J. NICHOLAS RANJAN, District Judge.
This case presents two novel procedural questions under the amended removal statute, 28 U.S.C. § 1441. First, what happens when a plaintiff files a lawsuit in state court with a federal-question claim and completely unrelated state-law claims, and then the case is removed to federal court? Before 2011, district courts had discretion in how to deal with these hybrid cases, including the discretion to keep the entire case in federal court. Not anymore. The statute now tells courts exactly what they must do. Federal courts must retain the federal-question claim; and they then "shall" sever and remand the unrelated state-law claims, if those claims are not otherwise within the original and supplemental jurisdiction of the federal court. Following the amended statute and as discussed below, the Court shall retain jurisdiction over the federal-question claim (here, a claim under the FLSA); but since there is no independent jurisdiction over the state-law claims here (except for one state-law wage claim), the Court "shall" sever and remand those claims.
The second novel procedural question at play is: what's the proper vehicle to raise severance? A motion to remand the state-law claims filed by the removing defendant is likely the answer. But even if the defendant does not move to remand the state-law claims, Section 1441 makes clear that the district court has an independent obligation to address severance. This is important, because in some cases (arguably, this one) severance may not be tied to a jurisdictional defect, and thus if a remand motion is not timely filed within 30 days of removal, then it could be waived. But in the context of severance and remand of state-law claims under Section 1441(c), that cannot be the case, since district courts must independently address the issue of severance "upon removal." Thus, while Defendants here did not file a motion to remand and Plaintiff requests remand only if all of her claims are remanded together, that is of no consequence. This Court, exercising its independent duty to sever and remand state-law claims under Section 1441(c), hereby severs and remands Counts I & II of the complaint in this case to state court.
This is a hybrid personal injury and employment action, in which Plaintiff Nora Stewart asserts claims for negligence arising from a slip-and-fall accident (against the Homeowner Defendants), failure to provide workers' compensation benefits (against the Amazon Defendants), and violations of both the federal Fair Labor Standards Act ("FLSA") and Pennsylvania's analogous Wage Payment and Collection Law ("WPCL") (against the Amazon Defendants).
As alleged in the complaint, Ms. Stewart was a delivery driver for the Amazon Defendants who was injured when she twisted her ankle and fell in the Homeowner Defendants' driveway. Ms. Stewart contends that the Homeowner Defendants were negligent in failing to properly maintain their driveway. Separately, Ms. Stewart alleges that the Amazon Defendants failed to provide workers' compensation benefits and also owe her unpaid wages as a result of misclassifying her as an independent contractor, in violation of the FLSA and WPCL. [ECF 17].
Ms. Stewart initiated her lawsuit in the Court of Common Pleas of Butler County (Case No. 18-10764) by writ of summons filed on August 15, 2018. [ECF 1-3]. On June 17, 2019, she filed her currently operative complaint against all Defendants. [ECF 1-1]. Based on Ms. Stewart's FLSA claim, and pursuant to 28 U.S.C. § 1441, Amazon timely removed the case to this Court on July 16, 2019. [ECF 1]. In its notice of removal, Amazon also suggested that 28 U.S.C. § 1441(c)(2) required the Court to sever and remand Ms. Stewart's negligence claim against the Homeowner Defendants "upon removal." [ECF 1 at ¶ 6]. The Homeowner Defendants then filed a "Response to Notice of Removal" on July 23, 2019, joining in Amazon's request that the Court sever and remand Ms. Stewart's negligence claim. [ECF 7].
On August 15, 2019, Ms. Stewart filed a "Motion to Remand This Action or, in the Alternative, to Not Sever the Claims Against Homeowner Defendants." [ECF 13]. In her motion, Ms. Stewart asserted that it was "in the interests of judicial economy to either remand the entire action to the Court of Common Pleas of Butler County or, in the alternative, to retain jurisdiction over the entire case, so that in whatever forum this case lands, it lands whole and intact, with no parts severed." [ECF 13 at pp. 1-2; ECF 14]. Ms. Stewart also argued that her workers' compensation claim is nonremovable pursuant to 28 U.S.C. § 1445(c). [ECF 14].
Defendants filed timely responses in accordance with the briefing schedule set by the Court. [ECF 15; ECF 16; ECF 17]. All Defendants argued that the Court had jurisdiction over Ms. Stewart's FLSA claim, but was required to sever and remand her negligence claim in accordance with 28 U.S.C. § 1441(c)(2). [ECF 16; ECF 17]. The Amazon Defendants further argued that the Court should dismiss (or, alternatively, remand) Ms. Stewart's workers' compensation claim, on the grounds that, in addition to being nonremovable under Section 1445(c), such claims may only be asserted by petition to the Pennsylvania Workers' Compensation Bureau. [ECF 17].
"Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute."
In 28 U.S.C. § 1331, Congress granted federal courts original jurisdiction over cases "arising under" federal law. The power to hear such cases is commonly referred to as "federal-question" jurisdiction,
Following removal, Defendants did not move to remand the state-law claims. Instead, Ms. Stewart moved to remand this entire action to state court. "Remand to state court is required if at any time before final judgment it appears that the district court lacks subject matter jurisdiction."
The Court will consider the parties' arguments with respect to each of Ms. Stewart's claims in turn, beginning with her FLSA claim.
First, the Court has little difficulty concluding that Ms. Stewart's FLSA claim against the Amazon Defendants should remain in federal court. [ECF 1]. "Federal question jurisdiction exists when the plaintiff's well-pleaded complaint establishes that `federal law creates the cause of action.'"
Notably, Ms. Stewart does not identify any legal basis for the Court to deny Amazon its "right to a federal forum for this case."
The Court will also exercise supplemental jurisdiction over Ms. Stewart's claim under the analogous WPCL, which is based on the exact same allegations. See 28 U.S.C. § 1367;
Next, Defendants argue that 28 U.S.C. § 1441(c)(2) requires the Court to sever and remand Ms. Stewart's state-law negligence claim against the Homeowner Defendants "upon removal." The Court agrees.
Only a handful of district courts have had occasion to interpret this particular provision of the removal statute since it was amended by Congress in 2011, and often only in passing. See
The relevant subparagraph, Section 1441(c)(2), provides as follows:
28 U.S.C. § 1441(c)(2).
A claim "described in paragraph (1)(A)" is a claim "arising under the Constitution, laws, or treaties of the United States (within the meaning of section 1331 of this title)." 28 U.S.C. § 1441(c)(1)(A). In other words, it is a claim that falls within the Court's federal-question jurisdiction under 28 U.S.C. § 1331.
On the other hand, a claim "described in paragraph (1)(B)" is a claim that is either "not within the original or supplemental jurisdiction of the district court or otherwise "made nonremovable by statute." 28 U.S.C. § 1441(c)(1)(B).
Finally, an "action described in paragraph (1)" is a civil action that includes both types of claims—i.e., a claim that falls within the Court's federal-question jurisdiction and a claim that is either not within the Court's jurisdiction or made nonremovable by statute. Section 1441(c)(1) provides that hybrid actions combining such claims may be removed in their entirety "if the action would be removable without the inclusion" of the nonremovable claim. 28 U.S.C. § 1441(c)(1).
In sum, then, Section 1441(c)(2) directs that, "upon removal" of any claim falling within this Court's federal-question jurisdiction, the Court "shall sever from the action" any additional claims that are either (1) not within the Court's original or supplemental jurisdiction, or; (2) made nonremovable by statute, and then "remand the severed claims to the State court from where the action was removed." 28 U.S.C. § 1441(c)(2); see
Here, it is clear that Ms. Stewart's negligence claim against the Homeowner Defendants is a creature of state law that is not within the Court's original jurisdiction. The only remaining question, then, is whether the Court can exercise supplemental jurisdiction over Ms. Stewart's negligence claim alongside its original jurisdiction over her FLSA claim. If it cannot, Section 1441(c)(2) will compel severance and remand to state court.
Pursuant to 28 U.S.C. § 1367(a), where original jurisdiction over at least one claim exists, the Court may exercise "supplemental" jurisdiction "over all other claims that are so related to claims in the action [within the Court's original jurisdiction] that they form part of the same case or controversy under Article III of the United States Constitution." 28 U.S.C. § 1367(a); see
First, the Court can only assert supplemental jurisdiction over a state-law claim if the related federal claim has "substance sufficient to confer subject matter jurisdiction."
Second, Ms. Stewart's state and federal claims must "derive from a common nucleus of operative facts."
The Third Circuit's decision in
Here, the nexus between Ms. Stewart's state law negligence claim and federal FLSA claim is even more attenuated. In fact, it is nonexistent. In her negligence claim against the Homeowner Defendants, Ms. Stewart alleges that, while delivering an Amazon package to the Homeowner Defendants' house, her "ankle twisted and she fell at or near the rear passenger side of her vehicle on a[n] uneven surface and/or rocks." [ECF 1-1 at ¶ 34]. Ms. Stewart contends that the Homeowner Defendants were negligent in (1) "failing to maintain the driveway ... in a safe condition," (2) "failing to properly inspect the driveway ...," (3) "failing to maintain the premises ...," and (4) "failing to keep path/driveway ... in a reasonable state of repair[.]" [ECF 1-1 at ¶ 41].
In contrast, Ms. Stewart's FLSA claim against the Amazon Defendants has nothing to do with the condition of the Homeowner Defendants' driveway. Instead, Ms. Stewart alleges that she is "entitled under FLSA to wages for time spent performing required procedures before and after her scheduled four (4) hour delivery block of time." [ECF 1-1 at ¶ 52]. More specifically, she asserts that the Amazon Defendants unlawfully require their delivery drivers to conduct certain pre- and post-trip activities without compensation, such as loading packages into their personal vehicles. [ECF 1-1 at ¶¶ 49-51]. Aside from the fact that Ms. Stewart was working for Amazon at the time of her alleged injury, the Court discerns no connection between these two entirely different legal claims, asserted against two entirely different defendants, and likely involving entirely different factual issues, witnesses, and evidence.
Numerous courts, including the Third Circuit, have recognized that, for purposes of establishing supplemental jurisdiction, the existence of an employment relationship alone is insufficient to create a nexus between two otherwise unrelated claims against a litigant's employer—let alone against the employer and an entirely unrelated defendant, such as the Homeowner Defendants here. See, e.g.
Thus, the Court concludes that Ms. Stewart's state law negligence claim against the Homeowner Defendants does not share a "common nucleus of operative fact" with her federal FLSA claim against the Amazon Defendants.
Finally, because the Court has concluded that Ms. Stewart's negligence and FLSA claims do not share the requisite factual nucleus, there is no need for the Court to consider the third requirement of supplemental jurisdiction; namely, that her federal and state claims "must be such that they would ordinarily be expected to be tried in one judicial proceeding."
Returning to the removal statute in light of the analysis above, the Court finds that it cannot exercise either original or supplemental jurisdiction over Ms. Stewart's negligence claim. See 28 U.S.C. § 1441(c)(2); 28 U.S.C. § 1441(c)(1)(B). As discussed, 28 U.S.C. § 1441(c)(2) provides that the Court "shall" sever such a claim "upon removal" and "remand the severed claims to the State court from where the action was removed."
Although Defendants have not formally moved for severance and remand of Ms. Stewart's state-law claims, the statute's mandatory language contemplates severance of such claims as an automatic, almost ministerial act by the Court that must occur "upon removal." 28 U.S.C. § 1441(c)(2). "It is well-settled that federal courts have an ever-present obligation to satisfy themselves of their subject matter jurisdiction and to decide the issue sua sponte, if necessary."
Moreover, other courts have interpreted similarly mandatory language to permit sua sponte enforcement. Cf.
In any event, all parties have had ample notice of, and an opportunity to respond to, the issue of severance pursuant to Section 1441(c)(2). The Amazon Defendants first requested that the Court sever the negligence claim in their notice of removal. [ECF 1]. The Homeowner Defendants then filed a "Response to Notice of Removal" joining in that request. [ECF 7]. Most importantly, the parties' briefing on Ms. Stewart's motion, including her own briefing, focused chiefly on the severance issue. See, e.g. [ECF 13; ECF 14; ECF 16; ECF 17; ECF 18].
Accordingly, for all of the reasons set forth above and pursuant to 28 U.S.C. § 1441(c)(2), the Court orders that Ms. Stewart's state-law negligence claim against the Homeowner Defendants be severed from this action and remanded to the Court of Common Pleas of Butler County for further proceedings.
Finally, the Amazon Defendants argue that the Court should dismiss Ms. Stewart's workers' compensation claim or, alternatively, sever and remand it pursuant to 28 U.S.C. § 1441(c)(2) along with her negligence claim. The Court finds that remand, rather than dismissal, is the appropriate course.
Here, severance and remand of Ms. Stewart's workers' compensation claim is necessary, because such claims are "made nonremovable by statute." 28 U.S.C. § 1441(c)(1)(B). Specifically, 28 U.S.C. § 1445(c) provides that "[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." Accordingly, Ms. Stewart's claim for unpaid workers' compensation benefits is, like her negligence claim, a claim "described in paragraph (1)(B)" of Section 1441(c), which the Court is required to sever and remand to state court "upon removal" of her FLSA claim.
But the Amazon Defendants argue that the Court should go one step further, and dismiss Ms. Stewart's workers' compensation claim rather than remanding it. Specifically, they argue that her claim was "wrongfully brought" as a lawsuit in the Court of Common Pleas, rather than as a petition to the Workers' Compensation Bureau. [ECF 17 at pp. 4-6].
The Court acknowledges that the Amazon Defendants make a compelling argument for the eventual dismissal or transfer of this claim. Indeed, under Pennsylvania law, workers' compensation claims "must be brought exclusively before the Worker's Compensation Bureau with an eventual right of appeal to the Commonwealth Court."
Yet while dismissal or transfer of Ms. Stewart's claim may ultimately be appropriate, that determination must be made by the Court of Common Pleas, not this Court. This conclusion is compelled by the language of Section 1441(c)(2), properly "construed so that effect is given to all its provisions, so that no part will be inoperative or superfluous, void or insignificant."
Accordingly, the Court will also sever and remand Ms. Stewart's workers' compensation claim to the Court of Common Pleas of Butler County.
In reaching this result, the Court emphasizes that it is exercising its independent duty to sever and remand claims "made nonremovable by statute," 28 U.S.C. § 1441(c)(1)(B), rather than granting the Amazon Defendants' alternative request for remand made in their response to Ms. Stewart's motion. [ECF 17 at p. 6 n.1]. This distinction, although formalistic, is noteworthy for two reasons.
First, as a procedural matter, a "request for relief included in a brief or responsive pleading is not permitted."
Second, and more importantly, prior to the 2011 amendments to Section 1441(c)—which added the relevant language requiring severance and remand of claims "made nonremovable by statute"—numerous courts held that the nonremovability of a claim pursuant to 28 U.S.C. § 1445 was a procedural, rather than jurisdictional, defect that would be waived if not raised by the other party within 30 days of removal. 28 U.S.C. § 1447(c); see
Under these holdings, the Amazon Defendants' alternative request for remand of the workers' compensation claim could possibly be waived pursuant to 28 U.S.C. § 1447(c), since it was first raised in their response brief, filed 38 days after removal on August 23, 2019.
Yet while future defendants would be well-advised to avoid such ambiguity by filing a motion for severance and remand of all eligible state-law claims immediately following removal of the entire case, the Amazon Defendants' failure to do so here does not alter this Court's independent obligation to "sever and remand" the nonremovable workers' compensation claim. 28 U.S.C. § 1441(c)(2). Indeed, as amended in 2011, Section 1441(c)(2) "seems to make a § 1445(c) objection nonwaivable," at least for all practical purposes, because "Congress now has said that, going forward, a district court `shall' remand a claim made nonremovable by statute" upon removal.
In short, the 2011 amendments to Section 1441(c) have effectively transformed a waivable, statutory right belonging to the non-removing party into a non-waivable, statutory duty imposed on the Court. This change reflects the judgment of Congress, and so the Court's role is merely to enforce that judgment as it was written in the statute. See
Here, as discussed, the Court is satisfied that Ms. Stewart's workers' compensation claim is made nonremovable by 28 U.S.C. § 1445(c). Accordingly, the Court finds that, under Section 1441(c), it has an independent duty to sever and remand that claim "upon removal," irrespective of whether the Amazon Defendants or any other party timely requested severance. 28 U.S.C. § 1441(c)(2).
For all of the reasons above, Ms. Stewart's motion, which is best construed as a motion to not sever her claims, will be denied. The Court will retain jurisdiction over Ms. Stewart's federal FLSA claim and analogous Pennsylvania WPLC claim (against the Amazon Defendants), but sever and remand her workers' compensation claim (against the Amazon Defendants) and negligence claim (against the Homeowner Defendants) to the Court of Common Pleas of Butler County pursuant to 28 U.S.C. 1441(c)(2).
A corresponding order follows.