Lewis v. Time Inc.

83 F.R.D. 455, 5 Media L. Rep. (BNA) 1790
CourtDistrict Court, E.D. California
DecidedSeptember 14, 1979
DocketCiv. No. S-79-369
StatusPublished
Cited by86 cases

This text of 83 F.R.D. 455 (Lewis v. Time Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Time Inc., 83 F.R.D. 455, 5 Media L. Rep. (BNA) 1790 (E.D. Cal. 1979).

Opinion

OPINION AND ORDER

KARLTON, District Judge.

In the 1930’s the poet Carl Sandburg asked:

Why is there always a secret singing When the lawyer cashes in?

Why does the hearse horse snicker Hauling a lawyer away?

In its April 10, 1978, edition Time Magazine’s answer was contained in a story entitled “Those #*X§!! Lawyers.”

In casting about for reasons for the generally unfavorable view Time found the public held of lawyers, it suggested that one reason may be found in the profession’s system of self-discipline.

To illustrate its point Time reported:

“Thanks to painfully slow bar discipline, a northern California lawyer named Jerome Lewis is still practicing law despite a $100,000 malpractice judgment against him in 1970 and a $60,000 judgment including punitive damages in 1974 for defrauding clients of money.”1

Lewis brought an action in the state court seeking damages for libel, slander, invasion of privacy, and intentional infliction of emotional distress. His complaint named Time, Inc., Mid-Cal Periodical Distribution, and DOES I-XV as defendants.

Mid-Cal, as it turned out, is part of a larger, nonresident corporation. When plaintiff learned that the action against Mid-Cal would not destroy diversity jurisdiction, he chose to voluntarily dismiss that defendant. On April 12, 1979, plaintiff served Lucky Stores, Inc., a California corporation, as a John Doe distributor defendant.

Defendant Time, asserting diversity jurisdiction, removed the action to this court on May 30, 1979. Plaintiff moves to remand on the basis that the joinder of Lucky Stores defeats diversity jurisdiction. Time acknowledges that the joinder of Lucky Stores, Inc. as a defendant appears to defeat this court’s jurisdiction because of a lack of complete diversity since plaintiff is a [458]*458California resident,2 and also' because of the requirement of 28 U.S.C. § 1441(b) that no defendant be a resident of the forum state. Nevertheless, defendant resists remand arguing that the claim against Time, a nonresident corporation, is separate and independent from the claims against the resident distributor defendants, and that in any event the joinder of the distributor defendants is fraudulent and must therefore be disregarded.

I have concluded that the claim against Time, Inc. is not separate and independent from the other claims. Nonetheless, because of the serious First Amendment interests involved, and the presence of indicia of fraudulent joinder, I have decided to retain jurisdiction for the present. Accordingly, I will deny the motion for remand without prejudice to a renewed motion.

I

REMOVAL IN GENERAL

Any consideration of a motion to remand must commence with a recognition of the limited nature of removal jurisdiction, and that the scope of the removal statute must be strictly construed. Glucksman v. Columbia Broadcasting System, Inc. (S.D.Cal. 1963) 219 F.Supp. 767, 768; 14 Wright & Miller, Federal Practice & Procedure § 3721, pp. 535-537. This rule exists not only because federal courts, being courts of limited jurisdiction, must confine themselves to the jurisdiction granted by Congress, Victory Carriers Inc. v. Law (1971) 404 U.S. 202, 92 S.Ct. 418, 30 L.Ed.2d 383, but also because of a plaintiff’s traditional right to select the forum and “to prosecute his own suit in his own way to a final determination.” Parks v. New York Times Company (5th Cir. 1962) 308 F.2d 474, 478.

Removal, of course, is only valid if the federal court would have had jurisdiction had the claim originally been brought before it. 28 U.S.C. § 1441(a). Defendant’s claimed jurisdictional basis is diversity and thus if any proper defendant is a California resident, remand is required.

II

SEPARATE AND INDEPENDENT CLAIMS

28 U.S.C.A. § 1441(c) provides:

“Whenever a separate and independent claim or cause of action, which would be removable if sued upon alone, is joined with one or more otherwise non-removable claims or causes of action, the entire . case may be removed and the district court may determine all issues therein, or, in its discretion, may remand all matters not otherwise within its original jurisdiction.”

The definitive construction of § 1441(c) is American Fire and Casualty Co. v. Finn (1951) 341 U.S. 6, 71 S.Ct. 534, 95 L.Ed. 702. There the Supreme Court observed that Section 1441(c), adopted in 1948, replaced the confusing “separable controversy” standard for removal and thus, “A separable controversy is no longer an adequate ground for removal unless it also constitutes a separate and independent claim or cause of action.” Id. at 11, 71 S.Ct. at 538-539.

The purpose of Section 1441(c) is to limit removal. Id. at 10. “The addition of the word ‘independent’ gives emphasis to congressional intention to require more complete disassociation between the federally cognizable proceedings and those cognizable only in state courts . . . ” Id. at 12, 71 S.Ct. at 539.

The crucial determination under 1441(c) is whether a truly separate and independent cause of action is stated. The facts and result in Finn are illustrative. Plaintiff sustained a fire loss. He sued two different insurance companies and their local (and nondiverse) agent for payment. In ordering remand, the court stated its broad test:

[459]*459“[Wjhere there is a single wrong to plaintiff, for which relief is sought, arising from an interlocked series of transactions, there is no separate and independent claim or cause of action under 1441(c).” Id. at 14, 71 S.Ct. at 540. (Emphasis added.) Thus, in Finn, the failure to pay compensation was a single wrong and remand was proper.3

Following Finn this circuit has noted that a “single wrong cannot be parlayed into separate and independent causes of action by multiplying the legal theories upon which relief is sought or by multiplying defendants against whom a remedy is sought for the same injury.” Clarence E. Morris, Inc. v. Vitek (9th Cir. 1969) 412 F.2d 1174, 1176; Sessions v. Chrysler Corp. (9th Cir. 1975) 517 F.2d 759, 761.

Since modern state joinder practice usually requires either common questions of law or fact or a transactional nexus, the Finn holding generally negates Section 1441(c) jurisdiction. See e. g. Wright & Miller, supra § 3724, p. 629.

It is against this background that defendant’s contentions must be examined. Essentially, defendant argues that plaintiff has stated separate and independent claims against Time because Time’s conduct constituted a separate publication of the alleged libel distinct from the conduct of the nondiverse defendant distributors. Time cites New York and California cases for the proposition that each distinct publication of a libel gives rise to a separate cause of action.

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83 F.R.D. 455, 5 Media L. Rep. (BNA) 1790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-time-inc-caed-1979.