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995 F.3d 1289
11th Cir.
2021
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Background

  • MSP Recovery Claims ("MSP") filed multiple "pure bills of discovery" in Florida state court seeking information to identify proper defendants and theories for future suit on assigned medical-payor claims.
  • Seventeen insurers removed seven consolidated cases to federal court asserting diversity jurisdiction; MSP moved to remand under 28 U.S.C. § 1447(c) and sought attorney’s fees and costs under § 1447(c).
  • The district court granted MSP’s timely motions to remand but denied MSP’s requests for attorney’s fees and costs; MSP appealed the fee denials, and three insurers cross-appealed the remand orders.
  • Insurers argued remand was erroneous because the amount-in-controversy exceeded $75,000 given MSP’s ultimate monetary objective; MSP argued removal was objectively unreasonable in light of prior remand decisions.
  • The Eleventh Circuit held it lacked jurisdiction over the insurers’ cross-appeals because the district court remanded after timely motions (thus § 1447(d) bars review) and affirmed the denial of fees, finding no abuse of discretion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Jurisdiction to review remand orders MSP: Remand proper; not at issue for appeal Insurers: Remand was effectively sua sponte or for non-jurisdictional defects, so reviewable Court: Lacks jurisdiction over cross-appeals—district court granted timely motions to remand, so § 1447(d) bars review
Whether district court abused discretion by denying attorney’s fees under § 1447(c) MSP: Fees warranted because insurers had clear notice from prior, similar remands—removal objectively unreasonable Insurers: Removal had an objectively reasonable basis; prior district rulings do not make removal per se unreasonable Court: No abuse of discretion; fee award is not mandatory simply because prior district rulings existed; denial affirmed

Key Cases Cited

  • Hunter v. City of Montgomery, 859 F.3d 1329 (11th Cir. 2017) (discusses when a remand was sua sponte and appellate reviewability)
  • Corp. Mgmt. Advisors, Inc. v. Artjen Complexus, Inc., 561 F.3d 1294 (11th Cir. 2009) (sua sponte remand for procedural defect may be reviewable)
  • Schexnayder v. Entergy Louisiana, Inc., 394 F.3d 280 (5th Cir. 2004) (rejects treating a remand’s differing rationale as a sua sponte remand)
  • Bauknight v. Monroe County, 446 F.3d 1327 (11th Cir. 2006) (standard for awarding fees under § 1447(c): lack of objectively reasonable basis)
  • Martin v. Franklin Capital Corp., 546 U.S. 132 (U.S. 2005) (no presumption in favor of fee awards under § 1447(c); fees if removal objectively unreasonable)
  • First Union Nat’l Bank of Fla. v. Hall, 123 F.3d 1374 (11th Cir. 1997) (look to terms of the remand order to determine reviewability)
  • McGinley v. Houston, 361 F.3d 1328 (11th Cir. 2004) (district court opinions are not binding precedent obligating fees when removal follows adverse district decisions)
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Case Details

Case Name: MSP Recovery Claims, Series LLC v. The Hanover Insurance Company
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Apr 30, 2021
Citations: 995 F.3d 1289; 19-12029
Docket Number: 19-12029
Court Abbreviation: 11th Cir.
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    MSP Recovery Claims, Series LLC v. The Hanover Insurance Company, 995 F.3d 1289