Patterson v. Haier US Appliance Solutions Inc

CourtDistrict Court, N.D. Alabama
DecidedJanuary 6, 2021
Docket1:20-cv-00981
StatusUnknown

This text of Patterson v. Haier US Appliance Solutions Inc (Patterson v. Haier US Appliance Solutions Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Haier US Appliance Solutions Inc, (N.D. Ala. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA EASTERN DIVISION

JASON PATTERSON, ) individually and as father and ) next friend of his minor daughter, ) Hollyn Elizabeth Patterson, a ) minor, ) ) Plaintiffs, ) ) v. ) Case No. 1:20-CV-981 ) HAIER US APPLIANCE ) SOLUTIONS INC., d/b/a GE ) Appliances ) ) Defendant. ) MEMORANDUM OPINION A GE microwave allegedly injured Jason Patterson and his daughter Hollyn. Patterson sued “General Electric Company” in state court. But Haier US Appliances Solutions Inc., d/b/a as GE Appliances (“Haier”) answered the complaint, instead of General Electric Company. So Patterson amended his complaint to name Haier as Defendant. Haier removed the case to this court 25 days later. Patterson has moved to remand (doc. 7), arguing that Haier’s 30-day window to remove opened months earlier when Haier got a copy of the complaint against General Electric. But the removal statutes only allow “the defendant” to file removal notices, see 28 U.S.C. §§ 1441, 1446 (b), and Haier was not the defendant until Patterson amended his complaint. Because Haier filed its Notice of Removal (doc. 1) within 30 days of becoming the defendant, Haier’s notice was timely.

Background This case is more complicated than the introduction makes it seem. It involves a tale of mistaken identity, a nonparty masquerading as a Defendant, and a third-act

lawyer swap—all playing out on a stage of unsettled law. A. Facts: Patterson alleges that he was badly burned by frying oil. Patterson was grilling burgers outside and frying French fries inside on the stovetop. While Patterson was outside tending the burgers, the filter from his GE Spacemaker

microwave fell into the fryer and ignited a grease fire. When Patterson came inside, he grabbed the frying pan with both hands and threw it to stop the fire. His hands were severely burned. According to the complaint, Patterson’s young daughter was

nearly burned and suffered emotional distress from being in the zone of danger. B. The First Complaint: Patterson sued “General Electric Company” under state law in state court on March 12, 2020. Doc. 1-1. Patterson alleged that “General Electric Company (GE) is a corporation incorporated under the laws of New York

State with its principal place of business in Massachusetts.” Id. at 3. Patterson named no other defendant in this first complaint.

2 In the complaint, Patterson requested the circuit clerk issue a summons, plus a copy of the complaint and discovery requests, to “General Electric Company” by

care of their registered agent CT Corporation System. Doc. 1-1 at 9. The clerk did so, and a CT agent signed the return card on March 18, 2020. Id. at 18-20. So General Electric Company had a copy of the complaint and summons on March 18.

C. Haier: General Electric Company, however, does not sell GE microwaves because General Electric Company sold all assets and liabilities of its subsidiary, GE Appliances, to Haier Qingdao Co., Ltd. in June 2016. Doc. 8-1 at 2. As part of the deal, Haier was given the right to use the “GE” and “GE Appliances” brand names—

meaning that “GE Appliances” is a trade name used by Haier, not a distinct company. The defendant here, Haier US Appliance Solutions (“Haier”), is a Haier Qingdao subsidiary “incorporated under the laws of the state of Delaware with its

principal place of business in Louisville, Kentucky.” Doc. 1-3 at 2. D. Haier’s Answer: The day after CT Corporation accepted service for General Electric Company (i.e., March 19), an agent of General Electric Company’s insurance carrier emailed Haier’s third-party claims administrator, Sedgwick Claims

Management, about the complaint.1 Doc. 8-1 at 3. Later that day, a Sedgwick claims

1 Patterson disputes this fact, which Haier’s general counsel declared under penalty of perjury. Patterson contends (without evidence) that Haier got the complaint from CT Corporation, who happens to be the registered agent for both General Electric Company and Haier—and many other businesses nationwide. Doc. 9 at 5-6. The court has reviewed both parties’ submissions and finds that Haier has met its burden of proving this fact. 3 examiner emailed Patterson’s attorney and asked for 30 more days to respond to the complaint. Doc. 7-1 at 7. Patterson’s attorney agreed. Id. at 6.

An attorney for Haier answered the initial complaint on May 18, 2020. Doc. 1-1 at 21. While Haier kept “General Electric Company” as the defendant in the caption, Haier called itself the defendant in the body, saying that it had been

“incorrect[ly] named General Electric Company” in the March 12 complaint. Id. E. The Amended Complaint: So Patterson amended his complaint on June 12 to, in his words, “correct[] the name of the defendant originally styled as ‘General Electric Company’ so its correct name will be stated as ‘Haier US Appliance

Solutions, Inc. d/b/a GE Appliances.” Doc. 1-1 at 42. Patterson also changed the caption to say that Haier, not General Electric Company, was the defendant. Id. Patterson made no other changes, meaning that he carried over the original allegation

that Haier—who Patterson kept calling “GE”—was incorporated in New York and principally conducts business in Delaware. A copy of the Amended Complaint was electronically served on Haier’s counsel the same day (June 12). Doc. 8 at 2. Haier answered the Amended Complaint

10 days later (June 22), again calling itself the defendant and adding itself to the caption as defendant. Doc. 1-1 at 56. So, for the moment, it seemed this case would remain in state court.

4 F. Removal: But Haier then added new counsel (doc. 1-1 at 75, 78), who filed a Notice of Removal in this federal court on July 10—i.e. 28 days after Patterson

amended his complaint. Doc. 1. Haier alleged diversity jurisdiction under 28 U.S.C. § 1332, which Patterson does not dispute and the court accepts. In its Notice, Haier asserted that “Haier has no affiliation with GE” and that

Haier and GE are incorporated in different States and have principal places of business in different States. Doc. 1 at 2. Haier also asserted that “General Electronic Company” was the “party-defendant” in Patterson’s original complaint and that Patterson’s amended complaint “remov[ed] GE as a party-defendant and nam[ed]

Haier as Defendant.” Id. at 2-3. So, according to Haier, its June 12th receipt of the amended complaint naming it the defendant “was the first service of any pleadings in this matter upon Haier.” id. at 3, and Haier filed the Notice of Removal within 30

days of that service “upon the last-served Defendant, which is within the time allowed by 28 U.S.C. § 1446(b).” Id. Patterson disagreed. He argues that Haier has been the defendant from the beginning; Patterson simply misnamed Haier as General Electric Company. Doc. 7.

As support, Patterson points to Haier’s May 18 state-court answer, in which Haier’s original counsel said that the defendant was “Haier US Appliance Solutions, Inc. d/b/a GE Appliances, incorrect[ly] named as General Electric Company.” Id. at 3.

5 Assuming that Haier was the original (misnamed) defendant, Patterson argues that “the law required Haier to remove this action, at the latest, by April 18, 2020, which

is the thirtieth day after Reynolds [the Sedgwick claims examiner] received the complaint.” Id. at 17. STANDARD OF REVIEW

“Federal courts are courts of limited jurisdiction. They possess only the power authorized by the Constitution and statute.” Kokkonen v. Guardian Life Ins. Co.

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Patterson v. Haier US Appliance Solutions Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-haier-us-appliance-solutions-inc-alnd-2021.