Tennessee Gas Pipeline Co. v. Continental Casualty Co.

814 F. Supp. 1302, 1993 U.S. Dist. LEXIS 1817, 1993 WL 33550
CourtDistrict Court, M.D. Louisiana
DecidedJanuary 27, 1993
DocketCiv. A. 91-1024-B
StatusPublished
Cited by8 cases

This text of 814 F. Supp. 1302 (Tennessee Gas Pipeline Co. v. Continental Casualty Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennessee Gas Pipeline Co. v. Continental Casualty Co., 814 F. Supp. 1302, 1993 U.S. Dist. LEXIS 1817, 1993 WL 33550 (M.D. La. 1993).

Opinion

RULING ON PLAINTIFF’S MOTION TO REMAND

POLOZOLA, District Judge.

Tennessee Gas Pipeline Company (“Tennessee Gas”) has filed a motion to remand this suit to the Nineteenth Judicial District Court, Parish of East Baton Rouge, Louisiana. For reasons which follow, this Court grants the plaintiffs motion to remand.

I. FACTS AND PROCEDURAL HISTORY

On August 9, 1991, Tennessee Gas filed a Petition for Declaratory Judgment and Breach of Contract in the Nineteenth Judicial District Court for the Parish of East Baton Rouge, Louisiana. The state court petition named some 400 insurance companies as defendants. Included as one of the defendants was the Insurance Corporation of Ireland. Tennessee Gas sought to have the insurance companies indemnify and defend the plaintiff against liability for various claims and losses resulting from environmental damage which allegedly occurred from 1953 through 1985. Plaintiffs suit also seeks a declaration of the present and future rights, duties and liabilities of the parties with respect to underlying environmental claims brought by third parties against Tennessee Gas. 1

On November 12, 1991, ICAROM pic (“ICAROM”), formerly known as the Insurance Corporation of Ireland pic (“ICI”), removed this suit to federal court. ICAROM contends that the federal district court has original jurisdiction over the claims brought against it because ICAROM is an instrumentality of a foreign state sued by a resident of the United States. 2 This suit was removed pursuant to 28 U.S.C. § 1441(d) which permits removal of “[a]ny civil action in a State Court against a foreign state as defined in section 1603(a) of this title.” On December 9, 1991, Tennessee Gas timely filed a motion to remand this action to state court. It is this motion which is now pending before the Court.

II. THE ISSUES

Tennessee Gas bases its motion to remand on the following grounds: (1) ICAROM’s notice of removal was not timely filed and no cause exists to allow an untimely motion to remove; (2) ICAROM is not an instrumentality of the Republic of Ireland within the meaning of 28 U.S.C. § 1603(b); (3) the insurance policy subscribed to by ICAROM contains a service of suit clause which constitutes a waiver of any right to remove the suit to federal court that ICAROM might otherwise possess; and, (4) if the Court concludes that it has subject matter jurisdiction over the claim against ICAROM, the Court should *1305 remand the suit against the other defendants to state court.

III. DISCUSSION OF ISSUES

A. Timeliness of the Notice of Removal

The first issue the Court must determine is whether ICAROM timely removed this suit to federal court and, if not, should the time to remove be extended for cause shown. The time within which a suit must be timely removed to federal court is set forth in 28 § 1446(b) which provides:

The notice of removal of a civil action or proceeding shall be filed within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based, or within thirty days after the service of summons upon the defendant if such initial pleading has then been filed in court and is not required to be served on the defendant, which ever period is shorter.

Congress enacted an exception to this general thirty day limitation upon removal for suits filed against a foreign sovereign. Thus, 28 U.S.C. § 1441(d) states:

(d) Any civil action brought in a State court against a foreign state as defined in section 1603(a) of this title may be removed by the foreign state to the district court of the United States for the district and division embracing the place where such action is pending. Upon removal the action shall be tried by the court without jury. Where removal is based upon this subsection, the time limitations of section 1446(b) of this chapter may be enlarged at any time for cause shown, (emphasis added).

Thus, the Court may enlarge the time for a foreign state to remove an action to federal court provided cause for the delay is shown.

Foreign states are given clear authority to remove a state court action to federal court under 28 U.S.C. § 1441(d). Under § 1441(d), a foreign state may remove a suit to federal court even if there are defendants who do not join in the removal or do not wish to remove the action to federal court or are citizens of the state in which the action is brought. 3

Section 1441(d) allows a foreign state to enlarge the time for removal “for cause shown.” Noticeably missing from § 1441(d) is the word “good” from its description of the cause requirement. The starting point for the interpretation of any statute is the language of the statute itself. Absent a clearly expressed legislative intention to the contrary, that language must be construed as conclusive evidence of congressional intent. 4 Therefore, the Court finds that a foreign state may seek an enlargement of the time to remove a suit to federal court “at any time for cause shown.” Congress did not set a time limitation by which a foreign state had to seek an enlargement of time, nor did the Congress require that “good” cause be shown. Indeed, in Refco, Inc. v. Galadari, 5 the Court allowed a foreign state to remove an action after it had been pending for five years.

ICAROM asserts that the removal notice was delayed while it was investigating the suit and the facts regarding coverage. Additionally, ICAROM contends it needed time to ascertain whether service of process had been properly perfected on the agent designated in its insurance policy. ICAROM also argues that a delay was necessary to investi *1306 gate the status of the particular policy in question.

The Court finds that ICAROM has established sufficient cause to enlarge the time for removal of this suit to federal court within the meaning of § 1441(d). Therefore, the Court finds that ICAROM timely removed the state court suit to federal court under the facts of this case.

B. Was ICAROM an Instrumentality of the Republic of Ireland Within the Meaning of 28 U.S.C. §§ 1603(b)?

For purposes of deciding the motion before the Court, the Court assumes, without deciding, that ICAROM is an instrumentality of a foreign sovereign for purposes of 28 U.S.C.

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Bluebook (online)
814 F. Supp. 1302, 1993 U.S. Dist. LEXIS 1817, 1993 WL 33550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennessee-gas-pipeline-co-v-continental-casualty-co-lamd-1993.