3:25-cv-01336
S.D. Ill.Aug 29, 2025Background
- Plaintiff Shawnteshia Hobson sued Mead Johnson and Memorial Hospital in Illinois state court based on injuries sustained by her child, allegedly from Mead Johnson's cow’s milk-based formula received in the hospital, causing necrotizing enterocolitis (NEC).
- The complaint asserted five product liability counts against Mead Johnson and one medical malpractice count against the hospital.
- Mead Johnson removed the case to federal court twice, both times claiming fraudulent joinder of the hospital to defeat diversity jurisdiction.
- The first removal was remanded after the court found the hospital was properly joined; after proceedings in state court, Mead Johnson removed the case a second time following developments in similar litigation (the Abbott MDL).
- The central legal issue revolves around whether Hobson had a real intent to pursue claims against the non-diverse hospital defendant or joined it solely to defeat federal jurisdiction.
- The court faces interconnected motions: an emergency motion to remand, a motion to stay pending potential transfer to the NEC MDL, and requests for sanctions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Fraudulent Joinder | Hospital was properly joined; claims survived state court motions to dismiss; actively pursued | No real intent to pursue claim against hospital; minimal discovery; claims joined to defeat diversity | No ruling; reserved pending MDL transfer and Seventh Circuit guidance |
| Timeliness of Removal | Second removal is untimely and constitutes jurisdictional gamesmanship | Removal is timely due to alleged bad faith delaying tactics by plaintiff | No ruling; deferred for later decision |
| Sanctions (fees/costs) | Removal is frivolous; seeks heavy sanctions for improper removal | Argued removal is colorable, especially with MDL and appellate developments | Denied; removal argument is colorable given unresolved circuit law |
| Stay of Proceedings | Agrees with stay if remand ruling is reserved | Seeks stay to avoid duplicative litigation and conserve resources | Granted; proceedings stayed pending MDL decision and appellate guidance |
Key Cases Cited
- Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546 (Removal and complete diversity requirements in federal courts)
- Schwartz v. State Farm Mut. Auto. Ins. Co., 174 F.3d 875 (Fraudulent joinder doctrine explained)
- Howell v. Tribune Ent. Co., 106 F.3d 215 (Complete diversity standard for federal jurisdiction)
- Meridian Sec. Ins. Co. v. Sadowski, 441 F.3d 536 (Party seeking removal bears the burden of jurisdiction)
- Poulos v. Naas Foods, Inc., 959 F.2d 69 (Standard for assessing fraudulent joinder; 'no chance of success' required)
- Schur v. L.A. Weight Loss Ctrs., Inc., 577 F.3d 752 (District court can disregard non-diverse defendants if fraudulent joinder is established)
- Morris v. Nuzzo, 718 F.3d 660 (Standard for establishing fraudulent joinder in the Seventh Circuit)