Pate v. Adell Compounding, Inc.
Pate v. Adell Compounding, Inc.
Opinion of the Court
RULING ON PLAINTIFFS’ MOTION TO REMAND
This matter is before the Court on the plaintiffs’ motion to remand. Defendants timely removed this suit from the Twenty First Judicial District, Parish of Livingston, State of Louisiana.
I. FACTUAL AND PROCEDURAL HISTORY
On September 20, 1996, plaintiffs, Ulysses and Kathy Pate, filed this suit in state court against Adell Compounding, Inc. (“Adell”), DSM Copolymer, Inc. (“Copolymer”), Aristech Chemical, Inc. (“Aristeeh”), and John Doe Manufacturing Company.
On February 19, 1997, Aristech and Copolymer removed the case to federal court pursuant to 28 U.S.C. §§ 1441 and 1446. The basis for subject matter jurisdiction is diversity pursuant to 28 U.S.C. § 1332. There is no dispute the jurisdictional amount required by 28 U.S.C. § 1332 has been met. However, the controversy in this matter centers around the question of complete diversity of citizenship of the parties.
In the initial notice of removal, the defendants claimed complete diversity existed in this case since the plaintiffs were Louisiana citizens and the defendants, Aristech and Copolymer, were not Louisiana corporations for purposes of diversity. The defendants claimed, Aristech was' incorporated in Delaware with its principal place of business in Pennsylvania, and Copolymer was incorporated in Delaware with its principal place of business in Delaware.
II. ANALYSIS
A. Statement of the Law of Fraudulent Joinder
The removing party bears the heavy burden of demonstrating that the desired joinder is fraudulent and that the district court has subject matter jurisdiction to hear the claim.
The Court now turns to the issue of whether Adell and Copolymer were fraudulently joined in this case.
B. Was Adell Compounding, Inc. fraudulently joined?
In order to prove fraudulent joinder, Aristeeh must prove there is no possibility the Pates can recover against Adell in this tort action. The defendants claim Adell, as the plaintiffs employer, is immune from Ulysses Pate’s tort suit pursuant to the Louisiana Workers’ Compensation Act.
It is undisputed that Ulysses Pate was an employee in the course and scope of his employment at the Adell facility when he was injured. Yet, the Pates contend that the Louisiana Workers’ Compensation Act does not bar this suit against Ulysses Pate’s employer because Ulysses Pate’s injury was caused by an intentional tort committed by Adell.
Thus, this Court must determine whether there is any possibility that the Pates can recover from Adell for an intentional tort. In Guillory v. Domtwr Industries Inc.,
Any discussion of intentional tort in Louisiana must include the Louisiana Supreme Court’s decision in Bazley v. Tortorich
This Court discussed the precepts of Bazley in Charkhian v. National Environmental Testing, Inc.,
In an earlier opinion, Carriere v. Sears, Roebuck and Co.,
Before this Court can resolve the fraudulent joinder issue in the instant case, it is necessary for this Court to examine the original state court petition and any evidence submitted with this motion to remand regarding the intentional tort claim against Adell. Louisiana follows a system of fact pleading that requires the plaintiff to set forth facts in his petition that support each claim made.
The Pates’ petition states:
8. Upon information and belief, ADELL’s supervisors and principals knew of the dangerous propensity of the strand puller with unguarded pinch points and lack of warning placards, but made a conscious decision not to perform the necessary safety alterations to the machine; and, further, made a conscious decision to continue to require its employees to operate the machine in its obviously unsafe condition.
9. Upon information and belief, plaintiffs allege that ADELL intentionally caused the injuries suffered by PATE. Under the doctrine of respondeat superior, ADELL is held to have known of the dangerous propensities and defective design of the strand puller, and knew that an accident resulting in the nature of PATE’s injuries was substantially certain to occur when someone was required to operate equipment which was so unreasonably dangerous and unsafe.
10.Plaintiffs, further allege that ADELL’s total disregard for PATE’s safety and its conscious decision to not provide any safety guards on the strand puller constitute an intentional act under the provisions under La.R.S. 23:1032(B); and that ADELL is precluded from availing itself of the provisions of the Louisiana Workers Compensation Act, La. R.S. 23:1, et seq, which grants immunity from tort liability to the employer.
The only evidence submitted by the plaintiffs is the affidavit of Ulysses Pate wherein he attests the allegations in his petition are true and correct. This Court is not bound by the conclusory allegations of “intentional tort” in the Pates’ motion to remand.
Accordingly, just as the Fifth Circuit found in Carriere, this Court concludes the Pates’ allegations and evidence in the instant matter are insufficient to allow a fact finder to infer that Adell knew or was substantially certain that Ulysses Pate would be injured on the strand roller.
C. Was DSM Copolymer, Inc. fraudulently joined?
Before this Court discusses the merits of whether Copolymer was fraudulently joined, this Court must first address the plaintiffs’ contention that Copolymer lacks standing to raise any objection. The plaintiffs maintain, because Copolymer is an in-state defendant, it is a “non-party” and has no standing to remove and seek jurisdiction in the federal courts. The Pates cite Judge John Parker’s opinion of Jewell v. Dudley L. Moore Ins.
The Court now turns to the merits of the Copolymer fraudulent joinder inquiry. In their petition for damages, the plaintiffs contend Copolymer, as the previous owner of the Adell facility, was the manufacturer and/or designer of the strand puller that Ulysses Pate was operating at the time of his injury. The plaintiffs submit an affidavit by Ulysses Pate attesting that all of the allegations in the petition are true and correct.
Aristech, on the other hand, argues the plaintiffs have no possibility of recovering against Copolymer on this theory because the strand puller alleged to have injured Ulysses Pate was never owned, operated or manufactured by Copolymer. In fact, Aris
The plaintiffs have not set forth any summary judgment-type evidence or any other facts which would establish that there is a possibility that Copolymer could be held liable in this case. The plaintiffs only rely on the general allegations that Copolymer owned the facility prior to Adell. The Pates argue the device which caused the injury has “no manufacturer’s marks nor serial numbers, indicating that in all probability it was fabricated locally.”
In further support of their position, the plaintiffs maintain that Ginn’s affidavit “confirms” that the device in question was in the manufacturing facility when it was sold to Adell by Copolymer. The plaintiffs cite paragraph three of Ginn’s affidavit. This Court is unclear how paragraph three, or the whole affidavit for that matter, supports the Pates’ argument that the device in question was at the facility when it was sold to Adell by Copolymer. Paragraph three Ginn’s affidavit details the time frame and hours Ginn worked at the former Copolymer facility. In paragraph three, Ginn states, “I am was very familiar with all of the equipment in the facility, including a device known as the strand puller.”
The Fifth Circuit in Burden.v. General Dynamics Corp., made it very clear that a court must look beyond the plaintiffs’ arguments about the facts and examine the specific facts and evidence which have been submitted to a court to determine if there is any possibility of recovery against an allegedly fraudulently joined defendant.
CONCLUSION
This Court has not undertaken the task of determining whether the Pates will prevail on the merits. Instead, this Court has examined whether there was any possibility for the Pates to recover against Adell and Copolymer.
THEREFORE
IT IS ORDERED that the plaintiffs, motion to remand, be and it is hereby DENIED.
IT IS FURTHER ORDERED that Copolymer and Adell be dismissed as defendants in this case for reasons set forth above.
. Suit number, 77,537 B.
. John Doe defendants are ignored under the Federal Rules of Civil Procedure.
.Plaintiffs’ Petition for Damages, ¶¶ 4 and 5.
. Plaintiffs' Petition for Damages, ¶ 22.
. Defendants Notice of Removal, ¶ 6.
. Aristech’s Amended Notice of Removal, §§ I and II. Specifically, paragraphs six and nine of the original notice of removal were amended. In their Memorandum in Support of the Motion for Leave of Court to Amend Removal Pleadings, the defendants asserted that shortly after removal, Copolymer's counsel learned its principal place of business was in Baton Rouge. In a footnote, defendants explained the parties originally believed there was complete diversity in this matter based on an "incorrect report form the Secretary of State’s office.”
. 28 U.S.C. § 1332(c)(1).
. Ford v. Elsbury, 32 F.3d 931, 935 (5th Cir. 1994); Jernigan v. Ashland Oil, Inc., 989 F.2d 812, 815 (5th Cir.), cert. denied, 510 U.S. 868, 114 S.Ct. 192, 126 L.Ed.2d 150 (1993); Carriere v. Sears, Roebuck and Co., 893 F.2d 98, 100 (5th Cir.) cert. denied, 498 U.S. 817, 111 S.Ct. 60, 112 L.Ed.2d 35 (1990); Collins v. AAA Rent All, Inc., 812 F.Supp. 642, 643 (M.D.La. 1993).
. B., Inc. v. Miller Brewing Co., 663 F.2d 545, 551 n. 14 (5th Cir. 1981).
. LeJeune v. Shell Oil Co., 950 F.2d 267, 271 (5th Cir. 1992).
. Carriere, 893 F.2d at 100; B., Inc., 663 F.2d at 549 n. 9.
. Carriere, 893 F.2d at 100. Stated another way, there is no fraudulent joinder if there is arguably a reasonable basis for predicting that a Louisiana state court might impose liability on the non-diverse defendant under the facts of the case. Jernigan, 989 F.2d at 816.
. This Court has addressed the issue of fraudulent joinder in a number of recent opinions. See e.g. Hornsby v. AlliedSignal, 961 F.Supp.. 923 (M.D.La. 1997) and McCowan v. U.S. Repeating Arms, Co., Inc., Number 96-7574 (M.D.La. 1997).
. La. R.S. 23:1032, et seq.
. La. R.S. 23:1032(B). See Charkhian v. National Environmental Testing, Inc., 907 F.Supp. 961 (M.D.La. 1995).
. La. R.S. 23:1032(B).
. 95 F.3d 1320 (5th Cir. 1996).
. Guillory, 95 F.3d at 1328 (citing Bridges v. Carl E. Woodward, Inc., 663 So.2d 458 (La.App. 4th Cir. 1995), writ denied, 666 So.2d 674 (La. 1996)).
. Guillory, 95 F.3d at 1328 (citing Armstead v. Schwegmann Giant Super Markets, Inc., 618 So.2d 1140, 1142 (La.App. 4th Cir. 1993), writ denied, 629 So.2d 347 (La. 1993)). The Fifth Circuit went on to note that in order to "qualify for the very narrow intent exception, Louisiana jurisprudence requires a strong link between the employer’s conduct and the employee’s injury.” (citing Williams v. Gervais F. Favrot Co., 573 So.2d 533, 541 (La.App. 4th Cir.), writ denied, 576 So.2d 49 (La. 1991)). The Guillory Court found the parties in that case failed to provide this link in the summary judgment evidence.
. Guillory, 95 F.3d al 1327.
. 397 So.2d 475 (La. 1981).
. Bazley, 397 So.2d at 481.
. Guillory, 95 F.3d at 1327 (citing Kent v. Jomac Products, Inc., 542 So.2d 99, 100 (La.App. 1st Cir. 1989)).
. 907 F.Supp. 961 (M.D.La. 1995).
. Charkhian, 907 F.Supp. at 965.
. Charkhian, 907 F.Supp. at 965 (citing Keating v. Shell Chem. Co., 610 F.2d 328, 332 (5th Cir. 1980)).
. 893 F.2d 98 (5th Cir. 1990), cert denied, 498 U.S. 817, 111 S.Ct. 60, 112 L.Ed.2d 35 (1990).
. Mitchell v. Exxon Corp., 860 F.Supp. 332 (M.D.La. 1994).
. Mitchell, 860 F.Supp. at 335.
. Corriere v. Sears, Roebuck and Co., 893 F.2d 98 (citing B., Inc. v. Miller Brewing Co., 663 F.2d 545, 549 n. 9 (5th Cir. 1981)).
. Bourque v. Nan Ya Plastics Corp., 906 F.Supp. 348 (M.D.La. 1995).
. 893 F.2d 98, 101 (5th Cir. 1990). See also Mitchell, 860 F.Supp. at 336.
. Bourque, 906 F.Supp. at 352 (citing Tapia v. Schwegmann Giant Supermarkets, Inc., 590 So.2d 806 (La.App. 4th Cir. 1991)); Bankston v. BASF Corp., 827 F.Supp. 1239, 1240 (citing Waldrop v. Vistron Corp., 391 So.2d 1274 (La.App. 1st Cir. 1980)); Courtney v. BASF Wyandotte Corp., 385 So.2d 391 (La.App. 1st Cir.), writ denied, 386 So.2d 359 (1980). In Bourque, Judge Parker found "[k]nowledge by an employer that it utilizes hazardous chemicals and that there is a potential in the work place for accidental discharge of those products does not constitute an 'intentional act’ under Louisiana law."
.Jernigan v. Ashland Oil, Inc., 989 F.2d 812, 816 (5th Cir.), cert. denied, 510 U.S. 868, 114 S.Ct. 192, 126 L.Ed.2d 150 (1993). See generally, the second opinion in the case of Mitchell v. Exxon Corp., 907 F.Supp. 198 (M.D.La. 1995). In this opinion, the Court discussed the trend of lawyers who attempt to avoid statutory tort immunity in industrial accidents. In Mitchell, the plaintiffs argued that Exxon Corp. intentionally blew up its east coker unit at Exxon's Baton Rouge refinery. This proposition, the Court said, is "reductio ad absurdum.”
. Bourque v. Nan Ya Plastics Corp., 906 F.Supp. 348 (M.D.La. 1995) (holding that a worker who was injured when his hand was caught in a plastic press and burned by molten polyvinyl chloride could not establish a cause of action against a non-diverse defendant under the intentional act exception to workers’ compensation exclusivity, and, therefore, the non-diverse defendants co-workers were fraudulently joined); Mitchell v. Exxon Corp., 860 F.Supp. 332 (M.D.La. 1994) (holding employee who suffered damages as a result of fire and explosion that occurred on the job could not establish a cause of action against non-diverse co-employee defendants under the intentional act exceptions to the workers’ compensation exclusivity provision, and, therefore, defendant co-employees were fraudulently joined); Mitchell v. Exxon Corp., 907 F.Supp. 198 (M.D.La. 1995) (in the same case on summary judgment, the Court held that the employer did not commit an "intentional act” which would lift the bar of suit under the Louisiana Workers Compensation Act); Bankston v. BASF, 827 F.Supp. 1239, (M.D.La. 1993) (holding in an employee's action to recover for injury sustained during work against the employer and other defendants did not state an intentional tort claim against contractor).
. 872 F.Supp. 1517 (M.D.La. 1995). In Jewell, the Court noted a "federal court lacks the power to act upon any substantive motions submitted by a non-diverse party in a diversity case or to exercise subject matter jurisdiction over that parly in any fashion.” The non-diverse party in Jewell filed a notice of deposition instead of a motion. The Court found that since a non-diverse party has no real interest in the federal court proceedings, the non-diverse defendant lacks standing to participate. The Jewell Court held the magistrate judge erred by ordering plaintiff to submit to a deposition to be taken under notice issued by a non-diverse defendant.
. Plaintiffs’ Memorandum In Support of Remand, Exhibit A, Affidavit of Verification of Pleadings, Ulysses Pate.
. La. R.S. 9:2800.51, et seq.
. Plaintiffs' Memorandum In Support of Remand, p. 4.
. Defendant’s Memorandum in Opposition of Remand, Exhibit A ("Ginn's Affidavit”).
. Defendant's Supplemental Memorandum in Opposition of Remand (“Malhern's Affidavit”).
. Plaintiffs Memorandum In Support of Remand, p. 3.
. Copolymer is mentioned in only a few numbered paragraphs of the petition for damages. Paragraph 11 states: "Upon information and belief, Copolymer is the previous owner of the facility presently being operated by Adell, and sold to Adell the manufacturing facility and the equipment including the strand puller located in Denham Springs.” Paragraph 13 states: "Upon information and belief, Copolymer is the manufacturer and/or designer of the product known as the strand puller which Pate was operating the day of his injury.” Finally, Paragraph 14 states: "Defendant, Copolymer, is liable to Pate for its failure to warn of the dangerous propensity and characteristic of the strand puller.”
. Emphasis added.
. See Ginn’s Affidavit, ¶ 6; Mathem's Affidavit, ¶¶ 4-7.
. 60 F.3d 213, 218 (5th Cir. 1995).
. See e.g. Bourque v. Nan Ya Plastics Corp., 906 F.Supp. 348, 353 (M.D.La. 1995) (finding fraudulent joinder, the court accepted statements of two individuals as uncontradicted since the plaintiff "had not alleged any facts to dispute them”).
. Jeenigan v. Ashland Oil, Inc., 989 F.2d 812, 816 (5th Cir.), cert. denied, 510 U.S. 868, 114 S.Ct. 192, 126 L.Ed.2d 150 (1993).
. Burden, 60 F.3d at 217.
Reference
- Full Case Name
- Ulysses PATE and Kathy Pate v. ADELL COMPOUNDING, INC., DSM Copolymer, Inc., Aristech Chemical, Inc., and John Doe Manufacturing Company
- Cited By
- 3 cases
- Status
- Published