Granovsky v. Pfizer, Inc.Granovsky v. Pfizer, Inc.
OPINION
Plaintiff moves to remand this action to the Superior Court of New Jersey, Law Division, Bergen County. She argues that Defendant Pfizer, Inc. improperly removed it from state court in violation of the requirements of
FACTS AND PROCEDURAL BACKGROUND
I. Underlying Dispute
The following is a brief summary of the underlying dispute as alleged by plaintiff: Granovsky had been employed by Pfizer in New Jersey for a number of years as an analytical chemist. She reported to and worked under the control of Pfizer management, but was employed by Pfizer through Kforce, a staffing company. 1
In 2004, Granovsky filed an EEO complaint with Pfizer and Kforce alleging that the conduct of her immediate Pfizer supervisor, following the end of a romantic relationship with plaintiff, had created a sexually hostile work environment. (Compl. at ¶¶ 11 — 44). The 2004 complaint was ostensibly resolved when Granovsky accepted reassignment to another work group reporting to another Pfizer supervisor. (Compl. at ¶ 15). However, as a result of the former supervisor’s past and continuing conduct and ongoing hostility of Pfizer management attributable to her having filed an EEO complaint, Granovsky’s personal and professional reputation in the workplace suffered. She alleges that she was denied assignments and employment opportunities within Pfizer as a result of this hostile treatment. (Compl. at ¶¶ 17-19). Pfizer and Kforce terminated Granovsky on April 7, 2006 without stating a reason. (Compl. at ¶ 21).
On April 1, 2008, Granovsky filed her state law complaint in the Superior Court of New Jersey, Law Division, Bergen County.
See Alla Granovsky v. Pfizer, Inc. and Kforce, Inc.,
Civil Action No. L-2546-08. Granovsky’s state law complaint against Pfizer and Kforce seeks redress for the retaliatory, discriminatory and wrongful termination of her employment.
II. Procedural History
The following procedural history is undisputed unless otherwise stated. On April 8, 2008, Granovsky served both Pfizer and Kforee with a summons, the filed complaint, civil case information statement, and New Jersey Superior Court Track Assignment Notice via certified mail pursuant to New Jersey Superior Court Civil Practice Rule 4:4-4(c). (PL’s Exs. 1, 2, 3, 4, 5, 6, and 7). The service upon each defendant was accompanied by an April 8, 2008 transmittal letter addressed to their respective chief executive officers. The letters informed Pfizer and Kforee that they were each being served pursuant to R. 4:4-4(c). (Pi’s Exs. 2 and 6).
According to plaintiff, Pfizer and Kforee each received the certified mail service authorized under R. 4:4-4(c), including the summons and complaint, on April 10, 2008. (Pi’s Exs. 8, 9 and 10). Pfizer disputes this date and states in its supporting affidavit that the summons and complaint were received on April 14, 2008. (Arencibia Aff. at ¶ 4). This factual dispute is ultimately insignificant since Pfizer’s May 8, 2008 notice of removal was within 30 days of either the April 10 or April 14 receipt date.
On May 8, 2008, Pfizer filed its notice of removal, including copies of the process served upon it, but not the process served upon Kforee. (PL’s Ex. 10). Pfizer’s notice of removal represented that “Kforce’s counsel, Marvin L. Weinberg, Esq. of Fox Rothschild LLP, advised that Kforee consents to the removal of this matter.” (PL’s Ex. 10 at ¶ 4). However, at the time Pfizer filed its notice of removal, neither Pfizer nor Kforee had filed any other writing or evidence from Kforee to establish Kforce’s consent to the removal.
Pfizer’s notice of removal stated that both it and Kforee had been served with a summons and complaint and that Pfizer had “affected [sic] removal within thirty (30) days of service upon it and Kforee of a paper from which it could first be ascertained that this action is removable.” (PL’s Ex. 10 at ¶¶1, 2, 3, and 5). The notice contained a footnote stating, “We note neither Defendant was properly served with the summons and complaint.” (PL’s Ex. 10 at n. 1).
Pfizer’s notice of removal is premised on diversity jurisdiction under
“It appears the case has not been properly removed from state court in accordance with the requirements of28 U.S.C. § 1446(a) and (b) within the statutorily permitted 30 day time period following defendants’ receipt of the state court complaint. More specifically, the rule of unanimity was not met. Pfizer cannot speak for Kforee in filing a notice of removal. Since Kforee did not sign the removal petition or otherwise file a consent to removal within the provided time period, remand to state court is appropriate.” (Id.)
The letter further informed Pfizer and Kforee that unless the parties could agree to a consent order remanding the case,
On May 16, 2008, Pfizer’s counsel responded with a letter citing
Murphy Brothers, Inc. v. Michetti Pipe Stringing, Inc.,
On May 23, 2008, Granovsky’s counsel answered Pfizer’s counsel’s May 16, 2008 letter, disputing assertions therein; citing
Michaels v. State of New Jersey,
On May 28, 2008, Kforce’s counsel filed with the Court a “Declaration of Consent” as permitted by
STANDARDS
I. Burden of Proof on Motion to Remand
Ruling on whether an action should be remanded to the state court from which it was removed, a district court must focus on the plaintiffs complaint at the time the petition for removal was filed.
See Id.
It remains the defendant’s burden to show the existence and continuance of federal jurisdiction.
See Abels v. State Farm Fire & Casualty Co.,
II. Removal and Remand
A. Federal Removal Jurisdiction
Pursuant to
The “receipt rule” of
B. Consent of Other Defendants
The right to remove a case from state to federal court is vested exclusively in “the defendant or defendants.”
The unanimity rule may be disregarded where: (1) a non-joining defendant is an unknown or nominal party; or (2) where a defendant has been fraudulently joined.
See McManus v. Glassman’s Wynnefield, Inc.,
Failure of all defendants to join is a “defect in removal procedure” within the meaning of
DISCUSSION
Although plaintiffs initial and reply-brief discuss myriad reasons why it is both proper and equitable to remand this action the central question in considering plaintiffs remand request is: Was defendant Pfizer, Inc. required to obtain the concurring consent of defendant Kforce, Inc. to perfect removal? And if so, did Kforce’s May 28 notice of consent satisfy this unanimity requirement?
To answer those questions the Court must resolve others: Does New Jersey Superior Court Civil Practice Rule 4:4-4(c), which permits service by the mailing of a summons and a copy of the complaint, apply to these two out-of-state defendants in this case? If defendants may be served under 4:4-4(c), is the delivery of the summons and complaint to defendants all that is required to begin the 30 day removal countdown? And finally, if delivery of the complaint and summons was sufficient to start the removal clock, did Pfizer’s notice of removal require the consent of Kforce to be effective under federal procedure?
I. Application of 4:4-4(c) to Out-Of-State Defendants
To determine the validity of service before removal, a federal court must apply the law of the state under which the service was made.
Allen v. Ferguson,
Optional Mailed Service. Where personal service is required to be made pursuant to paragraph (a) of this rule, service, in lieu of personal service, may be made by registered, certified or ordinary mail, provided, however, that such service shall be effective for obtaining in personam jurisdiction only if the defendant answers the complaint or otherwise appears in response thereto, and provided further that default shall not be entered against a defendant who fails to answer or appear in response thereto. This prohibition against entry of default shall not apply to mailed service authorized by any other provision of these rules. If defendant does not answer or appear within 60 days following mailed sendee, service shall be made as is otherwise prescribed by this rule, and the time prescribe by R. 4:4-1 for issuance of the summons shall then begin to run anew.
State and federal courts have recognized that R. 4:4-4(c) is an authorized, permissible form of service under New Jersey law and effective for obtaining personal jurisdiction over a defendant who appears, answers or otherwise responds to the service.
See, e.g., Signs By Tomorrow v. G.W. Engel Company,
Defendants argue that mailed service under 4:4-4(c) is limited to in-state defendants and does not apply to them as out-of-state corporations. Defendants’ argument is bolstered by the comment to R. 4:4-4 that “[paragraph (c) provides for optional service by mail on defendants present within the State.”
N.J. Ct. R.
4:4-4;
see also Ingersoll-Rand Co. v. Barnett,
R. 4:4-4 does not undertake to define jurisdictional limits. It is rather a mechanical rule that merely prescribes the method of acquiring jurisdiction when constitutional principles of due process of law — not the rule — permit assertion of jurisdiction. That is plain from the structure of the rule as amended effective September 1994. Thus, paragraph a of the revised rule addresses the manner of personal service on individuals and entities who have a territorial presence in this State, that is, those who are subject to the States’s exercise of in personam jurisdiction on the fundamental predicate of their being here. That predicate alone satisfies due process requirements, and no further inquiry need be undertaken. Paragraph (b) of the revised rule addresses the mechanics by which in personam jurisdiction may be obtained by constructive or substituted services over those individuals and entities who are not present in the state but who, as a matter of due process of law, are subject to the exercise of its long arm jurisdiction. The rule prescribes how they shall be served. Constitutional principles determine whether that service is effective for obtaining jurisdiction. The rule’s express caveat in respect of long arm jurisdiction has always been the consistency of its exercise with due process, a caveat now spelled out in R. 4:4-4(b)(l). 1
It is the constitutional limits of due process, and not R. 4:4-4(c), that define which persons may be served by the optional mailed service method.
See also Zacharias v. Whatman,
Personal jurisdiction can be specific or general in nature.
See Remick v. Manfredy,
The Court now determines when plaintiffs service under R. 4:4-4(c) triggered the 30 day removal countdown.
II. Effective Service Under R. 4:4-4(c)
Plaintiff argues that the receipt of the summons and complaint by defendants was sufficient to trigger the 30 day removal countdown and that since Kforce did not consent to Pfizer’s notice of removal within those 30 days the removal is ineffective. Plaintiff directs the court to
Murphy Brothers v. Michetti Pipe Stringing,
Under
Murphy Brothers
and
Sikirica,
what is required to begin the 30 day removal countdown is the simultaneous receipt of the summons and complaint by a defendant. A plain reading of the
Having determined that both Pfizer’s and Kforce’s removal countdown began on April 10, 2008, the Court turns to whether there was timely consent at the time Pfizer filed its notice of removal.
III. Unanimity Requirement of 28 U.S.C. 1446(a)
Pfizer’s May 8, 2008 notice of removal is defective because Pfizer did not
IV. Amount in Controversy
In addition to their arguments regarding service under R. 4:4-4(c), defendants argue that the 30 day removal period did not start until May 5, 2008 since that was the date that plaintiff confirmed to Pfizer that the amount in controversy exceeded $75,000.00. (Pfizer Br. at 12-14).
In order to determine whether plaintiffs claims would satisfy the amount in controversy requirement for federal jurisdiction, defendants need only focus on the “complaint filed in state court.”
Samuel-Bassett v. KIA Motors America, Inc.,
In light of the several means to determine the amount in controversy requirement, defendants’ argument that they were unsure of their ability to remove until plaintiffs confirmation of the amount in controversy is unpersuasive. Facially, plaintiffs complaint established that it is more likely than not that the claimed damages would exceed $75,000.00 if plaintiff were successful. Defendants’ receipt of that complaint on April 10, 2008 put them on notice that the amount in controversy met or exceeded the jurisdictional amount to support removal.
V. Attorney’s Fees
Plaintiff requests attorney’s fees associated with Pfizer’s deficient removal. The removal statute provides that on remand a court “may require payment of just costs and an actual expenses, including attorney’s fees, incurred as a result of removal.”
CONCLUSION
The receipt of the summons and complaint on April 10, 2008 by both Pfizer and Kforce was sufficient notice to trigger the 30 day removal countdown under
Notes
. Defendant Kforce Flexible Solutions, LLC notes in its opposition brief that it has been improperly pled as Kforce, Inc. (Kforce Br. at 1).
. Paragraph (c) of the revised rule, not relevant here, provides for optional mailed service, effective only if an answer is filed and served within sixty days.