Shelton v. Southern Energy Homes, Inc.

420 F. Supp. 2d 579, 2006 U.S. Dist. LEXIS 11517, 2006 WL 691989
CourtDistrict Court, S.D. Mississippi
DecidedMarch 17, 2006
DocketCIV.A.305CV781WHBJCS
StatusPublished

This text of 420 F. Supp. 2d 579 (Shelton v. Southern Energy Homes, Inc.) 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
Shelton v. Southern Energy Homes, Inc., 420 F. Supp. 2d 579, 2006 U.S. Dist. LEXIS 11517, 2006 WL 691989 (S.D. Miss. 2006).

Opinion

OPINION AND ORDER

BARBOUR, District Judge.

This cause is before the Court on the following Motions:

1) Plaintiffs’ Amended Motion to Remand and for Abstention, or, in the Alternative, to Dismiss Federal Claim with Contingent Motion for Remand (hereinafter “Motion to Dismiss and for Remand”);

*581 2) Motion to Enforce Arbitration filed by Defendant Simons Housing, Inc.; and

3) Motion to Submit Affidavit of Jackie Simons filed by Defendant Simons Housing, Inc.

Having considered the Motions, Responses, Rebuttals and all attachments to each, as well as supporting and opposing authority, the Court finds:

1) Plaintiffs’ Motion to Dismiss and for Remand should be granted in accordance with the holdings presented below;

2) the Motion to Enforce Arbitration should be denied, without prejudice; and

3) the Motion to Submit Affidavit of Jackie Simons should be granted.

I. Factual Background and Procedural History

This cause of action arises out of the sale of an allegedly defective mobile home. Plaintiffs, who are all Mississippi residents, purchased the mobile home on December 22, 1998. Defendants are an assortment of Mississippi residents and nonresidents that played a role in either manufacturing the mobile home, selling it to Plaintiffs or financing the home. At some time in year 2003, Plaintiffs allegedly began noticing numerous defects in the mobile home. Because of some aspects of the alleged defects, toxic mold began forming in the home. Plaintiffs contend that they are experiencing health problems as a result of the mold.

Aggrieved by their situation, Plaintiffs filed the subject suit in the Circuit Court of Copiah County, Mississippi on November 22, 2005. The Complaint states nine claims under Mississippi state law and one federal law claim. The Mississippi law claims are generally categorized as breach of warranty, breach of contract, negligence, fraud and products liability. The sole federal law claim is count two, which alleges a breach of the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-2312 (hereinafter “the Act”). The Act requires “that a written warranty of a consumer product fully and conspicuously disclose, in plain language, the terms and conditions of the warranty....” Black’s Law Dictionary 971 (8th ed.2004).

Defendants removed the case to this Court on December 22, 2005. Through the Notice of Removal, Defendants correctly argue that this Court may exercise federal question jurisdiction over the case because Plaintiffs asserted a federal law claim under the Act. Plaintiffs filed the subject Motion to Dismiss and for Remand on January 17, 2006. That Motion, as well as the Motion to Enforce Arbitration and the Motion to Submit Affidavit, are now ripe for consideration.

II. Analysis

A. Motion to Remand

Defendants removed this case on the basis of federal question jurisdiction. The Court finds that removal was proper because Plaintiff asserted a federal law claim under the Act. This Court has original jurisdiction over that claim pursuant to the provisions of 28 U.S.C. § 1331. Further, the Court has jurisdiction over the state law claims under the removal provisions of 28 U.S.C. § 1441(c), which states:

Whenever a separate and independent claim or cause of action within the jurisdiction conferred by section 1331 of this title is joined with one or more otherwise non-removable claims or causes of action, the entire case may be removed and the district court may determine all issues therein, or, in its discretion, may remand all matters in which State law predominates.

*582 However, for the reasons set forth below, remand of this case to state court is proper.

In the Motion to Dismiss and for Remand, Plaintiffs assert several arguments, only one of which has merit. The argument that the Court considers herewith is actually a proposition made by Plaintiffs in conjunction with a legal argument. Plaintiffs propose to dismiss their federal law claim if the case will be remanded to state court as a result of the dismissal. In response to that proposal, Defendants argue that post-removal events cannot deprive a federal court of jurisdiction. Defendants are correct that “jurisdiction is determined as of the time of removal and post-removal events will generally not deprive the court of jurisdiction.” Bank One Texas Nat’l Ass’n v. Morrison, 26 F.3d 544, 547 (5th Cir.1994)(emphasis added; citations omitted). However, as indicated by the emphasized language in the quote from Morrison, exceptions to this rule exist.

One such exception was articulated by the United States Supreme Court in Carnegie-Mellon University v. Cohill, 484 U.S. 343, 108 S.Ct. 614, 98 L.Ed.2d 720 (1988). In Cohill, the plaintiff asserted a number of state law claims, as well as one federal law claim on which the case was removed to federal court on federal question jurisdiction. The district court allowed plaintiff to amend the complaint to delete the federal law claim, then remanded the case to state court. The United States Court of Appeals for the Fifth Circuit denied defendant’s application for writ of mandamus.

The Supreme Court granted certiorari in Cohill and found that remand of the case was proper. The Supreme Court analyzed the issue as follows:

The fact that the federal removal statute, 28 U.S.C. §§ 1441-1451, explicitly authorizes remand in only two situations inapplicable to this case does not mean that Congress intended to preclude remands of removed cases involving pendent claims. Given that the statute’s silence does not negate the courts’ undoubted power to dismiss such cases, that silence cannot be read to negate the power to remand them. Indeed, § 1441(c), which gives district courts discretionary power either to adjudicate or to remand otherwise nonremovable “separate and independent” claims that have been joined with a removable claim, strongly suggests that had Congress decided to address the proper disposition of removed cases involving pendent claims, it would have authorized their remand. The statement in Thermtron Products, Inc. v. Hermansdorfer, 423 U.S. 336, 96 S.Ct. 584, 46 L.Ed.2d 542 (1976),

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Related

Bank One Texas National Ass'n v. Morrison
26 F.3d 544 (Fifth Circuit, 1994)
Thermtron Products, Inc. v. Hermansdorfer
423 U.S. 336 (Supreme Court, 1976)
Carnegie-Mellon University v. Cohill
484 U.S. 343 (Supreme Court, 1988)
Buchner v. F.D.I.C.
981 F.2d 816 (First Circuit, 1993)

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Bluebook (online)
420 F. Supp. 2d 579, 2006 U.S. Dist. LEXIS 11517, 2006 WL 691989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelton-v-southern-energy-homes-inc-mssd-2006.