Louise Rosmer, on Behalf of Herself and as Class Representative v. Pfizer Incorporated

263 F.3d 110, 50 Fed. R. Serv. 3d 1249, 2001 U.S. App. LEXIS 19029, 2001 WL 958807
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 23, 2001
Docket00-2224
StatusPublished
Cited by81 cases

This text of 263 F.3d 110 (Louise Rosmer, on Behalf of Herself and as Class Representative v. Pfizer Incorporated) 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
Louise Rosmer, on Behalf of Herself and as Class Representative v. Pfizer Incorporated, 263 F.3d 110, 50 Fed. R. Serv. 3d 1249, 2001 U.S. App. LEXIS 19029, 2001 WL 958807 (4th Cir. 2001).

Opinions

Affirmed by published opinion. Chief Judge WILKINSON wrote the majority opinion, in which Senior Judge HALL joined. Judge MOTZ wrote a dissenting opinion.

OPINION

WILKINSON, Chief Judge:

This case turns on one discrete question of statutory interpretation — whether 28 U.S.C. § 1367 (1994) permits federal courts to exercise supplemental jurisdiction in a diversity class action when one named plaintiff has a claim above the jurisdictional minimum. The district court held that § 1367 confers federal subject matter jurisdiction over class members whose claims do not satisfy the amount in controversy requirement of 28 U.S.C. § 1332, as long as diversity jurisdiction exists over the claims of a named plaintiff. Because the plain text of § 1367 authorizes supplemental jurisdiction in diversity class actions, we affirm the judgment of the district court.

I.

Louise Rosmer filed an action in state court against Pfizer Inc. on behalf of herself and as class representative for “all persons whose spouses have been injured by the drug Trovan.” She alleged a loss of consortium arising from injuries to her husband caused by Trovan, an antibiotic manufactured by Pfizer. She sought to recover general and special damages resulting from the loss of consortium as well as punitive damages.

Only state-law claims were pled. Ros-mer is a resident of South Carolina. Pfizer is a Delaware corporation with its principal place of business in New York. The parties agree that Rosmer’s individual claim exceeded $75,000. The complaint alleged, however, that some class members suffered less than $75,000 in actual and punitive damages.

Pfizer removed this action from state court to the United States District Court for the District of South Carolina, basing federal subject matter jurisdiction on 28 U.S.C. §§ 1332 and 1367. Pfizer maintained that the district court had original jurisdiction under § 1332 over Rosmer’s claims because she and Pfizer were of diverse citizenship, and Rosmer’s claims exceeded $75,000. See 28 U.S.C.A. § 1332 (West Supp.1999).1 Pfizer then contended that where the district court had original jurisdiction over the named plaintiff, it had supplemental jurisdiction under 28 U.S.C. § 1367 over the claims of all class members regardless of whether each of their claims independently satisfied § 1332’s amount in controversy requirement.

[113]*113Rosmer moved to remand the action to state court alleging a lack of federal subject matter jurisdiction. The district court held that subject matter jurisdiction was appropriate in this case and denied Ros-mer’s motion to remand. At the same time, the court certified its order for interlocutory review under 28 U.S.C. § 1292(b). This court granted Rosmer’s petition for interlocutory review, and Rosmer now appeals.

II.

In 1973, the Supreme Court held that in a class action, multiple plaintiffs with separate and distinct claims must each satisfy the jurisdictional amount for diversity suits in federal courts. See Zahn v. Int’l Paper Co., 414 U.S. 291, 300-01, 94 S.Ct. 505, 38 L.Ed.2d 511 (1973). The Court concluded that “any plaintiff without the jurisdictional amount must be dismissed from the case, even though others allege jurisdietionally sufficient claims.” Id. at 300, 94 S.Ct. 505.

The rule that all plaintiffs in a class action must independently satisfy the amount in controversy requirement went unchallenged until 1990, when Congress created supplemental jurisdiction with the passage of 28 U.S.C. § 1367.2

The supplemental jurisdiction statute was passed .in response to the Supreme Court’s decision in Finley v. United States, 490 U.S. 545, 109 S.Ct. 2003, 104 L.Ed.2d 593 (1989). In Finley, the plaintiff brought a Federal Tort Claims Act action against the United States, alleging negligence on the part of the Federal Aviation Administration. The plaintiff then moved to amend her federal complaint to include state law claims against non-diverse parties. No independent basis for federal jurisdiction existed over the state law claim against the new defendants. See Finley, 490 U.S. at 546, 109 S.Ct. 2003. The Court held that the state law claim did not belong in federal court. Id. at 554-55, 109 S.Ct. 2003. The Court also invited Congress to act, noting that “[wjhatever we say regarding the scope of jurisdiction conferred by a particular statute can of course be changed by Congress.” Finley, 490 U.S. at 556, 109 S.Ct. 2003.

[114]*114The new § 1367 states that federal courts have supplemental jurisdiction over cases “that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy.” 28 U.S.C. § 1367(a). Thus, Congress overruled the holding in Finley that pendent parties do not belong in federal court.

Congress did not authorize supplemental jurisdiction in all cases, however. Section 1367(b) states that when “original jurisdiction [is] founded solely on section 1332,” federal courts shall not have supplemental jurisdiction over “claims by plaintiffs against persons made parties under Rule 14, 19, 20, or 24 of the Federal Rules of Civil Procedure, or over claims by persons proposed to be joined as plaintiffs under Rule 19 of such rules, or seeking to intervene as plaintiffs under Rule 24 of such rules, when exercising supplemental jurisdiction over such claims would be inconsistent with the jurisdictional requirements of section 1332.” 28 U.S.C. § 1367(b). The interpretation of § 1367(a) & (b) lies at the heart of this case.

III.

We must decide whether § 1367 authorizes supplemental jurisdiction in the diversity class action context, or whether Zahn survives the enactment of § 1367. Other circuit courts have split on this question. Compare Stromberg Metal Works, Inc. v. Press Mech., Inc., 77 F.3d 928, 930-31 (7th Cir.1996) (stating that supplemental jurisdiction applies to class actions), and In re Abbott Labs., 51 F.3d 524, 528-29 (5th Cir.1995), aff'd by an equally divided court sub nom. Free v. Abbott Labs., 529 U.S. 333, 120 S.Ct. 1578, 146 L.Ed.2d 306 (2000) (per curiam) (same), with Trimble v. Asarco, Inc., 232 F.3d 946, 962 (8th Cir.2000) (holding that each member of a class who does not meet the jurisdictional amount must be dismissed from the case),

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

Related

Hunter v. Nkrumah
D. South Carolina, 2024
Taylor v. Carter
D. Maryland, 2023
United States of America v. Crim. Steven Potter
610 F. Supp. 3d 402 (D. New Hampshire, 2022)
Rush v. Davis-Stuart, Inc.
S.D. West Virginia, 2021
HINES v. JOHNSON
M.D. North Carolina, 2021
Mitchell v. Bailey
Fifth Circuit, 2020
Matthew Mitchell v. Orico Bailey
982 F.3d 937 (Fifth Circuit, 2020)
Jenkins v. Life Changers Outreach
S.D. West Virginia, 2019
F5 Capital v. Pappas
856 F.3d 61 (Second Circuit, 2017)
Richardson v. Northwest Christian University
242 F. Supp. 3d 1132 (D. Oregon, 2017)
United States v. Tyrone Davis
825 F.3d 1014 (Ninth Circuit, 2016)
Radchyshyn v. Allstate Indemnity Co.
311 F.R.D. 156 (W.D. North Carolina, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
263 F.3d 110, 50 Fed. R. Serv. 3d 1249, 2001 U.S. App. LEXIS 19029, 2001 WL 958807, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louise-rosmer-on-behalf-of-herself-and-as-class-representative-v-pfizer-ca4-2001.