John Walker v. Philip Morris USA Inc.
443 F. App'x 946
6th Cir.2011Background
- Fire at 235 Guthrie Drive, Bardstown, Kentucky, on February 6, 2007, resulting in ten deaths.
- Plaintiffs allege negligence by Kentucky Defendants (Johnson and Brothers) and product-liability claims against Philip Morris and Jackson Furniture.
- Evidence shows smoke detector may have been nonfunctional; investigators noted no audible alarm and one witness claimed detector test failed.
- Brothers allegedly maintained the property and tested the detector in January 2006; no subsequent tests were documented.
- Philip Morris removed the case to federal court claiming fraudulent joinder of Kentucky Defendants, seeking diversity jurisdiction; Plaintiffs moved to remand arguing untimely removal and non-diverse defendants were properly joined.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of removal | Removal was untimely under 28 U.S.C. § 1446(b). | Removal was timely because the 30-day clock began after receiving non-diverse defendants' answers. | Removal timely. |
| Fraudulent joinder of Kentucky Defendants | Colorable state-law claim against Kentucky Defendants exists; not misconceived as fraudulent joinder. | Kentucky Defendants lacked duty to maintain test of the detector; affidavits show no colorable claim. | No fraudulent joinder; colorable claim against Kentucky Defendants exists. |
| Standard for fraudulent-joinder analysis | Court should apply lenient, plaintiff-favorable piercing and review all factual allegations to identify colorable state claims. | Court should strictly rely on affidavits to negate claims against non-diverse defendants. | Fraudulent-joinder standard requires resolving all disputed facts in plaintiff’s favor; court may pierce pleadings but not resolve merits pre-discovery. |
| Remand result | District court erred by denying remand and dismissing Kentucky Defendants. | Removal and dismissal were proper based on fraudulent joinder. | Vacate district court’s dismissal orders and remand to state court. |
Key Cases Cited
- Coyne v. American Tobacco Co., 183 F.3d 488 (6th Cir. 1999) (fraudulent-joinder standard; require colorable state-law basis for recovery)
- Alexander v. Electronic Data Systems Corp., 13 F.3d 940 (6th Cir. 1994) (test for fraudulent joinder; “colorable basis” for state-law liability)
- Smallwood v. Illinois Central Railroad Co., 385 F.3d 568 (5th Cir. 2004) (two approaches to improper joinder; summary inquiry permitted to identify discrete facts)
- Travis v. Irby, 326 F.3d 644 (5th Cir. 2003) (piercing pleadings; Rule 12(b)(6)-type analysis vs. fraudulent-joinder inquiry)
- Gentek Building Products, Inc. v. Sherwin-Williams Co., 491 F.3d 320 (6th Cir. 2007) (facial and factual inquiries in removal; summary-judgment-like evidence may be considered)
- Bobby Jones Garden Apartments, Inc. v. Suleski, 391 F.2d 172 (5th Cir. 1968) (colorable basis for liability under state law essential for non-removal)
- Saginaw Hous. Comm’n v. Bannum, Inc., 576 F.3d 620 (6th Cir. 2009) (fraudulent-joinder burden; resolve all doubts in favor of remand)