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In Re Crystal Power Co., Ltd.
641 F.3d 82
| 5th Cir. | 2011
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Background

  • Crystal Power filed suit in Texas state court in 2002 against Coastal Salvadoran Power and Coastal Nejapa.
  • McFall, Breitbeil & Smith, P.C. represented Crystal Power; after counsel change, a new contingency agreement was signed replacing hourly billing.
  • McFall later moved to intervene; Crystal Power and McFall entered arbitration-related cross-claims resolving disputes by arbitration.
  • McFall petitioned to remove the case under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
  • Crystal Power moved to remand, arguing an intervening plaintiff cannot invoke removal; the district court denied remand.
  • The Fifth Circuit granted mandamus, remanding to state court on the grounds that removal by an intervening plaintiff is improper under Shamrock Oil & Gas and related authorities.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
May an intervening plaintiff remove under the Convention? McFall could invoke removal as a defendant on cross-claims. Removal may only be invoked by a true defendant; intervener cannot remove. No; intervening plaintiff cannot remove; remand required.
Does Shamrock Oil apply to cross-claims for removal? Shamrock allows some plaintiffs to remove when they later become defendants. Shamrock bars removal by a plaintiff who submits to state court by becoming plaintiff. Yes; Shamrock applies; removal improper.
Is mandamus an appropriate remedy to compel remand? Remand is the proper remedy; mandamus is appropriate. Remand should be reviewed on appeal rather than mandamus. Mandamus is appropriate; remand ordered.

Key Cases Cited

  • Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100 (1941) (counter-claims do not permit removal by plaintiff; principle extends to cross-claims/intervening plaintiffs)
  • In re Reyes, 814 F.2d 168 (5th Cir. 1987) (mandamus relief recognized for remand rulings)
  • In re Volkswagen of Am., Inc., 545 F.3d 304 (5th Cir. 2008 (en banc)) (mandamus standards and limits on jurisdiction)
Read the full case

Case Details

Case Name: In Re Crystal Power Co., Ltd.
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Mar 21, 2011
Citation: 641 F.3d 82
Docket Number: 11-40115
Court Abbreviation: 5th Cir.