Williams v. Motel 6 Multipurpose, Inc., LR-C-97-991.

• Citation: 120 F.Supp.2d 776
• Decision Date: 30 September 1998
• Docket Number: No. LR-C-97-991.,LR-C-97-991.
• Parties: Bradford L. WILLIAMS, On Behalf of Himself and as Representative of a Class of All Others Similarly Situated, Plaintiff, v. MOTEL 6 MULTIPURPOSE, INC., et al., Defendants.
• Court: U.S. District Court — Eastern District of Arkansas

120 F.Supp.2d 776

Bradford L. WILLIAMS, On Behalf of Himself and as Representative of a Class of All Others Similarly Situated, Plaintiff, v. MOTEL 6 MULTIPURPOSE, INC., et al., Defendants.

No. LR-C-97-991.

United States District Court, E.D. Arkansas, Western Division.

September 30, 1998.

Steven E. Cauley, Scott E. Poynter, Law Offices of Steven E. Cauley, P.A., Henry Hodges, Henry Hodges, P.A., Little Rock, AR, Clay Ragsdale, Ansel Strickland, Law Offices of M. Clay Ragsdale, Birmingham, AL, for the Plaintiff.

Phil Campbell, Hilburn, Calhoon, Harper, Pruniski & Calhoun, Ltd., No. Little Rock, AR, for the Defendants.

ORDER

MOODY, District Judge.

Plaintiff Bradford L. Williams filed the above-styled action on October 27, 1997 in the Circuit Court of Pulaski County, Arkansas as a Class Action Complaint against defendants, owners, operators, and individual managers of "Motel 6" establishments throughout the state of Arkansas. Plaintiff alleges that defendants have engaged in systematic, unlawful and racially discriminatory practices which have subjected plaintiff and other members of the putative class to harassment and denied them full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of Motel 6 facilities on the basis of race.

Plaintiff asserts several state law causes of action against defendants, including discrimination in violation of the general provisions of the Arkansas Civil Rights Act of 1993, Ark.Code Ann. § 16-123-101 et seq.; violation of the "hate offenses" provision of the Arkansas Civil Rights Act of 1993, Ark.Code Ann. § 16-123-106; Negligent Misrepresentation; Intentional Infliction of Emotional Distress; and Public Nuisance.

In support of his causes of action, plaintiff alleges that defendants operate at least eleven Motel 6 facilities in the state of Arkansas. Plaintiff asserts that these facilities are places of public resort, accommodation, assemblage, or amusement as defined by Ark.Code Ann. § 16-123-102. He alleges that, on or about May 9, 1997, he requested and received a room at the Motel 6 in North Little Rock, Arkansas. Plaintiff alleges that, after he had checked into his room, Motel 6 called the police department and requested that the police conduct a background check on him. He claims that, when this check revealed that plaintiff had a warrant out for his arrest relating to an unpaid traffic ticket, Motel 6, without provocation or legitimate business rationale, had the police department come and arrest him. Plaintiff claims such conduct was discriminatory and forms part of a continuous and ongoing practice of racial discrimination at Motel 6 establishments throughout the state of Arkansas from at least the date of October 14, 1994 through the date of the Complaint.

Plaintiff alleges that the individually named defendants are managers of the various Motel 6 facilities in Arkansas and that each has, at all times while employed at Motel 6, maintained a systematic business practice of discriminating against Motel 6 guests and potential guests based on race. Plaintiff asserts that each of the individually named defendants is domiciled in Arkansas.

Plaintiff seeks to represent all similarly situated minority persons who have been subjected to discriminatory practices at Motel 6 establishments in the state of Arkansas between October 14, 1994 and the date of the Complaint and who have thereby suffered damages.

The Complaint requests relief in the form of compensatory and punitive damages, as well as attorney fees as provided for under the Arkansas Civil Rights Act.

Defendants removed to this Court on November 26, 1997, seeking to invoke this Court's diversity jurisdiction pursuant to 28 U.S.C. § 1332. Defendants contend that the controversy in this suit is wholly between citizens of different states in that, at the time this action was instituted in the Circuit Court of Pulaski County, Arkansas, plaintiff was and is a citizen of the state of Arkansas; the corporate defendants are Delaware corporations with their principal places of business in Dallas, Texas; and the citizenship of the individually named defendants must be disregarded for purposes of removal, pursuant to 28 U.S.C. § 1441(b), because they are merely nominal parties against whom no cognizable claim for relief has been stated and against whom the plaintiff does not intend to seek relief. Defendants claim that the individually named defendants are not proper, necessary, or indispensable parties to this litigation and have been intentionally and/or fraudulently joined to defeat diversity. Defendants further contend that plaintiff's claims constituting the matter in controversy exceed the sum or value of $75,000, exclusive of interest and costs, because plaintiff seeks punitive damages on behalf of the purported plaintiff class.

Numerous motions are now pending before the Court.

Having carefully considered the parties' arguments on the plaintiff's Motion to Remand (doc. # 12), the Court finds that the motion should be, and hereby is, granted for lack of subject matter jurisdiction. Accordingly, all other pending motions will be denied as moot.

As a court of limited jurisdiction, a federal district court has a duty to assure itself that the threshold requirement of subject matter jurisdiction has been met in every case. See Bradley v. American Postal Workers Union, AFL-CIO, 962 F.2d 800, 802 n. 3 (8th Cir.1992) (citing Sanders, infra); Thomas v. Basham, 931 F.2d 521, 523 (8th Cir.1991); Jader v. Principal Mut. Life Ins. Co., 925 F.2d 1075, 1077 (8th Cir.1991); Sanders v. Clemco Indus., 823 F.2d 214, 216 (8th Cir. 1987). "The parties ... may not confer subject matter jurisdiction upon the federal courts by stipulation, and lack of subject matter jurisdiction cannot be waived by the parties or ignored by the court." Pacific Nat'l Ins. Co. v. Transport Ins. Co., 341 F.2d 514, 516 (8th Cir.), cert. denied, 381 U.S. 912, 85 S.Ct. 1536, 14 L.Ed.2d 434 (1965). Hence, if it "appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action." Fed.R.Civ.P. 12(h)(3).

Here, defendants, as the removing parties, bear the burden of establishing federal jurisdiction. In re Business Men's Assurance Co. of Am., 992 F.2d 181 (8th Cir.1993). Having removed this case based on diversity of citizenship pursuant to 28 U.S.C. §§ 1441 and 1446, defendants must prove both complete diversity of citizenship and an amount in controversy exceeding $75,000. 28 U.S.C. § 1332(a)(1).

Diversity of Citizenship

In addition to the corporate defendants, plaintiff names individual managers of Motel 6 establishments in Arkansas as defendants. Plaintiff alleges that these individual defendants, like plaintiff, are citizens of Arkansas. Therefore, plaintiff asserts that diversity is not complete.

Defendants concede that a number of the individually named defendants Odell Basham, Nakecia Wilson, Charles Petty, Tammy Hicks, Caroline Rackley, and Theresa Medfordare citizens of the state of Arkansas. Thus, because plaintiff is a citizen of Arkansas, this action is not removable on its face. See Masepohl v. American Tobacco Co., 974 F.Supp. 1245, 1250 (D.Minn.1997). However, defendants assert that the citizenship of the individually named defendants should be disregarded because the individually named defendants are merely nominal parties against whom plaintiff is unable to state a colorable claim. Defendants claim these parties have been fraudulently joined for the purpose of defeating diversity jurisdiction.

Joinder of an in-state defendant is fraudulent "`where there is no reasonable basis in fact or colorable ground supporting the claim against the joined defendant, or no real intention in good faith to prosecute the action against the defendant or seek a joint judgment.'" Banbury v. Omnitrition Int'l, Inc., 818 F.Supp. 276, 280 (D.Minn.1993) (quoting Boyer v. Snapon Tools Corp., 913 F.2d 108, 111 (3d Cir.1990), cert. denied, 498 U.S. 1085, 111 S.Ct. 959, 112 L.Ed.2d 1046 (1991)); accord Schwenn v. Sears, Roebuck & Co., 822 F.Supp. 1453, 1455 (D.Minn.1993). Therefore, "fraudulent joinder exists if, whatever the plaintiffs' motive, their claim against an in-state defendant has no chance of success." Masepohl, 974 F.Supp. at 1250 (quoting Schwenn, 822 F.Supp. at 1455 (citation omitted)). The Court must remand this action to state court if "there is even a possibility" that plaintiff has stated a colorable cause of action against the instate defendants. See In re Business Men's Assurance Co. of Am., 992 F.2d 181, 183 (8th Cir.1993) (all doubts should be resolved in favor of remand); Banbury, 818 F.Supp. at 280 (quoting Boyer, 913 F.2d at 111).

As noted above, plaintiff's causes of action asserted in the Complaint include causes for discrimination in violation of the general provisions of the Arkansas Civil Rights Act of 1993, Ark.Code Ann. § 16-123-101 et seq.; hate offenses in violation of the Arkansas Civil Rights Act of 1993, Ark.Code Ann. § 16-123-106; Negligent Misrepresentation; Intentional Infliction of Emotional Distress; and Public Nuisance.

Arkansas does not recognize the tort of negligent misrepresentation. South County, Inc. v. First Western Loan Co., 315 Ark. 722, 726, 871 S.W.2d 325, 326 (1994). Thus, plaintiff cannot state a claim against the in-state defendants under this theory.

While asserting a cause of action for Intentional Infliction of Emotional Distress, plaintiff has alleged "no reasonable basis in fact or colorable ground supporting" such claims against any of the individually named defendants.

Nor has plaintiff alleged elements necessary to state a claim for "public nuisance" against any of the individually named defendants.

With regard to plaintiff's claims asserted under the Arkansas Civil Rights Act, the Court finds that, as in the related case of Elgin L. Bowers v. Motel 6 Multipurpose,...