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