Abbington SPE, LLC v. U. S. Bank, National Ass'n
698 F. App'x 750
| 4th Cir. | 2017Background
- Abbington, SPE, LLC sued U.S. Bank N.A. and C-III Asset Management, LLC in state court for breach of contract and related claims.
- Defendants removed the case to federal court based on diversity jurisdiction.
- Abbington moved to remand, arguing the contract’s forum-selection clause waived removal; district court denied remand.
- Defendants moved to dismiss; the district court dismissed Abbington’s complaint without prejudice for failure to state a claim.
- The Fourth Circuit considered whether the dismissal was appealable and whether the forum clause waived removal; it concluded the defects were incurable and exercised jurisdiction.
- The Fourth Circuit affirmed the district court’s denial of remand and Rule 12(b)(6) dismissal, and denied a motion to strike a supplemental brief as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the forum-selection clause waived defendants’ statutory right to remove to federal court | Forum clause requires a particular non-federal forum and thus waives removal | Clause did not waive defendants’ removal rights | No waiver; denial of remand affirmed |
| Whether district court’s order dismissing complaint without prejudice was appealable | Dismissal without prejudice is not final; should be unappealable | Dismissal was final in fact because amendment could not cure defects | Appealable because defects were incurable |
| Whether Abbington stated plausible claims under Rule 12(b)(6) | Complaint sufficiently alleged causes of action for relief | Complaint failed to plead facts making claims plausible | Complaint failed; dismissal affirmed |
| Whether to strike Abbington’s supplemental reply brief | N/A (Abbington filed it) | Defendants moved to strike it | Motion to strike denied as moot |
Key Cases Cited
- Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541 (1950) (appealability of orders and the final judgment rule)
- Goode v. Cent. Va. Legal Aid Soc’y, Inc., 807 F.3d 619 (4th Cir. 2015) (when a "without prejudice" dismissal is final in fact)
- Lontz v. Tharp, 413 F.3d 435 (4th Cir. 2005) (standard of review for remand denial)
- Yarnevic v. Brink’s, Inc., 102 F.3d 753 (4th Cir. 1996) (removal jurisdiction principles)
- In re Blackwater Sec. Consulting, LLC, 460 F.3d 576 (4th Cir. 2006) (strict construction of removal jurisdiction; burden on removing party)
- Mulcahey v. Columbia Organic Chems. Co., 29 F.3d 148 (4th Cir. 1994) (party seeking removal bears burden of establishing jurisdiction)
- Foster v. Chesapeake Ins. Co., 933 F.2d 1207 (3d Cir. 1991) (forum-selection clauses may waive removal rights)
- Yakin v. Tyler Hill Corp., 566 F.3d 72 (2d Cir. 2009) (forum-selection clause binding diverse parties can waive statutory removal right)
- Kensington Volunteer Fire Dep’t v. Montgomery Cty., 684 F.3d 462 (4th Cir. 2012) (Rule 12(b)(6) standard of review)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading standard)