Delalla v. Hanover Insurance
660 F.3d 180
3rd Cir.2011Background
- Delalla and NMD Marketing sued Hanover Insurance and law firm defendants Oberlies and Connor Weber & Oberlies in New Jersey state court over a settlement concerning a Slim 90 trademark dispute.
- Hanover had insured Delalla and NMD; Hanover’s counsel Oberlies represented them in the settlement and later retained separate counsel.
- Delalla and NMD sued in 2009; the Law Firm Defendants were served on April 23, 2009; Hanover joined the Law Firm Defendants’ removal filing on May 15, 2009.
- The case was removed to federal court under 28 U.S.C. §§ 1441, 1446, and the district court applied the later-served rule to timeliness of removal.
- Judge Kugler denied a remand motion in 2009; the case was transferred to the EDPA in 2010; Judge Baylson later denied recusal and dismissed the case for failure to satisfy Rule 9(b).
- Delalla and NMD appealed the denial of remand and also filed a mandamus petition related to the transfer order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the later-served rule applies to § 1446(b) timing for multiple defendants | Delalla argues for later-served rule; seeks remand due to untimely removal | Law Firm Defendants and Hanover support later-served rule; removal timely per each defendant | Yes, later-served rule adopted; removal timely for each defendant when served |
Key Cases Cited
- Kokoszka v. Belford, 417 U.S. 642 (1974) (statutes should be read as a whole to reveal congressional intent)
- Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344 (1999) (lenient reading of the 30-day window consistent with congressional intent)
- Destfino v. Reiswig, 630 F.3d 952 (9th Cir. 2011) (adopts later-served rule; equitable justification)
- Bailey v. Janssen Pharmaceutica, Inc., 536 F.3d 1202 (11th Cir. 2008) (supports later-served rule)
- Marano Enters. of Kan. v. Z-Teca Rests., L.P., 254 F.3d 753 (8th Cir. 2001) (supports later-served rule)
- Barbour v. Int'l Union, 640 F.3d 599 (4th Cir. 2011) (discusses rule distinctions; supports later-served rule)
