Mitchell v. Paws Up Ranch, LLC

597 F. Supp. 2d 1132, 2009 U.S. Dist. LEXIS 8349, 2009 WL 205334
CourtDistrict Court, D. Montana
DecidedJanuary 28, 2009
DocketCV 08-111-M-DWM-JCL
StatusPublished
Cited by3 cases

This text of 597 F. Supp. 2d 1132 (Mitchell v. Paws Up Ranch, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Paws Up Ranch, LLC, 597 F. Supp. 2d 1132, 2009 U.S. Dist. LEXIS 8349, 2009 WL 205334 (D. Mont. 2009).

Opinion

OPINION AND ORDER

DONALD W. MOLLOY, District Judge.

Plaintiff Ben L. Mitchell brought this negligence action against Defendants in the Fourth Judicial District Court of Mis-soula County, Montana. His complaint alleges that Defendant Kehrein, a river rafting guide the LLC Defendants employed, was negligent in operating a raft which capsized, causing injuries to Mitchell. Mitchell alleges the LLC Defendants are vicariously liable for Kehrein’s negligence.

Twenty-nine days after Mitchell filed his complaint in state court, the LLC Defendants filed a notice of removal in this Court pursuant to 28 U.S.C. § 1441, asserting diversity of citizenship and the amount-in-controversy threshold required by 28 U.S.C. § 1332. Mitchell filed a motion to remand the matter back to state court. The motion was referred to Magistrate Judge Jeremiah C. Lynch, who issued Findings and Recommendation on October 10, 2008. Mitchell timely filed objections to the Findings and Recommendation and is therefore entitled to de novo review of the record on the portions of the Findings and Recommendation to which Mitchell objects. 28 U.S.C. § 636(b)(1). For the reasons stated below, the Findings and Recommendations consistent with this Order are adopted and the Motion to Remand is DENIED.

I

The record shows the following transactions on the corresponding dates: 1) Mitchell filed his complaint in state court on June 28, 2008; 2) the LLC Defendants were served one day later on June 29, 2008; 3) the LLC Defendants filed a joint Notice of Removal on July 28, 2008; 4) Kehrein was served with a state court summons on August 7, 2008; 5) Kehrein filed an answer in federal court on August 26, 2008; and 6) Mitchell filed his Motion to Remand on August 27, 2008. Mitchell served the LLC Defendants the day after the complaint was filed, and the LLC Defendants filed a notice of removal twenty-nine days later. Kehrein was served with a state court summons ten days after the LLC Defendants filed the Notice of Removal, and then timely filed an answer in this Court. A day later Mitchell filed his Motion to Remand.

II

Judge Lynch determined that Mitchell’s arguments for remand are without merit. First, Judge Lynch concluded that the Notice of Removal was not defective for failure to state the citizenship of the LLC Defendants. He reasoned that so long as diversity of citizenship and the amount-in-controversy requirements are met at the time of removal (i.e., so long as federal jurisdiction exists) failure to state citizenship can be cured through amendment. While the LLC Defendants did not file a motion for leave to amend, Judge Lynch noted that their response brief operated as such a motion and was filed along with an affidavit curing the earlier failure to state citizenship. See Barrow Development Co. v. Fulton Ins. Co., 418 F.2d 316, 317 (9th Cir.1969).

Second, Judge Lynch concluded that the Notice of Removal was not defective for failure to comply with the rule of unanimity. He noted that while Kehrein did not join in the Notice of Removal, at the time the notice was filed Kehrein had not been served and was therefore not a party to the action and not required to join. See Murphy Brothers, Inc. v. Michetti Pipe Stringing Inc., 526 U.S. 344, 347-48, 119 *1135 S.Ct. 1322, 143 L.Ed.2d 448 (1999). Third and relatedly, Judge Lynch determined that contrary to Mitchell’s assertion, the LLC Defendants were not required to explain why Kehrein did not join in the notice, because Mitchell knew Kehrein had not been served at the time the notice was filed. See Fisher v. Alfa Chemicals Italiana, 258 Fed.Appx. 150 (9th Cir.2007).

Finally, Judge Lynch rejected Mitchell’s argument that Kehrein failed to exercise his right to removal. He reached the somewhat counter-intuitive conclusion that the thirty-day time limit for Kehrein to file a notice of removal began running on the day the LLC Defendants filed the Notice of Removal. He noted that the time to file a notice of removal begins running when the facts supporting removal are clearly apparent from the four corners of the complaint, and not through subjective knowledge, and that defendants have no duty to inquire into the facts supporting removal when they are not apparent on the face of the complaint. See Harris v. Bankers Life & Casualty Co., 425 F.3d 689, 694 (9th Cir.2005). Because Kehrein filed his answer in federal court within thirty days of the filing of the LLC Defendants’ Notice of Removal, and did so through the same counsel representing the LLC Defendants, Judge Lynch concluded that his filing of the answer under these circumstances manifested his unambiguous and timely consent to removal.

Ill

Mitchell objects first that Judge Lynch should have relied on Prize Frize, Inc. v. Matrix, Inc., 167 F.3d 1261 (9th Cir.1999), and concluded that a removing party must explain the absence of any co-defendants from a notice of removal, regardless of the circumstances. Mitchell next objects — an objection also grounded in Prize Frize— that Judge Lynch erred in concluding that Kehrein gave his unambiguous consent to the removal when he filed his answer in this Court. Third, Mitchell objects that Judge Lynch failed to follow the command of Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir.1992), which requires the party seeking removal to meet the burden of showing the requirements for removal, strictly construed, are met.

A.

Section 1446 of title 28 of the United States Code describes the process for removing a case from state to federal court: “A defendant ... desiring to remove a case from state to federal court shall file ... a notice of removal ... containing a short and plain statement of the grounds for removal.” What precisely this provision requires has been established through decisional law. For example, courts have recognized the “rule of unanimity,” which requires that in an action with multiple named defendants, one defendant can remove the case to federal court so long as all other named defendants join in the notice of removal. See Hewitt v. City of Stanton, 798 F.2d 1230, 1233 (9th Cir.1986).

There are exceptions to the unanimity rule, such as when a named defendant is nominal, unknown or fraudulently joined. Id,.; Emrich v. Touche Ross & Co., 846 F.2d 1190, 1193 n. 1 (9th Cir.1988).

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597 F. Supp. 2d 1132, 2009 U.S. Dist. LEXIS 8349, 2009 WL 205334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-paws-up-ranch-llc-mtd-2009.