Various v. Various

673 F. Supp. 2d 358, 2009 U.S. Dist. LEXIS 115408, 2009 WL 4729906
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 10, 2009
Docket2:09-cv-00103
StatusPublished
Cited by35 cases

This text of 673 F. Supp. 2d 358 (Various v. Various) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Various v. Various, 673 F. Supp. 2d 358, 2009 U.S. Dist. LEXIS 115408, 2009 WL 4729906 (E.D. Pa. 2009).

Opinion

MEMORANDUM

EDUARDO C. ROBRENO, District Judge.

The instant motion to remand was filed on behalf of 444 plaintiffs (“plaintiffs”) arguing that this Court must remand their actions to Mississippi state court for lack of subject matter jurisdiction. Defendants 1 have filed timely responses. For the reasons set forth herein, plaintiffs’ motion to remand will be granted in part and denied in part.

I. BACKGROUND

These cases originated in Mississippi state court and were removed to federal court by defendants Union Carbide and ConocoPhillips. The basis for removal was the allegedly fraudulent joinder of two non-diverse defendants, Oilfield Service & Supply, Inc. (“Oilfield Service”) and Mississippi Mud., Inc. (“Mississippi Mud”). In addition, twenty-five of these cases were removed under the theory that plaintiffs were entitled to assert federal jurisdiction under the Outer Continental Shelf Lands Act (“OCSLA”).

After removal, plaintiffs filed motions to remand, on the same grounds considered here, in the Southern District of Mississippi. After considering these motions, United States District Judge Walter Gex remanded five of these cases to Mississippi state court. Before Judge Gex was able to rule on the remaining motions, the cases were transferred to the Eastern District of Pennsylvania and consolidated as part of MDL-875 by the Judicial Panel on Multidistrict Litigation. The remand motions remaining on the docket at the time of the consolidation with MDL-875 were denied by the MDL court without prejudice. (MDL-875 Administrative Order no. 11 at 3, doc no. 5936, 01-md-875.) Plaintiffs have renewed their request for remand in the 444 cases and this renewed motions is now before the Court.

Based on their procedural histories, these cases fall into three categories. Plaintiffs’ motion to remand will be considered under the facts of each category individually.

a.) Category 1: This category consists of 354 plaintiffs whose cases were initiated in 2004. Originally filed as a multi-plaintiff action, these plaintiffs had their cases severed into individual actions in Mississippi state court in 2006. After severance, each plaintiff filed an individual amended complaint. Defendants subsequently removed these cases as a group to federal court on Sept. 26, 2008. (Defs.’ Notice of Removal Ex. “D”, doc. no. 58, 09-mc-103.) The basis for removal in these cases is the alleged fraudulent joinder of non-diverse parties Oilfield Service and Mississippi Mud.

b.) Category II: This category consists of 65 cases which were filed in 2004, but were dismissed in Mississippi state court because they were filed in an improper venue. Plaintiffs re-filed these cases on Sept. 28, 2007, and defendants removed these cases as a group to federal court on Sept. 26, 2008, within one year of the date of re-filing. (Defs.’ Notice of Removal Ex. “D”, doc. no. 58, 09-mc-103.) As in Category I, the basis for removal in these cases is the alleged fraudulent joinder of non-diverse parties Oilfield Service and Mississippi Mud.

*361 c.) Category III: This category consists of 25 cases which were removed based on federal question jurisdiction. The defendants aver that plaintiffs’ claims are governed by OCSLA. As an alternative basis of federal jurisdiction, defendants also assert the fraudulent joinder of Oilfield Service and Mississippi Mud.

After removal, the cases in all three categories were grouped by the Court for settlement purposes, pursuant to MDL-875 procedures. 2 See MDL-875 Website, Settlement Conference Procedures, available at www.paed.uscourts.gov/mdl875.asp. After attending several settlement conferences with defendants and Magistrate Judge Strawbridge, plaintiffs filed the instant motion to remand.

II. LEGAL STANDARD

A district court considering a motion to remand “must focus on the plaintiffs complaint at the time the petition for removal was filed ... [and] must assume as true all factual allegations of the complaint.” In re Briscoe, 448 F.3d 201, 218 (3d Cir.2006). The “party who urges jurisdiction on a federal court bears the burden of proving that jurisdiction exists ...” Boyer v. Snap-on Tools Corp., 913 F.2d 108, 111 (3d Cir.1990); see also Steel Valley Auth. v. Union Switch & Signal Din, 809 F.2d 1006, 1010 (3d Cir.1987), cert, dismissed sub nom. American Standard v. Steel Valley Auth., 484 U.S. 1021, 108 S.Ct. 739, 98 L.Ed.2d 756 (1988) (“It remains the defendant’s burden to show the existence and continuance of federal jurisdiction.”). Because the removal of an action from the state court to a federal forum implicates comity and federalism, it is said that “removal statutes are to be strictly construed against removal and all doubts should be resolved in favor of remand.” Steel Valley Auth., 809 F.2d at 1010 (citing Abels v. State Farm Fire & Cas. Co., 770 F.2d 26, 29 (3d Cir.1985)); accord Brown v. Francis, 75 F.3d 860, 865 (3d Cir.1996); Boyer, 913 F.2d at 111.

The practical application of this “all doubts” standard is to place upon a defendant “a heavy burden of persuasion” when contending that a non-diverse party has been fraudulently joined. Boyer, 913 F.2d at 111. To prevail, the removing party must show that there is “no reasonable basis in fact or colorable ground supporting the claim against the joined defendant, or no real intention in good faith to prosecute the action against the defendants ...” In re Briscoe, 448 F.3d at 218.

Title 28 U.S.C. § 1446(b) governs the timing of removal, specifying that “a case may not be removed on the basis of juris *362 diction conferred by section 1332 of this title more than 1 year after commencement of the action.” Additionally, “notice of removal of a civil action ... shall be filed within thirty days after the receipt by the defendant ... of the initial pleading setting forth the claim for relief .... ” 28 U.S.C. § 1446(b). Where it is not evident from the initial pleading whether the case is removable, “a notice of removal may be filed within thirty days after receipt by the defendant ... of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable ...” Id.

III. APPLICABLE LAW

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Bluebook (online)
673 F. Supp. 2d 358, 2009 U.S. Dist. LEXIS 115408, 2009 WL 4729906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/various-v-various-paed-2009.