LIPSON v. METRO CORP. HOLDINGS, INC.

CourtDistrict Court, D. New Jersey
DecidedJune 27, 2019
Docket1:18-cv-15621
StatusUnknown

This text of LIPSON v. METRO CORP. HOLDINGS, INC. (LIPSON v. METRO CORP. HOLDINGS, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LIPSON v. METRO CORP. HOLDINGS, INC., (D.N.J. 2019).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

CAROL LIPSON, 1:18-cv-15621-NLH-AMD

Plaintiff, OPINION

v.

METRO CORP. HOLDINGS, INC., and DAVID H. LIPSON, JR., SHERRY LITWER, DEBRA CLAREMON, and BARTON WINOKUR as Co-Executors of the ESTATE OF D. HERBERT LIPSON, and THE ESTATE OF D. HERBERT LIPSON,

Defendants.

APPEARANCES:

JOSHUA BENJAMIN KAPLAN MATTHEW ADAM GREEN OBERMAYER REBMANN MAXWELL & HIPPEL LLP 1120 ROUTE 73 SUITE 420 MT. LAUREL, NJ 08054

On behalf of Plaintiff

KERRI E. CHEWNING ARCHER & GREINER, PC ONE CENTENNIAL SQUARE PO BOX 3000 HADDONFIELD, NJ 08033-0968

FRANK P. TRAPANI, KREHER & TRAPANI LLP 1325 SPRUCE STREET PHILADELPHIA, PA 19107

On behalf of Defendants HILLMAN, District Judge

Presently before the Court is Plaintiff’s motion to remand the matter to state court. Also pending is Defendant Metro Corp. Holdings, Inc.’s motion to dismiss for lack of personal jurisdiction. As set forth below, Plaintiff’s motion will be granted, and Defendant’s motion will be denied as moot. BACKGROUND On October 4, 2018, Plaintiff, Carol Lipson filed a complaint in New Jersey Superior Court, Atlantic County, against Defendants Metro Corp. Holdings, Inc., the Estate of D. Herbert Lipson (“Herb Lipson”), and the four co-executors of Herbert Lipson’s estate. Plaintiff was Herb Lipson’s spouse, Metro Corp. was Herb Lipson’s company, and three of the four co- executors of Herb Lipson’s estate are his children from a prior marriage.

On November 2, 2018, Metro Corp. removed the action to this Court pursuant to 28 U.S.C. § 1441(b) based on diversity of citizenship under 28 U.S.C. § 1332(a)(1). Plaintiff is a citizen of New Jersey. Defendant Metro Corp. is a citizen of Pennsylvania. The other five Defendants are citizens of New Jersey.1

1 “[T]legal representative of the estate of a decedent shall be deemed to be a citizen only of the same State as the decedent.” 2 Despite the lack of diversity between Plaintiff and five of the Defendants, Metro Corp. removed the action on the premise that the New Jersey citizenship of those Defendants must be

disregarded because they were not properly joined as parties. Metro Corp. evokes the “fraudulent misjoinder” doctrine and argues that the joinder of Plaintiff’s claims against Metro Corp. with Plaintiff’s claims against the other Defendants was “egregious.” Metro Corp. argues that Plaintiff’s claims against the New Jersey Defendants must be severed and remanded. Metro Corp. further argues that Plaintiff’s remaining case against Metro Corp. must be dismissed for lack of personal jurisdiction. Plaintiff contests Metro Corp.’s position that the five Defendants are not properly joined, or that they were “fraudulently misjoined.” Plaintiff argues that the fraudulent misjoinder doctrine is not recognized in this District, and

because Metro Corp. improperly removed her case from New Jersey state court, her chosen forum, she is entitled to attorney’s fees and costs related to Metro Corp.’s improvident removal. Plaintiff further contests Metro Corp.’s lack of personal jurisdiction argument.

28 U.S.C. § 1332(c)(2); see also Golden v. Golden, 382 F.3d 348, 352 n.1 (3d Cir. 2004) (“In diversity actions involving estates, the courts look to the citizenship of the decedent to determine jurisdiction.”). Herb Lipson was a citizen of New Jersey. 3 DISCUSSION The removal statute provides, “A civil action otherwise removable solely on the basis of the jurisdiction under section

1332(a) of this title may not be removed if any of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” 28 U.S.C. § 1441(b)(2). The removal statutes “are to be strictly construed against removal and all doubts should be resolved in favor of remand,” and “a party who urges jurisdiction on a federal court bears the burden of proving that jurisdiction exists.” Boyer v. Snap-on Tools Corp., 913 F.2d 108, 111 (3d Cir. 1990) (citation omitted). Moreover, a removing party who charges that a plaintiff has fraudulently joined a party to destroy diversity of jurisdiction has a heavy burden of persuasion. Id. (citation omitted).

Under the well-established fraudulent joinder doctrine, joinder is fraudulent “where there is no reasonable basis in fact or colorable ground supporting the claim against the joined defendant, or no real intention in good faith to prosecute the action against the defendant or seek a joint judgment.” Id. (citation omitted). A district court must resolve all contested issues of substantive fact in favor of the plaintiff and must resolve any uncertainties as to the current state of controlling 4 substantive law in favor of the plaintiff. Id. “If there is even a possibility that a state court would find that the complaint states a cause of action against any one of the

resident defendants, the federal court must find that joinder was proper and remand the case to state court.” Id. (citation omitted). Under the more novel fraudulent misjoinder doctrine,2

2 A recent case has summarized the fraudulent misjoinder doctrine, as well as its status in this District.

Fraudulent misjoinder, otherwise known as “procedural misjoinder,” refers to a situation where a plaintiff attempts to frustrate a defendant’s right to remove by joining a non-diverse party in violation of the applicable joinder rule. While fraudulent joinder tests the viability of the claims against the defendant, fraudulent misjoinder tests the procedural basis of a party’s joinder. When the doctrine of fraudulent misjoinder is recognized, it may operate as an exception to the complete diversity rule. Joinder is considered egregious when there is no real connection between each plaintiffs’ underlying claims. . . . The Third Circuit has not addressed the doctrine of fraudulent misjoinder. Instead, courts are split within the District of New Jersey as to the doctrine’s applicability. Compare Vanny v. Bristol-Myers Squibb Co. (In re Plavix Prod. Liab. & Mktg. Litig.), No. MDL No. 3:13-2418, 2014 U.S. Dist. LEXIS 142910, at *638, 2014 WL 4954654 (D.N.J. Oct. 1, 2014) (declining to apply the doctrine of fraudulent misjoinder absent any direction from the Third Circuit, highlighting the unresolved issue of whether Federal Civil Procedure Rule 20 applied in analyzing the joinder of the parties, or if the forum state’s joinder rule would apply) with Welsh v. Merck Sharpe & Dohme Corp. (In re Fosamax Prods. Liab. Litig.), No. 2243, 2012 U.S. Dist. LEXIS 48114, at *19 (D.N.J. Apr. 2, 2012) (applying the doctrine of fraudulent misjoinder, noting it was 5 Federal Civil Procedure Rule 20 is invoked,3 and a two-step analysis employed. Rule 20(b) provides:

Persons . . . may be joined in one action as defendants if:

(A) any right to relief is asserted against them jointly, severally, or in the alternative with respect to or arising out of the same transaction, occurrence, or series of transactions or occurrences; and

(B) any question of law or fact common to all defendants will arise in the action.

Fed. R. Civ. P. 20(b).

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