Sea World, LLC v. Seafarers, Inc.

191 F. Supp. 3d 167, 2016 U.S. Dist. LEXIS 76154, 2016 WL 3258360
CourtDistrict Court, D. Puerto Rico
DecidedJune 10, 2016
DocketCivil Case. NO. 16-1382 (PG)
StatusPublished
Cited by1 cases

This text of 191 F. Supp. 3d 167 (Sea World, LLC v. Seafarers, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sea World, LLC v. Seafarers, Inc., 191 F. Supp. 3d 167, 2016 U.S. Dist. LEXIS 76154, 2016 WL 3258360 (prd 2016).

Opinion

OPINION AND ORDER

JUAN M. PÉREZ-GIMÉNEZ, SENIOR UNITED STATES DISTRICT JUDGE

Pending before the court is plaintiff Sea World LLC’s (“Sea World” or “Plaintiff’) motion to remand (Docket No. 7). In its motion, Plaintiff requests this court remand the above-captioned complaint back to state court on two- grounds: that the notice of removal is procedurally defective and that no diversity jurisdiction exists. For the reasons set forth below, this court DENIES Sea World’s request.

I. FACTUAL AND PROCEDURAL BACKGROUND

On February 2, 2016, Sea World filed the original complaint before the Puerto Rico Court of First Instance against Seafarers, Inc. (“Seafarers”) and Aza Food Corp., Inc. (“Aza”) requesting damages and injunctive relief. In short, Plaintiff alleges that Seafarers unilaterally terminated their exclusive distribution agreement in violation of the Puerto Rico Dealer’s Act, also known as Puerto Rico Law 75, P. R. Laws Ann. tit. 10, § 278. See Docket No. 18-1. According to Plaintiff, Aza unlawfully and intentionally interfered with the contractual distribution relation between Seafarers and Sea World. Aza’s appropriation of the distribution of Seafarers’ products in Puerto. Rico caused Sea World damages, as alleged, in violation of Puerto Rico’s general tort statute, Article 1802 of the Civil Code, 31 P. R. Stat. Ann. § 5141. ⅜

On March 4, 2016, Seafarers removed the case to this court on the basis of diversity jurisdiction pursuant to 28. U.S.C. § 1332(a).1 Seafarers is a corpora[169]*169tion organized under Florida law whereas Sea World is a Puerto Rico corporation. See Docket No. 1, 3, 18. Seafarers argues that Sea World fraudulently joined Aza, a Puerto Rico corporation, in the state court action by adding a meritless tortious interference claim against the latter with the sole purpose of defeating federal jurisdiction. Id. On March 8, 2016, Aza filed an informative motion notifying the court of its consent to Seafarers’ request for removal, see Docket No. 10.

In its motion to remand, Sea World now argues that removal was procedurally improper because Aza did not join the request within 30 days of being served as required by 28 U.S.C. § 1446(b). See Docket No. 7. Sea World also claims that the doctrine of fraudulent joinder is inapplicable to the case at hand because it properly pleaded a claim against-Aza for tortious interference with its exclusive dealership contract with Seafarers. Id.

Seafarers opposed Sea World’s motion to remand to state court. It first argues that Aza’s joinder to its request for removal cured the procedural defect. See Docket No. 24. Second, Seafarers reasserts its claim for removal on the grounds that the Plaintiff failed to allege that the purported distribution agreement was exclusive and thus entitled to protection under Law, Ño. 75. As such, the agreement could not be subject to tortious interference. Id.

Sea World subsequently replied opposing the arguments set forth in Seafarers’ response. See Docket No. 41.

II. LEGAL STANDARD

“The district courts of the United States, are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute.” In re Olympic Mills Corp., 477 F.3d 1, 6 (1st Cir.2007) (citing Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994)). “A cause of action may be maintained in federal court, only if it involves a question of federal law, or if the controversy is between citizens of different states and the amount in controversy exceeds $75,000.” Hall v. Curran, 599 F.3d 70, 71 (1st Cir.2010) (citing 28 U.S.C. §§ 1331, 1332).

Pursuant to 28 U.S.C. § 1441(a), “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.” 28 U.S.C. § 1441(a). “[T]he defendants may remove the action to federal court .., provided that no defendant ‘is a citizen of the State in which such action is brought.’ ” Universal Truck & Equip. Co. v. Southworth-Milton, Inc., 765 F.3d 103, 107-108 (1st Cir.2014) (citing 28 U.S.C. § 1441(b)(2)).

“[R]emoval statutes are strictly construed ... and defendants have the burden of showing the federal court’s jurisdiction.” Danca v. Private Health Care Systems, 185 F.3d 1, 4 (1st Cir.1999) (internal citations omitted). “When plaintiff and defendant clash about jurisdiction, uncertainties are construed in favor of remand.” Asociacion de Detallistas de Gasolina v. Shell, 380 F.Supp.2d 40, 43 (D.P.R.2005) (citing Burns v. Windsor Ins. Co., 31 F.3d 1092, 1097 (11th Cir.1994)).

III. DISCUSSION

A. Unanimity Requirement

Sea World’s first objection to the removal is grounded on co-defendant Aza’s [170]*170untimely consent to the removal of the action from state court. Pursuant to the applicable statute, “[d]efendants must file their notice of removal within 30 days after the receipt by the defendant ... of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based .... ” Universal Truck, 765 F.3d at 108 (citing 28 U.S.C. § 1446(b)(1)). According to Sea World, however, Aza was served with the complaint on February 4, 2016, but joined Seafarers’ notice of removal over thirty days later on March 8, 2016 (Docket No. 10).

Relying on the First Circuit’s holding in Esposito v. Home Depot U.S.A., Inc., 590 F.3d 72 (1st Cir.2009), Seafarers argues that despite its delay, the procedural defect was cured upon Aza’s subsequent consent. In Esposito, the First Circuit stated that “[wjhere the action involves multiple defendants, however, the right of removal is subject to the so-called ‘unanimity requirement.’” Id. at 75 (citing Chicago, Rock Island & Pac. Ry. Co. v. Martin, 178 U.S. 245, 247-48, 20 S.Ct. 854, 44 L.Ed. 1055 (1900)).

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191 F. Supp. 3d 167, 2016 U.S. Dist. LEXIS 76154, 2016 WL 3258360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-world-llc-v-seafarers-inc-prd-2016.