in the process of foundry casting and finishing metal parts. Three

Defendants manufactured specialized shell core sand or foundry sand that was used

in the core room or the foundry area. Two different Defendants manufactured

chemical resins, binders, setting catalysts, and chemically treated foundry sand pre-

mix products. Two additional Defendants manufactured specialized foundry

chemical products, including triethylamine liquid or gas (“T-gas”) and a release

agent (“Zip Slip”), that were used for moulding, coring, casting, finishing or other

foundry processes. Finally, two Defendants both manufactured their own products

and distributed products made by the other Defendants.

The Plaintiffs allege that the normal and foreseeable use of the Defendants’

products at the foundry resulted in the formation and release of hazardous and

3 Case: 19-14427 Date Filed: 03/17/2020 Page: 4 of 19

carcinogenic chemical substances that are toxic to workers. They also say the

Defendants gave unsafe directions for use of their products; failed to report

pertinent adverse scientific data regarding the safety of their products; and failed to

warn about or disclose known dangers from the products. These actions caused the

Plaintiffs physical injuries and harm, adverse medical symptoms, mental anguish,

and emotional distress, all of which supposedly manifested within two years of the

filing of the complaint. The Plaintiffs also allege the Defendants’ wrongful actions

occurred “separately and repetitively, on a continuing basis,” until the foundry was

closed in 2016 or 2017.

B. PROCEDURAL HISTORY The Plaintiffs filed their complaint in the Circuit Court of Jefferson County,

Alabama. The complaint asserts six counts arising under Alabama law:

(1) wantonness; (2) products liability under the Alabama Extended Manufacturers

Liability Doctrine; (3) failure to warn; (4) fraudulent misrepresentation,

suppression, and deceit: (5) negligence; and (6) conspiracy. All the claims stem

from the Plaintiffs’ allegation that the “normal and foreseeable” use of the

Defendants’ products caused the “release and formation of hazardous and

carcinogenic chemical substances,” harming the Plaintiffs.

About a month after the complaint was filed, one Defendant, Imerys

Minerals USA, Inc., removed the case to federal court. According to Imerys,

4 Case: 19-14427 Date Filed: 03/17/2020 Page: 5 of 19

federal jurisdiction is proper pursuant to CAFA’s “mass action” provision, which

authorizes federal jurisdiction over actions seeking over $5,000,000 in monetary

relief with more than 100 minimally diverse plaintiffs whose claims involve

common questions of law or fact. See 28 U.S.C. § 1332(d)(2), (11)(B)(i).

The Plaintiffs moved to remand the case to state court. The Plaintiffs stated

two bases for remand. First, they contended this case does not qualify as a “mass

action” under CAFA because “all of the claims . . . arise from an event or

occurrence in the State in which the action was filed” and this event or occurrence

“allegedly resulted in injuries in that State or in States contiguous to that State.”

Id. § 1332(d)(11)(B)(ii)(I). This carve-out to federal jurisdiction is called the

“local event exception.” The Plaintiffs also argued remand was proper pursuant to

the “local controversy exception,” which mandates remand of mass (or class)

actions in which over two thirds of the plaintiffs are citizens of the state in which

the case was filed, at least one “significant” defendant is a citizen of that state, and

the principal injuries or related conduct occurred in that state. See id.

§ 1332(d)(4)(A)(i), (11)(A).

The District Court granted the motion to remand. R. Doc. 69 (“Remand

Order”). The court did not address the local controversy exception, choosing

instead to rest its decision entirely on the local event exception. The court first

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953 F.3d 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelvin-spencer-v-specialty-foundry-products-inc-ca11-2020.