JOHN M. BODENHAUSEN, Magistrate Judge.
This Court considers Plaintiff Michael Keithly's ("Plaintiff") Second Motion for Remand to state court.
On September 21, 2016, Plaintiff filed a petition in the Circuit Court of the Twenty-First Judicial Circuit, St. Louis County, Missouri ("the Petition"). (ECF No. 7) In the Petition, Plaintiff alleges that, on August 18, 2016, he was driving east on Interstate Highway 64 in St. Louis County when his vehicle was struck by a vehicle driven by Defendant, injuring Plaintiff. (
Defendant denies Plaintiff's allegations and offers four affirmative defenses. (ECF No. 6) First, Defendant alleges that Plaintiff failed to state a claim upon which relief can be granted. (
On December 5, 2016, Defendant removed this matter to federal court. (ECF No. 1) Removal was based upon and allegation that the Court has diversity jurisdiction, which requires complete diversity of citizenship among the litigants and an amount in controversy greater than $75,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). Plaintiff is a resident of Missouri. (ECF No. 7 at ¶ 1) In the Notice of Removal, Defendant alleged that she is a resident of Wisconsin. (ECF No. 1 at ¶ 3) Plaintiff has not challenged Defendant's citizenship in either of his motions to remand.
Having established diversity of citizenship, the parties disputed whether the amount in controversy exceeded $75,000, exclusive of interest and costs. In his first Motion for Remand, Plaintiff asserted that he lacked sufficient information to determine the amount in controversy. (ECF No. 12) Defendant responded that, due to the alleged extent and severity of Plaintiff's injuries and his refusal to stipulate that he was seeking less than $75,000, the "amount in controversy" met the Eighth Circuit standards for establishing diversity jurisdiction. (ECF No. 15)
This Court denied Plaintiff's first Motion to Remand. (ECF No. 16) The undersigned found that the removing party had shown, by a preponderance of the evidence, that the amount in controversy meets the jurisdictional requirements. (
The Petition alleged that Plaintiff had suffered "permanent, progressive and disabling" injuries to his back, neck, left knee, and left elbow, and that such injuries impaired (presumably also permanently) his ability to work. The Court found that these allegations were sufficient to raise the possibility that a finder of fact might legally conclude that damages exceeded the jurisdictional limit.
Having found that the removing party had met its burden on jurisdictional amount, the burden then shifted to Plaintiff as the party seeking remand to demonstrate "to a legal certainty" that the amount in controversy does not exceed $75,000. (
In its Memorandum and Order, the Court noted that the Eighth Circuit does allow parties in states that forbid naming a sum certain in a prayer for damages (including Missouri) to clarify via binding stipulation that the amount in controversy does not and will not exceed $75,000, thus demonstrating that fact to a legal certainty and removing any question of diversity jurisdiction. (
Approximately one month after the Court denied its Motion to Remand and one day prior to the Rule 16 Scheduling Conference, Plaintiff filed a Stipulation. (ECF No. 19) In that Stipulation, Plaintiff's counsel represented that the "total medical special damages" were under $13,000 at that point, and that "no major future medical procedures are foreseeable." (
The day after filing the Stipulation, shortly before the Rule 16 Conference, Plaintiff's counsel filed a Second Motion for Remand. (ECF No. 20) In that pleading, Plaintiff argues that his Stipulation guarantees that the amount in controversy in this action will not exceed $75,000, exclusive of interests and costs, and that since the amount in controversy no longer meets the jurisdictional minimum, Plaintiff claims that the Court lacks subject matter jurisdiction over this action. (
"It is axiomatic the court's jurisdiction is measured either at the time the action is commenced or, more pertinent to this case, at the time of removal."
As previously noted, the Eighth Circuit permits plaintiffs in states like Missouri to establish the amount in controversy to a legal certainty through a binding stipulation filed after removal, because pleading sums certain is not allowed in state court petitions. Since postremoval events generally do not function to undercut federal jurisdiction, courts have imposed an important caveat on this practice: it is allowable "as long as the stipulation can be considered as clarifying rather than amending an original pleading."
The instant motion has a different procedural stance than most, in that the stipulation purporting to "clarify" the amount in controversy was neither entered into nor filed until after the Court had already made the determination that federal jurisdiction existed at the time of removal. Plaintiff apparently recognized that labelling his filing a "Second Motion for Remand" highlighted the fact that the issue had already been decided against him, and requested leave to "correct" the title to "Motion to Reconsider Plaintiff's Motion to Remand". (ECF No. 23) The original title is more accurate. Plaintiff had the opportunity to present evidence (via stipulation or other means) that the amount in controversy was below the statutory minimum. He is now arguing for remand on a different basis, the new Stipulation.
Here, the Stipulation amounts to an "amending" rather than a "clarifying" post-removal pleading. Jurisdiction was challenged and the Court ruled that jurisdiction was proper at the time of removal. Plaintiff's subsequent decision to stipulate that the amount of damages will be limited to $75,000 does not `clarify' any uncertainty, because the issue has already been settled. The Stipulation instead appears to be a modification of his original claims that he sustained "permanent, progressive and disabling" injuries that will permanently impair his ability to "work, labor and enjoy life." "A subsequent change, such as the plaintiff's post-removal voluntary reduction of his claim to less than the jurisdictional amount, does not defeat federal jurisdiction acquired through removal."
While unusual, Plaintiff's attempt to stipulate out of federal jurisdiction after denial of a motion to remand is not unique even within this District. In
In his briefing for both Motions for Remand, Plaintiff has downplayed the seriousness of the matter, referring to it the collision as "relatively minor" and the case as a "routine fender bender lawsuit." (ECF Nos. 12 and 24) However, the case was pled as involving permanent disabling injuries which would affect Plaintiff's ability to work. Plaintiff initiated the challenge to removal and it was denied, because he was either unable or unwilling to demonstrate to a legal certainty that the damages were not as serious as they appeared from the petition. Jurisdiction was proper as of the time of removal. Plaintiff's agreeing to cap his damages after the issue was decided against him does not supply a basis for revisiting the matter of remand.
Accordingly,