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78 F.4th 1061
8th Cir.
2023
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Background

  • In June 2020 Willis Cagle died of COVID-19 after residence at NHC HealthCare–Maryland Heights; son Zane Cagle sued the nursing home entities and twelve staff in Missouri state court for wrongful death, negligence per se, and lost chance of survival.
  • NHC entities (all non-Missouri citizens) were served Nov. 23, 2021; many individual defendants are Missouri citizens but had not yet been served.
  • On Dec. 7, 2021, before the individual defendants were served, the NHC entities removed to federal court.
  • NHC invoked three removal theories: (1) diversity jurisdiction (arguing snap removal satisfied §1441(b)(2)), (2) federal-question jurisdiction via the PREP Act (complete preemption or Grable substantial federal issue), and (3) federal-officer removal under 28 U.S.C. §1442.
  • The district court remanded for lack of subject-matter jurisdiction; the Eighth Circuit affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Diversity jurisdiction — complete diversity / snap removal Cagle: named Missouri defendants destroy complete diversity. NHC: snap removal before service of forum-state defendants makes only "properly joined and served" defendants relevant. No. Complete diversity requires considering citizenship of all named defendants; snap removal does not cure lack of complete diversity.
PREP Act — complete preemption Cagle: state-law negligence claims govern; PREP Act does not displace them. NHC: PREP Act immunizes covered persons and thus completely preempts state claims, creating federal jurisdiction. No. PREP Act supplies a federal defense and a limited exclusive remedy for willful misconduct only; it does not completely preempt ordinary negligence claims.
PREP Act — Grable substantial federal question Cagle: state negligence elements do not necessarily raise federal questions. NHC: resolution of PREP Act immunity is a necessarily raised, disputed, substantial federal issue. No. PREP Act immunity is a defense; no federal issue is a necessary element of the pleaded state claims, so Grable does not apply.
Federal-officer removal (§1442) Cagle: NHC acted as private actor, not under federal officer control. NHC: designation as "critical infrastructure" and pandemic regulation meant it acted under federal direction. No. Pervasive regulation/critical-infrastructure designation alone does not show acting under a federal officer; §1442 removal fails.

Key Cases Cited

  • Caterpillar Inc. v. Lewis, 519 U.S. 61 (1996) (complete diversity requirement for diversity jurisdiction)
  • Lincoln Property Co. v. Roche, 546 U.S. 81 (2005) (all named defendants’ citizenship considered for diversity)
  • Grable & Sons Metal Prods., Inc. v. Darue Eng’g & Mfg., 545 U.S. 308 (2005) (federal-question exception for state-law claims)
  • Franchise Tax Bd. v. Constr. Laborers Vacation Tr., 463 U.S. 1 (1983) (well-pleaded complaint rule; federal defense insufficient)
  • Beneficial Nat’l Bank v. Anderson, 539 U.S. 1 (2003) (complete preemption doctrine)
  • Gunn v. Minton, 568 U.S. 251 (2013) (four-part test for Grable-type jurisdiction)
  • Watson v. Philip Morris Cos., 551 U.S. 142 (2007) (standard for when a private actor is "acting under" a federal officer)
  • Jacks v. Meridian Res. Co., LLC, 701 F.3d 1224 (8th Cir. 2012) (distinguishes regulated industries from contractors for §1442 removal)
  • Buljic v. Tyson Foods, Inc., 22 F.4th 730 (8th Cir. 2022) (pervasive regulation insufficient to support §1442 removal)
  • Solomon v. St. Joseph Hosp., 62 F.4th 54 (2d Cir. 2023) (PREP Act does not completely preempt ordinary state-law claims)
  • Martin v. Petersen Health Operations, LLC, 37 F.4th 1210 (7th Cir. 2022) (similar holding on PREP Act and §1442 removal)
Read the full case

Case Details

Case Name: Zane Cagle v. NHC Healthcare
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Aug 28, 2023
Citations: 78 F.4th 1061; 22-2757
Docket Number: 22-2757
Court Abbreviation: 8th Cir.
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    Zane Cagle v. NHC Healthcare, 78 F.4th 1061