Scott Halsey v. AGCO Corp.

Court of Appeals for the Sixth Circuit·Decided November 8, 2018·No. 17-6403·Unpublished

Opinion

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION File Name: 18a0567n.06

No. 17-6403

UNITED STATES COURT OF APPEALS FILED FOR THE SIXTH CIRCUIT Nov 08, 2018 DEBORAH S. HUNT, Clerk

SCOTT HALSEY and KIMBERLY HALSEY, )

)

Plaintiffs-Appellants, ) ON APPEAL FROM THE ) UNITED STATES DISTRICT v. ) COURT FOR THE EASTERN ) DISTRICT OF KENTUCKY AGCO CORPORATION and TITAN TIRE ) CORPORATION, )

)

Defendants-Appellees. )

)

)

Before: COLE, Chief Judge; WHITE and NALBANDIAN, Circuit Judges.

NALBANDIAN, Circuit Judge. Scott Halsey’s troubles began when he bought a new tractor. Two days after the purchase, the tractor rolled over onto Halsey while he was bailing hay. Halsey suffered serious injuries in the accident, including a broken arm and nearly blacking out. Halsey filed a complaint in Kentucky state court, bringing claims against the manufacturer of the tractor, AGCO, and the manufacturer of the tractor tire, Titan Tire. The crux of Halsey’s complaint was that AGCO and Titan somehow created a defective tractor, which caused a tire to blow, prompting the rollover. But unfortunately for Halsey, his troubles did not end with the tractor.

Halsey’s complaint did not quantify his damages in dollars. Halsey did allege, however, that he suffered medical expenses, lost wages, property damage, physical pain, mental suffering, and permanent impairment of his ability to work and earn money. In response, AGCO sent discovery requests to Halsey—asking him whether he was seeking more than $75,000 in damages (the threshold amount for federal jurisdiction). At first, Halsey refused to answer. But months

later, he admitted that his past medical expenses were $42,105.36. Halsey also reaffirmed that he wanted damages for pain and suffering—but that he could not determine the amount of those damages until the parties completed discovery. Finally armed with some dollar amount, AGCO removed the case to federal court. AGCO argued that, when combining the past medical expenses with the additional pain and suffering damages, it was more likely than not that Halsey’s alleged damages exceeded $75,000. The district court agreed and denied Halsey’s motion to remand the case to state court.

Things got only worse for Halsey in federal court. In April 2017, the district court created the case schedule, which included a June 1, 2017 deadline for Halsey to complete discovery and identify his expert witnesses. (And to be sure, Halsey knew of this deadline no later than March.) But discovery did not go smoothly. The parties argued over discovery requests, deposition topics, and scheduling—which at one point forced the district court to quash Halsey’s discovery notices as “too overreaching and burdensome.” The district court also pushed back the deadline to identify expert witnesses, giving Halsey an extra month. But still, Halsey failed to meet the July 1, 2017 deadline. The district court denied Halsey’s later motions to amend the scheduling order and for leave to file late expert disclosures. And when Halsey finally disclosed his expert witnesses (which the district court disregarded as untimely), he identified only medical experts—failing to disclose any expert that could testify about the tractor.

With no expert to explain how the tractor was allegedly defective, the district court granted summary judgment in favor of the defendants and dismissed the case. The district court explained, “expert proof is necessary to show that the alleged defect was a substantial factor in causing

[Halsey’s] injury,” but he has “not presented any evidence, expert or otherwise, that a particular use of the tractor (on an incline, bearing loads above a certain weight, etc.)” could have “resulted in the unreasonable risk of a rollover situation.” (Opinion, R. 139 at 7–8.) Said another way, without an expert, Halsey could not prove his case.

Halsey now appeals several of the district court’s orders, including denial of the motion to remand, various discovery rulings, and the grant of summary judgment. But because we agree that federal jurisdiction is proper, the district court did not abuse its broad discretion over discovery, and Halsey failed to introduce sufficient evidence to support his case, we affirm the district court.

I.

To start, we review “determinations of subject matter jurisdiction de novo.” Smith v.

Nationwide Prop. & Cas. Ins. Co., 505 F.3d 401, 404 (6th Cir. 2007). “Generally, a civil case brought in a state court may be removed by a defendant to federal court if it could have been brought there originally.” Rogers v. Wal-Mart Stores, Inc., 230 F.3d 868, 871 (6th Cir. 2000) (citing 28 U.S.C. § 1441(a)). At issue here is whether the defendants met their burden to show that the district court had “diversity” jurisdiction when they removed the case. This means AGCO properly removed the case if “the suit is between citizens of different states and the amount in controversy exceeds $75,000, exclusive of costs and interest.” Id. (citing 28 U.S.C. § 1332(a)).

There is no dispute that AGCO met the first requirement. Halsey (and his wife, Kimberly)

live in Kentucky, AGCO is a Delaware business headquartered in Georgia, and Titan is a Delaware business headquartered in Illinois. The question is whether the amount in controversy exceeded $75,000.

“Generally, because the plaintiff is the ‘master of the claim,’ a claim specifically less than [$75,000] should preclude removal.” Rogers, 230 F.3d at 871. But removal becomes more complicated when the plaintiff claims an unspecified amount of damages. See Naji v. Lincoln, 665 F. App’x 397, 400 (6th Cir. 2016). In this situation, we place the burden on the party seeking to remove the case to federal court “to show by a preponderance of the evidence that the amount in controversy requirement has been met.” Hayes v. Equitable Energy Res. Co., 266 F.3d 560, 572 (6th Cir. 2001); Dart Cherokee Basin Operating Co. v. Owens, 135 S. Ct. 547, 553–54 (2014). But this is not a “dauting burden” that requires the defendants to “research, state and prove the plaintiff’s claim for damages.” Hayes, 266 F.3d at 572 (citing Gafford v. Gen. Elec. Co., 997 F.2d 150, 158 (6th Cir. 1993)). Instead, the defendants need only “show that it is ‘more likely than not’ that the plaintiff’s claims” exceed $75,000. Rogers, 230 F.3d at 871 (quoting Gafford, 997 F.2d at 158). We calculate this amount at the time of removal. Id. at 871–72.

In the notice of removal, AGCO explained why Halsey’s claims exceeded $75,000. AGCO compared Halsey’s unspecified damages—including future medical expenses, pain and suffering, property damage, lost wages, and impairment to his ability to work and earn money—to his $42,105.36 in past medical expenses. According to AGCO, if Halsey added the value of his unquantified damages to his past medical expenses, it was more likely than not that the amount in controversy exceeded $75,000. In other words, by comparison, Halsey’s pain and suffering and other unquantified damages were likely worth at least $32,894.65. See Freeland v. Liberty Mut. Fire Ins. Co., 632 F.3d 250, 252–53 (6th Cir. 2011) (requiring $75,000 and “one penny”). In response to Halsey’s motion to remand, AGCO argued that Halsey knew his claims exceeded the

jurisdictional amount but refused to give any dollar amount for his pain and suffering1 because he wanted to avoid federal jurisdiction.

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