Tresco, Inc. v. Continental Casualty Co.

727 F. Supp. 2d 1243, 2010 U.S. Dist. LEXIS 71294, 2010 WL 2977606
CourtDistrict Court, D. New Mexico
DecidedJuly 2, 2010
DocketCIV 10-0390 JB/GBW
StatusPublished
Cited by15 cases

This text of 727 F. Supp. 2d 1243 (Tresco, Inc. v. Continental Casualty Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tresco, Inc. v. Continental Casualty Co., 727 F. Supp. 2d 1243, 2010 U.S. Dist. LEXIS 71294, 2010 WL 2977606 (D.N.M. 2010).

Opinion

MEMORANDUM OPINION AND ORDER

JAMES O. BROWNING, District Judge.

THIS MATTER comes before the Court on the Plaintiffs Motion to Remand to State Court and Supporting Memorandum, filed May 7, 2010 (Doc. 6). The primary issue is whether a defendant, who does not file the notice of removal, must indicate his consent by signing the notice of removal or by filing a separate document indicating consent within 30 days of the date that the *1245 defendant was served. Because the Court concludes that the statute does not require such action, and because the United States Court of Appeals for the Tenth Circuit has not extended its unanimity requirement to require such conduct, the Court will not require such formality and will thus deny the motion to remand.

PROCEDURAL BACKGROUND

The procedural facts are not in dispute. The New Mexico Superintendent of Insurance accepted service of process of Plaintiff Tresco, Inc.’s Complaint for Declaratory Judgment and Breach of Contract on behalf of Defendant National Union Fire Insurance Company of Pittsburgh, Pennsylvania (“National Union”) on March 22, 2010. See Letter from Morris J. Chavez to National Union (dated March 22, 2010) at 30, filed April 21, 2010 (Doc. 1-1). On April 21, 2010, National Union filed a Notice of Removal and removed the case from the Third Judicial District, County of Doña Ana, New Mexico to federal court. See Notice of Removal, filed April 21, 2010 (Doc. 1). The Notice of Removal states that, according to the state-court docket, Defendant Continental Casualty Company’s (“CNA”) statutory agent, the New Mexico Superintendent of Insurance accepted service of process on behalf of CNA. See Notice of Removal ¶ 15, at 3. 1 Tresco, in its motion, represents that CNA received service of the Summons and Complaint on March 31, 2010. Tresco, therefore, filed its motion to remand more than thirty days after CNA was properly served in this matter.

In its Notice of Removal, National Union represented that the law firm of Allen Shepherd Lewis Syra & Chapman, PA would represent CNA. See Notice of Removal ¶ 15, at 3. The Notice of Removal states that National Union conferred with CNA’s counsel, and obtained CNA’s consent to removal. See id. Thus, National Union obtained unanimity and'confirmed unanimity with the Court. National Union filed the Notice of Removal within thirty days of its having been served.

Tresco moves the Court, pursuant to 28 U.S.C. § 1447(c), to remand the case to the state court from which it was removed. See Motion at 1. At the time Tresco filed its motion to remand, on May 7, 2010, CNA’s counsel had not filed with the Court any pleading, which CNA’s counsel had signed, that joined in ot consented to the Notice of Removal. 2 Tresco argues that, because CNA did not independently file notice of its consent to removal within thirty days of when it was served, the Court should remand the case to state court. See Motion at 3.

*1246 CNA filed its Answer to Complaint for Declaratory Judgment and Breach of Contract on May 10, 2010. See Doc. 7. On May 17, 2010, National Union filed its Response to Motion to Remand to State Court and Supporting Memorandum. See Doc. 9. National Union argues that the Court should deny Tresco’s motion to remand this matter to state court or, in the alternative, give the Defendants leave to file an Amended Notice of Removal on both Defendants’ behalf, signed by counsel for each Defendant. See Response at 3. National Union contends that the United States Court of Appeals for the Tenth Circuit does not require each defendant to file an independent notice of consent and argues that there is no dispute that CNA consented to removal, which was clearly reflected in National Union’s notice of removal. See Response at 2-3. CNA joined National Union’s response, adopting in full as its own all of the arguments that National Union submitted, and requesting that the case not be remanded to state court. See Continental Casualty Company’s Joinder in National Union Fire Insurance Company of Pittsburgh, Pa.’s Response to Motion to Remand to State Court and Supporting Memorandum, filed May 17, 2010 (Doc. 10).

In reply, Tresco argues that a notice of removal is not effective unless each defendant affirmatively files a pleading with the Court joining in and consenting to the removal within thirty days of service. See Reply Memorandum in Support of Plaintiffs Motion to Remand at 1, filed May 20, 2010 (Doc. 11). Tresco argues that the removal statute must be construed narrowly and continues to request that the Court grant its motion to remand. See Reply at 3.

RELEVANT LAW REGARDING REMOVAL

The right to removal is a statutory right, and the removing defendant must carefully follow all statutory requirements. See Bonadeo v. Lujan, No. CIV 08-0812, 2009 WL 1324119, at *3-4, 2009 U.S. Dist. LEXIS 45672, at *9-10 (D.N.M. Apr. 30, 2009) (Browning, J.); Chavez v. Kincaid, 15 F.Supp.2d 1118, 1119 (D.N.M.1998) (Campos, J.)(“The right to remove a case that was originally in state court to federal court is purely statutory, not constitutional.”). Section 1446 of Title 28 of the United States Code, which controls the procedure for removal of a state action to federal court, states:

A defendant or defendants desiring to remove any civil action or criminal prosecution from a State court shall file in the district court of the United States for the district and division within which such action is pending a notice of removal signed pursuant to Rule 11 of the Federal Rules of Civil Procedure and containing a short and plain statement of the grounds for removal, together with a copy of all process, pleadings, and orders served upon such defendant or defendants in such action.

28 U.S.C. § 1446(a). The defendant must file the notice of removal within thirty days after being served. See 28 U.S.C. § 1446(b). “[T]he statute, insofar as the time for removal is concerned, is imperative and mandatory, must be strictly complied with, and is to be narrowly construed.” United States ex rel. Walker v. Gunn, 511 F.2d 1024, 1026 (9th Cir.1975), cert. denied, Walker v. California, 423 U.S. 849, 96 S.Ct. 91, 46 L.Ed.2d 72 (1975). See Fajen v. Foundation Reserve Ins. Co.,

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Bluebook (online)
727 F. Supp. 2d 1243, 2010 U.S. Dist. LEXIS 71294, 2010 WL 2977606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tresco-inc-v-continental-casualty-co-nmd-2010.