Uthman v. Magnetek, Inc.

CourtDistrict Court, D. Nevada
DecidedMarch 16, 2023
Docket2:22-cv-00953
StatusUnknown

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

Bluebook
Uthman v. Magnetek, Inc., (D. Nev. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 DISTRICT OF NEVADA 6 * * *

7 MUSA UTHMAN, Case No. 2:22-cv-00953-RFB-VCF

8 Plaintiff, ORDER

9 v.

10 MAGNETEK, INC., et al.

11 Defendants.

12 13 I. INTRODUCTION 14 Before the Court is Plaintiff Musa Uthman’s Motion to Remand (ECF No. 12). For the 15 following reasons, the Court grants the motion and remands the case. 16 17 II. PROCEDURAL BACKGROUND 18 Plaintiff filed his Complaint in state court on November 18, 2021. ECF No. 1-1. The 19 Complaint alleges nine causes of action against Defendants, including one claim for negligence 20 against the Las Vegas Convention and Visitors Authority (“LVCVA”). Id. The state district court 21 granted County of Clark’s Motion for Summary Judgment on May 23, 2022. ECF No. 1. It then 22 granted LVCVA’s Motion to Dismiss on June 2, 2022. Id. The state district court found that 23 Plaintiff failed to provide notice to LVCVA within two years after the accrual of his cause of action 24 as required by Nevada Revised Statute § 41.036(2). ECF No. 13-1 at 4-5. Alternatively, it found 25 that Plaintiff’s Complaint failed to allege facts sufficient to withstand the immunity provided to 26 LVCVA by Nevada Revised Statute § 41.033 and the Nevada Industrial Insurance Act (“NIIA”). 27 28 1 Id. at 5-8.1 2 Defendant Ergo Robotic Solutions, LLC (“Ergo”) removed this action on June 15, 2022. 3 ECF No. 1. Defendants Magnetek and Columbus consented to removal. Id. In response, Plaintiff 4 filed the instant Motion to Remand on July 13, 2022. ECF No. 12. Defendant Ergo responded on 5 July 26, 2022. ECF No. 13. Defendant Magnetek and Columbus also responded on July 26, 2022. 6 ECF No. 16. Plaintiff replied on August 2, 2022. ECF No. 19. On February 7, 2023, the Court held 7 a motion hearing. ECF No. 28. 8 This Order follows. 9 10 III. LEGAL STANDARD 11 Under 28 U.S.C. § 1332, a federal district court has “original jurisdiction of all civil actions 12 where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and 13 costs, and is between citizens of different States.” 28 U.S.C. § 1332(a)(1). When original 14 jurisdiction exists under either 28 U.S.C. § 1331 or § 1332 but the matter was filed in a state court, 15 the matter may be removed to federal district court. 28 U.S.C. § 1441(b). “If at any time before 16 final judgment it appears that the district court lacks subject matter jurisdiction,” however, “the 17 case shall be remanded.” 28 U.S.C. § 1447(c). 18 Proper jurisdiction under Section 1332 requires complete diversity, so each plaintiff must 19 be diverse from each defendant. Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 553 20 (2005). To protect the jurisdiction of state courts, removal jurisdiction should be strictly construed 21 in favor of remand. Harris v. Bankers Life and Cas. Co., 425 F.3d 689, 698 (9th Cir. 2005). 22 “Federal jurisdiction must be rejected if there is any doubt as to the right of removal.” Gaus v. 23 Miles, 980 F.2d 564, 566 (9th Cir. 1992) (internal citation omitted). “Th[is] strong presumption 24 against removal jurisdiction means that the defendant always has the burden of establishing that 25 removal is proper.” Id. 26 /// 27 28 1 Although Plaintiff’s response to LVCVA’s motion to dismiss requested leave to amend his Complaint to cure any alleged deficiencies, it does not appear that the state district court issued a ruling on this request. 1 IV. DISCUSSION 2 According to Defendant Ergo’s Petition for Removal: Plaintiff is a Nevada Citizen; 3 Defendant Ergo is incorporated and has its principal place of business in New York; Defendant 4 Magnetek is incorporated in Delaware and has its principal place of business in Wisconsin; and 5 Defendant Columbus is incorporated and has its principal place of business in New York. Further, 6 after dismissal of County of Clark and LVCVA – both forum defendants – from this action, the 7 case became removable; additionally, the amount in controversy exceeds $75,000. 8 Plaintiff’s Motion to Remand argues that the Court should remand this action back to state 9 court because of the Ninth Circuit’s “voluntary/involuntary rule” for removal. Additionally, 10 Plaintiff argues that the fraudulent joinder exception to the voluntary/involuntary rule is 11 inapplicable because Defendants waived any argument relating to fraudulent joinder, as it was not 12 raised in its notice of removal or 30 days after the Complaint was served. Separately, there is a 13 possibility that the Nevada Supreme Court would reverse the state district court’s order dismissing 14 LVCVA pursuant to Nevada Revised Statute § 41.036(2) by finding that it is unconstitutional. 15 Further, even if Nevada Revised Statute § 41.036(2) was applicable, any deadline to notify 16 LVCVA pursuant to the statute had not run at the time Plaintiff’s Complaint was filed. 17 Defendants rebut that the Court should deny the Motion to Remand because the 18 voluntary/involuntary rule is inapplicable, as LVCVA was fraudulently joined. This is because 19 Plaintiff knew that he had to provide LVCVA notice of the lawsuit within two years of the subject 20 incident, pursuant to Nevada Revised Statute § 41.036(2), but he did not do so until after the two- 21 year deadline. During the motion hearing, Defendants also asserted that, even if the Nevada 22 Supreme Court held that Nevada Revised Statute § 41.036(2) was unconstitutional,2 LVCVA still 23 could not be liable on any theory under settled Nevada law pursuant to Nevada Revised Statute § 24 41.033 and the NIIA.3 25 26 2 Defendants also contend that, on the face of Plaintiff’s Complaint, Nevada Revised Statute § 41.036(2) bars any claim against LVCVA. 27 3 The parties’ briefing on the instant Motion to Remand does not directly address Nevada Revised Statute § 28 41.033 or the NIIA. The Court nevertheless considers the arguments with respect to Nevada Revised Statute § 41.033 and the NIIA because they are a part of the record, including the petition for removal. 1 The Court concludes that removal of this action was improper and therefore grants 2 Plaintiff’s Motion to Remand. 3 a. 28 U.S.C. § 1446 4 As a preliminary matter, the Court “takes the case as it finds it on removal and treats 5 everything that occurred in the state court as if it had taken place in federal court.” Butner v. 6 Neustadter, 324 F.2d 783, 785 (9th Cir. 1963). Furthermore, “once a case has been removed to 7 federal court, it is settled that federal rather than state law governs the future course of proceedings, 8 notwithstanding state court orders issued prior to the removal.” Preaseau v. Prudential Ins. Co. of 9 Am., 591 F.2d 74, 79 (9th Cir. 1979). For these reasons, the Court treats the state district court’s 10 order granting LVCVA’s motion to dismiss as if it had taken place in this Court. The Court, 11 however, is not bound by the state district court’s decision. See id.

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Uthman v. Magnetek, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/uthman-v-magnetek-inc-nvd-2023.