The Lamar Company, LLC v. Mississippi Transportation Commission, No. 20-60072 (5th Cir. 2020)
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Lamar filed suit in state court against MTC, challenging a Mississippi statute governing the height of roadside billboards. After MTC removed to federal court, the district court dismissed the suit because of Lamar's failure to exhaust administrative remedies. The Fifth Circuit reversed and, on remand, the district court granted partial summary judgment, holding that the statute was unambiguous in its restriction of all billboards to forty feet. After the district court entered final judgment, MTC moved to remand to state court.
The Fifth Circuit held that there was no federal-question jurisdiction arising from Lamar's complaint at the time of removal. The court also held that MTC is not a citizen of Mississippi for diversity-jurisdiction purposes. In this case, MTC correctly identifies that subject matter jurisdiction is not present because it is the alter ego of the state and, under established doctrine, cannot be a citizen for diversity purposes. The court rejected Lamar's requests for costs, expenses, and fees -- based on MTC's late acknowledgment of error -- under 28 U.S.C. 1447(c); Federal Rule of Civil Procedure 11(c); and the Mississippi Litigation Accountability Act.
The court issued a subsequent related opinion or order on September 24, 2020.
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