Pate v. Adell Compounding, Inc.

970 F. Supp. 542, 1997 U.S. Dist. LEXIS 10312, 1997 WL 400740
District Court, M.D. Louisiana·Decided July 14, 1997·No. Civil Action No. 97-132-B-M1·Published·Cited by 3 cases

Opinion

RULING ON PLAINTIFFS’ MOTION TO REMAND

POLOZOLA, District Judge.

This matter is before the Court on the plaintiffs’ motion to remand. Defendants timely removed this suit from the Twenty First Judicial District, Parish of Livingston, State of Louisiana.1 For the reasons which follow, the plaintiffs’ motion to remand is denied.

I. FACTUAL AND PROCEDURAL HISTORY

On September 20, 1996, plaintiffs, Ulysses and Kathy Pate, filed this suit in state court against Adell Compounding, Inc. (“Adell”), DSM Copolymer, Inc. (“Copolymer”), Aristech Chemical, Inc. (“Aristeeh”), and John Doe Manufacturing Company.2 The plaintiffs seek damages from the defendants arising from an accident in which Ulysses’ arm was severed at the elbow when his sleeve got caught in a roller of a strand puller at the Adell facility where he worked as an assistant operator.3 Adell was Ulysses Pate’s employer at the time of the incident. Copo[544] lymer, the previous owner of the facility, was sued as the manufacturer and/or designer of the strand puller Ulysses Pate was operating on the day of his injury. . The plaintiffs charged that Copolymer was negligent in failing to warn of the dangerous characteristics of the strand puller. In addition, the plaintiffs allege Aristech was negligent. The plaintiffs contend that Adell was manufacturing Aristech’s product at the time of Ulysses Pate’s injury. The plaintiffs claim Aristech was negligent after making a safety inspection of the equipment because Aristech failed to follow up and require the installation of safety features which would have prevented Ulysses Pate’s accident.4

On February 19, 1997, Aristech and Copolymer removed the case to federal court pursuant to 28 U.S.C. §§ 1441 and 1446. The basis for subject matter jurisdiction is diversity pursuant to 28 U.S.C. § 1332. There is no dispute the jurisdictional amount required by 28 U.S.C. § 1332 has been met. However, the controversy in this matter centers around the question of complete diversity of citizenship of the parties.

In the initial notice of removal, the defendants claimed complete diversity existed in this case since the plaintiffs were Louisiana citizens and the defendants, Aristech and Copolymer, were not Louisiana corporations for purposes of diversity. The defendants claimed, Aristech was' incorporated in Delaware with its principal place of business in Pennsylvania, and Copolymer was incorporated in Delaware with its principal place of business in Delaware.5 Despite the fact the third named defendant, Adell, was a citizen of Louisiana, Aristech and Copolymer insisted complete diversity was still present because Adell was fraudulently joined. On March 3, 1997, Aristech, with leave of court, filed an amended notice of removal. In this amended notice of removal, Aristech corrected an error which was made in the first removal regarding the Copolymer’s principal place of business. Aristech admitted in the amended notice of removal that Copolymer’s principal place of business was in Baton Rouge, instead of Delaware, at the time of the accident.6 Thus, Copolymer must be considered a Louisiana defendant for determining diversity jurisdiction.7 Nevertheless, Aristech urged that complete diversity was present in this ease because both non-diverse defendants, Adell and Copolymer, were fraudulently joined. The Pates filed this motion to remand insisting Adell and Copolymer were not fraudulently joined, and therefore, this Court lacks subject matter jurisdiction because the parties were not completely diverse as required by 28 U.S.C. § 1332.

II. ANALYSIS

A. Statement of the Law of Fraudulent Joinder

The removing party bears the heavy burden of demonstrating that the desired joinder is fraudulent and that the district court has subject matter jurisdiction to hear the claim.8 Although it is not within the Court’s province to attempt to resolve factual disputes regarding matters of substance,9 the Court is empowered to “pierce the pleadings” to determine whether the non-removing party has a legitimate claim against tie non-diverse party under the governing state [545] law.10 In addition, because claims of fraudulent joinder in the Fifth Circuit are disposed of in a summary judgment-like procedure, the Court is authorized to consider evidence outside the pleadings, such as affidavits and depositions accompanying the notice of removal or the motion to remand.11 The standard is clear: “After all disputed questions of fact and all ambiguities in the controlling state law are resolved in favor of the non-removing party, the court determines whether that party has any possibility of recovery against the party whose joinder is questioned.” 12

The Court now turns to the issue of whether Adell and Copolymer were fraudulently joined in this case.13

B. Was Adell Compounding, Inc. fraudulently joined?

In order to prove fraudulent joinder, Aristeeh must prove there is no possibility the Pates can recover against Adell in this tort action. The defendants claim Adell, as the plaintiffs employer, is immune from Ulysses Pate’s tort suit pursuant to the Louisiana Workers’ Compensation Act.14 Louisiana Revised Statutes 23:1032 provides that workers’ compensation benefits are the exclusive remedy of an employee against an employer for injuries arising out of and in the course and scope of his employment. This immunity from tort actions, however, does not apply when the employee’s injuries are the result of an intentional act.15

It is undisputed that Ulysses Pate was an employee in the course and scope of his employment at the Adell facility when he was injured. Yet, the Pates contend that the Louisiana Workers’ Compensation Act does not bar this suit against Ulysses Pate’s employer because Ulysses Pate’s injury was caused by an intentional tort committed by Adell.16

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Pate v. Adell Compounding, Inc., 970 F. Supp. 542, 1997 U.S. Dist. LEXIS 10312, 1997 WL 400740 (M.D. La. 1997).

970 F. Supp. 542 (Pate v. Adell Compounding, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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