Sampson v. Mississippi Valley Silica Co.

268 F. Supp. 3d 918
CourtDistrict Court, S.D. Mississippi
DecidedJuly 18, 2017
DocketCIVIL ACTION NO. 5:17-cv-35-DCB-MTP
StatusPublished
Cited by4 cases

This text of 268 F. Supp. 3d 918 (Sampson v. Mississippi Valley Silica Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sampson v. Mississippi Valley Silica Co., 268 F. Supp. 3d 918 (S.D. Miss. 2017).

Opinion

ORDER AND OPINION

David Bramlette, UNITED STATES DISTRICT JUDGE

This cause is before the Court on defendant Lamorak Insurance' Company F/K/A Onebeacon America Insurance Company (“Lamorak Insurance Company” or “La-morak”)’s Motion to Dismiss (docket entry 13) and plaintiffs Linda Sampson and Dale Sampson, individually and as wrongful death beneficiaries (collectively; “Plaintiffs”)’s -Motion to Remand (docket entry [920]*92018), Having carefully reviewed the motions, memoranda, applicable statutory and case law, and being otherwise fully informed in the premises, the Court finds as follows:

I. Facts & Procedural History"

On October 21, 2014, plaintiffs Linda and Dale Sampson filed a wrongful death action against' Mississippi Valley Silica, Company (“MVSC”) in the Circuit Court of Jefferson County, Mississippi, alleging that their late father’s exposure to silica containing products sold by MVSC ultimately led to his death. Doc. 5, p.,12. The plaintiffs’ initial complaint also asserted claims against a number of defendants allegedly involved in the production and manufacturing of silica containing products, and at the time the case was filed, both plaintiffs and at least one defendant were residents of Texas.

The non-diverse defendants were subsequently dismissed from the action, and MVSC, along with two other defendants, removed the case to this Court on September 3, 2015. Doc. 10, p. 829. Upon finding that not all remaining defendants consented to removal,. the Court remanded the action back to state court for failure to comply with the “rule of unanimity.” See Sampson v. Pangborn Corp., 2015 WL 5971264 (S.D. Miss. Oct. 14; 2015). All remaining defendants, except MVSC, were ultimately dismissed from the case, and the plaintiffs’ claims against MVSC proceeded to trial’ in the Circuit- Court of Jefferson County.

On February 28, 2017, the plaintiffs received a jury verdict in their favor and against MVSC in the amount of $400,000. Doc. 12, pp. 386-387. The jury also awarded the plaintiffs $100,000 in punitive damages. Id, at 388-389. After the jury verdict, but befoie entry of judgment; the plaintiffs filed a pleading styled “Motion for Rule. 19 Joinder and Complaint for Declaratory Judgment” m state court. See Doc. 1-1. Within this pleading, the plaintiffs assert that Lamorak Insurance Company, MVSC’s . insurance carrier, should be joined in the underlying tort, action because it has denied coverage to MVSC. The document also contains a complaint for declaratory judgment against Lamorak to resolve the coverage dispute. The plaintiffs subsequently served Lamorak with- a copy of the pleading before the state court entered an order or took any action on the motion.

On March 22, 2017, Lamorak removed the action to this Court on the basis of diversity jurisdiction and filed a motion to dismiss shortly thereafter, The plaintiffs now move to remand.

II. Discussion

Defendant Lamorak, as the removing party, bears the burden of proving that federal jurisdiction exists and that removal was proper. Barker v. Hercules Offshore, Inc., 713 F.3d 208, 212 (5th Cir. 2013). When considering motions to remand, federal removal statutes áre to be strictly construed against removal, and all ambiguities or doubts are resolved in favor of remand. Wilkinson v. Jackson, 294 F.Supp.2d 873, 877 (S.D. Miss. 2003) (citing Willy v. Coastal Corp., 855 F.2d 1160 (5th Cir. 1988)).

In its Notice of Removal, Lamorak alleges that thé cáse is removable pursuant to either 28 U.S.C. § 1441(a) or 28 U.S.C. § 1446(c)(1), depending on how the Court construes' the plaintiffs’ state court pleading. According to Lamorak, the plaintiffs’" “so-called motion and complaint is in effect either an impermissible attempt to circumvent Mississippi law regarding direct actions against insurance companies, a standalone declaratory judgment action, filed prematurely, or a disguised Writ of Garnishment.” Doc. 1, p. 3. If Plaintiffs’ claim [921]*921against Lamorak was properly joined in the underlying liability action, Lamorak asserts that removal is proper pursuant to 28 U.S.C. § 1446(c)(1) because the plaintiffs acted in bad faith to defeat removal. If, however, the pleading is construed as a stand-alone complaint for declaratory judgment, Lamorak contends that the action is removable pursuant to 28 U.S.C. § 1441(a).

In moving to remand, the plaintiffs contend that joinder of their declaratory judgment claim against Lamorak in the underlying liability action against MVSC is proper under Mississippi Rules of Civil Procedure 19 and 20. Further, they argue that removal is barred by 28 U.S.C. § 1446(c)(1) because the action has been pending for more than one year in the Circuit Court of Jefferson County, Mississippi, and no evidence of bad faith exists.

The parties do not dispute that complete diversity exists or that the amount in controversy exceeds the jurisdictional minimum. See Doc. 18, ¶ 6; Doc. 1, p. 4.

A. Fraudulent or Procedural Misjoinder

The Court first considers whether Plaintiffs’ declaratory judgment claim against Lamorak was fraudulently mis-joined in the underlying tort action against MVSC. In arguing that the claims have been, fraudulently misjoined, Lamorak urges the Court to sever and remand the plaintiffs’ claims against MVSC, while retaining jurisdiction over the declaratory judgment action against Lamorak. Lamo-rak contends that “[i]t is patently clear that the fraudulent misjoinder of Lamorak was an artifice intended to defeat federal removal jurisdiction so that plaintiffs, as a result of their apparent perceived bias, could enjoy Mississippi’s plaintiff-friendly state court system.” Doc. 28, p. 2. Plaintiffs flinch at this' suggestion, contending that there is-no proof of such, hastening to cite a Sixth Circuit decision which,, at least by implication, counsels against vituperative accusations of venue shopping — cautioning that the better practice is simply to lay out the facts. It is a fact that plaintiffs throughout the country who had never-before heard of Jefferson County, Mississippi, were clustering there in search of jury munificence, and they did so with considerable, success. Thus, this Court is, not offended by the defendant’s statement, nor will it in any way influence this, Court’s opinion regarding the matters before it.

The doctrine of fraudulent or procedural misjoinder, which was first recognized by the Eleventh Circuit in Tapscott v. MS Dealer Serv. Corp., 77 F.3d 1353, 1360 (11th Cir. 1996), abrogated on other grounds, Cohen v. Office Depot, Inc., 204 F.3d 1069 (11th Cir.

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268 F. Supp. 3d 918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sampson-v-mississippi-valley-silica-co-mssd-2017.