3:24-cv-00512
M.D. La.Aug 6, 2025Background
- CRE (C. Robinson Enterprises, LLC) and Chad Robinson sued ALM Baton Rouge, LLC (ALM) and Amazon.com Services, LLC in Louisiana state court after an on-site employee incident at an Amazon facility ("DLB2") and the later termination of CRE’s DSP contract with Amazon Logistics, Inc. (ALI).
- Plaintiffs allege Defendants failed to provide adequate security at DLB2, causing loss of CRE’s contract and millions in profits; they seek damages for lost revenue and reputation.
- Amazon.com removed the case to federal court based on diversity jurisdiction; ALM’s citizenship was not initially adequately pleaded, prompting court orders to cure the defect.
- Defendants produced the ALM–Amazon.com Lease showing ALM disclaimed providing security and liability for security breaches; Amazon.com argues ALM is improperly joined and its citizenship may be disregarded.
- The magistrate judge concluded Plaintiffs cannot state a plausible claim against ALM for contract-loss damages based on a failure to provide security (Art. 2322 does not cover a lack of security/"ruin" here) and recommended dismissing ALM without prejudice and granting leave to file a Second Amended Notice of Removal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ALM is properly joined (improper joinder) | ALM owned/maintained DLB2 and had a non-delegable duty to keep premises safe; jury should decide negligence | ALM is a lessor who disclaimed security duties in the Lease and Plaintiffs allege no facts tying ALM to the alleged harm | ALM was improperly joined; dismissal without prejudice recommended |
| Whether La. Civ. Code art. 2322 supports Plaintiffs’ claim against ALM | Olsen and Art. 2322 impose owner liability for appurtenant defects; applies here | Art. 2322 targets "ruin" or defective physical components (collapse/explosion), not lack of security | Art. 2322 not applicable to Plaintiffs’ theory; failure to provide security is not "ruin" here |
| Relevance of Lease indemnity/disclaimer to jurisdiction and liability | Plaintiffs are not parties to the Lease; indemnity is premature and irrelevant to jurisdiction | Lease disclaims landlord security obligations and limits ALM’s liability; supports improper-joinder defense | Court considered the Lease for joinder inquiry and found ALM disclaimed security obligations, supporting dismissal |
| Whether federal diversity jurisdiction exists after ALM’s dismissal | Plaintiffs contend joinder is proper (remand sought) | If ALM is dismissed as improperly joined, complete diversity exists and amount in controversy satisfied | With ALM dismissed, diversity jurisdiction exists; grant leave to file amended notice of removal |
Key Cases Cited
- Smallwood v. Illinois Cent. R. Co., 385 F.3d 568 (5th Cir. 2004) (standard for improper joinder and two methods to prove it)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (U.S. 1994) (federal courts have limited jurisdiction)
- Olsen v. Shell Oil Co., 365 So.2d 1285 (La. 1978) (Art. 2322 applied to building and appurtenant part causing explosion)
- Posecai v. Wal–Mart Stores, Inc., 752 So.2d 762 (La. 1999) (duty to provide security arises when criminal acts are reasonably foreseeable)
- Moczygemba v. Danos & Curole Marine Contractors, Inc., 561 F.2d 1149 (5th Cir. 1977) (definition/limits of "ruin" under Art. 2322)
- Wallon v. General Acc. Ins. Co., 947 F.2d 1488 (5th Cir. 1991) (failure to provide security is not a defect under Art. 2322)
- Davis v. Royal–Globe Ins. Cos., 242 So.2d 839 (La. 1970) (Art. 2322 interpretation regarding collapse/defect)
- Gines v. D.R. Horton, Inc., 867 F. Supp. 2d 824 (M.D. La. 2012) (describing parameters of "ruin" under Art. 2322)
