RINALDI v. FCA US LLC

CourtDistrict Court, D. New Jersey
DecidedNovember 30, 2022
Docket1:22-cv-00886
StatusUnknown

This text of RINALDI v. FCA US LLC (RINALDI v. FCA US LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RINALDI v. FCA US LLC, (D.N.J. 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

NANCY RINALDI AND WILLIAM 1:22-cv-00886-NLH-MJS SWISHER,

Plaintiffs, OPINION

v.

FCA US LLC, FOX RENT A CAR, INC., AND ABC CORPORATIONS 1-10, Defendants.

Appearances:

JAY L. EDELSTEIN EDELSTEIN LAW LLP 230 SOUTH BROAD STREET SUITE 900 PHILADELPHIA, PA. 19102

On behalf of Plaintiffs

TIFFANY M. ALEXANDER NELSON MULLINS 1235 WESTLAKES DRIVE SUITE 215 BERWYN, PA. 19312

On behalf of Defendant FCA US LLC

FLOYD G. COTTRELL COTTRELL SOLENSKY, P.A. 3 UNIVERSITY PLAZA SUITE 500 HACKENSACK, N.J. 07601

On behalf of Defendant FOX RENT A CAR, INC.

HILLMAN, District Judge Pending before the Court are Defendants FCA US LLC (“FCA”) and Fox Rent A Car, Inc.’s (“Fox”) motions to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(2), (3). (ECF 3; ECF 6). For the reasons expressed below, Defendants’ motions will

be granted. I. Background FCA is a limited liability company headquartered in Michigan and registered in Delaware which designs, manufactures, assembles, markets, distributes, and sells cars and car components. (ECF 1-1 at 1-2). Fox is a California corporation with its principal place of business in Oklahoma engaged in the renting of cars to consumers. (Id. at 2; ECF 6-1 at 23). Defendants ABC Corporations 1-10 are fictional entities in the business of designing, manufacturing, assembling, marketing, renting, or selling cars. (ECF 1-1 at 2). Plaintiffs Nancy Rinaldi and William Swisher are a married

couple and citizens of New Jersey. (Id. at 1). On or about January 21, 2020, Swisher was driving a 2018 Jeep Wrangler rented from Fox on US-1 in Monroe County, Florida when the car was struck by another vehicle and Nancy was thrown from the passenger seat and injured despite being secured by a seatbelt. (Id. at 2-3). Plaintiffs filed a seven-count Complaint in New Jersey Superior Court – Law Division on January 18, 2022. (Id.) Counts 1, 2, 5, and 6 consist of product-liability claims by Rinaldi against FCA, Fox, and ABC Corporations 1-10. Plaintiffs allege, with respect to FCA and ABC Corporations, that the seatbelts in the Jeep Wrangler were defective; unsafe or

unsuitable for use due to deviations in specifications, formula, or standards of the manufacturer or of other similar units or did not include adequate warnings; and were recalled in 2019 and FCA and ABC Corporations did not remedy the defect or adequately alert Fox as to the recall. (Id. at 3-4, 8). Plaintiffs allege that Fox and ABC Corporations rented out the Jeep Wrangler when they knew or should have known that the vehicle was not safe or fit for use and did not remedy the defective seatbelts or heed the 2019 recall. (Id. at 4-5, 8). The Complaint also contains claims on behalf of Rinaldi against FCA for breach of warranty, (id. at 6), and negligence against Fox for alleged failure to inspect the Jeep Wrangler and

keep Plaintiffs free from hazards, (id. at 7), and a loss of consortium claim against all Defendants on behalf of Swisher, (id. at 10-11). FCA received a copy of the Summons and Complaint on January 25, 2022, (ECF 1 at 2; ECF 3-2 at 2), and filed a notice of removal on February 18, 2022, (ECF 1). In its removal notice, FCA asserts that the Court has diversity jurisdiction over this action as Plaintiffs are citizens of New Jersey and that FCA is an LLC whose ultimate owner is a corporation whose principal place of business and place of incorporation is the United Kingdom, rendering it a citizen of that country1 and the Plaintiffs and the one served Defendant completely diverse.2

(Id. at ¶6). Though the Complaint does not specify damages, FCA represented that, given the alleged severity and permanency of

1 According to the removal petition, FCA’s “Russian doll” corporate structure starts with FCA as a domestic LLC, formed in Delaware and headquartered in Michigan. That entity’s sole member is FCA North America Holdings LLC, also a domestic LLC, whose sole member is a foreign corporation, FCA Foreign Sales Holdco Ltd., incorporated under the laws of the United Kingdom and having its principal place of business in that country. Although the removal petition goes on to state the identity of a corporation which owns all the shares of FCA Foreign Sales Holdco Ltd. - another UK corporation – and the sole shareholder of that corporation – a Dutch corporation, the latter two corporate entities are irrelevant for purposes of determining the diversity of the parties. FCA is a UK citizen, through its sole member FCA North America Holdings LLC, as the latter is a citizen of the country or countries where its sole corporate member is domiciled, in this case the UK. Who or what owns that corporation has no bearing on diversity jurisdiction.

2 In the notice of removal, FCA claimed that its co-defendant Fox had not yet been served. (ECF 1 at ¶ 8). FCA appears to have engaged in what is referred to as a “snap” removal, where a diverse and served defendant removes prior to service of the complaint and summons on other defendants. In such a case, non- served defendants need not consent to the removal. See Brown v. Jevic, 575 F.3d 322, 327 (3d Cir. 2009) (“In the typical case, where all defendants must consent to removal, a defendant who has not been served need not consent to removal.”). The notice of removal pleads in the alternative that if Fox had been served it had “expressed consent” and is also diverse from the Plaintiffs in that it is a California corporation with its principal place of business in the same state. As Fox would later make clear in its motion to dismiss, FCA is only partially correct in that Fox’s principal place of business is in Oklahoma, not California. In any event, the parties appear to be completely diverse, irrespective of the timing of service and removal, vesting this Court with subject matter jurisdiction. Rinaldi’s injuries, the jurisdictional amount is met. (Id. at ¶¶ 10-12). FCA filed one of the pending motions to dismiss pursuant to

Federal Rules of Civil Procedure (12)(b)(2) and (3) on February 25, 2022, alleging lack of personal jurisdiction and improper venue. (ECF 3). Plaintiffs filed an opposition, (ECF 4), and FCA responded, (ECF 5). Fox filed the other pending motion to dismiss, also alleging lack of personal jurisdiction and improper venue pursuant to Federal Rules of Civil Procedure 12(b)(2) and (3) on September 30, 2022. (ECF 6). Plaintiffs filed an opposition, (ECF 8),3 and Fox filed a response, (ECF 9). II. Discussion A. Jurisdiction The Court has jurisdiction over this matter as the parties

are diverse in citizenship and the amount in controversy exceeds

3 Fox, in its supplemental brief, contends that Plaintiffs’ opposition was untimely because the return date for its motion to dismiss was November 7, 2022 – making Plaintiffs’ opposition due by October 24, 2022. (ECF 9 at 1); see also L. Civ. R. 7.1(d)(2) (“The brief and papers in opposition to a motion, specifying the motion day on the cover page, with proof or acknowledgment of service thereof on all other parties, must be filed with the Clerk at least 14 days prior to the original motion day . . . .”). Plaintiffs did not file an opposition until November 1, 2022. (ECF 8). The Court will nonetheless consider Plaintiffs’ opposition. See Elissa H. v. Kijakazi, No. 3:22-cv-3003, 2022 WL 4626980, at *1 n.3 (D.N.J. Sept. 28, 2022). $75,000. See 28 U.S.C. § 1332

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RINALDI v. FCA US LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rinaldi-v-fca-us-llc-njd-2022.