562 F. App'x 228
5th Cir.2014Background
- A Westlake Chemical facility exploded in Geismar, Louisiana on March 22, 2012, releasing vinyl chloride monomer and prompting a shelter-in-place order within a one-mile radius.
- Consolidated class actions followed alleging that Westlake caused plaintiffs’ damages from the release.
- Perritt and Hollins suits were initially filed in Louisiana state court and removed to federal court; other related actions were also removed.
- Plaintiffs moved to remand, arguing lack of diversity and lack of CAFA jurisdiction; the district court initially denied, then vacated and granted remand.
- Westlake petitioned for permission to appeal the remand orders under CAFA-related review; the panel granted review.
- The sole issue on appeal is whether CAFA jurisdiction exists to support removal and the district court’s remand decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CAFA permits review of remand orders | Westlake argues §1453(c)(1) grants appellate review of CAFA-based removals/remand determinations. | Berniard-type framing: appellate review is limited to CAFA-related determinations and does not extend to ordinary removal based on diversity. | CAFA review applies to CAFA-based remand determinations; the court may review CAFA determinations on remand. |
| Whether CAFA jurisdiction existed based on minimal diversity and the amount in controversy | Plaintiffs contend CAFA jurisdiction may be met by minimal diversity and ≥$5,000,000 in aggregate claims. | Westlake contends the jurisdictional thresholds are satisfied, supported by its evidence. | CAFA jurisdiction did not exist; removal was not supported by the required thresholds. |
| Whether the number of proposed plaintiffs exceeds 99 | Plaintiffs argue the class size is large enough to satisfy CAFA’s numerical threshold. | Westlake asserts the class is not shown to exceed 99 in aggregate. | The district court’s finding that the number of class members did not demonstrate CAFA jurisdiction remains unaltered. |
| Whether the amount in controversy is facially apparent from petitions or requires evidence | Perritt/Hollins pleadings imply damages exceeding the CAFA threshold. | The petitions do not facially show $5,000,000 in controversy; post-removal evidence may be considered only if ambiguity existed at removal. | The amount in controversy is not facially apparent from the petitions; post-removal evidence does not cure the deficiency here. |
| Whether Westlake’s post-removal affidavit supports CAFA jurisdiction | Affidavit suggests a large putative class and relevant damages. | Affidavit merely restates census data and shelter-in-place scope; it does not provide reliable damages metrics or population figures tied to the putative class. | Affidavit fails to establish CAFA jurisdiction; it does not provide a reliable metric for damages or population. |
Key Cases Cited
- Berniard v. Dow Chem. Co., 481 F. App’x 859 (5th Cir. 2010) (facial apparency not satisfied; reach of petitions overstates potential class)
- Patterson v. Dean Morris, L.L.P., 448 F.3d 736 (5th Cir. 2006) (CAFA review limited to thresholds and nexus)
- Alvarez v. Midland Credit Mgmt., Inc., 585 F.3d 890 (5th Cir. 2009) (CAFA review framework and discretion)
- Wallace v. La. Citizens Prop. Ins. Corp., 444 F.3d 697 (5th Cir. 2006) (CAFA review limitations)
- Gebbia v. Wal-Mart Stores, Inc., 233 F.3d 880 (5th Cir. 2000) (post-removal affidavits only when jurisdiction is ambiguous)
- St. Paul Reinsurance Co., Ltd. v. Greenberg, 134 F.3d 1250 (5th Cir. 1998) (consideration of post-removal evidence in jurisdiction)
- De Aguilar v. Boeing Co., 11 F.3d 55 (5th Cir. 1993) (amount in controversy burden and methods)
- Saab v. Home Depot U.S.A., Inc., 469 F.3d 758 (9th Cir. 2006) (context for CAFA jurisdiction and facial apparency)
- Hood ex rel. Miss. v. JP Morgan Chase & Co., 737 F.3d 78 (5th Cir. 2013) (subject-matter jurisdiction review de novo)
- Cannon v. Dow Chem. Co., 2008 WL 2308897 (E.D. La. 2008) (excluded because not an official reporter; example context)
