Andrew Smith et al v. Riverside Community Hospital et al

Filing 14

REMAND ORDER by Judge Otis D Wright, II remanding case to Riverside County Superior Court. cc: order, docket, remand letter to Riverside County Superior Court,No. RIC 10024647. Case Terminated. Made JS-6 (Attachments: # 1 remand letter) (lc)

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1 JS-6 2 3 4 5 6 7 8 9 10 cc: order, docket, remand letter to Riverside County Superior Court, No. RIC 10024647 11 12 13 14 UNITED STATES DISTRICT COURT 15 CENTRAL DISTRICT OF CALIFORNIA 16 17 18 19 20 21 ANDREW SMITH, et al., v. Plaintiffs, Case No. 5:12-cv-216-ODW(SPx) REMAND ORDER RIVERSIDE COMMUNITY HOSPITAL, et al., Defendants. 22 23 The Court is in receipt of the notice of removal filed by Defendants Mylan Inc., 24 Mylan Pharmaceuticals Inc., Mylan Technologi es Inc., and Mylan Institutional Inc. 25 (“Mylan defendants”). Having carefully c onsidered the papers filed i n conjunction 26 with the notice, however, the Court determines that it lacks subject matter jurisdiction 27 over this case. Accordingly, the case is hereby REMANDED to Riverside County 28 Superior Court. 1 Federal courts are courts of lim ited jurisdiction, having subject m atter 2 jurisdiction only over matters authorized by the Constitution and Congress. Kokkonen 3 v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). A suit filed in state court 4 may be removed if the federal court would have had original jurisdiction over the suit. 5 28 U.S.C. § 1441(a). A rem oved action must be remanded to state court if the federal 6 court lacks subject matter jurisdiction. 28 U.S.C. § 1447(c). 7 The party seeking removal bears the burden of establishing federal jurisdiction. 8 Durham v. Lockheed Martin Corp., 445 F.3d 1247, 1252 (9th Cir. 2006). H ere, 9 Mylan claims the Court has subject m atter jurisdiction over this sui t under diversity 10 jurisdiction because there is com plete diversity among the parties and the am ount in 11 controversy exceeds $75,000. (Notice of Removal ¶¶ 16–23.) Though this m ay be 12 correct, Mylan overlooked the temporal requirements for removal. 13 18 The removal statute states in relevant part: If the case stated by the initial plead ing is not removable, a notice of removal may be filed with in thirty days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, m otion, order or other paper from which it may first be ascertained that the case is one which is or has becom e removable, except that a cas e may not be removed on the basis of j urisdiction conferred by section 1332 of thi s title more than 1 year after commencement of the action. 28 U.S.C. § 1446(b). The exception that a case may not be re moved on diversity 19 jurisdiction more than 1 year after co mmencement applies solely to cases described in 20 this paragraph—i.e., cas es that are not 21 complaint. Ritchey v. Upjohn Drug Co., 139 F.3d 1313, 1316 (9th Cir. 1998). 14 15 16 17 removable on the face of the origi nal 22 In this case, the initial com plaint was filed in Riverside County Superior Court 23 on December 22, 2010. (Reef er Decl., Ex. UU, Shin Decl., Ex. C (Co mplaint).) At 24 the onset, the case was not removable. No federal question was presented and there 25 was no diversity of citizenship among the parties. (Id.) According to Mylan, “the last 26 remaining non-diverse defendant was dism issed from this action within thirty (30) 27 days of the filing of this Noti ce of Rem oval.” (Notice of Rem oval ¶ 14.) Mylan’s 28 notice of removal was filed with the Court on February 9, 2012. But because the case 2 1 as filed was not re movable, Mylan was re quired to rem ove within 1 year of the 2 commencement of the action, i.e., Decembe r 22, 2010. 28 U.S.C. § 1446(b). Myl an 3 exceeded this temporal boundary and therefore, removal is improper. 4 This case has one wrinkle t hat is worth noting but does not alter the analysis. 5 Mylan was not named as a defendant nor served until October 24, 2011. (Reef er 6 Decl., Ex. YYYY.) Mylan ma y argue that the 1 year lim itation should start from 7 October 24, 2011 because they were not a pa rty in the action until then. The Court 8 finds no authority standi ng for this proposition. 9 U.S. 61, 69 (1996) (“No case, however, ma y be removed from state to federal court See Caterpillar Inc. v. Lewis, 519 10 based on diversity of citizen ship more than 1 year 11 action.”). 12 after commencement of the Further, case l aw disregards the servic e of a defendant in the calculus of 13 removal jurisdiction. In Vitek, a single, unserved, non-diverse defendant prevented 14 removal by the ot her defendants that were otherwise diverse from the plaintiff. 15 Clarence E. Morris, Inc. v. Vitek, 412 F.2d 1174, 1176 (9t h Cir. 1969). The Ninth 16 Circuit reasoned that for removal jurisdiction based upon diversity, “the existence of 17 diversity is determined from the fact of c itizenship of the parties named and not from 18 the fact of service.” Id. at 1175–76. The fact that the Vitek defendant was not served 19 and made no appearance did not allow the othe r diverse defendants, that were served, 20 to remove the case to federal court. 21 Following that reasoning, it is appropriate to require a diverse defendant, who 22 was served after other non-diverse defendants, to adhere to t he same guideline. That 23 is, the existence of diversity is determ ined from the fact of citizenship of the parties 24 named in the original complaint. If the case cannot be removed on diversity grounds, 25 as determined from the initial co mplaint, then the 1 year clock starts. It m atters not 26 that later on, a diverse defendant appears in the case and desires to remove to federal 27 court. The diverse defendant is bound by the original complaint and t he other non- 28 diverse defendants, even under the circumstances in the instant case where the Mylan 3 1 defendants are now the only parties left in 2 when they were served, but greater than 1 year from when the case commenced. 3 4 5 the case, at a ti me less than 1 year fro m Accordingly, the Court REMANDS the case to Riverside County Superior Court for lack of subject matter jurisdiction. The Clerk of Court shall close this case. IT IS SO ORDERED. 6 7 May 3, 2012 8 9 10 11 _____________________________________ HON. OTIS D. WRIGHT, II UNITED STATES DISTRICT JUDGE 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4

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