Woods v. Ross Dress For Less

CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 15, 2021
Docket19-5089
StatusUnpublished

This text of Woods v. Ross Dress For Less (Woods v. Ross Dress For Less) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods v. Ross Dress For Less, (10th Cir. 2021).

Opinion

FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT January 15, 2021 _________________________________ Christopher M. Wolpert Clerk of Court ROSE WOODS,

Plaintiff - Appellant,

v. No. 19-5089 (D.C. No. 4:18-CV-00327-TCK-JFJ) ROSS DRESS FOR LESS, INC., a foreign (N.D. Okla.) corporation,

Defendant - Appellee,

and

MEGAN BUTLER, an individual,

Defendant. _________________________________

ORDER AND JUDGMENT * _________________________________

Before HARTZ, MATHESON, and CARSON, Circuit Judges. _________________________________

Rose Woods tripped and fell over a “Ross is hiring” sign outside a Ross Dress

for Less, Inc. (“Ross”) store in Oklahoma. She sued Ross and the store’s manager,

Megan Butler, in Oklahoma state court, seeking damages under state law. Ross

removed the action to federal court, invoking diversity jurisdiction under 28 U.S.C.

§ 1332(a)(1).

* This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. The district court denied Ms. Woods’s motion to remand and granted summary

judgment in favor of Ross. Ms. Woods appeals both rulings. Because the district

court erred in denying the motion to remand and lacked jurisdiction to enter summary

judgment, we reverse and remand with instructions to vacate the judgment and either

ascertain a basis for federal jurisdiction or remand the action to state court.

I. BACKGROUND

Ms. Woods was attempting to enter a Ross store in Broken Arrow, Oklahoma,

when she tripped and fell over a “Ross is hiring” sign that had fallen near the store’s

entrance. Ms. Butler was the store manager on duty. Ms. Woods and Ms. Butler are

citizens of Oklahoma. Ross is a non-Oklahoma corporation that is headquartered and

has its principal place of business in California.

Ms. Woods sued Ross and Ms. Butler in Oklahoma state court, asserting

premises liability under Oklahoma state law. After Ms. Woods served Ross but

before she could serve Ms. Butler, Ross removed the action to the U.S. District Court

for the Northern District of Oklahoma, invoking diversity jurisdiction under

28 U.S.C. § 1332(a)(1). See 28 U.S.C. § 1441(a) (authorizing removal of an action

that could originally have been filed in federal court). Ross asserted Ms. Butler’s

nondiverse citizenship did not affect diversity because she had not been served. It

relied on 28 U.S.C. § 1441(b)(2), which bars diversity-based removal if any

“properly joined and served” defendant is a citizen of the forum state.

Ms. Woods moved to remand, arguing removal was improper under §§ 1441(a)

and 1332(a)(1) because she and Ms. Butler were both citizens of Oklahoma. Ms.

2 Woods contended Ms. Butler’s citizenship must be considered even though she had

not been served.

The district court denied Ms. Woods’s remand motion in a three-page order.

Overlooking § 1441(a) and the lack of diversity under § 1332(a)(1), the court relied

on § 1441(b)(2). It held removal was appropriate because no “properly joined and

served” defendant was an Oklahoma citizen at the time of removal. Id. at 50. Ms.

Butler has remained a named defendant to this day.

Ross moved for summary judgment, which the district court granted. Ms.

Woods timely appealed the court’s denial of remand and grant of summary judgment.

II. DISCUSSION

The district court erred in denying the motion to remand. It lacked removal

jurisdiction under § 1441(a) and § 1332(a)(1) and lacked diversity subject matter

jurisdiction to enter summary judgment because Ms. Woods and Ms. Butler were not

diverse. We thus do not reach the merits of the summary judgment.

A. Legal Background

“Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life

Ins. Co. of Am., 511 U.S. 375, 377 (1994). “We must presume no jurisdiction exists

absent an adequate showing by the party invoking federal jurisdiction.” Dutcher v.

Matheson, 840 F.3d 1183, 1189 (10th Cir. 2016) (quotations omitted). We “review

de novo the district court’s denial of a motion to remand for lack of removal

jurisdiction.” Salzer v. SSM Health Care of Okla. Inc., 762 F.3d 1130, 1134 (10th

Cir. 2014) (citing Garley v. Sandia Corp., 236 F.3d 1200, 1207 (10th Cir. 2001)).

3 1. Removal Based on Diversity Jurisdiction

A defendant may remove “any civil action brought in a State court of which

the district courts of the United States have original jurisdiction . . . to the district

court of the United States” where the action is pending. 28 U.S.C. § 1441(a); see

Lincoln Prop. Co. v. Roche, 546 U.S. 81, 83 (2005). To warrant removal under

§ 1441(a) based on diversity jurisdiction, the matter must satisfy (a) § 1332(a)’s

diversity requirements and (b) § 1441(b)(2)’s limitation on diversity-based removal.

a. Sections 1332(a) and 1441(a)

A federal court has original jurisdiction based on diversity if “the matter in

controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and

is between . . . citizens of different States.” 28 U.S.C. § 1332(a)(1). “[T]he statutory

formulation ‘between . . . citizens of different States’ . . . require[s] complete

diversity between all plaintiffs and all defendants.” Roche, 546 U.S. at 89 (quoting

Caterpillar v. Lewis, 519 U.S. 61, 68 (2005)). Courts generally determine diversity

based on the citizenship of the parties named in the complaint. See id. at 84. 1

1 An exception to this rule occurs when a party has been fraudulently joined to defeat federal jurisdiction. See Dutcher v. Matheson, 733 F.3d 980, 987-88 (10th Cir. 2016) (describing fraudulent-joinder analysis). Ross suggested at oral argument that Ms. Butler could be ignored for purposes of diversity because she had been fraudulently joined. Because Ross did not raise this argument in its brief on appeal, we decline to consider it here. See Rivero v. Bd. of Regents of the Univ. of N.M., 950 F.3d 754, 760 n.5 (10th Cir. 2020); see also 14C Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure – Jurisdiction and Related Matters § 3723.1 (4th ed., July 2020 update) (“A contention that the plaintiff has engaged in fraudulent joinder must be alleged with particularity by the party seeking removal, and supported by clear and convincing evidence.”).

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