MEMORANDUM RE: PLAINTIFFS’ MOTION TO REMAND
I. Introduction
This diversity case raises an issue that has divided courts in this District. Plaintiffs have moved to remand this action to state court on the basis of the “forum defendant rule,” 28 U.S.C. § 1441(b)(2). The forum defendant rule provides that an action cannot be removed on the basis of diversity jurisdiction “if any of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” 28 U.S.C. § 1441(b)(2) (emphasis added). Defendants argue that this rule does not bar removal here because when CSX Corporation (the out-of-state defendant) filed for removal, Conrail
II. Factual & Procedural Background
The parties do not dispute that complete diversity exists in this case. Plaintiffs are citizens of New Jersey; Defendant Conrail maintains its principal place of business in Pennsylvania, and Defendant CSX Corporation (“CSX”) is incorporated in Virginia with a principal place of business in Florida.
III. Legal Background
A. Basis for Remand
Under 28 U.S.C. § 1447(c), a plaintiff may remand an action to state court if removal was “proeedurally defective.” Snider v. Sterling Airways, Inc., No. 12-3054,
B. Relevant Tenets of Statutory Interpretation
Two well-established tenets of statutory interpretation are material to this dispute. First, “removal statutes are to be strictly construed against removal and all doubts should be resolved in favor of remand.” Steel Valley Auth. v. Union Switch & Signal Div.,
The second relevant tenet of statutory interpretation is that the plain meaning of a statute is generally, but not always, dispositive. Courts are entrusted “to construe [statutory] language so as to give, effect to the intent of Congress.” United States v. Am. Trucking Ass’ns,
C. Congressional Intent
1. Removal Statute
One of Congress’s key intentions in revising the removal statute was to limit the ability of defendants to remove cases to federal court. See American Fire & Cas. Co. v. Finn,
2. Forum Defendant Rule
The “purpose of diversity [jurisdiction] is to provide a separate forum for out-of-state citizens against the prejudices of local courts and local juries by making available to them the benefits and safeguards of the federal courts.” S.Rep. No. 1830, 85th Cong., 2d Sess., reprinted in 1958 U.S.Code Cong. & Admin. News 3099, 3102. The forum defendant rule, 28 U.S.C. § 1441(b)(2), recognizes that “the rationale for diversity jurisdiction no longer exists” when one of the defendants is a citizen of the forum state since “the likelihood of local bias is reduced, if not eliminated.” Allen v. GlaxoSmithKline PLC, No. 07-5045,
3.“Joined and Served”
The forum defendant rule prohibits removal “if any of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” 28 U.S.C. § 1441(b)(2) (emphasis added). Although there is no legislative history on the “joined and served” requirement, Sullivan v. Novartis Pharms. Corp.,
IV. The Parties’ Arguments
A. Interpretation of Forum Defendant Rule
Defendants point to opinions by Judge Bartle and Judge Ludwig
[U]nder the plain meaning of § 1441(b) an out-of-state defendant, by monitoring state court dockets electronically or otherwise, can dash to the federal courthouse almost immediately with a notice of removal before the complaint is served on it and on an in-state defendant. As a consequence of advances in technology, there may well be fewer diversity actions precluded from removal under § 1441(b) than heretofore. If this result is deemed to be bad public policy, the remedy lies with Congress which, subject to constitutional limitations, controls the scope of this court’s subject matter jurisdiction and any right of removal.
Plaintiffs counter by pointing to an opinion by Judge Rufe, as well as several decisions from the District of New Jersey, that endorse looking beyond the plain meaning of the “joined and served” requirement when a literal interpretation produces absurd results that are at odds with congressional intent. In re Avandia Marketing, Sales Practices & Prods. Liab. Litig.,
[t]he result of blindly applying the plain “properly joined and served” language of § 1441(b) is to eviscerate the purpose of the forum defendant rule. It creates a procedural anomaly whereby defendants can always avoid the imposition of the forum defendant rule so long as they monitor the state docket and remove the action to federal court before they are served by the plaintiff. In other words, a literal interpretation of the provision creates an opportunity for gamesmanship by defendants, which could not have been the intent of the' legislature in drafting the “properly joined and served” language.
2007"WL 4365312, at *5 (footnote omitted). Judge Rufe, who, agreed with the Fields and Sullivan opinions, stated that the “rationale” for the “joined and served” requirement is only “implicated” when the non-forum defendant has actually been served. Avandia,
In light of the conflicting authority within this District, the parties attempt to tip the balance in their favor by focusing on dicta in the opinion this Court issued in Allen,
Both parties claim that Allen supports their respective positions in this dispute. According to Plaintiffs, Allen supports
B. Congressional Intent
Defendants argue that the congressional intent underlying the “joined and served” requirement does not conflict with the statute’s plain meaning. Defendants premise this position on two contentions. First, Defendants claim that the absence of legislative history precludes any determination as to what Congress intended when it enacted the provision in 1948. CSX’s Br. at 14 (citing Valido-Shade,
C. “Time” of Removal v. “Date” of Removal
Arguing in the alternative, Plaintiffs argue that remand is warranted even if the Court follows the plain meaning interpretation of the “joined and served” requirement. Specifically, Plaintiffs argue that the determination of whether Conrail had been served prior to removal should focus on the “date” of removal, not the “time” of removal. Pi’s Reply Br. at 7 (citing Boyer,
V. Analysis
The position set forth by Judge Rufe (i.e., that the plain meaning of the “joined and served” requirement should not be read literally when the non-forum defendant has not yet been served) is supported by key principles of statutory interpretation as well as the weight of case law in this District — particularly in light of Chief Judge Joyner’s recently issued opinion in Snider,
A. Literal Interpretation of Statute Produces Absurd Result
The Court declines to enforce the plain meaning of 28 U.S.C. § 1441(b)(2) because doing so produces a result that is at clear odds with congressional intent. Congress intended the removal statute to “abridge the right of removal,” and the Supreme Court has instructed that courts be mindful of this intent when interpreting the statute’s meaning and effect. American Fire,
While Defendants argue that Congress has implicitly approved the plain meaning interpretation by failing to amend the “joined and served” language, it remains undisputed that Congress intended for the removal statute to limit the right of removal. Thus, Defendants’ argument fails to overcome the fact that rewarding a “race to remove” is at odds with Congress’s interest in limiting the right of removal. Under the principle, therefore, that the plain meaning of a statutory provision should not be enforced when it is clearly at odds with congressional intent, the Court will look beyond the strict, literal meaning of the statute.
B. Weight of Authority in District Is Consistent with Judge Rufe’s Position
Most of the cases in this District that have addressed the forum defendant rule have either expressly adopted, or are consistent with, the rule set forth by Judge Rufe in Avandia,
1. Chief Judge Joyner’s Opinion (January 2013)
After the parties submitted their briefs, Chief Judge Joyner issued an opinion that squarely sides with Judge Rufe’s and Plaintiffs’ position. Snider, 2013 WL
2.This Court’s Opinion in Allen
Although Defendants argue that this Court’s opinion in Allen supports the blanket rule that non-forum defendants can always remove prior to the forum defendant being served, a close reading of Allen shows that it neither endorses, nor contemplates, such a broad rule. The Allen opinion, which dealt with an unserved forum defendant, only discussed the rights of non-forum defendants in the context of distinguishing Judge McLaughlin’s opinion in Vanderwerf. See Allen,
Not only did Allen not endorse the bright line rule that Defendants assert, but its reasoning and holding highlight that the “joined and served” requirement’s plain meaning should give way when it produces an absurd result. Allen held that the “joined and served” requirement should not be read literally when the forum defendant is the party seeking removal. The Court reached this conclusion by contrasting the literal meaning with the underlying “logic and policy” of (1) diversity jurisdiction, (2) the forum defendant rule, and (3) the “joined and served” requirement. The Court stands by this analysis and finds the same considerations justify looking beyond the plain meaning of the statutory text in the instant dispute as well.
3. Judge Pratter’s Opinion
In Copley v. Wyeth, Inc., Judge Pratter held that removal was proper because the served non-forum defendant had “removed the case well before Ms. Copley joined and served the only forum defendant.” No. 09-722,
4. Judge Stengel’s Opinion
Defendants cite Judge Stengel’s opinion in Banks v. Kmart Corp., No. 12-607,
C. The Timing of Service
Even if the Court was to enforce the plain meaning of the statute, it is not at all clear that this would necessitate denial of Plaintiffs’ motion. The statute allows removal if the forum defendant has not been “joined and served.” Here, there is no dispute that on the same day that CSX filed for removal, Conrail was served. Although Defendants insist that the Court must focus on the circumstances that were present at the precise time of removal (versus the date of removal), the plain meaning of the statute does not dictate this result.
Defendants’ reliance on Westmoreland to support their “plain meaning” interpretation is misplaced. In Westmoreland, the court had to determine whether removal was justified on the basis oí federal question jurisdiction. In that distinct context, the court was justified in relying on the longstanding doctrine that removal is to be “determined according to the plaintiffs’ pleading at the time of the petition for removal.” Pullman Co. v. Jenkins,
Defendants have asked that a stay be issued on mailing a certified copy of the remand order if the Court decides (as it does) that a remand is appropriate. Surreply Br. at 1 n. 1. Defendants make this request because they believe the Third Circuit should be given an opportunity to resolve the split in authority in this District. As Defendants note, once the remand order is sent to state court, the Third Circuit will lose jurisdiction to hear the appeal.
There are several problems with Defendants’ request. First, they don’t cite any authority from either this District, or the Third Circuit, to justify a certification of appeal under similar circumstances. Second, one of the justifications they provide (i.e., that there is a public interest in resolving contradictory rulings on a “jurisdictional question”) appears inapposite because this dispute — as Defendants elsewhere recognize — is not about the Court’s subject matter jurisdiction, but about a procedural requirement in the removal statute.
VII. Conclusion
For the foregoing reasons, the Court will grant Plaintiffs’ Motion to Remand and deny Defendants’ request for a stay.
An appropriate Order follows.
ORDER RE: PLAINTIFFS’ MOTION TO REMAND
And NOW, this 8th day of February 2013, for the reasons stated in the foregoing memorandum, it is ORDERED that Plaintiffs’ Amended Motion to Remand to state court (ECF No. 15) is GRANTED and Defendants request to stay mailing a certified copy of this Order to state court (ECF No. 31) is DENIED.
The Clerk shall close this case.
Notes
. Although "Conrail'' is the named party in this dispute, its correct corporate name is Consolidated Rail Corporation.
. The Court's subject matter jurisdiction is not in doubt. See Snider,
. Pursuant to 28 U.S.C. § 1446(b)(1), a defendant must file a notice of removal within 30 days of being served.
. Defendants also claim that Judge Stengel endorsed the plain meaning approach in Banks v. Kmart Corp., No. 12-607,
. See Avandia,
. Joyner noted that he "expressed] no view on the situation some courts have confronted where a non-forum defendant which has been served files a notice of removal prior to service upon a forum defendant.” Id.
. The Court recognizes that "a long line of authority supports the proposition that when diversity of citizenship is the basis of removal, diversity must exist not only at the time the action was filed in the state court, but also at the time the case is removed to federal court.” 14B Charles Alan Wright, et al., Federal Practice and Procedure § 3723 (4th ed. 2012). Here, there is no dispute that the parties were diverse at the time of removal. The question is whether the forum defendant was properly served; this a fundamentally different question because it does not implicate the Court's subject matter jurisdiction.
. In Pullman, the Court expressly rejected Defendants' position, stating "the fact that the resident defendant has not been served with process does not justify removal by the nonresident defendant.”
. "The presence of a forum defendant in a case which otherwise satisfies the requirements of 28 U.S.C. § 1332 is [a] procedural defect [that] does not implicate this Court’s subject matter jurisdiction." Snider,
