Gill v. Michelin North America, Inc.
Gill v. Michelin North America, Inc.
Opinion of the Court
ORDER DENYING PLAINTIFFS’ MOTION FOR LEAVE TO AMEND COMPLAINT AND DENYING PLAINTIFFS’ MOTION TO REMAND
On this day, the court considered Plaintiff Chad S. Gill and Plaintiff Dakota James Gill’s (collectively “Plaintiffs”) “Motion for Leave to Amend Complaint” (“Motion for Leave”) [ECF No. 3], filed August 5, 2013; “Plaintiffs [sic] Motion to Remand” (“Motion to Remand”) [ECF No. 4], filed August 5, 2013; and Defendant Michelin North America, Inc.’s (“Defendant” or “MNA”) “Defendant Michelin North America, Inc.’s Response to Plaintiffs’ Motion for Leave to Amend and Motion to Remand” [ECF No. 7], filed August 16, 2013.
In their Motion for Leave, Plaintiffs request to amend their Original Complaint “to respond to Defendant Michelin’s Special Exceptions, to drop Michelin North America, Inc., d/b/a B.F. Goodrich [as a Defendant], and further to add another Defendant, EPL, Inc., d/b/a Trinity Auto Sales (‘Trinity Auto Sales’).”
A. Procedural History
On June 11, 2013, Plaintiffs filed the instant action in the District Court for the County of El Paso, 171st Judicial District, State of Texas. On June 21, 2013, Plaintiffs filed an Amended Original Petition.
On July 11, 2013, Defendant filed its “Defendant Michelin North America, Ine.’s Special Exceptions, Original Answer to Plaintiffs’ First Amended Petition and Jury Demand” in state district court. On July 12, 2013, Defendant filed a Notice of Removal to this court, pursuant to 28 U.S.C. §• 1441(a) and 28 U.S.C. § 1446(d). Plaintiffs now request this court to remand “because diversity between the parties will not exist pursuant to 28 U.S.C. § 1332(c)(1) if Plaintiffs are allowed to amend their cause of action and add a non-diverse defendant.”
In support of their Motion for Leave, Plaintiffs explain that “Defendant Michelin alleges that Plaintiffs’ damages were ‘proximately caused by the acts, omissions, or fault of third parties for whose conduct MNA is not in any way hable or responsible.’ ”
In their Motion to Remand, Plaintiffs assert that if “this motion [should] be granted, this [c]ourt would lack subject matter jurisdiction over the lawsuit pursuant to 28 U.S.C. § 1332.”
Defendant believes the court should deny Plaintiffs’ motions after applying the four-factor equitable balancing test proposed by the Fifth Circuit in Hensgens v. Deere & Co.
I. APPLICABLE LAW
When a civil action over which federal district courts would have original jurisdiction is brought in state court, it may be removed to federal court.
The “state court complaint as it exists at the time of removal” determines if removal is proper.
II. DISCUSSION
“If after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction, the court may deny joinder, or permit joinder and remand the action to the State court.”
A district court, “when faced with an amended pleading naming a new nondi-verse defendant in a removed case, should scrutinize that amendment more closely than an ordinary amendment.”
The Fifth Circuit identified the following factors “to balance the defendant’s interests in maintaining the federal forum with the competing interests of not having parallel lawsuits:” (1) the extent to which the purpose of the amendment is to defeat federal jurisdiction; (2) whether plaintiff has been dilatory in asking for amendment; (3) whether plaintiff will be significantly injured if amendment is not allowed; (4) and any other factors bearing on the equities.
A. Whether the Purpose of the Amendment is to Defeat Federal Jurisdiction
Under the first factor, the court will look to whether Plaintiffs timely stated a cognizable claim against the proposed new defendant.
any action against a manufacturer or seller for recovery of damages arising out of personal injury, death, or property damage allegedly caused by a defective product whether the action is based in strict tort liability, strict products liability, negligence, misrepresentation, breach of express or implied warranty, or any other theory or combination of theories.32
Section 82.003 of Texas Civil Practice & Remedies Code “provides blanket protection for nonmanufacturing sellers of products from liability for injuries caused by a defective product unless one of the specified exceptions apply.”
Section 82.003(a)(5) provides that a seller may be liable for an “express factual representation about an aspect of the product” if the representation was “incorrect; the claimant relied on the representation in obtaining or using the product; and if the aspect of the product had been as represented the claimant would not have been harmed by the product or would not have suffered the same degree of harm.”
In In re Yamaha Motor Corp. Rhino ATV Products Liab. Litig.
Similarly, Plaintiffs merely allege that Trinity Auto Sales represented that the Dodge Ram pickup at issue — and thus its component tire — was a “good truck” (i.e. that the product was safe).
To the extent Plaintiffs allege a cause- of action under Section 82.003(a)(4) for “failing to warn Plaintiffs of potential injury by use of the tire in question,”
Courts generally find a plaintiff “is not dilatory in seeking to amend a complaint ‘when no trial or pre-trial dates were scheduled and no significant activity beyond the pleading stage has occurred.’ ”
Here, no significant activity had occurred beyond the court’s order for proposed scheduling order. Plaintiffs’ motion to amend was filed three weeks after removal. The alleged basis of liability against Trinity Auto Sales dates back to the sale of the vehicle. Thus, Plaintiffs’ failure to include Trinity Auto Sales in their Original Petition and First Amended Original Petition cannot be the result of an inadvertent oversight. More likely, Trinity Auto Sales was not included as Plaintiffs lacked a factual basis to do so. Accordingly, the court finds that the second factor weighs against allowing Plaintiffs leave to amend.
C. Whether Denying Amendment Would Cause Prejudice
As discussed supra, the court determined that it was unlikely that liability could be imposed upon Trinity Auto Sales under the facts alleged pursuant to Texas law. As such, there exists little prejudice in forcing Plaintiffs to bring a second claim against Trinity Auto Sales in state court.
D. Whether There Exist Any Other Factors Bearing On The Equities
Plaintiffs have not articulated any other factors for the court’s consideration. After considering the Hensgens factors, the court denies Plaintiffs’ requested amendment and Plaintiffs will not be permitted to add Trinity Auto Sales as a non-diverse defendant in the above-captioned cause.
III. CONCLUSION
On balance, Defendant’s right to a federal forum outweighs Plaintiffs’ interest in
. Mot. for Leave, at 2.
. Mot. to Remand, at 2.
.Mot. to Remand at 2.
. Mot. for Leave at 2.
. Id.
. Id. at 2-3.
. Mot. to Remand, at 2.
. Id. at 5 (citing Doleac v. Michalson, 264 F.3d 470 (5th Cir. 2001)).
. 28 U.S.C. § 1447(c).
. Mot. to Remand, at 5.
. 833 F.2d 1179, 1182 (5th Cir. 1987).
. 28 U.S.C. § 1441(a).
. Id. at § 1332(a).
. Whalen v. Carter, 954 F.2d 1087, 1094 (5th Cir. 1992).
. 28 U.S.C. § 1441(b).
. Eastus v. Blue Bell Creameries, L.P., 97 F.3d 100, 106 (5th Cir. 1996).
. Acuna v. Brown & Root Inc., 200 F.3d 335, 339 (5th Cir. 2000).
. Cavallini v. State Farm Mut. Auto Ins., 44 F.3d 256, 264 (5th Cir. 1995); see also Gebbia v. Wal-Mart Stores, Inc., 233 F.3d 880, 883 (5th Cir. 2000); St. Paul Rein. Co. v. Greenberg, 134 F.3d 1250, 1253 (5th Cir. 1998).
. 28 U.S.C. § 1447(c).
. 28 U.S.C. § 1447(e).
. Id.
. See Cobb v. Delta Exports, Inc., 186 F.3d 675, 678 (5th Cir. 1999).
. Hensgens v. Deere & Co., 833 F.2d 1179, 1182 (5th Cir. 1987), cert. denied, 493 U.S. 851, 110 S.Ct. 150, 107 L.Ed.2d 108 (1989).
. Fed.R.Civ.P. 15(a).
. See Hensgens, 833 F.2d at 1182; see also Doleac, 264 F.3d at 474; Cobb, 186 F.3d at 677.
. See Hensgens, 833 F.2d at 1182.
. See Cobb, 186 F.3d at 677-78 (indicating that while fraudulent joinder analysis does not apply in evaluating a motion to amend that would add non-diverse defendants, the court should consider whether recovery is possible); see also Smith v. Robin America, Inc., Civil Action No. H-08-3565, 2009 WL 2485589, at *5 (S.D.Tex. Aug. 07, 2009) (collecting cases for the proposition that the “validity of the new cause of action is one indicator of whether the principal purpose of the proposed joinder is to defeat diversity.”).
. See Proposed Second Amend. Complaint, at ¶ 20 [ECF No. 3-1].
. Id.
. Id. at ¶ 30(B).
. See Garcia v. Nissan Motor Co., Ltd., No. Civ. A. M-05-59, 2006 WL 869944, at *2 (S.D.Tex. March 30, 2006); see also Rubin v. Daimler Chrysler Corp., et al., No. Civ. H044021, 2005 WL 1214605, at *3 (S.D.Tex. May 20, 2005).
. Tex. Civ. Prac. & Rem.Code § 82.001 (emphasis added).
. Garcia v. LG Electronics USA Inc., Civil Action No. B-11-61, 2011 WL 2517141, at *2 (S.D.Tex. June 23, 2011) (emphasis added).
. Mot. for Leave, at 2.
. Tex. Civ. Prac. & Rem.Code § 82.003(a)(5).
. Resp., at 5.
. No. 3:0 9-MD-2 016-JB C, 2009 WL 939279, at *3-4 (W.D.Ky. April 6, 2009) (applying Texas state law).
. Id. at *3.
. Id. at *3-4 (quoting Rubin, 2005 WL 1214605, at *9) (holding that "in order for a non-manufacturing seller to be held liable for injuries caused by a defective product because of a factual representation it has made, the statement must be incorrect and it must ‘independently contribute [ ] to the harm caused by the defective product.’ ”).
. Id. at *4.
. See Proposed Second Amended Complaint, at ¶ 20 [ECF No. 3-1].
. Cf. Helm v. Moog Inc., Action No. 4:11— CV-109-Y, 2011 WL 3176439, at *4 (N.D.Tex. July 27, 2011) (holding that defendants’ alleged representation that the product was safe to use in the shoulder joint to deliver continuous pain medication stated a factual basis for an actionable claim under 82.003(a)(5)); Pham v. Toyota Motor Corp., Civil Action No. 3:06-CV-576, 2007 WL 43902, at *2 (S.D.Tex. Jan. 4, 2007) (stating that the allegation that a salesperson "advocated use of the 4-Runner in ways likely to cause it to roll over” stated a factual basis for an actionable claim under 82.003(a)(5)).
. Cf. Tex. Civ. Prac. & Rem.Code § 82.003(a)(6).
. See Proposed Second Amended Complaint, at ¶ 30(B)(2).
. Tex. Civ. Prac. & Rem.Code § 82.003(a)(4).
. Cobb, 186 F.3d at 678 (suggesting that where there is no cognizable claim, joinder would never be granted so as to defeat diversity jurisdiction).
. Smith, 2009 WL 2485589, at *6 (quoting Herzog v. Johns Manville Products Corp., No. Civ. A. 02-1110, 2002 WL 31556352, at *2 (E.D.La. Nov. 15, 2002)).
. Priester v. Long Beach Mortg. Co., No. 4:10CV641, 2011 WL 6116481, at *2 (E.D.Tex. Dec. 8, 2011) (quoting Irigoyen v. State Farm Lloyds, No. 03-0324, 2004 WL 398553, at *4 (S.D.Tex. Jan. 5, 2004)); see also Phillips v. Delta Air Lines, Inc., 192 F.Supp.2d 727, 729 (E.D.Tex. 2001).
. See Smith, 2009 WL 2485589, at *6.
.See Roof Toppers of El Paso, Inc. v. Weatherproofing Technologies, Inc., 949 F.Supp.2d 669, 673-74 (W.D.Tex. 2012); see also Ehrhardt v. Elec. & Instrumentation Unlimited of La., 137 F.Supp.2d 765, 767 (E.D.Tex. 2001) (quoting Crown Life Ins. Co. v. Casteel, 22 S.W.3d 378, 390 (Tex. 2000) ("Under the one satisfaction rule, a plaintiff is entitled to only one recovery for any damages suffered ... This rule applies when multiple defendants commit the same act as well as when defendants commit technically different acts that result in a single injury.”)).
Reference
- Full Case Name
- Chad S. GILL, Individually and as Next Friend of T.L.G., a Minor, and Dakota James Gill v. MICHELIN NORTH AMERICA, Inc.
- Cited By
- 5 cases
- Status
- Published