KRISTI K. DuBOSE, District Judge.
This case was filed in the Circuit Court of Choctaw County, Alabama, on January 17, 2014, and removed to this Court by Defendant Parker Towing Company, Inc. ("Parker"), on February 19, 2014. (See generally Doc. 1.) On March 14, 2014, Plaintiffs timely moved to remand. See (Doc. 8); 28 U.S.C. § 1447(c). United States Magistrate Judge Katherine Nelson has entered a report and recommendation
Parker's removal presents what appears to be an issue of first impression in this Circuit — whether the current version of 28 U.S.C. § 1441(b), amended in December 2011, allows removal of in personam maritime claims solely on the basis of this Court's original admiralty and maritime jurisdiction, see 28 U.S.C. § 1333. The undersigned finds that, in this case, it does not.
Citizens of Alabama and Mississippi, the owners of real property facing on the Tombigbee River, in Choctaw County, Alabama, filed this lawsuit in state court. Plaintiffs allege that a crew employed by, and operating a tugboat owned by, Parker — a corporate citizen of Alabama — "lost control of the tugboat and the barges it was pushing, and allowed the tugboat and the barges to stray from the designated channel for navigation[,]" which resulted in "the barges slamm[ing] into the bank of the [river] with great force and violence, causing severe damage to the real property of each Plaintiff facing on the Tombigbee River." (Doc. 1-1, ¶¶ 20-24.) Plaintiffs' complaint asserts causes of action for negligence; wantonness; trespass; and private nuisance, and demands a trial by jury as to all issues.
The Court's analysis begins where it must, with the burden of removing on defendant shoulders: while "[a]ny civil case filed in state court may be removed by the defendant to federal court if the case could have been brought originally in federal court[,]" Tapscott v. MS Dealer Serv. Corp., 77 F.3d 1353, 1356 (11th Cir.1996) (citing 28 U.S.C. § 1441(a)), abrogated on other grounds by Cohen v. Office Depot, Inc., 204 F.3d 1069 (11th Cir. 2000),
At issue here is the Court's jurisdiction over certain maritime claims, which jurisdiction is concurrent with "the courts of the States[.]" 28 U.S.C. § 1333. Thus, there can be no doubt that, in this context, the Court's "removal jurisdiction raises significant federalism concerns[.]" Tapscott, 77 F.3d at 1356; see also Coronel v. AK Victory, 1 F.Supp.3d 1175, 1185, 2014 WL 820270, at *8 (W.D.Wash. Feb. 28, 2014) ("Emphasizing the joint role that state and federal governments played in developing and administering maritime law, the majority [in Romero v. International Terminal Operating Co., 358 U.S. 354,
There is no dispute that Plaintiffs' claims are maritime in nature. As such, this Court would have, if Plaintiffs chose to file these claims under this Court's admiralty jurisdiction, original subject matter jurisdiction. 28 U.S.C. § 1333(1) provides that "[t]he district courts shall have original jurisdiction, exclusive of the courts of the States, of [a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled." See also 46 U.S.C. § 30101 ("The admiralty and maritime jurisdiction of the United States extends to and includes cases of injury or damage, to person or property, caused by a vessel on navigable waters, even though the injury or damage is done or consummated on land[, and such a civil action] may be brought in rem or in personam....").
The issue now before the Court is whether this case was properly removed under this Court's admiralty jurisdiction.
The "saving to suitors" clause is "a feature of the congressional grant of original admiralty jurisdiction to the federal district courts in 28 U.S.C. § 1333[,]" "preserves a plaintiff's right to a common law remedy, not[, necessarily,] to a nonfederal forum." Perio v. Titan Maritime, LLC, Civil Action No. H-13-1754, 2013 WL 5563711, at *12 (S.D.Tex. Oct. 8, 2013) (citing The Moses Taylor, 71 U.S. (4 Wall.) 411, 431, 18 L.Ed. 397 (1867); Tennessee Gas Pipeline v. Houston Cas. Ins. Co., 87 F.3d 150, 153 (5th Cir.1996) (quoting Poirrier v. Nicklos Drilling Co., 648 F.2d 1063, 1066 (5th Cir. Unit A 1981)
Therefore, it has been made clear that common-law remedies are, "under the saving clause, enforceable in the courts of the States and on the common-law side of the lower federal courts when the diverse citizenship of the parties permitted." Romero, 358 U.S. at 363, 79 S.Ct. 468.
As explained by the Eleventh Circuit, "under the reasoning of Romero, a federal district court should not accept the removal of a saving clause case solely because of its general maritime nature:
As was their right, Plaintiffs "brought this action in state court as a civil in personam action[,]" and although they "did not denominate it as such, this case `commenced in state court as a case arising under the "saving to suitors clause"....'" Leonard v. Kern, 651 F.Supp. 263, 264 (S.D.Fla.1986) (quoting Poirrier, 648 F.2d at 1064)) (footnote omitted). It was Plaintiffs' prerogative where to file, and thus how to pursue, their in personam maritime claims (e.g., whether to elect trial by jury).
Prior to the 2012 amendment to 28 U.S.C. § 1441(b),
Parker's argument for the removability of this case is based primarily on Ryan v. Hercules Offshore, Inc., 945 F.Supp.2d 772 (S.D.Tex.2013), and other recent decisions by district courts in the Fifth Circuit following "the course set by Ryan."
As to general maritime claims, Ryan's analysis turns primarily on amended § 1441 (b)'s apparent abrogation of In re Dutile, 935 F.2d 61 (5th Cir.1991), a case no court in this Circuit has ever cited, at least in a reported decision. In In re Dutile, the in rem claims at issue did
935 F.2d at 63-64 (citing Romero, 358 U.S. at 378, 79 S.Ct. 468 (It is "clear that the words of [the `arising under'] statute do not extend, and could not reasonably be interpreted to extend, to cases of admiralty and maritime jurisdiction.")). The panel in Dutile thus concluded "admiralty and general maritime claims fall within the category of `[a]ny other [civil] action' governed by the second sentence of § 1441(b). As such, they are `removable only if none of the parties in interest properly joined and served as defendants is a citizen of the State in which the action is brought.'" Id. at 64.
This conclusion, that admiralty claims are only removable if "there is complete diversity of citizenship (predicated upon out-of-state defendants)[,]" as the panel
Some district courts in the Fifth Circuit have now abandoned the Dutile rule in light of the most recent amendment to the removal statute. As explained by one recent Fifth Circuit district court opinion,
Freeman, 2014 WL 1379786, at *4 (original footnotes omitted and emphasis added). Parker urges the same result in this case.
The amendment to § 1441(b)
Barry v. Shell Oil Co., Civil Action No. 13-6133, 2014 WL 775662, at *2 (E.D.La. Feb. 25, 2014); see also Ryan, 945 F.Supp.2d at 777 ("[T]he old version of section 1441(b) was relied upon as the `Act of Congress' that precluded federal courts from exercising removal jurisdiction unless the requirements of section 1441(b) were met; and[, since] admiralty cases do not arise under the Constitution, treaties or laws of the United States, [] admiralty cases were considered `any other such actions' under the prior version of section 1441(b) and were thus removable only if none of the parties in interest properly joined and served as defendants was a citizen of the State in which the action was brought.").
The 2012 change to the removal statute has erased language the Fifth Circuit interpreted as the basis for denying removal of in personam maritime claims. However, § 1441 was not the basis for denying removal of in personam claims in the Eleventh Circuit, or for that matter in Poirrier. The exception of § 1441 removal (i.e., "except as otherwise expressly provided by Act of Congress") never came into play, and was never discussed in Poirrier or subsequent Eleventh Circuit cases. This is because it was made clear that there is no jurisdiction in this court, based solely on § 1333, of in personam claims seeking common law remedies. Thus, where the common law is competent to provide a remedy, as with in personam maritime claims filed in state court, a plaintiff may elect to pursue his common law remedies and the case cannot be removed based on § 1333.
Here, for example, Plaintiffs' state court complaint asserts four common law
However, where a separate basis for federal jurisdiction — such as diversity — exists, a plaintiff who chooses to file his in personam maritime claims in state court does not lose his common law remedy of trial by jury upon removal. See, e.g., Manrique v. Fagan, No. 08-60501-CIV, 2009 WL 700999, at *2 (S.D.Fla. Mar. 16, 2009) (noting that removal pursuant to
In this case, remand is the only result that preserves Plaintiffs' common law remedy of trial by jury under existing law. And just as one district court in the Fifth Circuit, post amendment to § 1441(b), has recently held, a timely motion to remand a case commenced in state court pursuant to the saving clause should be granted
Thus, remand honors the balance struck in the original Congressional grant of admiralty and maritime jurisdiction to this Court. Were the Court to hold otherwise, by adopting Parker's argument that amended § 1441(b) removes all barriers to removal of in personam maritime claims lacking a separate basis for federal jurisdiction, not only would Plaintiffs be deprived of their forum of choice, but importantly, they would be deprived of their right to pursue nonmaritime remedies, a right the savings clause "protects." See, e.g., Southeastern Marine, 2010 WL 2540701, at *1 ("[T]he savings to suitors clause of 28 U.S.C. § 1333 protects `the right of a common law remedy where the common law is competent to give it.'" (quoting Lewis, 531 U.S. at 443, 121 S.Ct. 993) (emphasis added)).
For the reasons explained herein, the motion to remand (Doc. 8) is
KATHERINE P. NELSON, United States Magistrate Judge.
This case was filed in the Circuit Court of Choctaw County, Alabama on January 17, 2014, and removed to this Court by Defendant Parker Towing Company, Inc., on February 19, 2014. (See generally Doc. 1.) On March 14, 2014, Plaintiffs timely moved to remand (see Doc. 8), see 28 U.S.C. § 1447(c), and their motion has been referred to the undersigned United States Magistrate Judge for entry of a report and recommendation pursuant to 28 U.S.C. § 636(b)(1)(B) and Local Rule 72.2. Parker has filed an opposition to the motion (see Doc. 12), and Plaintiffs have filed a reply in support of remand (see Doc. 15).
Parker's removal presents what appears to be an issue of first impression in this
Citizens of Alabama and Mississippi, the owners of real property facing on the Tombigbee River, in Choctaw County, Alabama, filed this lawsuit in state court. Plaintiffs allege that a crew employed by, and operating a tugboat owned by, Parker — a corporate citizen of Alabama — "lost control of the tugboat and the barges it was pushing, and allowed the tugboat and the barges to stray from the designated channel for navigation[,]" which resulted in "the barges slamm[ing] into the bank of the [river] with great force and violence, causing severe damage to the real property of each Plaintiff facing on the Tombigbee River." (Doc. 1-1, ¶¶ 20-24.) Plaintiffs' complaint asserts causes of action for negligence; wantonness; trespass; and private nuisance, and demands a trial by jury as to all issues.
The Court's analysis begins where it must, with the burden a removing defendant shoulders: while "[a]ny civil case filed in state court may be removed by the defendant to federal court if the case could have been brought originally in federal court[,]" Tapscott v. MS Dealer Serv. Corp., 77 F.3d 1353, 1356 (11th Cir.1996) (citing 28 U.S.C. § 1441(a)), abrogated on other grounds by Cohen v. Office Depot, Inc., 204 F.3d 1069 (11th Cir.2000),
At issue here is the Court's jurisdiction over certain maritime claims, which jurisdiction is concurrent with "the courts of the States[.]" 28 U.S.C. § 1333. Thus, there can be no doubt that, in this context, the Court's "removal jurisdiction raises significant federalism concerns[.]" Tapscott, 77 F.3d at 1356; see also Coronel v. AK Victory, 1 F.Supp.3d 1175, 1185, 2014
There is no dispute that Plaintiffs' claims are maritime in nature. As such, this Court has original subject matter jurisdiction over them pursuant to 28 U.S.C. § 1333(1), which provides that "[t]he district courts shall have original jurisdiction, exclusive of the courts of the States, of [a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled." See also 46 U.S.C. § 30101 ("The admiralty and maritime jurisdiction of the United States extends to and includes cases of injury or damage, to person or property, caused by a vessel on navigable waters, even though the injury or damage is done or consummated on land[, and such a civil action] may be brought in rem or in personam...."). But the issue now before the Court is not its subject matter jurisdiction, but rather, its removal jurisdiction
While the undersigned will discuss Parker's argument that removal is proper in light of a relatively recent change to § 1441 in depth below, proper framing of the parties' dispute requires additional discussion of the saving clause upfront. That clause, "a feature of the congressional grant of original admiralty jurisdiction to the federal district courts in 28 U.S.C. § 1333[,]" "preserves a plaintiff's right to a common law remedy, not[, necessarily,] to a nonfederal forum." Perio v. Titan Maritime, LLC, Civil Action No. H-13-1754, 2013 WL 5563711, at *12 (S.D.Tex. Oct. 8, 2013) (citing The Moses Taylor, 71 U.S. (4 Wall.) 411, 431, 18 L.Ed. 397 (1867); Tennessee Gas Pipeline v. Houston Cas. Ins. Co., 87 F.3d 150, 153 (5th Cir.1996) (quoting Poirrier v. Nicklos Drilling Co., 648 F.2d 1063, 1066 (5th Cir. Unit A 1981)
As was their right, because their claims are against a corporate person, not a vessel, Plaintiffs "brought this action in state court as a civil in personam action[,]" and although they "did not denominate it as such, this case `commenced in state court as a case arising under the "saving to suitors clause"....'" Leonard v. Kern, 651 F.Supp. 263, 264 (S.D.Fla.1986) (quoting
The law is clear that, under 28 U.S.C. § 1441 as it existed prior to January 6, 2012, removal of an in personam maritime action — such as Plaintiffs' — required a "separate basis for jurisdiction." Freeman v. Phillips 66 Co., Civil Action Nos. 14-311, 14-624, 2014 WL 1379786, at *3 (E.D.La. Apr. 8, 2014); compare id. ("It is undisputed that prior to 2012, general maritime claims were not removable on the basis of admiralty jurisdiction and could be removed only if a separate basis for jurisdiction existed, such as diversity." (citing In re Dutile, 935 F.2d 61, 62-63 (5th Cir.1991)))
Parker's argument for the removability of this case is based primarily on Ryan v. Hercules Offshore, Inc., 945 F.Supp.2d 772 (S.D.Tex.2013) and other recent decisions by district courts in the Fifth Circuit following "the course set by Ryan."
As to general maritime claims, Ryan's analysis turns primarily on amended § 1441(b)'s apparent abrogation of In re Dutile, 935 F.2d 61 (5th Cir.1991), a case no court in this Circuit has ever cited, at least in a reported decision. There, the in rem claims at issue did
935 F.2d at 63-64 (citing Romero, 358 U.S. at 378, 79 S.Ct. 468 (It is "clear that the words of [the `arising under'] statute do not extend, and could not reasonably be interpreted to extend, to cases of admiralty and maritime jurisdiction.")). The panel in Dutile thus concluded "admiralty and general maritime claims fall within the category of `[a]ny other [civil] action' governed by the second sentence of § 1441(b). As such, they are `removable only if none of the parties in interest properly joined and served as defendants is a citizen of the State in which the action is brought.'" Id. at 64.
This conclusion, that admiralty claims are only removable if "there is complete diversity of citizenship (predicated upon out-of-state defendants)[,]" as the panel noted, was "not new to [Fifth Circuit] jurisprudence[,]" and the cases the court in Dutile cited are indeed also binding on this Court. Id. (citing Poirrier, 648 F.2d at 1065 (in turn citing Gaitor v. Peninsular & Occidental S.S. Co., 287 F.2d 252, 255 (5th Cir.1961) (discussing Romero))). Poirrier and Gaitor, on which Poirrier relied, however, merely recognized Romero's holding that "saving to suitor" cases are removable only if diversity exists.
Some district courts in the Fifth Circuit have now abandoned the Dutile rule in light of the most recent amendment to the
Freeman, 2014 WL 1379786, at *4 (original footnotes omitted and emphasis added).
True, the amendment to § 1441(b)
Barry v. Shell Oil Co., Civil Action No. 13-6133, 2014 WL 775662, at *2 (E.D.La. Feb. 25, 2014); see also Ryan, 945 F.Supp.2d at 777 ("[T]he old version of section 1441(b) was relied upon as the `Act of Congress' that precluded federal courts from exercising removal jurisdiction unless the requirements
While this change to the removal statute may have erased language the Fifth Circuit — but neither the Eleventh Circuit nor a district court in this Circuit has ever — interpreted as imposing an additional limitation on the removal of in personam maritime claims, § 1441(b) as amended does not alter the balance built into the original Congressional grant of admiralty and maritime jurisdiction to this Court. Pursuant to that balance, where the common law is competent to provide a remedy, as with in personam maritime claims filed in state court, a plaintiff may elect to pursue his common law remedies in a common law forum, as opposed to pursuing his claims in admiralty in a federal forum.
Here, for example, Plaintiffs' state court complaint asserts four common law claims and requests the common law remedy of trial by jury. Had Plaintiffs filed the same claims in this Court, pursuant to the only basis available to them, admiralty jurisdiction pursuant to § 1333, the remedy of trial by jury would not be available. See, e.g., Wilson, 2005 WL 3372839, at *4 ("[I]f heard on the Court's admiralty side, a trial by jury would not be available." (citing In re Graham, 747 F.2d 1383, 1387 (11th Cir. 1984))); Southeastern Marine, LLC v. Motor Yacht OCEAN CLUB, No. 3:09-cv-693-J-25TEM, 2010 WL 2540701, at *1 (M.D.Fla. June 21, 2010) ("[A]s a general matter, there is no protected right to a jury trial in an admiralty dispute." (citing Beiswenger Enters. Corp. v. Carletta, 86 F.3d 1032, 1037 (11th Cir.1996) ("[A]s in all admiralty cases, there is no right to a jury trial."); FED.R.CIV.P. 38(e) ("These rules do not create a right to a jury trial on issues in a claim that is an admiralty or maritime claim under Rule 9(h)."))); Barry, 2014 WL 775662, at *3 ("As Plaintiff's claims here are solely based on general maritime law and there is a lack of diversity
Similarly, removal of Plaintiffs' claims to this Court
In other cases, however, where a separate basis for federal jurisdiction — such as diversity — exists, a plaintiff who chooses to file his in personam maritime claims in state court does not lose his common law remedy of trial by jury upon removal. See, e.g., Manrique, 2009 WL 700999, at *2 (noting that removal pursuant to § 1332 (or § 1331) "will place the maritime case in the federal court's `law side,' thus preserving a plaintiff's right to demand jury trials (secured by first filing the action in state court)" (citing Lewis, 531 U.S. 438, 121 S.Ct. 993)); Barry, 2014 WL 775662, at *3 ("When actions are removed pursuant to
True, courts have found that a plaintiff who fails to timely contest removal of in personam maritime claims where a separate basis for federal jurisdiction is lacking, by filing a properly grounded motion to remand, can waive his common law remedies. See, e.g., Wilson, 2005 WL 3372839, at *4-5 (presenting "the question of whether an admiralty case improperly removed to federal court must be remanded where plaintiff filed a motion to remand, but failed to raise what would have been a valid `saving to suitors' argument as grounds for remand[,]" and answering no; because the Court had "original jurisdiction to hear th[e] suit because plaintiff's claims sound in admiralty and could have been filed here originally"; thus, the removal defect was waivable and the court could "only remand for procedural grounds timely raised in a motion to remand"). But that is not the case here. A timely motion to remand, invoking the saving clause as its basis, has been filed. See Coronel, 1 F.Supp.3d at 1188, 2014 WL 820270, at *10 (citation omitted) ("It is true that a few courts have found that a failure to object to removal of maritime claims waives the right to remand and effectively converts a plaintiff's claims at law into claims at admiralty. That situation, however, is not currently before the court; Plaintiff has timely objected to the removal of his claims. Due to Plaintiff's stated desire to invoke the protections of the saving to suitors clause, and in light of Romero and its progeny's emphasis on the significance of the clause, the court finds that removal to the court's admiralty jurisdiction is not appropriate.")
And just as one district court in the Fifth Circuit, post amendment to § 1441(b), has recently held, a timely motion to remand a case commenced in state court pursuant to the saving clause should be granted
For the reasons explained herein, it is
A copy of this report and recommendation shall be served on all parties in the manner provided by law. Any party who objects to this recommendation or anything in it must, within fourteen (14) days of the date of service of this document, file specific written objections with the Clerk of this Court. See 28 U.S.C. § 636(b)(1); FED.R.CIV.P. 72(b); S.D. ALA. L.R. 72.4. In order to be specific, an objection must identify the specific finding or recommendation to which objection is made, state the basis for the objection, and specify the place in the Magistrate Judge's report and recommendation where the disputed determination is found. An objection that merely incorporates by reference or refers to the briefing before the Magistrate Judge is not specific.
Notably, one decision the former Fifth Circuit cited in support of its pronouncement in Poirrier is J.J. Ryan & Sons, Inc. v. Continental Ins. Co., 369 F.Supp. 692 (D.S.C.1974), in which "Plaintiffs chose to bring the suit as a civil action in the state court under the [saving clause,] Defendant effectively [sought] to negate plaintiffs' choice through the device of removal[,]" and the court rebuffed Defendant's attempt to "emasculate" the saving clause:
369 F.Supp. at 695.
935 F.2d at 63 (quoting The Mayor v. Cooper, 73 U.S. (6 Wall.) 247, 252, 18 L.Ed. 851 (1868)) (initial emphasis provided by Dutile and underlined emphasis added).
945 F.Supp.2d at 774 (quoting Tennessee Gas Pipeline, 87 F.3d at 153 (citing Poirrier, 648 F.2d at 1066)) (initial emphasis in original; underlined emphasis added).
Id.; see also Wilson v. Suzuki of Orange Park, Inc., No. 305CV469J32TEM, 2005 WL 3372839, at *5 (M.D.Fla. Dec. 12, 2005) ("[A] court's subject matter jurisdiction defines the nature of the case and the type of relief sought [as well as] the extent to which a court can rule on the conduct of persons or the status of things, whereas removal jurisdiction encompasses those cases which a defendant has removed to the proper federal court from state court and over which the federal court could have had original jurisdiction to entertain the lawsuit. A key distinction between subject matter jurisdiction and removal jurisdiction is that defects in subject matter jurisdiction are not waivable whereas a defect in removal jurisdiction may be waivable,
Notably, one decision the former Fifth Circuit cited in support of its pronouncement in Poirrier is J.J. Ryan & Sons, Inc. v. Continental Ins. Co., 369 F.Supp. 692, 695 (D.S.C. 1974), in which "Plaintiffs chose to bring the suit as a civil action in the state court under the [saving clause,] Defendant effectively [sought] to negate plaintiffs' choice through the device of removal[,]" and the court rebuffed Defendant's attempt to "emasculate" the saving clause:
Id.
Id. at 63 (quoting The Mayor v. Cooper, 73 U.S. (6 Wall.) 247, 252, 18 L.Ed. 851 (1868)) (initial emphasis provided by Dutile and underlined emphasis added).
945 F.Supp.2d at 774 (quoting Tennessee Gas Pipeline, 87 F.3d at 153 (citing Poirrier, 648 F.2d at 1066)) (initial emphasis in original; underlined emphasis added).