In re SURINAM AIRWAYS HOLDING COMPANY, Air Crews
International, Incorporated, International Air Leases,
Incorporated, Aircraft Tenders Associates, Incorporated,
Estate of Wilburt Rogers, Estate of Glyn Tobias, Estate of
Warren Rose, Surinaamse Luchtvaart Maatschappij, N.V., a/k/a
Surinam Airways, Ltd., a foreign corporation, Petitioners.
No. 92-4456.
United States Court of Appeals,
Eleventh Circuit.
Sept. 23, 1992.
Aurora Ares, Ralph P. Richard, Thornton, David, Murray, Richard & Davis, P.A., Miami, Fla., for Sahc, IAL, Surinam Airways, Estates.
David McDonald, McDonald & McDonald, Miami, Fla., for Aircrews.
Carl H. Hoffman, Jr., Hoffman & Hertzig, P.A., Coral Gables, Fla., for opposing counsel.
Arthur Moller, III, Miami, Fla., for Aircraft Tenders.
On Petition for Writ of Mandamus to the United States District Court for the Southern District of Florida.
Before FAY, KRAVITCH, and COX, Circuit Judges.
FAY, Circuit Judge:
This case comes before the court on a joint petition for a writ of mandamus. The petitioners are the defendants and third-party defendant in two consolidated wrongful death actions. They claim that this court should issue a writ of mandamus because the district court erroneously concluded that it had discretion to remand the plaintiffs' claims to state court despite its acknowledged jurisdiction over both the plaintiffs' claims and the third-party claims asserted in the consolidated actions. In an alternative attempt to obtain relief from the district court's partial remand order, the petitioners have also filed a notice of appeal. For the reasons that follow, we now GRANT the joint petition for writ of mandamus.
I. BACKGROUND
This case arose from the June 7, 1989 crash of a transatlantic flight originating in Amsterdam, the Netherlands, and destined for Paramaribo, Surinam. As a result of the air crash, Carmelita Dolores Tauwnaar and Eveline Esseline Susana Kogeldans-Pinas each filed a wrongful death action in the Circuit Court for the Eleventh Judicial Circuit in and for Dade County, Florida. Each complaint sought relief from a number of Florida-based corporations and from the estates of the deceased cockpit crew.1 The plaintiffs' claims, premised on state law, alleged that the named defendants--not the air carrier--were "actually responsible for the operation, maintenance and piloting of the aircraft." See, e.g., Tauwnaar Complaint at 6. As a result, the plaintiffs deliberately chose not to name the air carrier, Surinaamse Luchtvaart Maatschappij, N.V., a/k/a Surinam Airways, Ltd. ("Surinam Airways"), as a defendant. Nonetheless, one of the named defendants, Air Crews International, Inc., impleaded Surinam Airways into each state court action as a third-party defendant. The third-party complaints asserted indemnity, contribution, and breach of contract claims against Surinam Airways.
Having been brought into the two state court actions as a third-party defendant, Surinam Airways filed notices of removal pursuant to 28 U.S.C. § 1441(d). The defendants also joined in these notices, setting forth an alternative basis for removal under 28 U.S.C. § 1441(b).2
Shortly after the notices of removal were filed, the parties filed a number of motions in the district court. Included among these motions were the plaintiffs' motions to remand their cases to state court. The district court consolidated the two cases and referred all pretrial matters to a United States magistrate judge. That magistrate judge then recommended that the motions to remand be denied. Nonetheless, in its "Order of Remand in Part," the district court decided to remand the plaintiffs' claims and to retain jurisdiction solely over the third-party claims asserted against Surinam Airways. The petitioners then sought review of that order in this court, filing both a petition for writ of mandamus and a notice of appeal. The petitioners also filed a motion seeking to stay the partial remand order pending review in this court. We granted that motion and stayed the district court's order.
II. REVIEWABILITY OF A REMAND ORDER
Normally, an order remanding a case to state court is not reviewable by appeal or otherwise. 28 U.S.C. § 1447(d). However, the Supreme Court has recognized a narrow exception to this rule in cases where a remand order is based on reasons not authorized by 28 U.S.C. § 1447(c).3 Thermtron Prods., Inc. v. Hermansdorfer,
In remanding the plaintiffs' claims to state court, the district court concluded neither that it lacked jurisdiction over the plaintiffs' claims nor that a defect in removal procedure had occurred. See Order of Remand in Part at 6 ("[T]he main claims are within the Court's supplemental jurisdiction and are removable along with the third-party claims.").4 Instead, the district court determined that its jurisdiction over the plaintiffs' claims was in the nature of supplemental jurisdiction conferred by 28 U.S.C. § 1367. Because the court concluded that its jurisdiction over the plaintiffs' claims was supplemental, the court further determined that it could decline the exercise of that supplemental jurisdiction as a discretionary matter governed by § 1367(c). The court then declined the exercise of supplemental jurisdiction over the plaintiffs' removed claims and directed that those claims be remanded to state court.
These conclusions and this basis for remanding the plaintiffs' claims bring the district court's partial remand order within the Thermtron exception to § 1447(d). A remand order pursuant to 28 U.S.C. § 1367(c) is not premised on § 1447(c) because it is a discretionary decision declining the exercise of expressly acknowledged jurisdiction. It is not a remand premised on either a defect in removal procedure or a lack of jurisdiction. As a result, an order expressly remanding pursuant to § 1367(c) is reviewable. See Thermtron,
The actions now before this court were removed to district court pursuant to 28 U.S.C. § 1441(b) and (d). Under § 1441(d), "[a]ny civil action brought in State court against a foreign state" may be removed to federal court by the foreign state.5 Clearly, Surinam Airways is an "agency or instrumentality of a foreign state" under 28 U.S.C. § 1603(b),6 and it is thus a "foreign state" for purposes of § 1441(d). See 28 U.S.C. §§ 1441(d), 1603. Moreover, Surinam Airways waived any immunity to which it may have been entitled as a "foreign state." See 28 U.S.C. § 1605. Accordingly, removal pursuant to § 1441(d) was proper.7 Yet, the mere fact that § 1441(d) authorized removal under these circumstances does not resolve the issues before this court. We must still determine: (1) which claims were removed under § 1441(d), and (2) which of the removed claims, if any, could then be remanded to state court.
A. Claims Subject to Removal under 28 U.S.C. § 1441(d)
Because the language of § 1441(d) authorizes removal by a "foreign state" after it has been impleaded into a case as a third-party defendant, it should be clear that § 1441(d) must remove, at a minimum, the third-party claims asserted against the "foreign state." Accordingly, the notices of removal filed in the plaintiffs' cases removed the third-party claims against Surinam Airways to federal court. We must next determine, however, whether § 1441(d) also removed the plaintiffs' claims against the defendants.
In making this determination, we recognize that "a grant of jurisdiction over claims involving particular parties does not itself confer jurisdiction over additional claims by or against different parties." Finley v. United States,
The district court's partial remand order focussed on the "civil action ... against a foreign state" language in § 1441(d), apparently finding that language to mean that either a "third-party action against a foreign state" or a "main action against a foreign state" could be removed pursuant to § 1441(d), depending upon whether the claims asserted against the foreign state were set forth in the initial complaint or in the third-party complaint. See Order of Remand in Part at 3. Although we agree that the language of § 1441(d) can conceivably be read in such a way, we simply do not believe that Congress intended that interpretation. Instead, the language and legislative history of § 1441(d) lead us to conclude that, where a claim has been filed against a foreign state, Congress did not intend removal jurisdiction to be limited to some subset of the claims or parties involved in that action.
The language of § 1441(d) provides the starting point for our analysis. In that section, Congress chose to use the words "any civil action" rather than "any claim" to indicate the scope and effect of removal. Although such open-ended language as "any civil action" does not always serve to affirmatively grant jurisdiction over an entire case,8 the use of "any civil action" in § 1441(d) was clearly meant to grant removal jurisdiction over more than just the "claims" asserted against a foreign state. See Nolan v. Boeing Co.,
In view of the potential sensitivity of actions against foreign states and the importance of developing a uniform body of law in this area, it is important to give foreign states clear authority to remove to a Federal forum actions brought against them in the State courts. New subsection (d) of section 1441 permits the removal of any such action at the discretion of the foreign state, even if there are multiple defendants and some of these defendants desire not to remove the action or are citizens of the State in which the action has been brought.
H.R.Rep. No. 1487, 94th Cong., 2d Sess. 32, reprinted in 1976 U.S.C.C.A.N. 6604, 6631.9 Moreover, the House Judiciary Committee remarked that the Foreign Sovereign Immunities Act of 1976, which created § 1441(d), was intended to prescribe "the jurisdiction of U.S. district courts in cases involving foreign states." H.R.Rep. No. 1487, 94th Cong., 2d Sess. 12, reprinted in 1976 U.S.C.C.A.N. 6604, 6610-11 (emphasis added).
The Foreign Sovereign Immunities Act further intended to "render uniform in procedure and substance the treatment of foreign sovereigns subjected to suits in American courts." Nolan,
We recognize that Alifieris v. American Airlines, Inc.,
We disagree with the reasoning and conclusion of Alifieris and instead adopt the reasoning and conclusions of the Fifth Circuit in Nolan. The use of the words "civil action" are synonymous with the concept of an entire case when those words are not otherwise limited by accompanying language, a companion statute, or legislative history. See Nolan,
B. Claims Subject to Remand
Having determined that Surinam Airways properly removed the consolidated actions in their entireties pursuant to 28 U.S.C. § 1441(d), we next must determine whether the district court had any authority to remand the plaintiffs' claims. Under the circumstances present in this case, we cannot agree with the district court's conclusion that it could decline to exercise jurisdiction over the plaintiffs' claims and thereby remand.
Once Surinam Airways invoked federal jurisdiction by seeking removal under § 1441(d), the district court had jurisdiction over the entire "civil action," encompassing both the third party claims and the main claims asserted by the plaintiffs. The language of § 1441(d) cannot be construed to grant the district court discretion whether to exercise this jurisdiction once it determines that § 1441(d) has been properly invoked. Indeed, the above discussed legislative history of § 1441(d) shows that Congress intended to "give sovereign foreign defendants an absolute right to a federal forum coupled with an unusually strong preference for the consolidation of claims." Teledyne, Inc. v. Kone Corporation,
However, if the district court loses the bases for its jurisdiction under § 1441(d), then it will have discretion whether to remand the remaining claims to state court. Thus, if all of the third party claims against Surinam Airways are dismissed, then the district court may decline to exercise jurisdiction over the claims involving only non-sovereign defendants. Cf. Carnegie-Mellon University v. Cohill,
IV. CONCLUSION
For the reasons set forth above, we now direct the district court to rescind that portion of its order remanding the plaintiffs' claims to state court on the authority of 28 U.S.C. § 1367(c). The court is further directed to exercise its jurisdiction over all of the claims asserted in the two consolidated actions removed to the Southern District of Florida pursuant to 28 U.S.C. § 1441(d).10
COX, Circuit Judge, concurring in part and dissenting in part:
I concur in the court's holding that the remand order in this case is reviewable and that the entire action is removable under 28 U.S.C. § 1441(d). I therefore join parts I, II, and III-A of the court's opinion. However, I write separately because I believe that in actions removed under § 1441(d) the district court has discretion to remand pendent-party claims.
When a foreign state removes an action under § 1441(d), it removes the entire action. The court exercises jurisdiction not only over the claims against the foreign state, but also over the pendent-party claims in the action. The Supreme Court, in United Mine Workers v. Gibbs,
Section 1441(d) satisfies this test: section 1441(d) authorizes pendent-party jurisdiction and Article III of the Constitution permits it. As other circuits have held, section 1441(d) "provides federal jurisdiction over pendent parties, at least where ... minimal diversity exists." Teledyne, Inc. v. Kone Corp.,
The former Fifth Circuit has acknowledged that such jurisdiction under § 1441(d) is in the nature of pendent-party jurisdiction. See Arango v. Guzman Travel Advisors Corp.,
The exercise of pendent-party jurisdiction is discretionary. The Supreme Court in Gibbs remarked that the power to hear pendent claims "need not be exercised in every case in which it is found to exist.... [P]endent jurisdiction is a doctrine of discretion, not of plaintiff's right." Gibbs,
The Supreme Court explained in Carnegie-Mellon University v. Cohill,
These principles of pendent jurisdiction apply to give the district court discretion to remand pendent-party claims removed under § 1441(d). Our own circuit, applying a removal statute similar to § 1441(d), has recognized the district court's discretion to remand pendent claims. In Nadler v. Mann,
The majority correctly notes that § 1441(d) " 'give[s] sovereign foreign defendants an absolute right to a federal forum coupled with an unusually strong preference for the consolidation of claims.' " Supra p. 1260 (quoting Teledyne,
Notes
The plaintiffs are citizens of the Netherlands, as were their decedents. The defendants, on the other hand, are: Surinam Airways Holding Company, a Delaware corporation with its principal place of business in Florida; Air Crews International, Inc., a Florida corporation with its principal place of business in Florida; International Air Leases Inc., a Delaware corporation with its principal place of business in Florida; Aircraft Tenders Associates, Inc., a Florida corporation with its principal place of business in Florida; the Estate of Wilburt Rogers, a deceased citizen of North Carolina; the Estate of Glyn Tobias, a deceased citizen of Oklahoma; and the Estate of Warren Rose, a deceased citizen of Florida
These defendants asserted that the plaintiffs' claims arose exclusively under the Convention for the Unification of Certain Rules Relating to International Transportation by Air, October 12, 1929, 49 Stat. 3000, T.S. No. 876, reprinted at 49 U.S.C.App. § 1502 note ("Warsaw Convention"), and were thus removable as "arising under the Constitution, treaties or laws of the United States." See 28 U.S.C. § 1441(b)
Section 1447(c) provides in pertinent part:
A motion to remand the case on the basis of any defect in removal procedure must be made within 30 days after the filing of the notice of removal under section 1446(a). If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.
We do note, however, that the district court examined 28 U.S.C. § 1330 and determined that it lacked original jurisdiction over the plaintiffs' claims. Normally, if such a decision had led the court to remand for lack of subject matter jurisdiction, both that decision and the district court's remand order would have been unreviewable. 28 U.S.C. § 1447(d). In this case, however, the district court determined that it had subject matter jurisdiction over the plaintiffs' claims despite the perceived lack of original jurisdiction
Section 1441(d) provides:
Any civil action brought in a State court against a foreign state as defined in section 1603(a) of this title may be removed by the foreign state to the district court of the United States for the district and division embracing the place where such action is pending. Upon removal the action shall be tried by the court without jury. Where removal is based upon this subsection, the time limitations of section 1446(b) of this chapter may be enlarged at any time for cause shown.
The country of Surinam has a majority ownership interest in Surinam Airways, the national airline of Surinam. Nonetheless, Surinam Airways remains a separate legal entity organized under the laws of Surinam. It is neither a citizen of a U.S. State nor an entity created under the laws of a third country
Because we hold that the district court was required to exercise jurisdiction over the plaintiffs' claims after removal pursuant to 28 U.S.C. § 1441(d), we need not decide whether the district court erred by concluding that the defendants' removal pursuant to § 1441(b) was improper
In Ortega v. Schramm,
In Arango v. Guzman Travel Advisors Corp.,
Because the district court's partial remand order has been considered on application for mandamus relief, the appropriate vehicle for seeking relief from such an order, we shall issue a separate order disposing of the petitioners' appeal in Case No. 92-4458
Minimal diversity requires only that two adverse parties be of diverse citizenship. Teledyne,
Because our court directs the district court to rescind that portion of its order remanding the plaintiffs' claims, no purpose would be served by my addressing the issue of whether the district court properly exercised its discretion in this case
