Dechow v. Gilead Scis., Inc.
Dechow v. Gilead Scis., Inc.
Opinion of the Court
On December 5, 2018 Plaintiffs Donald R. Dechow, Jr., Anthony Evans, Douglas Klein, and Victoria Scott (collectively, "Plaintiffs") filed a Motion to Remand. Dkt. No. 15. Defendant Gilead Sciences ("Defendant" or "Gilead") opposed the motion and Plaintiffs filed a reply. Dkt. Nos. 16, 19.
The Court heard oral argument on February 1, 2019 and took the matter under submission. For the following reasons, the Court DENIES Plaintiffs' Motion to Remand.
I. BACKGROUND
A. The Parties
Plaintiffs are citizens of Virginia (Dechow), Pennsylvania (Evans), New York (Klein), and Louisiana (Scott). Complaint, p. 5-6 (Dkt. No. 2-1). Plaintiffs are consumers of Defendant Gilead's tenofovir and tenofovir-based antiviral medications, Viread and Truvada. Compl. at 1. Plaintiffs were prescribed Gilead's medication for treatment or as part of a pre-exposure prophylactic program to reduce the risk of new infections. Id. at 10-12.
Defendant Gilead is a citizen of California and Delaware. Notice of Removal, p. 2 (Dkt. No. 2). Gilead is a pharmaceutical company that develops and markets prescription medicines, including Viread and Truvada. Compl. at 6.
B. Plaintiffs' Allegations
On October 19, 2018, Plaintiffs filed their Complaint in the Superior Court for Los *1053Angeles County. Plaintiffs allege that Gilead deceptively promoted two of its prescription medications-Viread and Truvada-as safe when, according to Plaintiffs, those medications can cause kidney and bone injuries. Compl. at 1-4. Plaintiffs contend that while Gilead was promoting Viread and Truvada as effective and safe for kidneys and bones, Gilead was aware of a safer and more effective alternative. Id. Additionally, Plaintiffs allege that they suffered kidney and/or bone injuries as a result of their use of Viread and Truvada. Id. at 5-6.
Plaintiffs assert claims for: (1) strict products liability (design defect and failure to warn); (2) negligent products liability (design defect and failure to warn); (3) breach of implied warranty; and (4) breach of express warranty. Compl. at 14-19.
C. Removal to This Court
On November 1, 2018, Defendant removed the case to this Court from the Superior Court of California for the County of Los Angeles. See Notice of Removal. Defendant asserts that this Court has diversity jurisdiction over the case because the parties have complete diversity and the amount in controversy exceeds $ 75,000. Id. at 2. Defendant also asserts that the forum defendant limitation on removal pursuant to
II. LEGAL STANDARD
A. Removal
Federal courts are courts of limited jurisdiction and possess only that jurisdiction as authorized by the Constitution and federal statute. Kokkonen v. Guardian Life Ins. Co. of Am. ,
Under the diversity statute,
III. DISCUSSION
A. The Court Has Subject Matter Jurisdiction.
The parties do not dispute that complete diversity exists between Plaintiffs and Defendant, and that the amount in controversy exceeds $ 75,000. The parties also do not dispute that Defendant satisfied all other procedural requirements for removal. Subject matter jurisdiction therefore depends on whether
*1054precludes removal by a resident defendant who has not been "properly joined and served."
Plaintiffs seek to remand this case to state court arguing that removal is inappropriate because there is no fear of local bias that would necessitate removal or effectuate the purposes of the removal statute. Defendant contends, however, that § 1441(b)(2)'s plain meaning must be followed and that removal was therefore proper because it filed its Notice of Removal in this Court prior to service. For the following reasons, the Court determines that § 1441(b)(2) did not bar Defendant's proper and timely removal.
1. Section 1441(b)(2) Does Not Bar Removal.
On or about October 19, 2018, Plaintiffs filed the State Court Action against Gilead in Los Angeles County Superior Court. On November 1, 2018, Gilead filed its Notice of Removal in this Court, claiming diversity jurisdiction exists under
a. The Plain Meaning of Section 1441(b)(2) is Clear and Unambiguous.
Determining whether Section 1441(b)(2) applies here is primarily an exercise in statutory interpretation. The starting point for any question of statutory interpretation is the statutory text. Hughes Aircraft Co. v. Jacobson ,
Section 1441(b)(2), referred to as the "forum defendant rule", restricts a defendant's ability to remove a case to federal court. The section provides that "[a] civil action otherwise removable solely on the basis of [diversity] jurisdiction ... may not be removed 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."
From the plain text, it follows that Congress did not intend to prohibit removal by in-state defendants who have not been properly joined and served. While the Ninth Circuit has yet to determine whether this approach is proper with respect to Section 1441(b)(2), a Third Circuit opinion adopts the same analytical framework as the Court does here. See Encompass Ins. Co. v. Stone Mansion Rest. Inc. ,
"When the statute's language is plain, the sole function of the courts-at least where the disposition required by the te[x]t is not absurd-is to enforce it according *1055to its terms." Lamie v. United States Tr. ,
While the facts here do not support Plaintiffs' position, the Court does recognize that there are differing factual scenarios that may impair or restrict proper service, where applying the plain meaning interpretation of § 1441(b)(2) could produce "absurd or bizarre results." In such situations, barring removal under Section 1441(b)(2) may be the proper approach which requires fact intensive inquiry. Further, the application of 1441(b)(2) inhibits Plaintiffs from reaping the full benefits of Federal Rule of Civil Procedure 4. Fed. R. Civ. P. 4. However, because the text of the statute is clear, and the result produced here is not absurd, the sole function of this Court is to enforce the statute according to its terms.
Neither the Supreme Court nor the Ninth Circuit has addressed this issue of pre-service removal; accordingly, the Court adopts the plain language interpretation of § 1441(b)(2) which requires a party to be properly joined and served before the forum defendant rule may limit the Court's jurisdiction.
b. Ninth Circuit Precedent Conforms With the Court's Plain Meaning Textual Interpretation of Section 1441(b)(2).
The Ninth Circuit's interpretation of
For the reasons stated above, Gilead has met its burden of demonstrating that subject matter jurisdiction exists at this time.
IV. CONCLUSION
For the foregoing reasons, the Court DENIES Plaintiffs' Motion to Remand.
IT IS SO ORDERED.
Reference
- Full Case Name
- Donald R. DECHOW Jr., Anthony Evans, Douglas Klein, and Victoria Scott, individually v. GILEAD SCIENCES, INC.
- Cited By
- 18 cases
- Status
- Published