Lead Opinion
This сase is before the panel on a petition for writ of mandamus. We direct the district court to reconsider its decision.
BACKGROUND
On June 29, 1993, Melvin Thornton, Sr. sustained serious injuries when a vehicle driven by Michael Kahalley struck his car. At the time of the collision, officers of the Mobile, Alabama Police Department were engaged in a high-speed chase of Kahalley. On September 20, 1993, Thornton and family members (respondents) filed suit in Alabama state court against Kahalley, the City of Mobile, Police Officer David Preston and various fictitious parties. The suit alleged negligence, wantonness, and dram shop liability causes of actions under Alabаma state law. On June 14, 1995, respondents filed a fourth amended complaint adding a cause of action under 42 U.S.C. § 1983 for violation of rights under the Fourth, Eighth, and Fourteenth Amendments to the United States Constitution. Originally, the case was set for trial in state court on June 26, 1995; it was continued, however, until November 5, 1995. On June 27, 1995, petitioners, with the exception of Kahalley, removed the case to federal court pursuant to 28 U.S.C. § 1441(b) and (0.
Respondents moved to remand the entire case to state court. The district court in the Southern District of Alabama granted the .motion remanding the entire case, including the section 1983 claim, to state court. In support of its ordеr, the district court relied on 28 U.S.C. § 1367(c)(2) and (c)(4). Petitioners request that this court issue a writ of mandamus ordering the district court to retain and hear the entire ease.
CONTENTIONS
Petitioners contend that the district court erred in remanding the entire case to state court and assert that the district court should have retained all of the claims. Petitioners contend that the language of 28 U.S.C. § 1367(c) is clear and unequivocal and only empowers a district court to decline supplemental jurisdiction. Petitioners argue that this court should adopt the reasoning of Borough of West Mifflin v. Lancaster,
Respondents contend that remanding an entire case, including a properly removed federal claim, is appropriate under section 1367(c)(2) where the state claims substantially predominate over federal claims. Respondents argue that the district court correctly found that the state law issues substantially
ISSUE
The sole issue we address is whether, under 28 U.S.C. § 1367(c), a district court has discretion to remand to state court a case that includes a properly removed federal claim.
DISCUSSION
Initially we note that when a district court remands a ease based on reasons not authorized in 28 U.S.C. § 1447(c), we have jurisdiction to review such an order on a petition for writ of mandamus. In re Surinam Airways Holding Co.,
Section 1367(c) cannot be fairly read as bestowing on district courts the discretion to remand to a state court a case that includes a properly removed federal claim. Borough of West Mifflin v. Lancaster,
district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of state law;
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction;
(3) the district court has dismissed all claims over which it has original jurisdiction; or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
28 U.S.C.A. § 1367(c) (West 1993) (emphasis added).
In this ease, the district court acknowledged that the terms of section 1367(e) do not expressly authorize it to remand a federal claim to state court, but the court found support for doing so in the doctrine of pendent jurisdiction as construed in Carnegie-Mellon Univ. v. Cohill,
The district court exceeded its discretionary authority in remanding the entire case pursuant to section 1367(c)(2) and (c)(4) because it remanded the ease on grounds not provided for in the controlling statute. See Thermtron Products v. Hermansdorfer,
Respondents urge this court to find, as an alternative to section 1367(c), that the district court had authority under 28 U.S.C.A. § 1441(c) to remand the entire action. We need not consider this suggestion because we agree with the district court’s conclusion that no separate and independent cause of action exists under these facts. Under section 1441(c),
[wjhenever а separate and independent claim or cause of action within the jurisdiction conferred by section 1331 of this title is joined with one or more otherwise non-removable claims or causes of action, the entire ease may be removed and the district court may determine all issues therein, or in its discretion, may remand all matters in which State law predominates.
28 U.S.C.A. § 1441(c) (West 1994). The district court correctly found that the claims here were not separate and independent. Where both federal and state causes of actions are asserted as a result of a single wrong based on a common event or transaction, no separate and independent federal claim exists under section 1441(c). American Fire & Casualty Co. v. Finn,
CONCLUSION
Because the district court exceeded its authority in remanding the properly removed federal claim, we direct the district court to reconsider its decision to remand the entire case to the state court.
REMANDED.
Notes
. For example, in deciding to remand the entire case, the district cоurt placed great emphasis on the state court's expenditure of its judicial resources during a two-year period in pre-trial matters in preparation for the case.
Dissenting Opinion
dissenting;
Because I believe that the district court correctly remanded the entire underlying case to state court, albeit under the wrong reasoning and statutory authority, I dissent. I agree with the majority that 28 U.S.C. § 1367(e) was the improper basis to support remand of the entire underlying ease, which includes a 42 U.S.C. § 1983 claim, because section 1367(c) accords a district court discretion to decline supplemental jurisdiction over state law claims in definitive situatiоns.
I. THE “SEPARATE AND INDEPENDENT CLAIM” LANGUAGE OF SECTION 1441(e)
The amendment of 28 U.S.C. § 1441(c) in 1990 resulted from the recommendation of the Federal Courts Study Committee (“Committee”), which was created by the Judicial Improvements and Access to Justice Act of 1988 to study and reрort to Congress on
The Committee recognized that the “separate and independent claim or cause of action” languаge of former section 1441(c) related to diversity cases “when the separate claim is against another, non-diverse party.” Id. The former doctrine of ancillary jurisdiction, now subsumed by supplemental jurisdiction, codified in 28 U.S.C. § 1367, allowed unrelated claims to be joined in a single lawsuit and occurred in diversity, not in federal question, cases. See 28 U.S.C. §§ 1331, 1332. Clearly, diversity jurisdiction was where “most of the difficulties with § 1441(c)” arose as courts and parties attempted to decipher the separateness or relatedness of claims. Report at 95.
Congress, however, did not repeal section 1441(e), but “modified” the statute “so as to eliminate most of the рroblems that have been encountered in attempting to administer the ‘separate and independent claim or cause of action’ test” as described by the Report. H.R.Rep. No. 101-734, 101st Cong., 2d Sess., at 22-23 (1990) (Federal Courts Study Committee Implementation Act of 1990). In a manifest attempt to restrict the application of section 1441(c) to federal question jurisdiction, as opposed to diversity jurisdiction, and to clarify the remand discretion given to district courts, Congress amended the statute in 1990 to provide:
Whenever a separate and independent claim or cause of action within the jurisdiction conferred by section 1331 of this title is joined with one or more otherwise non-removable claims or causes of action, the entire case may be removed and the district court may determine all issues therein, or, in its discretion, may remand all matters in which State law predominates.
28 U.S.C. § 1441(c) (emphasis added).
Since amended section 1441(e) concerns only federal question jurisdiction and deletes diversity jurisdiction, now covered by section 1441(b), Congress undertook to reheve federal judges from determining whether the state and federal causes of action are related or unrelated. In federal question cases, these causes of action are related. “The further аmendment to Sec. 1441(c) that would permit remand of all matters in which state law predominates also should simplify administration of the separate and independent claim removal.” Id. (emphasis added). Indeed, the congressionally edited version of section 1441(c), showing the deleted and added wording, makes plain that a deliberate choice has been made from allowing a district court to remand “all matters not otherwise within its original jurisdiction” to “may remand all matters in which State law predominates.” Id. at 50. Whereas the district court formerly had no choice in retaining a federal claim, it now may remand an entire easе, including the federal question claim, if state law predominates. See Maine v. Thiboutot,
Thus, Congress recognized that the “separate and independent claim” problem arose in diversity eases, where the “plaintiff could easily bring a single action on a federal claim and a completely unrelated state claim.” H.R.Rep. No. 101-734, at 23 (emphasis added). In contrast, Congress acknowledged that federal question jurisdiction, associated with the former doctrine of pendent jurisdiction, involves related claims. This relatedness of state and federal causes of action is so implicit that Congress determined that the amendment of section 1441(c) “would avoid the need to decide whether there is pend[e]nt jurisdiction” in removal and remand. Id.
In view of this legislative history, the majority’s use of American Fire & Casualty Co. v. Finn,
In Carnegie-Mellon Univ. v. Cohill,
II. STATUTORY INTERPRETATION AND APPLICATION
A. Principles of Statutory Constmction
We review a district court’s interpretation and application of a statute de novo. International Union v. Jim Walter Resources, Inc.,
Accordingly, courts cannot pronounce a statutory interpretation that would thwart the legislative рurpose of a particular statute. In re Trans Alaska Pipeline Rate Cases,
B. Judicial Interpretation
The congressional amendment of section 1441(c) in 1990 resulted from problematic judicial interpretations of “separate and independent claim” in the former version of the statute.
To focus on the “separate and independent claim” language of section 1441(e), as the majority and the district court have done, fails to view the statute in context or to give meaning to the ability now accorded a district court to remand “all matters in which State law predominates.” 28 U.S.C. § 1441(c). Under the majority and the district court’s interpretation, which is the former interpretation and application of section 1441(c), the district court cannot remand the
Since the 1990 amendment of section 1441(c), district courts
Significantly, in cases where the federal claim is “so intertwined with” as to be “indistinguishable from” the statе law claims, making it “very difficult, i[f] not impossible, to treat separately,” the federal court’s retaining the case only because of the federal claim “invariably” would result in a “race-to-judgment between the federal court and the state court, and the first court to decide its case might create a serious res judicata problem for the other court.” Holland,
C. Determination of State Law Predomination
Because Congress did not explain explicitly how to determine when state law predominates over federal question jurisdiction where pleadings invoke both state and federal law, “a value judgment by the federal court” is required. Martin,
The district court in this petition analyzed its reasons for concluding that state law predominates in the underlying case, although in the context of 28 U.S.C. § 1367(c)(2).
III. CONCLUSION
I conclude that the majority errs in limiting its discussion to supplemental jurisdiction under 28 U.S.C. § 1367(c), and in failing to analyze the district court’s remand of the entire underlying case under 28 U.S.C. § 1441(c), as amended. The legislative history behind the 1990 amendment of section 1441(c) reveals that “separate and independent claim” does not mean that the federal claim is unrelated to the state law claims in a federal question case. “Separate and independent claim” refers to a legitimate federal jurisdictional basis. In a ease involving both valid federal and state law claims, the district court must determine that state law claims predominate if it decides to remand the entire case. I believe that the district court correctly remanded the entire underlying case to state court based on the predominance of state law claims, although I do not endorse its statutory authority for the remand under section 1367(c), concerning supplemental jurisdiction.
Apparently, the majority sees the dilemma of trial of federal claims in federal court and trial of related state claims in state court as presenting the problems of conflicting federal and state adjudications, race to judgment and res judicata; hence the implicit suggestion to the district court that it adjudicate all claims, state and federal. Because the majority’s interpretation of “separate and independent claim” in section 1441(c) as well as its resolution makes the ability of district judges to remand all matters to state court under the statute devoid of meaning, I cannot accept it. The majority’s interpretation and resolution is particularly unsatisfactory in this underlying case where the district judge, as factfinder, has determined that state claims predominate, and that it is appropriate to adjudicate the single, lately added federal claim in state court. Because I would have dismissed the mandamus petition for the reasons explained herein and upheld the district court’s remand of the entire underlying case to state court, I respectfully dissent.
. 28 U.S.C. § 1367(c); see Palmer v. Hospital Auth.,
. In reversing the Fifth Circuit and remanding the case with instructions that it be remanded to state court, the Supreme Court concluded: "In this case, however, the District Court would not have had original jurisdiction of the suit, as first stated in the complaint, because of the presence on each side of a citizen of Texas.” Finn,
. In Carnegie-Mellon, the “single federal-law claim in the action was eliminated at an early stage of the litigation” giving the district court "a powerful reason to choose not to cоntinue to exercise jurisdiction.”
. Despite congressional efforts at clarifying § 1441(c), it is manifest that reasonable jurists continue to differ concerning the interpretation of this statute evidenced by the district court in the underlying case and the majority's view versus mine. See Burnett v. Birmingham Bd. of Educ.,
. "Prior to its amendment, section 1441(c) permitted a district court to remand any separate and independent matter ‘not otherwise within its оriginal jurisdiction.' In other words, a district court could remand the state law claims not within its original jurisdiction but was required to retain the federal law claims." Moore v. DeBiase,
. District courts have been the primary federal courts to interpret and to apply § 1441(c) since its amendment in 1990. Even the Third Circuit, which addresses amended § 1441(c) in Borough of West Mifflin v. Lancaster,
. Martin was the first federal court to interpret § 1441(c) following its amendment in 1990. District courts nationwide have relied on Martin and its progeny in our circuit and followed its reasoning. See, e.g., Bodenner v. Graves,
.See Moore, 766 E.Supp. at 1320 (“ 'Matters,' in the context of the prior version of section 1441(c), could only be interpreted to mean a discrete claim or cause of action and not the entire case____ Although Congress retained the term ‘matters,’ it eliminated the limitation to only clаims or causes of action not within the district court's original jurisdiction.”); see also Alexander,
. Recognizing that determining that state law predominates is not merely a numerical count of the respective claims, the district court in the undеrlying case used the Gibbs standard for comparing the state and federal claims “in terms of proof, of the scope of the issues raised, or of the comprehensiveness of the remedy sought.” Gibbs,
. In its remand order for the underlying case, the district judge explained:
The state judiciary has already invested substantial resources in this case, has resolved numerous discovery and other preliminary matters, and has developed familiarity and expertise over the factual and legal issues in this cause of action which this court presently lacks. It would be neither an economical nor a convenient allocation of judicial resources for this court to seize jurisdiction over this entire action at the eleventh hour of the state litigation.
Remand Order at 12.
