Reece v. AES Corporation

638 F. App'x 755
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 9, 2016
Docket14-7010
StatusUnpublished
Cited by34 cases

This text of 638 F. App'x 755 (Reece v. AES Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reece v. AES Corporation, 638 F. App'x 755 (10th Cir. 2016).

Opinion

ORDER AND JUDGMENT *

JEROME A. HOLMES, Circuit Judge.

Plaintiffs-Appellants William and Diane Reece, Herman Tolbert, Bennett Tanksley, Susan Holmes, and Charles Tackett (collectively, “Plaintiffs”) filed a petition in the District Court for LeFlore County, Oklahoma, asserting a putative class action. 1 They alleged that several companies (collectively, “Defendants”) were responsible for environmental pollution stemming from the generation and disposal of coal-combustion waste (“CCW”) and fluid waste from oil and gas drilling (“produced fluid waste” or “PFW”). Defendants removed the case to the United States District Court for the Eastern District of Oklahoma under the Class Action Fairness Act (“CAFA”). Plaintiffs filed two motions to remand, and the district court denied them both. Furthermore, after affording Plaintiffs two opportunities to cure factual deficiencies in their complaint, the district court dismissed their complaint for failure to state plausible claims for strict liability, negligence per se, and negligence.

On appeal, Plaintiffs challenge the district court’s denial of their two motions for remand and also its dismissal of their amended complaint. Because we agree with the district court’s disposition of the remand motions and conclude that Plaintiffs failed to adequately allege the element of injury in their amended complaint, we affirm-the district court’s judgment.

*758 I

A

This case involves a putative class action alleging a variety of tort claims against several companies involved in the generation, transportation, and disposal of CCW and PFW near Bokoshe, Oklahoma.

Plaintiffs, the putative class representa-tivesj filed their lawsuit in the District Court for LeFlore County, Oklahoma in October 2011. The petition alleged that “the transport, storage and disposal of waste materials from a coal-burning power plant and oil and gas drilling' operations ha[d] resulted in millions of tons of waste material being transported and deposited in a huge pile at [a waste disposal facility] which presented] serious public health and environmental risks.” Aplee. Supp. App. at 460-61 (Petition, dated Oct. 6, 2011). The petition included claims for strict liability, nuisance, trespass, negligence, negligence per se, and unjust enrichment against four groups:

1. “AES Entities”: AES allegedly owns and operates the Shady Point coal-fired power plant in LeFlore County; 2
2. “MMHF Entities”: Making Money Having Fun, LLC (“MMHF”) and its associated entities allegedly own and operate a commercial waste-disposal facility in LeFlore County; 3
3. “Fly Ash Truekers”: these entities are allegedly involved in the transportation of CCW generated by the Shady Point plant to the MMHF waste-disposal facility; 4 and
4. “Fluid Waste Truckers”: these entities are allegedly involved in the transportation of PFW generated by various oil and gas drilling operations to the MMHF facility. 5

Approximately one year later, on October 4, 2012, Plaintiffs filed a First Amended Petition; it asserted essentially the same causes of action, but also added as defendants various “Oil Producers” who were involved in the generation of the PFW disposed of at the MMHF facility. 6 *759 In their amended petition, Plaintiffs defined the putative class as consisting of “all citizens and/or residents and/or property owners of the State of Oklahoma within”:

a. “a three mile radius or more of’ the MMHF disposal facility; 7
b. “a three mile radius of any disposal pit or dump site located within LeFlore County ... into which ... Defendants, or any one of them, have transported, received, or disposed of Coal Waste and/or Saltwater or Produced Fluid”;
c. one thousand yards of the Town of Bokoshe or any public or private roads, streets, and driveways that have been used by vehicles (i) hauling CCW from the Shady Point coal-fired plant to the MMHF facility; (ii) hauling CCW from the Shady Point coal-fired plant to any other disposal pit or dump site in Le-Flore County; or (iii) hauling PFW from oil and gas well drill sites to the MMHF disposal pit.

Aplt.App. at 94-95 (First Am. Petition, filed Oct. 4, 2012).

B

Defendants removed the case to the United States District Court for the Eastern District of Oklahoma pursuant to CAFA, 28 U.S.C. § 1332(d)(2). Plaintiffs subsequently filed a motion for remand, claiming that their case fell within the “local controversy” and “home state” exceptions articulated in 28 U.S.C. § 1332(d)(4), which require the court to refrain from exercising jurisdiction. Plaintiffs also argued that the court should decline to exercise jurisdiction under the permissive “interests of justice” exception of 28 U.S.C. § 1332(d)(3). Under all three of these exceptions, Plaintiffs were obliged to demonstrate, inter alia, that a certain portion of the class members are Oklahoma citizens. See 28 U.S.C. § 1332(d)(3) (requiring a showing under the interest of justice exception that “greater than one-third but less than two-thirds of the members of all proposed plaintiff classes” are citizens of the state where the action was filed); id. § 1332(d)(4)(A)(i)(I) (requiring a demonstration under the local-controversy exception that “greater than two-thirds of the members of all proposed plaintiff classes” are citizens of the forum state); id. § 1332(d)(4)(B) (requiring under the home-state exception that “two-thirds or more of the members of all proposed plaintiff classes” be citizens of the forum state).

The court held an evidentiary hearing on the motion, but Plaintiffs did not introduce substantive evidence or witness testimony regarding citizenship of the proposed class members, instead relying on their amended petition’s class definition and “summary exhibits ... based upon data that[ ] [had] *760 been collected” from various local and federal sources that purported to compare— as to the class area—the percentage of Oklahoma class members against the percentage of non-Oklahoma class members in that same area. Aplt.App. at 339-40, 369-78 (Tr. of Mot. to Remand Hr’g, dated Mar. 21, 2013), Plaintiffs did not introduce the underlying-records or other data that formed the basis of the proffered charts.

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Bluebook (online)
638 F. App'x 755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reece-v-aes-corporation-ca10-2016.