SMITH v. HSN, INC.

CourtDistrict Court, D. New Jersey
DecidedNovember 30, 2020
Docket2:20-cv-12869
StatusUnknown

This text of SMITH v. HSN, INC. (SMITH v. HSN, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SMITH v. HSN, INC., (D.N.J. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

NINA SMITH, individually and on behalf of herself and all others similarly situated, Plaintiff, Civ. No. 20-12869 (KM) (ESK) v. OPINION AND ORDER HSN, INC., INGENIOUS DESIGNS, LLC, JOY MANGANO, KILMA MCKENNISS, JOHN DOES (1–5), and ABC COMPANIES (1-5), Defendants.

KEVIN MCNULTY, U.S.D.J.: Nina Smith filed a complaint in New Jersey state court on behalf of a putative class, claiming that a clothing steamer made and marketed by the Home Shopping Network was defective. The first three named defendants are Home Shopping Network, Inc. (“HSN”), Ingenious Designs, LLC (a subsidiary), and Joy Mangano (Ingenious’s president). (For convenience, I will refer to these three collectively as the “HSN defendants”.) Also named as a defendant is an individual, Kilma McKenniss, who is not associated with the HSN defendants. The HSN defendants removed the case, invoking this Court’s diversity jurisdiction based on the Class Action Fairness Act of 2005 (“CAFA”), Pub. L. No. 109-2, 119 Stat. 4, codified in pertinent part at 28 U.S.C. §§ 1332(d), 1441, 1446. Plaintiff Smith moves to remand the case to state court. (DE 10.)1 For the

1 Certain citations to the record are abbreviated as follows: DE = docket entry number Notice = HSN’s Notice of Removal (DE 1) Compl. = Complaint, Ex. A to Notice (DE 1-1) HSN Decl. = Declaration of Mark Smith in Support of Removal (DE 1-2) following reasons, Smith’s motion to remand is ADMINISTRATIVELY TERMINATED without prejudice to refiling after targeted jurisdictional discovery. I. BACKGROUND HSN and Ingenious manufactured and marketed a clothing steamer called My Little Steamer Deluxe. (Compl. ¶¶ 3–4.) Defendant Kilmer McKenniss purchased the steamer and had Smith come to her New Jersey home to help her display the product for an online sale. (Id. ¶ 7.) McKenniss plugged in the steamer and left the room; when Smith approached, the steamer “spewed out hot water and fell over directly towards her legs.” (Id.) As a result, Smith sustained serious burns. (Id.) Numerous online reviews attest to similar incidents involving the steamer. (Id. ¶ 9.) Smith, on behalf of a putative class, sued the HSN defendants and McKenniss in New Jersey Superior Court. The proposed class consists of all New Jersey residents who purchased or used the steamer. (Id. ¶ 12.) The Complaint purports to limit damages-per-class-member to $74,999 but did not estimate the total number of class members. (Id.) It alleges four claims against the HSN defendants: (1) violation of the New Jersey Products Liability Act (“PLA”), N.J. Stat. Ann. §§ 2A:58C-1 to -11; (2) breach of express warranty; (3) violation of the New Jersey Consumer Fraud Act (“CLA”), N.J. Stat. Ann. §§ 56:8-1 et seq.; and (4) unjust enrichment.2 The Complaint also alleges a negligence claim against McKenniss, based on the manner in which she set up the product. Smith does not seek class treatment for the claim against McKenniss. The three HSN defendants removed the case to this Court, invoking federal jurisdiction under CAFA. (See Notice.) In support, they provided a

Smith Mot. = Plaintiff’s Motion to Remand (DE 10-2) HSN Opp. = HSN’s Memorandum in Opposition to Motion to Remand (DE 17) 2 These claims were also alleged against fictious defendants to the extent discovery revealed that any other companies or officers were involved. (Compl., Count 7.) declaration from HSN’s Director of Planning, Mark Smith, asserting that, between HSN and Ingenious, some 20,000 units of the product have been sold to New Jersey residents since 2015. (HSN Decl. ¶¶ 7–8.) Plaintiff Smith moves to remand the case to state court. II. DISCUSSION AND ANALYSIS CAFA grants federal courts jurisdiction over actions that meet three requirements: (1) the parties are minimally diverse, (2) the class consists of at least 100 members, and (3) the amount in controversy exceeds $5 million. Judon v. Travelers Property Cas. Co. of Am., 773 F.3d 495, 500 (3d Cir. 2014) (citing 28 U.S.C. § 1332(d)(2), (5)(B), (6)). In these respects, it differs from the usual, non-class-action jurisdictional requirements of complete diversity of citizenship and an amount in controversy exceeding $75,000. See 28 U.S.C. § 1332(a); Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806).3 A defendant may remove a case brought in state court that appears to meet CAFA’s requirements, but a plaintiff’s motion to remand triggers the court’s ever-present obligation to ensure that subject matter jurisdiction is present. See Judon, 773 F.3d at 500. In doing so, I may consider the allegations in the Complaint and Notice, but if there is a dispute, the defendant, as the party invoking jurisdiction, must show by a preponderance of the evidence that the jurisdictional requirements are met. See Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81, 88 (2014); Judon, 773 F.3d at 500.

3 The Complaint’s attempt to limit damages to $74,999 per class member may have been drafted with those ordinary diversity requirements of § 1332(a) in mind. Under CAFA, the amount in controversy is a different, and aggregate, amount. In any event, except as to Smith herself, the limitation likely would have been ineffective. See Standard Fire Ins. Co. v. Knowles, 568 U.S. 588, 593 (2013) (disregarding plaintiff’s limit on damages, for purposes of CAFA amount in controversy, because “a plaintiff who files a proposed class action cannot legally bind members of the proposed class before the class is certified” and therefore “lacked the authority to concede the amount-in-controversy issue for the absent class members”). A. Timeliness At the outset, Smith argues that removal was not timely because the three HSN defendants filed their Notice of Removal thirty-one days after one of them, defendant Mangano, was served on August 19, 2020. (Smith Mot. at 1– 2.) A defendant has thirty days from the date of service to file a notice of removal. 28 U.S.C. § 1446(b). In computing that time period, however, the day of the triggering event (for Mangano, August 19) is excluded. Fed. R. Civ. P. 6(a)(1)(A); see also Otero v. CVS Pharm. Inc., Civ. No. 19-15798, 2020 WL 289556, at *2 (D.N.J. Jan. 21, 2020). Thirty days, then, from August 19 is September 18—the day the Notice was filed, making it timely with respect to the service of Mangano.4 In any event, however, timeliness does not depend solely on the service of Mangano. “If defendants are served at different times, and a later-served defendant files a notice of removal, any earlier-served defendant may consent to the removal even though that earlier-serviced defendant did not previously initiate or consent to removal.” 28 U.S.C. § 1446(b)(2)(C). HSN is such a “later- served defendant”; it was served on August 21, 2020. (Ex. C to Smith Mot.) As to HSN, then, the Notice of Removal was unquestionably timely, even by the plaintiff’s measure. Because Mangano consents, the Notice was timely for this additional reason.5 B. Exceptions Smith also invokes two exceptions to CAFA jurisdiction, which I address at the outset.

4 Smith errs by including the triggering date when computing time. (Smith Mot.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Strawbridge v. Curtiss
7 U.S. 267 (Supreme Court, 1806)
Washington v. HOVENSA LLC
652 F.3d 340 (Third Circuit, 2011)
George S. Krasnov v. Brendan Dinan
465 F.2d 1298 (Third Circuit, 1972)
Marcus v. BMW of North America, LLC
687 F.3d 583 (Third Circuit, 2012)
Standard Fire Insurance Co. v. Knowles
133 S. Ct. 1345 (Supreme Court, 2013)
Jeffry Vodenichar v. Halcon Energy Properties Inc
733 F.3d 497 (Third Circuit, 2013)
Thiedemann v. Mercedes-Benz USA, LLC
872 A.2d 783 (Supreme Court of New Jersey, 2005)
49 Prospect Street v. Sheva Gardens, Inc.
547 A.2d 1134 (New Jersey Superior Court App Division, 1988)
Wanaque Borough Sewerage Authority v. Township of West Milford
677 A.2d 747 (Supreme Court of New Jersey, 1996)
Gupta v. Asha Enterprises, LLC
27 A.3d 953 (New Jersey Superior Court App Division, 2011)
Judon v. Travelers Property Casualty Co. of America
773 F.3d 495 (Third Circuit, 2014)
Neale v. Volvo Cars of North America, LLC
794 F.3d 353 (Third Circuit, 2015)
Ana Alpizar-Fallas v. Frank Favero
908 F.3d 910 (Third Circuit, 2018)
Priya Verma v. 3001 Castor Inc
937 F.3d 221 (Third Circuit, 2019)
Dzielak v. Whirlpool Corp.
26 F. Supp. 3d 304 (D. New Jersey, 2014)
Volin v. General Electric Co.
189 F. Supp. 3d 411 (D. New Jersey, 2016)
Ellis v. Montgomery County
267 F. Supp. 3d 510 (E.D. Pennsylvania, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
SMITH v. HSN, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-hsn-inc-njd-2020.