WILLIAM H. STEELE, Chief Judge.
This matter is before the Court on the plaintiff's motion to remand. (Doc. 10). The parties have filed numerous briefs concerning the propriety of removal, (Docs. 1, 5-7, 10, 15-17), and the motion is ripe for resolution. After careful consideration, the Court concludes that the motion to remand is due to be granted in part and denied in part.
The defendants removed on the basis of diversity of citizenship. The complaint contains four counts. Count One is brought under the Alabama Worker's Compensation Act for medical benefits. Counts Two, Three and Four are brought under Alabama common law for breach of contract, fraud and outrageous conduct.
"Except as otherwise provided by Act of Congress, any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants...." 28 U.S.C. § 1441(a). However, "[a] civil action in any State court arising under the workmen's compensation laws of such State may not be removed to any district court of the United States." Id. § 1445(c). As the parties agree, Count One "aris[es] under the workmen's compensation laws of" Alabama but the remaining counts do not.
The only published decision of the Eleventh Circuit known to have addressed the scope of a remand under Section 1445(c) is Reed v. Heil Co., 206 F.3d 1055 (11th Cir.2000). The plaintiff in Reed brought in state court a claim for retaliatory discharge under the Alabama worker's compensation statute ("Section 25-5-11.1"), which the Court held to be a claim "arising under" the worker's compensation laws for purposes of Section 1445(c). Id. at 1060. The plaintiff also brought a claim under the Americans with Disabilities Act ("ADA").
On appeal, the plaintiff argued that Section 1445(c) precluded jurisdiction over the worker's compensation claim. 206 F.3d at 1058. The Eleventh Circuit concluded that the trial court lacked subject matter jurisdiction over the worker's compensation claim and that this claim therefore "must be remanded to state court." 206 F.3d at 1061.
In its preliminary statement summarizing its decision, the Reed Court said:
206 F.3d at 1057. Thus, the ADA claim remained in federal court because it was properly removed there.
The Court later explained the mechanism by which the ADA claim was properly removed:
Id. at 1058. It is clear from the quoted material that the Court construed the ADA claim as properly removed under Section 1441(a). The inclusion of a non-removable worker's compensation claim in the same lawsuit did not render removal of the action improper under either that statute or Section 1445(c). Instead, the presence of the worker's compensation claim triggered Section 1445(c) as to only that claim and required remand of only that claim. Thus, "the limits on federal jurisdiction imposed by 28 U.S.C. § 1445(c)" served only to require that the worker's compensation claim "must be remanded to state court." Id. at 1056, 1061.
It is important to note that the Reed Court did not base the propriety of removing and retaining the ADA claim on Section 1441(c).
Moreover, Section 1441(c) could have been in play in Reed only if the federal claim was "separate and independent" from the state claim. See note 5, supra. "Where both federal and state causes of actions are asserted as a result of a single wrong based on a common event or transaction, no separate and independent federal claim exists under section 1441(c)." In re: City of Mobile, 75 F.3d 605, 608 (11th Cir.1996). Section 1441(c) was not in play in Reed, because both his worker's compensation retaliation claim and his ADA claim were based on a single event — his termination. See note 3, supra. Since Section 1441(c) was not implicated, the Reed Court could not have relied on it sub silentio.
Some courts have determined that the retention of a federal claim despite remand of the worker's compensation claim under Section 1445(c) can be justified under Section 1441(c), and the Court agrees.
"[T]he holding of a case is É comprised both of the result of the case and those portions of the opinion necessary to that result by which we are bound." United States v. Kaley, 579 F.3d 1246, 1253 n. 10 (11th Cir.2009) (internal quotes omitted). The result of Reed was retention of the federal claim despite remand of the worker's compensation claim. Necessary to this result was the conclusion that the federal claim was properly removed, and necessary to the conclusion that the federal claim was properly removed was an identification of a legal basis for proper removal. Thus, the Reed Court's identification of Section 1441(a) as the source of proper removal of the federal claim and for retention of that claim despite remand of the worker's compensation claim constitutes a holding.
Section 1441(a) authorizes removal of "any civil action brought in a State court of which the district courts of the United States have original jurisdiction." Section 1332(a) furnishes "original jurisdiction" over diversity actions with a threshold amount in controversy, so removal of a diversity action is accomplished through Section 1441(a). E.g., Bailey v. Janssen Pharmaceutica, Inc., 536 F.3d 1202, 1204 (11th Cir.2008). This case was removed based on diversity jurisdiction, and therefore removal was proper under Section 1441(a).
As the plaintiff points out, a number of trial courts have ruled that, when the worker's compensation claim is paired with no federal claim but with only state law claims, remand of the entire action is required.
In Bryant v. Wausau Underwriters, 2008 WL 1808325 (M.D.Ala.2008), the Court concluded that "Reed can not be interpreted as authority for severing and remanding worker's compensation claims in cases that are removed under § 1332 (diversity) because Reed involved a case removed under § 1331 (federal question)." Id. at *2. The question, however, is not whether the founts of original jurisdiction are the same but whether the removal vehicle is the same. As noted above, Reed's analysis is grounded in the removal vehicle of Section 1441(a), not in the jurisdictional fount of Section 1331. Because Section 1441(a) applies to removals based on Section 1332 just as surely as it applies to removals based on Section 1331, Reed applies equally in the diversity context.
Finally, the Bryant Court believed that "`[p]ermitting [the] defendant to remove this action under § 1441(a) in anticipation of a remand of the nonremovable workers' compensation claim would be tantamount to permitting piecemeal removal in diversity cases, which Congress has prohibited.'" 2008 WL 1808325 at *2 (quoting Wilson v. Lowe's Home Center, Inc., 401 F.Supp.2d 186, 197 (D.Conn.2005)). As an initial matter, it does not appear that "piecemeal removal" is at issue when an entire case is removed and a portion of it remanded, under Section 1445(c) or for any other reason. According to the secondary authority on which the Wilson Court relied, "piecemeal removal" denotes "removal of parts of cases," not the removal of an entire case, parts of which may thereafter be remanded.
At any rate, the secondary authority on which the Wilson Court relied pegs the elimination of piecemeal removal to 1948 amendments to Section 1441(c) ending piecemeal removal in all cases, federal question as well as diversity.
The question here is not whether permitting partial remands under Section 1445(c) is good policy, or even whether it represents a faithful reading of the governing statutes. The threshold questions for the Court are whether the Eleventh Circuit has already resolved the issue of partial versus total remand and whether it has done so on grounds that must apply to removals based on diversity. As discussed above, the answers to these questions are in the affirmative. The Court is thus bound by Reed to remand only the plaintiff's worker's compensation claim.
Although no defense of Reed is needed (since it is controlling in any event), it is worth noting that partial remands
The plaintiff argues that, even if remand of the entire action is not required by statute, her tort claims should be severed from her worker's compensation claim pursuant to Rule 21 and, having been severed, be remanded. (Doc. 7 at 5). It is not apparent how severance could render appropriate a remand of the tort claims, and the plaintiff does not offer to explain her theory.
Finally, the plaintiff suggests that remand of the entire action should be ordered in the interests of judicial economy, since her tort claims are "related to" her worker's compensation claim. (Doc. 7 at 5). Several lower courts have indicated that judicial economy supports remand of removable claims along with a non-removable worker's compensation claim.
For the reasons set forth above, the plaintiff's motion to remand is
The issue was squarely presented to the Eleventh Circuit in Alansari v. Tropic Star Seafood Inc., 388 Fed.Appx. 902 (11th Cir. 2010), where the plaintiff sought remand more than 30 days after removal. Id. at 905-06. The Court engaged in no independent analysis but simply assumed that Reed had already resolved that Section 1445(c) goes to subject matter jurisdiction, such that the plaintiff's delay was immaterial. Id. Alansari represents a holding, but "[u]npublished opinions are not controlling authority and are persuasive only insofar as their legal analysis warrants." Bonilla v. Baker Concrete Construction, Inc., 487 F.3d 1340, 1345 n. 7 (11th Cir.2007). With no independent analysis but only an unexplained assumption that Reed had already so held, Alansari is not particularly persuasive.
The Eleventh Circuit in New v. Sports & Recreation, Inc., 114 F.3d 1092 (11th Cir. 1997), announced that "Section 1445(c) is a jurisdictional-based limitation on the district court's removal power," id. at 1097, a statement it characterized as a "hold[ing]." Id. at 1095 n. 5. This characterization is doubtful, since the only issue before the New Court was whether a remand based on Section 1445(c) is immune from review under Section 1447(d), and such review is precluded even if remand under Section 1445(c) is based on a procedural defect, as the New Court recognized. Id. at 1097 n. 7.
In sum, the Eleventh Circuit has thrice indicated that Section 1445(c) impacts subject matter jurisdiction, but two of the statements are dicta and the third appears in an unpublished opinion. Moreover, none of the three provides any analysis in support of its conclusion, nor any explanation why Section 1445(c) should be considered jurisdictional when Section 1441(b)(2)'s prohibition on removal by resident defendants is not. See generally Courtney v. BLP Mobile Paint Manufacturing Co., 2012 WL 5869120 at *2 (S.D.Ala. 2012) (citing three Eleventh Circuit cases stating, in dicta, that Section 1441(b)(2) is not jurisdictional); see also Cogdell v. Wyeth, 366 F.3d 1245, 1248 (11th Cir.2004) (distinguishing removal jurisdiction from subject matter jurisdiction). Because the plaintiff moved to remand within 30 days of removal, it is unnecessary for the Court to resolve the issue.