Rayner v. Raytheon Co.
| Decision Date | 16 October 2003 |
| Docket Number | No. 2002-CP-00413-SCT.,2002-CP-00413-SCT. |
| Citation | 858 So.2d 132 |
| Parties | Drew Allen RAYNER v. RAYTHEON COMPANY. |
| Court | Mississippi Supreme Court |
Drew Allen Rayner, Pro se, appellant.
David C. Goff, Gulfport, Peyton S. Irby, Jackson, attorneys for appellee.
EN BANC.
ON MOTION FOR REHEARING
¶ 1. The motion for rehearing is denied. The prior per curiam affirmance is withdrawn, and this opinion is substituted therefor.
¶ 2. Representing himself, Drew Allen Rayner sued Raytheon Company in the Circuit Court of Stone County alleging that Raytheon breached a contract in which it agreed not to withhold federal income taxes from his retirement account. Based on diversity of citizenship and federal question jurisdiction, Raytheon removed the case to the U.S. District Court for the Southern District of Mississippi. Rayner filed a motion to remand. The federal district court entered a Final Judgment and Memorandum Opinion on August 14, 2001, dismissing the case for lack of subject matter jurisdiction and denying the motion to remand.
¶ 3. Rayner then filed an application for default judgment, petition for summary judgment and supporting brief in the same action in the Circuit Court of Stone County. After a hearing, the circuit court ruled that the federal district court had determined all rights and liabilities of the parties and that the circuit court lacked subject matter jurisdiction. Therefore, the circuit court dismissed with prejudice. On appeal, we modify the dismissal by the circuit court to be for lack of jurisdiction and affirm it as so modified.
¶ 4. Jurisdictional questions are subject to de novo review. Sorrells v. R & R Custom Coach Works, Inc., 636 So.2d 668, 670 (Miss.1994). When faced with jurisdictional issues, this Court sits in the same position as a trial court, with all facts as set out in the pleadings or exhibits, and may reverse regardless of whether the error is manifest. McCain Builders, Inc. v. Rescue Rooter, LLC, 797 So.2d 952, 954 (Miss.2001).
I. WHETHER THE CIRCUIT COURT ERRED IN DISMISSING RAYNER'S LAWSUIT FOR LACK OF JURISDICTION.
¶ 5. The circuit court properly denied Rayner's application for default judgment and dismissed the action for lack of jurisdiction. The circuit court lacked jurisdiction over this case once it was removed to federal district court.
¶ 6. The effect of removing an action to federal court is specified in 28 U.S.C. § 1446(d), which provides in part:
Promptly after the filing of such notice of removal of a civil action the defendant or defendants shall give written notice thereof to all adverse parties and shall file a copy of the notice with the clerk of such State court, which shall effect the removal and the State court shall proceed no further unless and until the case is remanded.
28 U.S.C. § 1446(d) (emphasis added). Thus, once removed to federal court, a case remains within the jurisdiction of the federal courts until an order is entered remanding the matter back to the state court.
¶ 7. Previously, this Court considered this same issue and stated:
.
¶ 8. In the instant case, the district court denied Rayner's motion to remand. Rayner v. Raytheon, Co., Civ. A. No. 1:00cv547GR (S.D.Miss.2001). Without a remand by the federal court, the circuit court lacked jurisdiction to proceed further. 28 U.S.C. § 1446(d).
¶ 9. We modify the decision of the circuit court only to the extent that dismissal was with prejudice. Generally, a dismissal with prejudice connotes an adjudication on the merits. See generally Foundry Sys. & Supply, Inc. v. Indus. Dev. Corp., 124 Ga.App. 589, 185 S.E.2d 94, 95 (1971)
). Thus, lacking jurisdiction, the circuit court was without authority to address the merits. The circuit court should have simply dismissed this case for lack of jurisdiction.
¶ 10. Because this case is in the federal courts, Rayner's only remedy in this case was to appeal the order of the district court to the United States Court of Appeals for the Fifth Circuit. As a matter of law, until there is a remand order, the state court cannot proceed in a case that has been removed to federal court.
¶ 13. Two wrongs do not make a right. This case demonstrates how removal jurisdiction can be used by defendants as a strategy for delay and confusion. As illustrated by the federal district court's ruling in this case, the federal courts are overwhelmed to the point of "bad law" by the repeated efforts of defendants to invoke federal court jurisdiction in an attempt to halt state court actions and drag out the proceedings. The district court's erroneous order, dismissing the plaintiff's action for lack of subject matter jurisdiction but denying a remand to state court, is a "classic tale" of the mishandling of matters due to the overwhelming caseload placed upon our federal courts. The district court's erroneous order then prompted the circuit court's erroneous order which led to this appeal and the resulting majority opinion which has cast aside the complexity of the issues. Because the circuit court erred in ordering dismissal of the plaintiff's action after the federal court dismissal, I dissent.
¶ 14. The facts of this case provide a vivid sample of the scenarios being played out in federal courts concerning removal. In November, 2000, Drew Allen Rayner (Rayner) filed his complaint in the Circuit Court of Stone County, Mississippi against Raytheon Company (Raytheon) claiming "willful, wanton, and unlawful acts of breach of contract, and conversion." His claims centered around certain documents executed between himself and Raytheon. Rayner argued he had signed certain contractual documents with regard to his retirement benefits. His complaint does not allege any federal causes of action. Rayner also chose to represent himself and did not retain counsel.
¶ 15. In December, 2000, one month after the complaint was filed, Raytheon filed a notice for removal with the U.S. District Court for the Southern District of Mississippi, Southern Division and a notice of removal in the circuit court. In March, 2001, within 6 weeks after the removal notice was filed, Rayner filed a remand motion in the district court. For seven months, Rayner diligently pursued his motion for remand attempting to secure a hearing on the matter. Ultimately, the district court issued an order in September 2001, denying Rayner's motion for remand and dismissing the action. The district court order specifically provided that "this case [is] dismissed, sua sponte, for lack of subject matter jurisdiction pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure ... plaintiff's motion to remand be and is hereby, denied as moot." The memorandum opinion, which causes much of the confusion here, provided:
Rayner is actually challenging federal income tax withholding regulations.... Because the United States is not a party to this action, and Raytheon is not the proper party to assert this claim against, Rayner has failed to state a claim upon which relief can be granted.... For the above stated reasons, this Court finds that this case should be dismissed for lack of jurisdiction. This determination renders the plaintiff's motion to remand moot, and the Court concludes that it should be denied. A separate Final Judgment in conformity with and incorporated by reference the foregoing Memorandum Opinion shall issue this date.
(citations omitted). Rayner's motion for rehearing was likewise denied. Both of these orders were without prejudice.
¶ 16. Finally, in October 2001, one year after the lawsuit was initially filed, Rayner went back to the Circuit Court of Stone County and filed a motion for a default judgment and summary judgment. After a hearing, the circuit court, in reliance on the district court's order and memorandum opinion, ordered the dismissal of Rayner's action with prejudice. The circuit court found that "the United States District Court for the Southern District of Mississippi, Southern Division ... entered its Judgment of Dismissal and that all rights and liabilities of the parties have already been determined in that case ... [t]he Court further finds that this Court is without jurisdiction since the case in this Court was removed to the United States District Court for the Southern District of Mississippi." After Rayner's petition to reconsider was denied, he appealed to this Court.
¶ 17. As one can clearly see, Rayner's action is in limbo. Who exactly has jurisdiction over the claims and if both courts lack jurisdiction over the claims then could they legally rule upon the...
To continue reading
Request your trial
-
Crawford v. Morris Transp., Inc.
...STANDARD OF REVIEW ¶ 19. Jurisdictional and statute-of-limitation issues are subject to a de novo review. Rayner v. Raytheon Co., 858 So.2d 132, 133 (Miss.2003) (citing Sorrells v. R & R Custom Coach Works, Inc., 636 So.2d 668, 670 (Miss.1994)); Stephens v. Equitable Life Assurance Soc'y of......
-
Methodist Healthcare-Olive Branch Hosp. v. McNutt
...and extinguish the right as well as the remedy." Miss. Code Ann. § 15-1-3(1) (Rev. 2019). Methodist relies also on Rayner v. Raytheon Co. , 858 So. 2d 132, 134 (Miss. 2003), which held that "[g]enerally, a dismissal with prejudice connotes an adjudication on the merits." Additionally, Metho......
-
Jackson v. Bell
...with prejudice indicates a ruling on the merits, which is not appropriate for a dismissal for want of jurisdiction”); Rayner v. Raytheon Co., 858 So.2d 132, 134 (Miss.2003) (“a dismissal with prejudice connotes an adjudication on the merits”). “If a court does not have subject matter jurisd......
-
Horne v. Mobile Area Water & Sewer System
...that is, BWSC is not an agent of the City of Mobile. STANDARD OF REVIEW ¶ 7. We review jurisdictional issues de novo. Rayner v. Raytheon Co., 858 So.2d 132, 133 (Miss.2003). When considering jurisdictional issues, the Court sits in the same position as the trial court, "with all facts as se......