In re BRIDGESTONE/FIRESTONE, INC., Tires Products Liability Litigation.
TURNAGE, et al,
v.
FORD MOTOR COMPANY, et al.
King, et al.,
v.
Ford Motor Company, et al.
Burley, et al.,
v.
Ford Motor Company, et al.
Pierce, et al.,
v.
Ford Motor Company, et al.
United States District Court, S.D. Indiana, Indianapolis Division.
*723 Don Barrett, Barrett Law Office, Pa, Lexington, MS, Victor Manuel Diaz, Jr. Podhurst, Orseck, Josefsberg & Eaton, Miami, FL, Mike Eidson, Colson, Hicks, Eidson, Coral Gables, FL, Irwin B. Levin, Cohen & Malad, Indianapolis, IN, William E. Winingham, Wilson, Kehoe & Winingham, Indianapolis, IN, for Plaintiffs.
John H. Beisner, O'Melveny & Myers, LLP, Washington, DC, Daniel P. Byron, Bingham McHale, LLP, Indianapolis, IN, Mark Herrmann, Jones, Day, Reavis & Pogue, Cleveland, OH, Thomas S. Kilbane, Squire, Sanders, & Dempsey, LLP, Cleveland, OH, Mark Merkle, Krieg Devault, LLP, Indianapolis, IN, Randall Riggs, Locke Reynolds, LLP, Indianapolis, IN, Colin P. Smith, Holland & Knight, LLC, Chicago, IL, Thomas G. Stayton, Baker & Daniels, Indianapolis, IN, for Defendants.
ORDER ON MOTIONS TO REMAND
BARKER, District Judge.
Each of these cases was filed in Mississippi state court and removed by defendant *724 Ford Motor Company ("Ford") to federal district court in Mississippi.[1] In each case, defendant Bridgestone/Firestone, Inc., ("Firestone") joined in Ford's Notice of Removal; some of the other defendants in each case also joined in the removal. The plaintiffs in each case filed a Motion to Remand while the case was pending in federal court in Mississippi, and the motions were fully briefed. The cases later were transferred to this court for consolidated and coordinated proceedings pursuant to 28 U.S.C. § 1407 by order of the Judicial Panel on Multidistrict Litigation. Following that transfer, the parties filed supplemental briefs regarding the remand motions. For the reasons set forth below, the plaintiffs' motions are GRANED, and each of these cases is REMANED to the Mississippi state court from which it was removed.
FACTUAL AND PROCEDURAL BACKGROUND
Each of these cases was filed by a group of plaintiffs: by the Court's count, there were three original plaintiffs in Burley; over twenty original plaintiffs in Pierce; over forty original plaintiffs in King; and over thirty original plaintiffs in Turnage.[2] Most of the plaintiffs are residents of Mississippi, although a few reside in Alabama, Texas, Louisiana, Kentucky, Oklahoma and Tennessee. Most, but not all, of the plaintiffs were injured in accidents involving Ford Explorers and/or the Firestone tires that are the subject of this MDL.[3] The accidents at issue are unrelated to one another and happened at various times in various locations under various circumstances. Each of the Complaints[4] alleges that the Firestone tires and Ford Explorers owned by the plaintiffs were defective and assert state law claims for strict liability, negligence, and breach of warranty against Ford, Firestone, and certain automobile and tire dealers who allegedly sold Explorers and/or tires to some of the plaintiffs. There are eleven such "dealerdefendants" named in Pierce, three in Burley, sixteen in King, and fifteen in Turnage.[5]
DISCUSSION
The defendants[6] assert that both federal *725 question jurisdiction pursuant to 28 U.S.C. § 1331 and diversity jurisdiction pursuant to 28 U.S.C. § 1332 exist in these cases. Specifically, the defendants assert that diversity jurisdiction exists because the dealer defendants were fraudulently joined in this action in order to defeat diversity of citizenship. The defendants further allege that federal question jurisdiction exists because the plaintiffs' negligence claim is based, in part, on the failure of Ford and Firestone to recall the allegedly defective tires at issue and, the defendants argue, any duty to recall would have arisen not under state law, but under the federal National Traffic and Motor Vehicle Safety Act ("Safety Act"). Thus, defendants argue, "in order to prevail on their negligence claim, plaintiffs would have to demonstrate that Ford and Firestone violated the Safety Act. As a matter of law, because such an inquiry would involve a very substantial federal question, plaintiffs' claim necessarily arises under federal law." Turnage Notice of Removal at ¶ 13; King Notice of Removal at ¶ 9; Burley Notice of Removal at ¶ 13; Pierce Notice of Removal at ¶ 9 (emphasis in original).
No Removal on Basis of Federal Question Jurisdiction
The defendants' assertion that federal question jurisdiction is present in these cases is easily disposed of, as the Court already has addressed, and rejected, the same arguments in a very similar context. See Nisbett v. Bridgestone Corp.,
For the reasons discussed at length in Nisbett, the fact that the plaintiffs' state law claims may implicate certain provisions of the Safety Act is not sufficient to create federal question jurisdiction, especially in light of the fact that the Safety Act does not create a private right of action. See id. (citing Merrell Dow Pharmaceuticals, Inc. v. Thompson,
No Removal on Basis of Diversity Jurisdiction
The defendants' argument that these cases were properly removed because diversity jurisdiction is present in each of them is two-fold. First, the defendants argue that the dealer-defendants were fraudulently joined because the plaintiffs have no realistic chance of recovering *726 against them on any theory. Second, they argue that the plaintiffs in each of these cases were fraudulently misjoined and that the Court should sever each plaintiffs[8] claim into its own action. That way, even if the dealer-defendants were not fraudulently joined, only those plaintiffs who have named their non-diverse dealer as a defendant would be entitled to remand; the remaining cases would be subject to diversity jurisdiction and remain in federal court.
The Dealer-Defendants Were Not Fraudulently Joined
The complete diversity of citizenship necessary to confer federal jurisdiction under 28 U.S.C. § 1332 clearly is lacking on the face of the complaints in these cases, inasmuch as each case includes some plaintiffs and some defendants who are citizens of Mississippi. However, the defendants argue that the dealer-defendants were fraudulently joined in these cases in order to defeat diversity jurisdiction.
[Plaintiffs] may not join an in-state defendant solely for the purpose of defeating federal diversity jurisdiction. Such joinder is considered fraudulent, and is therefore disregarded, if the out-of-state defendant can show there exists no "reasonable possibility that a state court would rule against the in-state defendant."
Schwartz v. State Farm Mutual Auto. Ins. Co.,
The defendants argue that the plaintiffs have failed to assert any claims against the dealer-defendants because the Complaints do not allege which dealer-defendant sold what product to which plaintiff. It is true that the Complaints are not model pleadings; however, they certainly satisfy the minimal requirements of notice pleading under Federal Rule of Civil Procedure 8(a).
The defendants also point to the fact that the plaintiffs' allegations in the Complaints focus on various acts of Ford and Firestone, not the dealer-defendants. This, the defendants argue, makes it clear that the dealer-defendants were named by the plaintiffs "for one purpose and one purpose onlyto keep the case in Mississippi State Court, which plaintiffs consider a more favorable forum." Turnage Notice of Removal at ¶ 6; King Notice of Removal at ¶ 6; Burley Notice of Removal at ¶ 6; Pierce Notice of Removal at ¶ 6. It may be that the plaintiffs' motivation for suing the dealer-defendants was to defeat diversity jurisdiction. This is not the test for fraudulent joinder, however. "[Pjlaintiffs as masters of the complaint may include (or omit) claims or parties in order to determine the forum." Garbie v. Daimler-Chrysler Corp.,
In their responses to the plaintiffs' motions for remand, the defendants, citing Parker v. Ford Motor Co.,
The Individual Plaintiffs' Claims Were Not Fraudulently Misjoined
In addition to asserting that the dealer-defendants were fraudulently joined, the defendants also argue that in each of these cases the claims of the various unrelated plaintiffs were improperly joined into one action in order to defeat diversity jurisdiction. Therefore, the defendants argue in the alternative that we should sever the plaintiffs' claims into individual cases and remand to state court only the claims of those plaintiffs who have named a non-diverse dealer as a defendant. The claims of the remaining plaintiffs would then indisputably be subject to diversity jurisdiction and would remain in federal court.[11]
*728 The defendants' argument has a certain logical appeal. After all, if each plaintiff (or group of plaintiffs involved in a single accident) had filed his or her own lawsuit, all of the cases would have been subject to removal except those in which a non-diverse dealer-defendant was sued. Unfortunately for the defendants, however, the law, at least in the Seventh Circuit, is clear:
Even if the [non-diverse parties] were added to prevent removal, that is their privilege; plaintiffs as masters of the complaint may include (or omit) claims or parties in order to determine the forum. Neither § 1332 nor any case of which we are aware provides that defendants may discard plaintiffs in order to make controversies removable. It is enough that the claims be real, that the parties not be nominal.
Garble,
If, however, the joinder of the plaintiffs' claims was not procedurally permissible, it may be possible, under the doctrine of fraudulent misjoinder, for the improperly joined claims to be disregarded for removal purposes. "Fraudulent misjoinder" refers to the joining of claims into one suit in order to defeat diversity jurisdiction "where in reality there is no sufficient factual nexus among the claims to satisfy the permissive joinder standard." Conk v. Richards & O'Neil, LLP,
Which Law Applies?
Before determining whether the plaintiffs' claims were properly joined, we must first determine whether the applicable law is Federal Rule of Civil Procedure 20 or Mississippi Rule of Civil Procedure 20. The defendants urge us to follow the decision in Coleman v. Conseco, Inc.,
Conk,
Were the Plaintiffs Misjoined Under Mississippi Law?
At first blush, it would seem that the question of whether to apply Federal Rule 20 or Mississippi Rule 20 was merely academic, inasmuch as the text of the two rules is identical in all relevant respects. However, Mississippi Rule 20 has been applied to permit joinder under far broader circumstances than those under which joinder generally is permitted under Federal Rule 20. See Illinois Central R.R. Co. v. Travis,
The general philosophy of the joinder provisions of these Rules is to allow virtually unlimited joinder at the pleading stage but to give the Court discretion to shape the trial to the necessities of the particular case.
See Prestage Farms, Inc. v. Norman,
The Mississippi Supreme Court's recent opinions regarding joinder under Rule 20 have been consistent with this philosophy of "virtually unlimited joinder." For example, in Norman, sixty-eight plaintiffs sued Prestage Farms, Inc., and seven of its contract hog farmers, alleging that the farms designed and established by Prestage and operated by the defendant hog farmers pursuant to Prestage's specifications constituted public and private nuisances. Each farm was operated by one of the defendant hog farmers, and each plaintiffs claim related to only one of the farms at issue; in other words, for each defendant farm there was a group of plaintiffs who alleged that farm constituted a nuisance, but the remaining plaintiffs had no claims involving that particular farm or defendant farmer.
The majority of the court held that the trial court did not err in denying the defendants' motion to sever "because plaintiffs' *730 claims involve many common questions of law and fact and arise out of the same series of occurrences or transactions"namely the creation and operation of the hog farms by Prestage, in concert with its contract hog farmers. The court so held in spite of the fact that the plaintiffs would have to prove both that each individual farm constituted a nuisance and that each individual plaintiff had suffered injury as a result of living near one particular farm. As the dissenting judge in the case noted:
This action involves sixty-eight plaintiffs alleging they have incurred damages as a result of one of seven separate and distinct nuisances. The many factors at issue at trial will likely include the size of the farms, the number of hogs present, the length of time the farms have been in existence, the condition of the farms, the operation of the farms and the odor levels emanating from them. Each plaintiffs claim will vary depending on their proximity to the farm, the duration of each plaintiffs exposure to odor and pollutants, the level of exposure, weather conditions and topography, the number of other livestock present in the vicinity, and the plaintiffs prior medical history. Each of these factors is highly plaintiff-specific.
Norman,
The Court finds the facts of Norman to be indistinguishable in any significant way from the facts of the instant case. The plaintiffs' claims against Ford and Firestone arise out of their design and manufacture of allegedly defective tires and vehicles, just as the plaintiffs' claims in Norman arose out of Prestage Farm's design and operationthrough its contract hog farmersof the hog farms. It is true that the plaintiffs in these cases each will have to prove the circumstances surrounding the particular accident in which he or she was injured, including the maintenance and condition of the vehicle and car prior to the accident and what caused the accident to occur; however, as Judge Smith noted, the plaintiffs in Norman had to prove the circumstances surrounding the particular farm which he or she lived near, including "the size of the farms, the number of hogs present, the length of time the farms have been in existence, the condition of the farms, the operation of the farms and the odor levels emanating from them." Id. Each plaintiff in these cases also will have to prove his or her particular injuries resulting from his or her accident, just as the plaintiffs in Norman had to prove their injuries, which required proof of such facts as "their proximity to the farm, the duration of each plaintiffs exposure to odor and pollutants, the level of exposure, weather conditions and topography, the number of other livestock present in the vicinity, and the plaintiffs prior medical history." Id.
The Mississippi Supreme Court's holding in Travis,
Given the Mississippi Supreme Court's holdings that joinder of the plaintiffs' claims in Norman and in Travis was not improper, we are unable to say that under Mississippi law it was improper for the plaintiffs in these cases to join their claims as they did.[14] Therefore, even *731 though it seems unlikely to us that joinder in those cases would be appropriate under Federal Rule 20, there is no basis for a finding of fraudulent misjoinder under Mississippi law.
Supplemental Jurisdiction is Not Applicable
Finally, the defendants, citing Stromberg Metal Works, Inc. v. Press Mechanical, Inc.,
CONCLUSION
For the reasons set forth above, the plaintiffs' motions to remand in these cases are GRANTED. Turnage is REMANED to the Circuit Court of Jones County, Mississippi, Second Judicial District; King is REMANDED to the Circuit Court of Jefferson County, Mississippi; Burley is REMANDED to the Circuit Court of Hinds County, Mississippi, First Judicial District; and Pierce is REMANDED to the Circuit Court of Washington County, Mississippi. The Court further finds that the defendants' removal of these cases warrants an award to the plaintiffs of the fees and costs they incurred as a result of removal, pursuant to 28 U.S.C. § 1447(c). See Garbie,
NOTES
Notes
[1] Turnage was filed in Jones County Circuit Court; King in Jefferson County Circuit Court; Burley in Hinds County Circuit Court; and Pierce in Washington County Circuit Court. Pierce was removed to the United States District Court for the Northern District of Mississippi; the other three cases were removed to the Southern District of Mississippi.
[2] We say "original plaintiffs" because various plaintiffs have been dismissed from these actions since they were filed. However, for our purposes what is relevant is the status of the case at the time it was removed. See, e.g., Harmon v. OKI Systems,
[3] Those plaintiffs that have not been involved in accidents are pursuing claims for the replacement value of their Firestone tires, which they allege to be defective.
[4] The complaints in these actions have been subject to various amendments; the Court will use the term "Complaint" to refer to the complaint in each case that was in place at the time the case was removed.
[5] The Complaints do not specify which of the dealers sold to which of the plaintiffs; however, the parties have supplied that information as part of their supplemental briefing.
[6] Not all of the defendants in each case consented to remrval. In this context, we will use "defendants" to refer to those defendants who filed briefs in opposition to the plaintiffs' motions to remand, along with those defendants who joined in those briefs (which includes some, but not all, of the dealer-defendants in each case). In light of our other holdings, it is not necessary to address the plaintiffs' argument that the failure of some of the dealer-defendants to consent to removal is an independent basis for remanding these cases.
[7] In Nisbett, the plaintiffs asserted a state-law RICO claim that was based, in part, on the defendants' failure to recall the allegedly defective tires.
[8] The Court recognizes that there are some instances in which two or more of the plaintiffs were involved in the same accident, and does not understand the defendants to argue that those plaintiffs should not be permitted to assert their claims in a single action.
[9] Seventh Circuit law governs the removal and remand issues at issue in these cases. See Bridgestone/Firestone, Inc., ATX, ATX, II,
[10] The Court notes that effective January 1, 2003, as one of the changes included in the Mississippi Civil Justice Reform Act, Miss. Code Ann. § 11-1-63 has been amended and § 11-1-64 has been added. One effect of these changes is to establish a procedure by which a defendant in a products liability action "whose liability is based solely on his status as a seller in the stream of commerce may be dismissed from a products liability claim" as long as "another defendant, including the manufacturer, is properly before the court and from whom recovery may be had for plaintiff's claim." Miss.Code Ann. § 111-64(1) & (2) (2002 Electronic Pocket Part Update). Obviously, these new provisions are not applicable to the instant cases; however, their enactment is further confirmation that at the time the instant cases were filed sellers such as the dealer-defendants were subject to suitand ultimate liabilityin product liability cases under Mississippi law.
[11] The exception to this would be the claim of Plaintiff Mindy Hunter in the King case, inasmuch as Ms. Hunter and Firestone appear to share Tennessee citizenship.
[12] The defendants also cite to the unpublished opinion granting the plaintiffs' motion to remand in Adkins v. Ametek, l:02cv728GR (S.D.Miss., Jan. 29, 2003), in which the court applied Federal Rule 20 without explanation.
[13] We note that the Tapscott court did not address the issue of whether Federal Rule 20 or the corresponding state rule should be plainapplied; it merely applied Federal Rule 20 without comment.
[14] This is not to say, however, that the Mississippi trial courts in which these cases were filed necessarily would rule that joinder was appropriate. Mississippi trial courts are given rather broad discretion to permit or deny joinder pursuant to Rule 20, Travis,
