Royal American Management, Inc. v. WCA Waste Corp.

154 F. Supp. 3d 1278, 2016 U.S. Dist. LEXIS 97
CourtDistrict Court, N.D. Florida
DecidedJanuary 4, 2016
DocketCase No. 1:15cv151-MW/GRJ
StatusPublished

This text of 154 F. Supp. 3d 1278 (Royal American Management, Inc. v. WCA Waste Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Royal American Management, Inc. v. WCA Waste Corp., 154 F. Supp. 3d 1278, 2016 U.S. Dist. LEXIS 97 (N.D. Fla. 2016).

Opinion

ORDER DENYING DEFENDANTS’ MOTION TO REMAND QR DISMISS FOR LACK OF SUBJECT MATTER JURISDICTION

Mark E. Walker, United States District Judge

A well-known contract case presented the issue, “what is chicken?” See Frigaliment Importing Co. v. B.N.S. Int’l Sales Corp., 190 F.Supp. 116, 117 (S.D.N.Y.1960) (Friendly, J.). In terms of jurisdiction, this case seemingly presents a more difficult question: did the chicken or the egg come first? The causality dilemma arises here from the potential collision of two concepts in circuit precedent. Fortunately they avoid each other, if just barely.

■ This, is a proposed state-law class action. Defendants removed the case from the state court where it was filed but now challenge this Court’s subject-matter jurisdiction. Defendants seek either a remand of the case to state court or dismissal. Defendants say that the only Plaintiff in the initial complaint in state court lacked standing under Article III of the Constitution and, for that reason, that initial Plaintiff lacked the ability to file an amended complaint in this Court adding Plaintiffs who do have Article III standing. Defendants rely primarily on Summit Office Park v. United States Steel Corp., 639 F.2d 1278 (5th Cir.1981), for that contention. Understandably vexed, Plaintiffs point to a line of cases holding that where a plaintiff amends a complaint under Federal Rule of Civil Procedurel5 (as of right in those cases), jurisdiction (and thus,' standing) is determined from the amended complaint, not the original complaint. See Blue Marine Shipping SA de CV v. Gulmar Offshore Middle E. LLC, No. 309CV555/MCR/MD, 2010 WL 1687737, at *4 (N.D.Fla. Apr. 26, 2010) (Rodgers, J).1 [1281]*1281So which comes first, the chicken (a plaintiff without Article III standing improperly trying to amend a complaint) or the egg (determining jurisdiction based on only the amended complaint)? Thankfully, constitutional principles of jurisdiction are based on reason and good sense, and so this Court need not discover the origins of the universe.

For the reasons that follow, this Court concludes that Article III does not forbid the use of the rules of procedure to bring the proper parties to an actual controversy before the Court. See Mullaney v. Anderson, 342 U.S. 415, 417, 72 S.Ct. 428, 96 L.Ed. 458 (1952). As perfected Article III standing at the outset is not a necessary precondition, it was proper for the initial plaintiff to amend its complaint under Rule 15 with Defendants’ written consent and consistent with this Court’s scheduling order. The joinder of the additional Plaintiffs was also proper under Rule 17(a)(3) and Rule 21. This- Court also rejects Defendants’ secondary argument that the derivative-jurisdiction doctrine requires dismissal. This order denies the motion to dismiss or remand.

I

On June 17, 2015, Royal American Management, Inc. (“Royal American”), brought a proposed class action in state court against WCA Waste Corporation and WCA of Florida, LLC (“Defendants”), which provide waste-disposal services. ECF No. 1-1. The lawsuit concerned two fees charged by Defendants: a “fuel surcharge” and an “environmental fee.” Id. The initial complaint asserted that charging these fees was a violation of the Florida Deceptive and Unfair Trade Practices Act, § 501.201 et seq., Florida Statutes, and a breach of a uniform contract between each proposed class member and Defendants.2 Royal American alleged that it paid these fees to Defendants. ECF No. 1-1, ¶ 6. But attached to the initial complaint was a service agreement between Defendants and “Reserve at Kanapaha I,” which did not mention Royal American. ECF No.. 1-1, at 24. Defendants, received service of process on June 24, 2015, and July 10, 2015, respectively. ECF No. 1-1, at 39-45. .

On July 23, 2015, Defendants removed the case to this Court. ECF No. 1. The notice of removal invoked this Court’s original jurisdiction under the Class Action Fairness Act (“CAFA”), specifically 28 U.S.C. § 1332(d). But the notice cited the general removal statute, 28. U.S.C. § 1441(a) for its venue provision, and did not cite the CAFA removal statute, 28 U.S.C. § 1453(b).

Royal American and Defendants submitted a scheduling report in which they agreed to allow for a period to amend pleadings and join parties. ECF No. 9. But Defendants wanted a longer period of discovery (ending in March 2017) and a shorter period of time to amend pleadings and join parties (giving Plaintiff until January 4, 2016). Id. at 1. The scheduling order set discovery to close on June 1, 2016, and gave Plaintiff until March 4, 2016, to amend pleadings or join parties without leave of court. ECF No. 15, at.1-2.

Defendants answered the initial complaint on August 5, 2Ó15. ECF No. 5 & 6. Royal American filed its first amended complaint bn August 31, 2015. ECF No. 8. [1282]*1282Defendants answered on September 15, 2015. ECF No. 11 & 12.

Two months later, on November 25, 2015, Royal American along with four other Plaintiffs filed a second amended complaint. ECF No. 35. This’ order refers to these four other Plaintiffs as “apartment entities.” The first additional Plaintiff is Housing Partners of Gainesville,' FL, Ltd: (“Housing Partners”).’ According to the second amended complaint, Housing Partners’ only asset is the Reserve at Kanaha-pa I apartment complex. Id. ¶ 8. It -appears that a Royal American employee signed the service agreement^ with Defendants as the apartment entities’ agent. Royal American made payments to Defendants, but the money came from the apartment entities. It appears that Defendants knew full well that the payments ultimately came from the ápartment entities.

On December 9, 2015, Defendants moved to remand the case to state court or dismiss the case. ECF No. 44. Defendants say that Royal American never had standing to sue them. Id. at 10. They assert that Royal American did not fix- this supposed jurisdictional defect by amending the complaint' to add the apartment entities ’ as Plaintiffs. Id. at 14. Finally, they argue that the state court never had subject-matter jurisdiction and so the case should be dismissed under the doctrine of derivative jurisdiction. Id. at 17.

All agree- that an actual controversy exists between the apartment entities and Defendants. The Constitution and federal statutes grant this Court original jurisdiction over this sort of controversy. The case is now here with the consent, at one time or another, of all parties who have - appeared. It appears undisputed that Royal American and the apartment entities have a close relationship. And the Federal Rules of Civil Procedure, which provide numerous mechanisms for claims to be brought before a district court, are “construed, administered, and employed by the court and the parties to secure the just, speedy, and inexpensive determination of every action and proceeding.” Fed. R. Civ. P. 1.

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Bluebook (online)
154 F. Supp. 3d 1278, 2016 U.S. Dist. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-american-management-inc-v-wca-waste-corp-flnd-2016.