747 F.3d 315
E.D. Ky.2014Background
- Plaintiff Stephen Hoop sued Wal-Mart (premises liability) and Stanley Black & Decker (products liability) in Kentucky state court alleging automatic doors closed on him and caused injury.
- Hoop filed a pre-removal, signed stipulation in state court stating he would not seek or accept $75,000 or more (i.e., limited recovery to <$75,000).
- Later, in discovery (interrogatories and deposition), Hoop stated he intended to request $500,000 from a jury.
- Defendants removed the case to federal court based on diversity jurisdiction (amount in controversy allegedly exceeding $75,000); removal occurred within 30 days of receiving the discovery responses.
- Hoop moved to remand, relying on his earlier pre-removal stipulation; defendants argued the amount in controversy at the time of removal (supported by discovery admissions) controls.
- The district court concluded Hoop’s unequivocal pre-removal stipulation bound him to recover no more than $74,999.99, making federal diversity jurisdiction lacking, and remanded the case to state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a unilateral, pre-removal stipulation limiting recoverable damages below $75,000 prevents removal and defeats diversity jurisdiction | Hoop argued his signed pre-removal stipulation unequivocally limited recovery to under $75,000, so federal jurisdiction is lacking | Defendants argued the controlling inquiry is amount in controversy at time of removal (Hoop’s discovery/admissions seeking $500,000) and pre-removal stipulation should not defeat removal | Court held the pre-removal stipulation was binding and unequivocal, thus Hoop was limited to <$75,000 and removal failed; case remanded to state court |
Key Cases Cited
- St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283 (1938) (plaintiff may sue for less than jurisdictional amount to prevent removal)
- Iowa Central Ry. Co. v. Bacon, 236 U.S. 305 (1915) (plaintiff’s prayer for a sum below jurisdictional threshold precludes federal jurisdiction)
- Rogers v. Wal-Mart Stores, Inc., 230 F.3d 868 (6th Cir. 2000) (discusses plaintiff control of forum and limits of post-complaint stipulations in light of state procedural rules)