McCormick v. Excel Corp.

413 F. Supp. 2d 967, 2006 U.S. Dist. LEXIS 5537, 2006 WL 229029
CourtDistrict Court, E.D. Wisconsin
DecidedJanuary 30, 2006
Docket05-C-0740, 05-C-0741, 05-C-0742, 05-C-0744, 05-C-0745, 05-C-0746
StatusPublished
Cited by3 cases

This text of 413 F. Supp. 2d 967 (McCormick v. Excel Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick v. Excel Corp., 413 F. Supp. 2d 967, 2006 U.S. Dist. LEXIS 5537, 2006 WL 229029 (E.D. Wis. 2006).

Opinion

DECISION AND ORDER

ADELMAN, District Judge.

In October 2000, plaintiffs commenced state law tort actions in Milwaukee County Circuit Court alleging that they consumed *969 contaminated meat manufactured and distributed by defendants and became ill as a result. Pursuant to 28 U.S.C. § 1442(a)(1), defendants removed the cases, arguing that they manufactured and distributed the meat under the authority-of the federal regulatory agency that enforces the Federal Meat Inspection Act (“FMIA”). The district court remanded, concluding that the agency did not exercise control over defendants’ activities such that removal was justified.

Subsequently, the state trial court granted defendants’ motion for summary judgment. The state court of appeals reversed, holding that plaintiffs had presented sufficient evidence to establish that the meat in question was “adulterated” within the meaning of FMIA, and that a federal agency which construed adulterated in a manner that would have required plaintiffs’ claims to be dismissed did so unlawfully. Defendants sought review in the state supreme court and the United States Supreme Court, but both courts declined review. In June 2005, the Supreme Court decided Grable & Sons Metal Products v. Darue Engineering & Manufacturing, — U.S. -, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005), and relying on Grable, defendants again removed. Plaintiffs moved to remand, and their motion is before me now.

As the removing party, defendants have the burden of establishing federal jurisdiction. In re Application of County Collector of Winnebago, Ill., 96 F.3d 890, 895 (7th Cir.1996). I construe the removal statute strictly and resolve doubts about jurisdiction in favor of remand. Doe v. Allied-Signal, Inc., 985 F.2d 908, 911 (7th Cir.1993). Defendants may remove cases over which federal “district courts ... have original jurisdiction,” 28 U.S.C. § 1441(a), among which are cases “arising under federal statutes.” 28 U.S.C. § 1331. Defendants must remove within thirty days of service or receipt of “a copy of an ... order or other paper from which it may first be ascertained that the case ... is removable.” § 1446(b).

Plaintiffs’ motion to remand presents two issues: (1) whether the actions are subject to removal and, (2) if so, whether defendants timely removed them. I first address whether plaintiffs’ actions are subject to removal.

In the typical “arising under” action such as a suit under 42 U.S.C. § 1983, federal law creates the cause of action asserted by the plaintiff. However, a state law action may also arise under federal law if it implicates a significant federal issue. Grable, 125 S.Ct. at 2366-67. Defendants argue that plaintiffs’ actions are subject to removal because they present a significant issue of federal law, namely the meaning of adulterated as used in FMIA. Grable instructs that to determine whether a federal issue embedded in a state law claim gives rise to federal question jurisdiction, I ask whether the claim “necessarily raise[s] a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congres-sionally approved balance of federal and state judicial responsibilities.” Id. at 2368. Grable also makes clear that Merrell Dow Pharmaceuticals, Inc. v. Thompson, 478 U.S. 804, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986), remains good law and stands for the proposition that Congress’s failure to provide a federal cause of action in a statute may be indicative of its intent not to provide a federal forum for state law actions alleging violations of the statute. Id. at 2370-71.

For several reasons, I conclude that Grable does not authorize the removal of plaintiffs’ actions. First, in the context in which the actions come before me, they do not raise a “disputed” federal issue. This is so because the federal issue that defendants contend authorizes the exercise *970 of federal jurisdiction, the meaning of adulterated in FMIA, has already been decided in these actions, and the law of the case doctrine provides that courts should generally not reconsider a ruling made earlier in the same case. Analytical Eng., Inc. v. Baldwin Filters, Inc., 425 F.3d 443, 454 (7th Cir.2005). The law of the case doctrine is a rule of practice which provides that when an issue is litigated and decided in a case, that should be the end of the matter. Id. The state court of appeals addressed the definition of adulterated in FMIA, and while defendants disagree with the court’s ruling, for purposes of the cases before me the matter has been resolved.

Second, even assuming that these actions present a “substantial” question of federal law, I conclude that Congress did not intend to provide a federal forum for state law tort actions raising the issue. The cases before me are closer to Merrell Dow than Grable. The FMIA does not include a federal cause of action, and although plaintiffs’ state law claims involve an alleged violation of a federal standard, they do not implicate an overriding federal interest. In this respect, they differ from Grable where the federal question raised was critical to the IRS’s efforts to satisfy tax liabilities from the property of delinquent taxpayers. And, reflecting its concern about the proper balance of responsibilities between state and federal courts, the Supreme Court in Grable cautioned lower federal courts against exercising jurisdiction over state law tort claims merely because such claims allege a violation of a standard provided by a federal statute or regulation. See also State v. Abbott Labs., 390 F.Supp.2d 815, 824 (W.D.Wis.2005). Thus, I conclude that the actions before me do not arise under federal law within § 1331 and are not subject to removal.

Assuming arguendo that the actions are subject to removal, plaintiffs argue that I must, nevertheless, remand them because defendants’ removal was untimely.

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Cite This Page — Counsel Stack

Bluebook (online)
413 F. Supp. 2d 967, 2006 U.S. Dist. LEXIS 5537, 2006 WL 229029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-v-excel-corp-wied-2006.