Tuesday, June 3, 2014

Appeals Court Lacks Jurisdiction Over District Court's Third Order Remanding to State Court

            Some people really, really want to be in federal court instead of state court.  In Arnold Crossroads v. Gander Mountain, No. 13-2020 (8th Cir. Jun. 2, 2014), defendant Gander tried and failed to remove the case three times.  Plaintiff filed this breach-of-lease case on February 24, 2009 in Missouri state court, seeking one month's damages of $40,000.  Defendant's first attempt at removal on the basis of diversity failed for lack of the amount-in-controversy requirement.  Defendant then filed a declaratory judgment action in federal court, which was dismissed on abstention grounds in light of the pending state case.

 

            Plaintiff eventually amended its complaint to seek millions of dollars in damages for breach of the lease's entire 15-year period, and defendant attempted to remove again, but this time failed because the effort to remove was untimely under 28 U.S.C. §1446 (one year for diversity actions). 

 

A year later, the City where the lease was to have operated intervened as a plaintiff, seeking $750,000 from defendant.  Defendant attempted a third time to remove, purporting to remove only the City.  The federal district court once again remanded, and defendant appealed. 

 

The Eighth Circuit dismissed the appeal for lack of appellate jurisdiction under 28 U.S.C. §1447(d) (an order remanding a case to the state court from which it has been removed "is not reviewable on appeal or otherwise"), because the district court's remand order was based on the "§1447(c) procedural flaw of untimely removal."  Judge Smith dissented: "I would reach the primary issue in this case and hold that Gander can remove the City's claim because that civil action involved a new party who asserted a new and original claim."

http://lawprofessors.typepad.com/civpro/2014/06/appeals-court-lacks-jurisdiction-over-district-courts-third-order-remanding-to-state-court.html

Federal Courts, Recent Decisions, Subject Matter Jurisdiction | Permalink

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