ROY B. DALTON, Jr., District Judge.
This cause is before the Court on the following:
Upon consideration, the Court finds that the action is due to be remanded.
This case involves allegations of breach of fiduciary duty and gross negligence in the management of startup pallet leasing company Pallet Company LLC
In his Remand Motion, Plaintiff requests that the Court abstain from exercising bankruptcy-related jurisdiction due to the "tenuous relationship" between the instant action and the Chapter 11 proceeding the Company initiated in the Delaware Bankruptcy Court. (Doc. 57, ¶ 29.) Pursuant to 28 U.S.C. § 1334(c)(1), the Court finds that Plaintiff's request is due to be granted.
District courts have original jurisdiction of all civil proceedings "related to" cases under the United States Bankruptcy Code. 28 U.S.C. § 1334(b). Where a district court has jurisdiction over a claim or cause of action under the bankruptcy jurisdiction provisions in 28 U.S.C. § 1334, a party may remove the claim or cause of action to the district court for the district where such civil action is pending. 28 U.S.C. § 1452(a).
However, Section 1334(c)(1)—known as the "permissive abstention" provision— permits district courts to abstain from hearing a particular proceeding related to a bankruptcy case "in the interest of justice, or in the interest of comity with State courts or respect for State law." In re United Container LLC, 284 B.R. 162, 176 (Bankr. S.D. Fla. 2002). Accordingly, courts have broad discretion to abstain from exercising jurisdiction over such proceedings, see Brown v. JP Morgan Chase Bank, N.A., 526 B.R. 882, 885 (M.D. Fla. 2013), and consider several factors in making this determination. In re Talisman Marina, Inc., 385 B.R. 337-338 (Bankr. M.D. Fla. 2008) (citing In re Sun Health Care, 267 B.R. 673, 678-79 (Bankr. D. Del. 2000)). Additionally, the court may remand bankruptcy-related proceedings on any equitable ground. Id.
Upon consideration, the Court finds that permissive abstention is warranted on several grounds. Particularly, Plaintiff's claims are based solely on state law, all parties to the action are non-debtors, and, as demonstrated below, this action could not have been brought in federal court on any other jurisdictional basis. As such, the Court declines to exercise bankruptcy-related jurisdiction.
In light of the Court's exercise of permissive abstention, the only remaining basis for subject matter jurisdiction is diversity jurisdiction. Pursuant to 28 U.S.C. §§ 1441 and 1446, Plaintiff contends that remand is warranted because Removal Defendants removed the instant action in violation of the forum defendant rule and the rule of unanimity. (Doc. 57, pp. 9-11.) The Court agrees.
Removal jurisdiction exists where the court would have had original jurisdiction over the action. 28 U.S.C. § 1441(a). In diversity cases, district courts have original jurisdiction over cases in which the parties are completely diverse and the amount in controversy exceeds $75,000. 28 U.S.C. § 1332(a). The defendant bears the burden of proving by a preponderance of the evidence that jurisdiction exists, Williams v. Best Buy Co., 269 F.3d 1316, 1319 (11th Cir. 2001), and "all doubts about jurisdiction should be resolved in favor of remand to state court." See Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405, 411 (11th Cir. 1999).
An action that is removable solely on the basis of diversity jurisdiction may not be removed if any defendant "is a citizen of the State in which such action is brought" 28 U.S.C. § 1441(b)(2). Additionally, all defendants in a civil action removed solely under § 1441(a) must unanimously consent to removal. 28 U.S.C. § 1446(b)(2)(A). A plaintiff seeking remand on grounds of noncompliance with these procedural rules must move for remand within thirty days after the notice of removal is filed. See 28 U.S.C. § 1447(c).
Here, Plaintiff filed his Remand Motion thirty days after Removing Defendants filed their Notice of Removal. (See Docs. 1, 57.) Therefore, Plaintiff may appropriately move for remand on the basis of procedural defects in the removal process. 28 U.S.C. § 1447(c).
Upon consideration of 28 U.S.C. §§ 1441 and 1446, the Court finds that removal is improper. First, Removing Defendants are in clear violation of the forum defendant rule as Plaintiff initiated this action in the Ninth Judicial Circuit in and for Orange County, Florida (see Doc. 2), and four of the Defendants are Florida citizens (Doc. 1, pp. 3-4). Second, unanimous consent to removal is also lacking, as only eight of the thirteen Defendants joined in removal. (See Doc. 1, p. 1.) Therefore, Plaintiff's Remand Motion is due to be granted.
Accordingly, it is hereby