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