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Bradley Timberland Resources v. Bradley Lumber Company
712 F.3d 401
8th Cir.
2013
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Background

  • Webster extended a $6 million revolving credit line to Bradley Lumber secured in part by Bradley Timberland's woodlands.
  • Bradley Lumber defaulted; Bradley Timberland sued Webster and Bradley Lumber in Arkansas state court for fraud and interference with business expectancy, then Webster removed to federal court.
  • The district court found Bradley Lumber fraudulently joined to defeat diversity and denied remand; it dismissed Bradley Timberland's claims as time-barred.
  • Bradley Timberland appealed the denial of remand and the dismissal, and challenged the denial of its motion for reconsideration.
  • The court affirmed the district court's remand denial, dismissal, and denial of reconsideration.
  • Bradley Timberland now challenges the timeliness and procedural posture of the federal action as well as the merits of the underlying state-law claims

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Bradley Lumber was fraudulently joined to defeat diversity Bradley Timberland argues Bradley Lumber is a proper defendant with viable Arkansas claims. Bradley Lumber had no misrepresentation liability; common ownership negates any potential constructive fraud. Yes, fraudulent joinder; no reasonable basis for Bradley Lumber liability.
Whether remand was proper given fraudulent joinder Remand required because not all defendants joined in removal. Consent not required due to fraudulent joinder; removal valid. Remand denied; removal proper.
Whether Bradley Timberland's claims were time-barred Accrual occurred in fall 2007; suit filed August 2011 is timely under Arkansas law. Accrual occurred in fall 2007 and the three-year limit expired fall 2010. Claims time-barred; district court did not err in dismissal.
Whether the motion for reconsideration was properly denied New evidence shows mis-timing; should be reconsidered. Newly offered evidence could have been offered earlier; reconsideration appropriate only for manifest errors. No abuse of discretion in denying reconsideration.

Key Cases Cited

  • Wilkinson v. Shackelford, 478 F.3d 957 (8th Cir. 2007) (fraudulent joinder and remand standards; resolve doubts in favor of remand)
  • Yarborough v. DeVilbiss Air Power, Inc., 321 F.3d 728 (8th Cir. 2003) (elements of actual and constructive fraud under Arkansas law)
  • Zutz v. Nelson, 601 F.3d 842 (8th Cir. 2010) (plausibility standard for stating a claim; Twombly/Iqbal guidance)
  • Varner v. Peterson Farms, 371 F.3d 1011 (8th Cir. 2004) (statute of limitations accrual for tort claims; discovery not required for accrual)
  • O'Mara v. Dykema, 942 S.W.2d 854 (Ark. 1997) (Arkansas three-year limitations for torts; accrual at wrong occurring)
Read the full case

Case Details

Case Name: Bradley Timberland Resources v. Bradley Lumber Company
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Apr 8, 2013
Citation: 712 F.3d 401
Docket Number: 12-1892
Court Abbreviation: 8th Cir.