MARCIA A. CRONE, District Judge.
Pending before the court is Plaintiff Michael Tilley's ("Tilley") Motion for Remand (# 8). Tilley argues that the court lacks subject matter jurisdiction of this action because Defendants Cash Money Records, Inc. ("Cash Money Records") and Universal Music Group, Inc. ("Universal Music") did not obtain consent from all properly joined and served defendants and Tilley's original petition does not present a question arising under federal law. Having considered the motion, the submissions of the parties, and the applicable law, the court is of the opinion that remand is warranted.
On June 20, 2012, Tilley filed his original petition in the 136th Judicial District Court of Jefferson County, Texas, asserting claims for breach of contract, conversion, tortious interference with contract, tortious interference with business relationship, breach of fiduciary duty, and conspiracy against Cash Money Records, Universal Music, Paul Tisdale d/b/a Green Light Music ("Tisdale"), and Young Money Records Entertainment, LLC (collectively,
There is no dispute that Cash Money Records and Universal Music were served on June 27, 2012. Whether Tisdale was properly served, however, is at issue in the instant motion. Tilley contends that service on Tisdale was perfected on July 14, 2012, while Removing Defendants aver that Tisdale was never properly served because the return of service was fatally defective. There are two returns of service in the record before the court, neither of which was included with the Notice of Removal because Removing Defendants contend that the returns did not appear on the state court's docket at the time of removal. In connection with Tilley's motion to remand, he attached a document filed in state court on July 20, 2012, by Lt. Joseph L. Toth ("Lt. Toth"), on behalf of Tisdale, requesting a stay under § 522 of the Service Member Civil Relief Act ("SMCRA").
The procedure for effectuating removal is set forth in 28 U.S.C. § 1446. Johnson v. Heublein, Inc., 227 F.3d 236, 240 (5th Cir.2000); see In re 1994 Exxon Chem. Fire, 558 F.3d 378, 391 (5th Cir.2009); Bd. of Regents of Univ. of Tex. Sys. v. Nippon Tel. & Tel. Corp., 478 F.3d 274, 278 (5th Cir.2007); Moreno Energy, Inc. v. Marathon Oil Co., 884 F.Supp.2d 577, 581-83 (S.D.Tex.2012). Section 1446(a) provides:
28 U.S.C. § 1446(a). In December 2011, § 1446 was amended as part of the Federal Courts Jurisdiction and Venue Clarification Act of 2011 ("JVCA") to, inter alia, clarify the procedural requirements for removal.
The Fifth Circuit has held that there must be a timely filed, written indication from each served defendant, or from some person purporting to act formally on the defendant's behalf and with the authority to do so, confirming that the defendant has actually consented to removal.
District courts within the Fifth Circuit have closely adhered to the requirements for removal under § 1446. See, e.g., Louisiana v. Aspect Energy, LLC, No. 2:11-CV-489, 2011 WL 3759754, at *2-3 (W.D.La. Aug. 23, 2011); Extreme Outdoors Ltd., 2008 WL 2810874, at *4-5; Rodriguez v. Nat'l R.R. Passenger Corp., 483 F.Supp.2d 553, 558 (W.D.Tex.2007). The court "must presume that a suit lies outside this limited jurisdiction, and the burden of establishing federal jurisdiction rests on the party seeking the federal forum." Howery v. Allstate Ins. Co., 243 F.3d 912, 916 (5th Cir.), cert. denied, 534 U.S. 993, 122 S.Ct. 459, 151 L.Ed.2d 377 (2001) (citing Kokkonen v. Guardian Life Ins. Co. Of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994)); see also Hertz Corp. v. Friend, 559 U.S. 77, 95-96, 130 S.Ct. 1181, 1194, 175 L.Ed.2d 1029 (2010); Boone v. Citigroup, Inc., 416 F.3d 382,
The consent requirements of § 1446(b), however, do not apply to defendants who have not been served with process. See 28 U.S.C. § 1446(b)(2)(B) ("[A]ll defendants who have been properly joined and served must join in or consent to the removal of the action.") (emphasis added). Thus, a defendant who has not been properly served need not consent to removal. See id.
Removing Defendants assert myriad grounds in support of the contention that their removal was not procedurally defective. First, they argue that Tisdale was not properly served and, thus, his consent was not necessary to remove the case. The first return of service contains several empty blanks and undoubtedly fails to comply with the Texas Rules of Civil Procedure ("Texas Rules"). The Jefferson County return of service, however, was executed by a Jefferson County constable and includes the mail receipt confirming that Tisdale was served via certified mail in Honolulu, Hawaii, on July 14, 2012. See TEX.R. CIV. P. 106(a)(2) (permitting citation to be served by "certified mail, return receipt requested"). Aside from the argument that the Jefferson County return of service was not filed with the state court, which will be discussed below, Removing Defendants do not challenge the sufficiency of the return. Therefore, Tilley has presented sufficient evidence to demonstrate that Tisdale's return of service was not defective.
Next, Removing Defendants maintain that because the state court docket sheet did not display the Jefferson County return of service at the time of removal on
In Van Duzer v. Homecomings Fin., L.L.C., the court held that remand was proper given the "doubt-filled record" regarding when a non-consenting defendant was served. No. H-10-490, 2010 WL 3824630, at *3 (S.D.Tex. Sept. 27, 2010). In that case, the removing defendants stated in their notice of removal that "according to the records of the [county district court], no defendants have been served." Id. Despite this statement, there was proof attached to the removal that at least one defendant had been served. Id. Although the served defendant consented to removal, the court stated "the fact that the district court's records nonetheless reflected `no defendants have been served,' as [removing defendant] represented, was sufficient to alert [removing defendant] not to rely on the clerk's records, which it had reason to know were not current and accurate, in ascertaining whether other defendants also had been served and were therefore required to join in its Notice of Removal." Id. at *2. In this case, although the county records allegedly did not reveal the Jefferson County return of service, Lt. Toth's filing should have alerted Removing Defendants that Tisdale had been served. Thus, the court rejects Removing Defendants' argument that they could not have reasonably known that Tisdale had been properly served. See Anglada v. Roman, No. 06 Civ. 10173, 2006 WL 3627758, at *1 (S.D.N.Y. Dec. 12, 2006) (remanding case when defendant did not obtain consent from co-defendants served prior to removal even though removing defendant found no returns of service upon checking state court records).
Although "exceptional circumstances" may relieve a defendant from § 1446's strict requirements, see Getty Oil Corp., 841 F.2d at 1263 n. 12, the Fifth Circuit has rarely excused a removing defendant from obtaining consent from co-defendants within the thirty-day period. Garner v. Hyken, Civil Action No. 10-4135, 2011 WL 1002098, at *2 (E.D.La. Mar. 18, 2011). Moreover, "[t]he few district courts that have found exceptional circumstances generally confronted situations involving bad faith, forum manipulation,
Finally, Removing Defendants assert, in a conclusory manner, that remand would be manifestly unfair due to Tisdale's request for stay. Specifically, they argue that the stay, if granted, would render Tisdale a nominal, non-participating party to the lawsuit. The Removing Defendants, however, failed to brief, and the court was unable to unearth any cases addressing, the effects of a stay under § 522 of the SMCRA on removal procedures. Moreover, Removing Defendants do not argue that Tilley has no cognizable claim against Tisdale or that he was improperly joined, which would render consent unnecessary. See 28 U.S.C. § 1446(b)(2)(B). Therefore, failure to obtain Tisdale's consent is not excused under these circumstances.
Despite maintaining a contrary position in their briefing, Removing Defendants have the burden to establish the propriety of removal. When considering a motion to remand, "[t]he removing party bears the burden of showing that federal jurisdiction exists and that removal was proper." Manguno, 276 F.3d at 723. "`This extends not only to demonstrating a jurisdictional basis for removal, but also necessary compliance with the requirements of the removal statute.'" Roth, 625 F.Supp.2d at 382 (quoting Albonetti, 520 F.Supp. at 827). In this situation, Removing Defendants have failed to demonstrate that Tisdale was not properly served prior to removal or that they had no reason to know of Tisdale's service.
Based on the foregoing analysis, the court finds that because Cash Money and