Shanks v. Globe Metallurgical, Inc.
| Decision Date | 20 June 2019 |
| Docket Number | CIVIL ACTION NO. 2:18-cv-00505-JB-MU |
| Citation | 390 F.Supp.3d 1323 |
| Parties | Tommie Jean SHANKS, et al., Plaintiffs, v. GLOBE METALLURGICAL, INC., et al., Defendants. |
| Court | U.S. District Court — Southern District of Alabama |
This matter is before the Court on the Magistrate Judge's Report and Recommendation (Doc. 30), and Defendant A & G's Objection (Doc. 31). After de novo review of the record, and the benefit of oral argument on May 17, 2019, this Court REMANDS the action.
Stephen Jamar Shanks was injured in a job-related accident on April 24, 2018 while working for Globe Metallurgical, Inc., ("Globe") in Dallas County, Alabama. (Doc. 15, p. 3). On May 4, 2018, Plaintiffs Tommie Jean and Willie Lee Shanks, in their individual capacities and as "next to [sic ] friend(s)" of Stephen Jamar Shanks, sued Globe and several Fictitious Defendants. (Doc. 1-7, pp. 1 – 13). In their Original Complaint, Plaintiffs brought these claims against Globe and those Fictitious Defendants:
(Doc. 1-7, pp. 5 – 12). Stephen Shanks died on May 6, 2018, due to his injuries.
After Stephen's death, Plaintiffs filed their First Amended Complaint ( "FAC") in the Dallas County Circuit Court. (Doc. 1-7, pp. 191 – 204). In the FAC, Plaintiffs added Erica Acoff "both individually as a dependent of Stephen Jamar Shanks deceased, and as a next of friend to JAMAR ACOFF, a minor child and dependent of Stephen Jamar Shanks deceased." (Doc 1-7, p. 192). In the FAC, Tommie Jean and Willie Lee Shanks remained parties in their capacities as "individual(s)" and "next to [sic] friends" of Stephen Jamar Shanks. (Id. ). Plaintiffs also named Defendants A & G Manufacturing, Inc. ("A & G") and Yale Carolinas, Inc. ("Yale"), bringing third party tort claims against them. (Doc. 1-7, pp. 196 – 204). Last, Plaintiffs asserted claims against Fictitious Defendants ‘A,’ ‘B,’ and ‘C’ for the removal of safety devices. Plaintiffs identified those Fictitious Defendants:
... those Alabama resident adult citizens who were co-employees of Stephen Jamar Shanks whose willful, intentional, and otherwise wrongful acts either caused or contributed to cause the injuries and damages to the Plaintiffs, all of whose true and correct names are unknown to the Plaintiffs at this time but will be substituted by amendment once ascertained ...
(Doc. 1-7, p. 194). Plaintiffs brought these claims in their FAC:
After Plaintiffs filed their FAC, Defendant A & G, with the consent of Defendants Globe and Yale, removed this action to this Court under 28 U.S.C. §§ 1332, 1441, and 1446. In its Notice of Removal, A & G claimed this Court had diversity jurisdiction over Plaintiffs' claims against it, Yale, and Globe Manufacturing (insofar as the claims against Globe did not concern the Alabama Worker's Compensation Act). (Doc. 1, p. 2). A & G cited Lamar v. The Home Depot , 907 F. Supp. 2d 1311 (S.D. Ala. 2012), in which this Court held that when an action is removed on diversity grounds under 28 U.S.C. 1441(a) and the action contains non-removable claims under 28 U.S.C. 1445(c), the Court shall sever and remand the non-removable claims and maintain jurisdiction over the claims properly removed.3
On January 2, 2019, Plaintiffs filed their Second Amended Complaint ( "SAC"), under Rule 15(a)(1) of the Federal Rules of Civil Procedure. In the SAC, Plaintiffs substituted Scott Patterson, Steve Smith and Antonio Williams – three non-diverse co-employees – for Fictitious Defendants ‘A,’ ‘B,’ and ‘C’. (Doc. 15, pp. 2 – 3). In their SAC, Plaintiffs are pursuing these claims against Defendants Globe, A & G, Yale, and the newly-substituted co-employee Defendants:
After filing their SAC, Plaintiffs filed a Motion to Remand this action to State court (Doc. 16). In their Motion, Plaintiffs argue this Court was divested of jurisdiction following the addition of non-diverse Defendants. Plaintiffs also argue even if this Court were to hold Lamar as the law of the District, (which it does), their addition of non-diverse parties distinguishes this action from Lamar and divested this Court of subject matter jurisdiction. A & G filed a response, (Doc. 24) to which Plaintiffs filed a Sur-reply. (Doc. 29).
On March 12, 2019, Judge Murray issued a Report and Recommendation ("R & R") recommending that the entire action be remanded to the Dallas County Circuit Court, as this Court lacked subject matter jurisdiction after Plaintiffs added the three non-diverse co-employee Defendants. (Doc. 30). The R & R was based on an analysis of 28 U.S.C. § 1447(e) and authority from the Sixth Circuit. (Id. , pp. 5 – 9). Judge Murray found that the claims against the non-diverse Defendants did not arise under the Alabama Worker's Compensation Act, and therefore, that 28 U.S.C. § 1445(c) did not prohibit their removal. Rather, as those claims had been properly removed, the joinder of non-diverse parties relative to those claims, after removal, divested the Court of diversity jurisdiction.
A & G objected to Judge Murray's R & R, arguing that the claims brought against the substituted non-diverse co-employee Defendants arose under the Alabama's Worker's Compensation Act, were unremovable under 28 U.S.C. § 1445(c), and were therefore due to be severed and remanded under Lamar . A & G argued that Ala. Code § 25-5-53 displaced all common law actions against co-employees and created causes of action for "willful conduct" under Ala. Code 25-5-11(c)(2). A & G's position is that the Alabama Worker's Compensation Act provides the only means of redress Plaintiffs seek. Specifically, A & G noted the legislative and jurisprudential history of that statute. A & G contended that § 25-5-53's dictate that "the rights and remedies granted in this chapter to an employee shall exclude all other rights and remedies of the employee ... at common law, by statute, or otherwise on account of injury, loss of services, or death," combined with Ala. Code 25-5-11(d)(2)'s definition of "willful conduct," clearly indicate that Plaintiffs' co-employee claims arose under the Alabama Worker's Compensation statute. (Doc. 31, pp. 5-9). This Court conducted a hearing at which Plaintiffs' counsel argued that Ala. Code § 25-5-53 simply provided the statutory vehicle to assert co-employee "willful conduct" claims, and that such claims do not arise under Alabama's Worker's Compensation Act.
This Court agrees with Judge Murray's conclusion that the claims against A & G, Yale, and Globe were within the Court's subject matter jurisdiction at the time of removal. (Doc. 30, p. 4). All Plaintiffs were diverse from all named Defendants and the amount in controversy exceeded the threshold minimum. (Id. ). The Court, though, finds it beneficial to conduct an independent analysis as to whether the co-employee claims arise under Alabama's Worker's Compensation Act.
As noted above, Lamar directs this Court to exercise jurisdiction over claims properly removed notwithstanding other claims which arise under a state worker's compensation statute and are therefore not removable. The combination of claims properly removed under 28 U.S.C. § 1441(a) with claims that are not removable under 28 U.S.C. § 1445(c) triggers the sever and remand procedure outlined in that case. See Lamar , 907 F. Supp. 2d at n. 3. Therefore, this Court must answer whether the claims brought against the substituted non-diverse Defendants arise under the Alabama Worker's Compensation Act.6 If those claims do not arise under the Act, they were properly removed and the substitution of the non-diverse Defendants deprives this Court of diversity jurisdiction.
In his R & R, Judge Murray found that the claims against the substituted co-employees did not arise under the Alabama Worker's Compensation Act, Ala. Mun. Workers Comp. Fund, Inc. v. P.R. Diamond Prod., Inc. , 234 F. Supp. 3d 1165 (N.D. Ala. 2017). (Doc. 31, p. 12). In Diamond , the plaintiff, Alabama Municipal Worker's Compensation Fund, Inc. ("AMWCF") brought an action against PR Diamond Products, Inc. ("Diamond") pursuant to Ala. Code § 25-5-11(d). That provision gives an injured employee's employer or its insurance carrier six months to bring a tort action against a third party where the injured employee did not file a...
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McCants v. BASF Corp.
...be weighed, so too the plaintiff's interest in avoiding duplicate litigation in separate fora."). See also Shanks v. Globe Metallurgical, Inc., 390 F. Supp. 3d 1323 (S.D. Ala. 2019).7 The Court concludes that the third Hensgens factor, on balance, is neutral in terms of Plaintiff's Motion. ......