Alabama Municipal Workers Compensation Fund, Inc. v. P.R. Diamond Products, Inc.Alabama Municipal Workers Compensation Fund, Inc. v. P.R. Diamond Products, Inc.
MEMORANDUM OPINION AND ORDER
This mаtter is before the Court on a motion to remand filed by the plaintiff, the Alabama Municipal Worker’s Compensation Fund, Inc. (AMWCF). (Doc. 6). For the reasons discussed below, the Court denies the motion.
I. PROCEDURAL HISTORY
AMWCF instituted this personal injury action in the Circuit Court of Jefferson County, Alabama on July 10, 2013. (Doc. 1, ¶ 1). On June 4, 2014, the case was transferred to the Circuit Court of Morgan County, Alabama. (Doc. 1, ¶ 2). In its original complaint, AMWCF named only P.R. Diamond as a defendant, but indicated that it would name additional dеfendants by amendment once it could ascertain their identities. (Doc. 1-1, p. 6). AMWCF named General Tool as an additional defendant in its amended complaint, filed July 16, 2015.
II. DISCUSSION
AMWCF argues that remand is appropriate because (1) P.R. Diamond did not consent to removal within the 30-day period required by 28 U.S.C. § 1446(b); (2) General Tool removed the action more than one year after the action commenced in state court, in violation of 28 U.S.C. § 1446(c)(1); (3) the case arises under the Alabama Worker’s Compensation Act, and 28 U.S.C. § 1445(c) prohibits removal of such cases; and (4) P.R. Diamond waived its right to remove the case by manifesting an intent to litigate in state court. (Doc. 6, pp. 1-2). The Court agrees with the defendants that remand is inappropriate on all four grounds.
1. § 1446(b)(2)(A)’s “Rule of Unanimity”
AMWCF argues that, under § 1446(b), P.R. Diamond was required to consent to General Tool’s removal of this action within thirty days of the date on which General Tool was served with the amended complaint. (Doc. 6, p. 5). Because P.R. Diamond filed its consent to removal thirteen days late, AMWCF contends that General Tool’s notice of removal is incurably defective, and the Court must remand the action to state court. (Doc. 6, pp. 5-6).
Under § 1446(b), a defendant must file its notice of removal “within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial рleading.” 28 U.S.C. § 1446(b)(1). “When a civil action is removed solely under section 1441(a), all defendants who have been properly joined and served must join in or consent to the removal of the action.” 28 U.S.C. § 1446(b)(2)(A). This is referred to as the rule of unanimity. If, as here, “defendants are served at different times, and a later-served defendant files a notice of removal, any earlier-served defendant may consent to the removal even though that earlier-served defеndant did not previously initiate or consent.to removal.” 28 U.S.C. § 1446(b)(2)(C); see also Bailey v. Janssen Pharmaceutica, Inc.,
Section 1446(b)(2)(A) does not clearly address when the earlier-served defendant must provide its consent, but case law before and after the 2011 Amendments indicates that such a defendant must provide its consent within thirty days after the later-served defendant receives the initial pleading. See Bailey,
General Tool argues that it has satisfied §' 1446(b)(2)(A) because, in its notice of remоval, filed on August 19, 2015, it “made an affirmative statement” to the Court that it had obtained P.R. Diamond’s consent “prior to the running of 30 days from the time General Tool was served with the Amended Complaint.” (Doc. 7, p. 8; Doc. 1, ¶ 8). General Tool stated that “Consent to Removal by P.R. Diamond has been filed as Exhibit 1.” (Doc. 1, ¶ 8). In fact, General Tool filed no such exhibit, and P.R. Diamond did not file its consent to removal until September 1, 2015, thirteen days after the deadline. (Doc. 4). The Court is thus faced with the question of whether a defendant may satisfy § 1446(b)(2)(A) merely by alleging that it has obtained the consent of all defendants, or whether each defendant must provide independent notice of consent.
AMWCF cites the district court case Beard, v. Lehman Bros. Holdings, Inc. to support its contention that a defendant consenting to removal must expressly indicate its consent directly to the Court. Beard v. Lehman Bros. Holdings, Inc.,
Other district courts have reached the same conclusion. See Diebel v. S.B. Trucking Co.,
At this time, the Court is not inclined to transform the Court’s implication in Jasper into an explicit holding. Although not bound by Beard or the other district court cases cited above, the Court agrees that a defendant’s consent to removal should be more than merely alleged. Accordingly, the Court concludes that General Tool’s allegation that it had obtained P.R. Diаmond’s consent to removal is insufficient to constitute joinder under § 1446(b)(2)(A). (See Doc. 1, ¶ 8).
This conclusion, however, does not necessarily compel remand. Under 28 U.S.C § 1653, a defendant may amend a
The record is clear in this case that federal diversity jurisdiction exists. (See Doc. 1, pp. 2-3). The record also establishes that General Tool had obtained P.R. Diamond’s consent when General Tool filed the notice of removal. (See Doc. 1, ¶ 8; see also Doc. 18, pp. 2-3) (explaining that P.R. Diamond had consented to removal before General Tool filed the notice of removal and that P.R. Diamond’s delay in filing its notice of consent was the inadvertent result of P.R. Diamond’s counsel being out of town on vacation). There are no defects with respect to these “jurisdictional facts.”
In cases where diversity jurisdiction exists but the defendant improperly alleges the citizenship of the parties in its notice of removal, courts routinely apply § 1653 to allow the defendant to cure the pleading. See, e.g., Corp. Mgmt. Advisors, Inc. v. Artjen Complexus, Inc.,
Where, as here, there is. no question that jurisdiction exists, the dourt finds no meaningful distinction between a notice of removal that contains a defective allegation of citizenship under § 1332 and one that contains a defective allegation of consent under § 1446(b)(2)(A). Neither defect goes to the question of whether the. case originally could have been brought in federal court, nor does either defect amount to a “substantial defect in the removal proceedings.” Beard,
AMWCF argues that remand is required because General Tool removed the action more than one year after the action commenced in state court, in violation of 28 U.S.C. § 1446(c)(1). (Doc. 6, pp. 3-4). Section 1446(e)(1) provides that “[a] case may not be removed under subsection (b)(3) on the basis of [diversity] jurisdiction more than 1 yeаr after commencement of the action, unless the district court finds that the plaintiff has acted in bad faith in order to prevent a defendant from removing the action.”
Despite § 1446(c)(l)’s explicit reference to subsection (b)(3), AMWCF argues that § 1446(c)(l)’s one-year limitations periоd applies to all cases for which § 1332 serves as the basis for removal, not just those that were not initially removable. (Doc. 6, pp. 3-4). In support of its argument, AMWCF cites district court cases that do not directly address whether the one-year bar applies to actions, like this one, that were removable when the original complaint was filed. See Sasser v. Ford Motor Co.,
Support for the alternative'proposition— that § 1446(c)(1) only applies to cases that became removable after the original complaint was filed—is more direct. Citing precedent from the Fifth, Sixth, and Eighth Circuits, a panel of the Eleventh Circuit Court of Appeals made it clear that the one-year limitation on removal of diversity cases applies only to cases that were not initially removable. Carter v. Frito-Lay, Inc.,
Furthermore, under the last-served rule, “[e]ach defendant shall have 30 days after receipt by or service on that defendant of the initial pleading or summons” to seek removal. 28 U.S.C. § 1446(b)(2)(B); see also Bailey,
Accordingly, the Court concludes that § 1446(c)(l)’s one-year limitation on removal applies only to cases that were not initially removable but became so later. Because it is undisputеd that this case was removable when AMWCF filed the original complaint, § 1446(c)(l)’s one-year limitation does not apply. General Tool’s notice of removal was therefore not untimely, and remand is inappropriate under § 1446(c)(1).
3. 28 U.S.C. § 1445(c) and Alabama Code § 25-5-ll(d)
AMWCF brings this action pursuant to Alabama Code § 25-5-ll(d), a provision of the Alabama Worker’s Compensation Act that allows an injured employee’s employer, or the insurance carrier for the employer, six months to bring а tort action against a third party in the event that the injured employee does not file a lawsuit against the third party within the applicable statute of limitations. Ala. Code § 25-5-ll(d). AMWCF argues that because it brings this personal injury action pursuant to § 25—5—11(d), the action arises under the Alabama Worker’s Compensation Act. (Doc. 6, pp. 2-3). Because 28 U.S.C § 1445(c) prohibits removal of actions “arising under the workmen’s compensation laws of [a] state,” AMWCF argues, the Court must remand the case. (Doc. 6, pp. 2-3). Although the Alabama Worker’s Compensation Act is undoubtedly a “workmen’s compensation law” of the state of Alabama, and AMWCF is right that it owes its ability to bring this action to § 25-5-ll(d), this case does not arise under the Alabama Worker’s Compensation Act for purposes of § 1445(c).
In Reed v. Heil Co., the Eleventh Circuit held that a claim of retaliatory discharge, brought pursuant to Alabama Code § 25-5-11.1, arose under the Alabama Worker’s Compensatiоn Act for purposes of § 1445(c). Reed v. Heil Co.,
The same reasoning does not apply to tort claims brought by the subrogees of injured workers, such as AMWCF. The employer of an injured worker or the employer’s insurer can bring claims on behalf of the worker only if the statute of limitations for the worker’s own claim has expired. Ala. Code § 25-5-ll(d). As a rеsult, actions like the one brought by AMWCF have little effect on the willingness of workers to bring claims, the ability of employers to discourage claims, or the availability of medical care in the workplace. Thus, Reed provides no justification for treating AMWCF’s claims as arising under Alabama’s workmen’s compensation laws. Instead, Reed suggests that tort claims, like AMWCF’s, should be treated differently from retaliatory discharge claims that'’do arise under the workmen’s compensation scheme.
In addition, persuasive authority outside of the Eleventh Circuit indicates that tort claims brought in connection with the workmen’s compensation statutes of a-particular state do not “arise under” those statutes. See Arthur v. E.I. DuPont de Nemours & Co.,
Generally, “[a] lawsuit arises under the law that creates the cause of action.” Am. Well Works v. Layne,
4. P.R. Diamond’s alleged waiver of the right to remove
AMWCF argues that remand is required because P.R. Diamond waived its right to remove this case by “manifesting [its] intent to have the case adjudicated in State Court.” (Doc. 6, p. 8). P.R. Diamond manifested this intent, AMWCF argues,
The last-served rule, as reflected in § 1446(b)(2)(C), allows an earlier-served defendant to consent to а later-served defendant’s notice of removal even if “that earlier-served defendant did not previously initiate or consent to removal.” 28 U.S.C. § 1446(b)(2)(C). The Court recognizes that P.R. Diamond did not merely fail to initiate or consent to removal, but took affirmative actions that AMWCF alleges amount to a waiver of P.R. Diamond’s right to remove. (Doc. 6, p. 8). Although some courts have been reluctant to give a defendant in P.R. Diamond’s position a “second bite at thе apple” (see, e.g., Onders v. Kentucky State Univ.,
Consistent with the last-served rule, one defendant’s strategic decisions should not bar another, newly-served defendant from removing the case. See Bailey,
III. CONCLUSION
For the reasons discussed above, the Court DENIES AMWCF’s motion to remand. (Doc. 6).
DONE and ORDERED this February 14, 2017.
Notes
. In the amended complaint, AMWCF asserts claims of failure to warn, fraudulent represen
. Thе defendants do not argue that AMWCF acted in bad faith at any time during the pending litigation.
. Former § 1446(b) states:
If the case stated by the initial pleading is not removable, a notice of removal may be filed within thirty days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable, excеpt that a case may not be removed on the basis of jurisdiction conferred by section 1332 of this title more than 1 year after commencement of the action.
28 U.S.C. § 1446(b) (2006). Under the current version of the removal statute, § 1446(b)(3) states:
Except as provided in subsection (c), if the case stated by the initial pleading is not removable, a notice of removal may be filed within thirty days after receipt by the defendant, through service or otherwise, of a cоpy of an amended pleading, motion, order or other paper from which it may firstbe ascertained that the case is one which is or has become removable.
28 U.S.C. § 1446(b). Subsection (c) states, in relevant part, that "[a] case may not be removed under subsection (b)(3) on the basis of jurisdiction conferred by section 1332 more than 1 year after commencement of the action.” 28 U.S.C. § 1446(c)(1).
. See also Hearn v. Red Ball Motor Freight, Inc.,