Hilda Markarian v. Johnson and Johnson
2:21-cv-05650
C.D. Cal.Aug 30, 2021Background:
- Plaintiff Hilda Markarian sued in California state court on August 1, 2018; claims arise from talc exposure (underlying facts summarized in complaint).
- Defendant Johnson & Johnson removed the case to federal court on July 13, 2021, invoking diversity jurisdiction.
- The removal depended on disregarding the citizenship of Imerys Talc America Inc., a California citizen added as a defendant.
- Plaintiff moved to remand, arguing complete diversity is lacking because Imerys is a resident defendant.
- Defendant argued Imerys was fraudulently joined and thus its citizenship should be ignored; defendant bears burden to prove fraudulent joinder by clear and convincing evidence.
- The court held defendant failed to prove fraudulent joinder (including that no amendment could possibly state a claim), granted remand to Los Angeles Superior Court, and denied defendant’s stay motion as moot.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal diversity jurisdiction exists | Markarian: no complete diversity because Imerys is CA citizen; remand required | J&J: Imerys was fraudulently joined; ignore its citizenship to preserve diversity | Court: Remand granted; Imerys properly joined; complete diversity absent |
| Whether Imerys was fraudulently joined | Markarian: plausible state-law claims; defects (if any) could be cured by amendment | J&J: allegations insufficient to state claim against Imerys; therefore joinder is sham | Court: J&J failed to prove fraudulent joinder by clear and convincing evidence; possibility of recovery (or amendment) precludes finding of fraud |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (federal courts have only the jurisdiction authorized by Constitution and Congress)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (removal statute strictly construed; removing party bears burden)
- Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546 (2005) (complete diversity required where multiple plaintiffs and defendants)
- Grancare, LLC v. Thrower by & through Mills, 889 F.3d 543 (9th Cir. 2018) (fraudulent-joinder standard is more exacting than Rule 12(b)(6); any possibility of recovery defeats fraudulent-joinder claim)
- Hamilton Materials, Inc. v. Dow Chem. Corp., 494 F.3d 1203 (9th Cir. 2007) (fraudulent joinder requires showing by clear and convincing evidence)
- McCabe v. Gen. Foods Corp., 811 F.2d 1336 (9th Cir. 1987) (joinder of resident defendant is fraudulent if failure to state claim is obvious under settled state rules)
- Hunter v. Philip Morris USA, 582 F.3d 1039 (9th Cir. 2009) (if a state court might find liability or an amended complaint could, federal court must find joinder proper)
- Sanchez v. Lane Bryant, Inc., 123 F. Supp. 3d 1238 (C.D. Cal. 2015) (discussing fraudulent joinder exception to complete diversity)