O'Connor v. Kawasaki Motors Corp., U.S.A.

699 F. Supp. 1538, 7 U.C.C. Rep. Serv. 2d (West) 1437, 1988 U.S. Dist. LEXIS 14948, 1988 WL 122491
District Court, S.D. Florida·Decided July 8, 1988·No. 88-6029-CIV.·Published·Cited by 9 cases

Opinion

ORDER

PAINE, District Judge.

This cause comes before the court upon Defendant’s, KAWASAKI MOTORS CORPORATION, U.S.A. (KAWASAKI, U.S.A.), Motion to Dismiss, dated January 5, 1988, filed in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, and its supporting Memorandum of Law (DE 5), Defendant’s, KAWASAKI, U.S.A., Motion to Strike, also filed in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, and its supporting Memorandum of Law (DE 6), Defendant’s, KAWASAKI, U.S.A., Motion for More Definite Statement (DE 11), Defendant’s, KAWASAKI, U.S.A., Amended Motion to Dismiss (DE 12), Plaintiff’s Memorandum of Law In Opposition to Defendant’s Motion to Dismiss Counts 1, 3 and 5 (DE 17) and Defendant’s Reply (DE 18), Defendant’s, KAWASAKI, U.S.A., Combined Motion for Protective Order and Memorandum of Law in Support of Motion for Protective Order (DE 7), Plaintiff’s, STEVEN M. O'CON-NOR, Motion to Compel (DE 15) and Defendant’s Motion to Strike Plaintiff’s Motion to Compel (DE 19), Defendant’s, KAWASAKI, U.S.A., Motion for Protective Order Regarding Interrogatories Dated February 22,1988 (DE 16), Plaintiff’s, STEVEN M. O’CONNOR, Motion to Remand (DE 22) and supporting Memorandum of Law (DE 23) and Defendant’s, Memorandum of Law in Opposition to Plaintiff's Motion to Remand (DE 24) with supporting Affidavit (DE 26). Having reviewed the file and the relevant authorities, the court enters the following order.

Facts

In February of 1984, the Plaintiff, STEVEN M. O’CONNOR, rented a Jet Ski watercraft manufactured by the Defendants. Plaintiff alleges that while he was riding the Jet Ski, he hit a wave and was thrown up into the air and, when landing, struck his right shin on the gunwale portion of the craft. Plaintiff filed a complaint in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, to recover for the injuries he suffered as a result of the above incident. The ten count complaint makes the following claims: Count I alleges negligence on the part of Defendant, KAWASAKI, U.S.A.; Count II makes a claim for breach of express warranty by KAWASAKI, U.S.A.; Count III alleges breach of implied warranty by KAWASAKI, U.S.A.; Count IV contains a strict liability claim against KAWASAKI, U.S.A.; and, Count V alleges that KAWASAKI, U.S.A. violated the Consumer Product Safety Act. Counts VI through X make identical claims with respect to Defendant, KAWASAKI HEAVY INDUSTRIES, LTD. The common thread throughout the Complaint is that the gunwale portion of the Jet Ski model on which the Plaintiff was injured was not padded as it is on later models of the same craft. Plaintiff contends that had the padding been present, he would not have suffered injuries to the extent that he has. The case *1541 came to this court by way of Defendants’ Verified Petition for Removal (DE 2).

Motion to Remand

As the ruling on Plaintiff’s Motion to Remand (DE 22) may obviate the need for this court to rule on the remaining motions, it will be considered first. The court finds that the allegations made in the Verified Petition (DE 2) are sufficient to justify removal. When the court is faced with a facially sufficient petition for removal which is challenged by a motion to remand it must make a factual determination with respect to the claim of diversity. Wright v. Continental Cas. Co., 456 F.Supp. 1075, 1078 (M.D.Fla.1978). “Once the plaintiff has put the allegations of the defendant’s petition for removal at issue by denying them specifically in a motion to remand, then the burden of proof is upon the defendant to come forward with evidence to prove the allegations contained in the removal petition. Id. McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 56 S.Ct. 780, 80 L.Ed. 1135 (1936).” The defendant may support its allegations of diversity by means of interrogatories, requests for admissions or other documentation. Wright, 456 F.Supp. at 1078.

In the instant case, in his Motion to Remand, Plaintiff denies Defendant’s allegations as to its state of citizenship. Specifically, Plaintiff suggests that Florida might be considered KAWASAKI U.S.A.’s principle place of business, thus destroying diversity. Defendant has submitted the Affidavit of Hiromichi Kosato, Vice President of the Legal Department of KAWASAKI, U.S.A., (DE 26) in conjunction with its Memorandum of Law in Opposition to Plaintiff’s Motion to Remand (DE 24). That affidavit supports KAWASAKI U.S. A.’s allegations that its principle place of business is California.

28 U.S.C. § 1332, which sets forth the jurisdictional rules relating to diversity of citizenship, provides that “a corporation shall be deemed a citizen of any State by which it has been incorporated and of the State where it has its principal place of business.... ” There is no dispute in this case regarding KAWASAKI U.S.A.’s state of incorporation, which is Delaware. Plaintiff raises the issue as to whether Florida is the “nerve center” of KAWASAKI U.S.A., thus making the forum state its principle place of business. This circuit follows the “total activity” test to determine a corporation’s principal place of business. Anni ston Soil Pipe Co. v. Central Foundry Co., 216 F.Supp. 473 (N.D.Ala.1963), aff'd 329 F.2d 313 (5th Cir.1964) 1 . See also J.A. Olson Co. v. City of Winona, 818 F.2d 401 (5th Cir.1987). Two tests are contained within the total activity test itself, one of which will be applied depending on the nature of the corporation’s activities. The court may look to the company’s “nerve center” or “brain” or to the “place of activity”. J.A. Olson, 818 F.2d at 404. The “determination of the principal place of business begins with the general rules of these component tests: (1) when considering a corporation whose operations are far flung, the sole nerve center of that corporation is more significant in determining principal place of business; (2) when a corporation has its sole operation in one state and executive offices in another, the place of activity is regarded as more significant; (3) when the activity of a corporation is passive and the “brain” of .the corporation is in another state, the situs of the corporation’s “brain” is given greater significance.” Id. at 411 (citations omitted).

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O'Connor v. Kawasaki Motors Corp., U.S.A., 699 F. Supp. 1538, 7 U.C.C. Rep. Serv. 2d (West) 1437, 1988 U.S. Dist. LEXIS 14948, 1988 WL 122491 (S.D. Fla. 1988).

699 F. Supp. 1538 (O'Connor v. Kawasaki Motors Corp., U.S.A.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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