H. RUSSEL HOLLAND, District Judge.
Plaintiffs move to remand this matter to state court, or, in the alternative to take jurisdictional discovery.
Plaintiffs are William Curtis, M.D., and Pedro Valdes, M.D., both of whom are alleged to be residents of Anchorage, Alaska.
Plaintiffs are cardiothoracic surgeons who had medical staff privileges at Providence Alaska Medical Center ("PAMC"). Plaintiffs allege that their staff privileges were terminated in September 2018 because PAMC had entered into an exclusive contract with Starr-Wood for cardiothoracic surgery services.
On September 4, 2018, plaintiffs commenced this action in state court, asserting anti-trust, breach of contract, breach of the implied covenant of good faith and fair dealing, unfair trade practices, and intentional interference with contract claims. Defendant was served with the complaint on September 7, 2018. On October 5, 2018, the case was removed to this court on the basis of diversity jurisdiction.
Pursuant to 28 U.S.C. § 1447(c), plaintiffs now move to remand the matter to state court, or in the alternative, to take jurisdictional discovery.
Section 1447(c) provides, in relevant part, that "[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded." "A federal court has [diversity] jurisdiction over the underlying dispute if the suit is between citizens of different states, and the amount in controversy exceeds $75,000 exclusive of interest and costs. . . ."
"[I]n a case that has been removed from state court to federal court under 28 U.S.C. § 1441 on the basis of diversity jurisdiction," such as this one, "the proponent of federal jurisdiction—typically the defendant in the substantive dispute—has the burden to prove, by a preponderance of the evidence, that removal is proper."
The removal statute, 28 U.S.C. § 1446(a), expressly provides that "[a] defendant or defendants desiring to remove any civil action from a State court shall file in the district court of the United States for the district and division within which such action is pending a notice of removal. . . ." "It is axiomatic that only a defendant may remove an action from state to federal court."
Plaintiffs argue that this case was improperly removed because it was removed by a non-party. Plaintiffs contend that Providence Health & Services — Washington ("PH&S-WA") removed the case, not defendant PH&S, because the Notice of Removal reads: "Pursuant to 28 U.S.C. §§ 1332, 1441, and 1446, Defendant Providence Health & Services — Washington, d/b/a Providence Alaska Medical Center (`Providence') hereby removes this case. . . ."
Defendant acknowledges that the Notice of Removal refers to PH&S-WA, but defendant argues that PH&S filed the Notice of Removal. As proof, defendant cites to the civil cover sheet that lists PH&S as the defendant
Defendant then suggests that plaintiffs are confused as to which Providence entity to sue because they have sued PH&S, but that the Starr-Wood contract that forms the basis of their claims was entered into by PH&S-WA, not PH&S, and that it is PH&S-WA, not PH&S, that owns and operates PAMC.
The question currently before the court is not which Providence entity is the proper defendant in this case. Rather, the question here is which Providence entity removed this case from state court. As to that question, there can be no dispute that the Notice of Removal itself expressly states that PH&S-WA was the entity that was removing the case. In addition, the declaration from Ross Newcombe which was submitted in support of the Notice of Removal concerned PH&S-WA, not defendant PH&S. Newcombe avers that he is employed by "Providence Health & Services — Washington (`Providence')" and that "Providence is a nonprofit corporation in the State of Washington with its principal place of business in Washington."
Based on the foregoing, it is clear that PH&S-WA was the entity that removed the case, and because PH&S-WA is not a party to this case, the case was improperly removed. To the extent that there is any ambiguity about which Providence entity removed the case, the case must still be remanded because "the court resolves all ambiguity in favor of remand to state court."
Plaintiffs' motion to remand is granted because this case was improperly removed by a non-party. Because the case was improperly removed by a non-party, the court need not consider the parties' arguments as to where PH&S's principal place of business is or plaintiffs' request for jurisdictional discovery.
Plaintiffs' motion to remand is granted.