MICHAEL P. MILLS, Chief Judge.
Defendants have filed a motion seeking for this court to reconsider its order remanding this case. In that motion, defendants appear to concede that, under Smallwood v. III. Cent. R.R., 385 F.3d 568, 573 (5th Cir.2004), a 12(b)(6)-type standard applies to the fraudulent joinder issues in this case. This is a departure from their initial briefing, in which they asserted that a summary judgment-type standard was applicable and briefed the remand issues accordingly. Defendants now appear to seek to retroactively convert their briefing to 12(b)(6) briefing, but such would be improper. The court deals with the briefing as presented, and defendants generally do not feel the need to emphasize that the
If this court properly had jurisdiction over this case and were presented with a Rule 12 motion to dismiss, it would have been strongly inclined to allow plaintiffs discovery before considering any motion for summary judgment. Indeed, that is this court's default preference, at least in cases where, as here, the complaint makes detailed and specific allegations of wrongdoing. As noted in the court's opinion, the complaint in this case alleges that:
Plaintiffs correctly characterize the allegations of their complaint, which is lengthy and highly specific. Defendants argue that, given the nature of the disclosures provided in the contracts which plaintiffs signed, they could not reasonably have relied upon any allegedly fraudulent representations made by defendants. While this may be an argument that ultimately carries the day in state court, the court would not grant a Rule 12 dismissal on the basis of that argument without first giving plaintiffs a chance to conduct discovery. If genuine issues precluding dismissal exist regarding even one of the numerous allegations of wrongdoing by plaintiffs, against even one non-diverse defendant, then this court lacks jurisdiction. It therefore makes little sense to engage in the sort of analysis which defendants urged in their remand briefing in this case.
While fraudulent joinder is still a relevant removal doctrine post-Smallwood, it will generally be applicable in only exceptional cases. Indeed, the court notes that, pre-Smallwood, fraudulent joinder removals played a far greater role in the Fifth Circuit's removal jurisprudence than in that of the other circuits. In a 2005 law journal article, University of Mississippi law professor E. Farish Percy wrote that a Westlaw search revealed the following numbers of district court opinions mentioning "fraudulent joinder" in the previous decade, divided by circuit:
1st 15 2nd 47 3rd 94 4th 69 5th 918 6th 66 7th 74 8th 43 9th 94 10th 24 11th 113
E. Farish Percy. Making a Federal Case of It: Removing Civil Cases to Federal Court Based on Fraudulent Joinder, 91 Iowa L.Rev. 189, 240 tbl. 1 (2005). It is thus apparent that, pre-Smallwood, the Fifth Circuit's fraudulent joinder jurisprudence was something of an aberration among the federal circuits. In most cases, there is a fundamental anomaly, not to
It is therefore ordered that the motion to reconsider is denied.