Lee v. Merhige

CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 31, 2020
Docket2:20-cv-02070
StatusUnknown

This text of Lee v. Merhige (Lee v. Merhige) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Merhige, (E.D. Pa. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

CHAKA LEE: : : Plaintiff : CIVIL ACTION : vs. : : SALEM MERHIGE, VEL-MAC FOODS, INC.,: NO. 20-CV-2070 VELTRI, INC., and PENSKE LEASING : & RENTAL CO., : : Defendants : : vs. : : VERONICA PAULHILL-KELLY, : : Additional Defendant : _______________________________________________________________ VERONICA PAULHILL-KELLY : : Vs. : : SALEM MERHIGE, VEL-MAC FOODS, INC.,: VELTRI, INC., and PENSKE LEASING : & RENTAL CO. :

MEMORANDUM AND ORDER

JOYNER, J. July 31, 2020 Before the Court are Plaintiff’s Motion to Remand (Doc. No. 3), Defendants’ Response in Opposition (Doc. No. 4), and Plaintiff’s sur-reply in further support thereof (Doc. No. 5). For the following reasons, the Court will GRANT the Plaintiff’s Motion to Remand and direct that this case be returned to the Court of Common Pleas of Philadelphia County. I. Factual and Procedural Background

Plaintiffs, Chaka J. Lee (Hereinafter, “Lee”) and Veronica Paulhill-Kelly (“Paulhill-Kelly”), were the passenger and operator, respectively, of a motor vehicle involved in an accident in the Commonwealth of Pennsylvania, City and County of Philadelphia on August 2, 2017. (Lee Compl. ¶s 6, 9). Both Plaintiffs are residents of Pennsylvania. (Compl. ¶ 1). Defendant Saleem Merhige (“Merhige”), a citizen of New Jersey, operated the other vehicle involved in the accident and was acting as the agent, servant, workman and/or employee of Defendant, Vel-Mac Foods, Inc. (“Vel-Mac) and/or Veltri, Inc. (“Veltri”) at the time of the accident. (Compl. ¶s 2, 7 and Def’s Answer thereto). Vel-Mac is a New Jersey corporation with

its principal place of business in Fairfield, NJ and Veltri is a Pennsylvania corporation with its place of business in Levittown, PA. (Compl. ¶s 3-4). Penske Leasing & Rental Co. (“Penske”) owned the vehicle operated by Merhige involved in the accident. Compl. ¶ 8. Penske is a Pennsylvania limited partnership located in Reading, PA. (Compl. ¶ 5)1.

Although it may be true that “Penske is a Pennsylvania limited partnership l1ocated in Reading, PA,” for purposes of determining diversity jurisdiction, t his averment has little relevance. Indeed, “[p]artnerships and other unincorporated associations, … unlike corporations, are not considered ‘citizens’ as that term is used in the diversity statute.” Swiger v. On May 3, 2019, both Lee and Paulhill-Kelly filed separate Complaints in the Court of Common Pleas of Philadelphia County. Both Complaints allege negligence in Merhige’s operation of the

vehicle, negligent entrustment on the part of Vel-Mac and/or Veltri and Defendant Penske’s negligent failure to impose practices, procedures and conditions on Vel-Mac and/or Veltri and to verify Merhige’s qualifications to properly and safely operate the leased vehicle. (Compl. ¶ 23). Plaintiffs’ complaints describe injuries sustained to the head, bones, tissues, muscles, nerves, brain, etc. resulting in both physical and mental pain and suffering as a direct result of the aforementioned accident. (Compl. ¶ 16). The injuries alleged have resulted in a loss of income and earning capacity as well as medical expenses that will continue indefinitely. (Compl. ¶s 17-21). On September 6, 2019, the State Court consolidated both

matters. (Consolidation Order, Ex. “E”). On July 5, 2019, Defendants Merhige, Vel-Mac and Penske, filed a Joinder Complaint adding Paulhill-Kelly as an Additional Defendant to the then-consolidated action. (Joinder Complaint, Ex. “D”). On April 29, 2020, Defendants, Merhige and Vel-Mac, filed a Notice

Allegheny Energy, Inc., 540 F.3d 179, 182 (3d Cir. 2008)(citing Cardena v. Arkoma Assoc., 494 U.S. 1 85, 187-192, 110 S. Ct. 1015, 108 L. Ed.2d 157 (1990)). Instead, “courts are to look to the citizenship of all partners (or members of other unincorporated associations) to determine whether the federal district court has diversity jurisdiction.” Id, (citing Lincoln Prop. Co. v. Roche, 546 U.S. 81, 84, n.1, 126 S. Ct. 606, 163 L. Ed. 2d 415 (2006)). of Removal to the United States District Court for the Eastern District of Pennsylvania on the basis of diversity jurisdiction, alleging as the grounds therefor that it had been discovered

just the preceding day during depositions of several of the parties that Penske’s only role was the leasing of the truck involved in the accident and that all counsel had agreed to voluntarily dismiss Penske. Thus, Defendants assert, the matter was properly removed at that time, as the citizenship of the parties thereby became completely diverse. (Notice of Removal, Doc. No. 1; Stipulation to Dismiss, Ex. “F”). In turn, Plaintiffs filed the instant Motion to Remand on May 5, 2020, in which they contest the existence of complete diversity. The Stipulation to Dismiss, while not signed by each party, is accompanied by emails from each party agreeing to dismiss Penske from the claim. (Ex. “H”). No documentation available to the

court reveals that the stipulation was ever submitted to the Court or that an order was signed granting the dismissal. Standards Governing Motions to Remand The threshold principles governing remands from federal to state courts are largely outlined in the United States Code. Under 28 U.S.C. § 1441: “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed”. Original jurisdiction exists over civil actions where the amount in controversy exceeds $75,000 and complete diversity of citizenship exists between all plaintiffs and all defendants. 28 U.S.C. § 1332. “Complete diversity requires that, in cases with multiple

plaintiffs or multiple defendants, no plaintiff be a citizen of the same state as any defendant.” Zambelli Fireworks Mfg. Co., Inc. v. Wood, 592 F.3d 412, 419 (3d Cir. 2010). If the original pleading is not removable, “a notice of removal may be filed within 30 days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order, or other paper from which it may be first ascertained that the case is one which has become removable.” 28 U.S.C. §1446(b)(3). However, a case may not be removed for diversity more than one year after commencement of the action, unless the district court finds that a plaintiff has acted in bad faith in order to prevent a defendant from removing the action. 28 U.S.C. §1446

(c)(1). In evaluating remand motions, “it is to be presumed that a cause lies outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S. Ct. 1673, 128 L. Ed.2d 391 (1994). (1994)(citing McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 184, 56 S. Ct. 780, 80 L. Ed. 1135 (1936)).

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Lee v. Merhige, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-merhige-paed-2020.