SIDNEY A. FITZWATER, District Judge.
Plaintiff Joe Alviar, Jr. ("Alviar") moves to remand this removed action to state court, and defendant John Lillard ("Lillard") moves to dismiss the action against him under Fed. R. Civ. P. 12(b)(6) for failure to state a claim on which relief can be granted. The motions present the question whether defendants have met their heavy burden of demonstrating that there is no reasonable basis for this court to predict that Alviar might be able to recover against Lillard, his former supervisor, for tortious interference with Alviar's contract of employment with his employer. Concluding that defendants have met this burden, the court denies Alviar's motion to remand, grants Lillard's motion to dismiss, and dismisses this action against Lillard by Rule 54(b) final judgment.
Alviar was employed as an Asset Protection Manager by defendant Macy's, Inc. ("Macy's") or defendant Macy's Retail Holdings, Inc. ("MRHI") (collectively, "Macy's," unless the context otherwise requires). He was diagnosed with Post Traumatic Stress Disorder ("PTDS") after serving in the United States Army. Alviar alleges that, during his employment, he was subjected to discrimination by Lillard, the Director of Asset Protection.
Alviar was terminated in 2015. He alleges that Lillard
Id. Alviar sued Macy's and Lillard in state court, alleging that they discriminated and retaliated against him, in violation of the Texas Commission on Human Rights Act ("TCHRA"),
Macy's and MRHI removed this case based on diversity of citizenship, contending that Lillard was improperly joined and that his citizenship should be disregarded for purposes of determining removability. Alviar now moves to remand, contending that because Lillard, acting in his own interest, tortiously interfered with Alviar's contract with Macy's, he was properly joined, the parties are not completely diverse, and the case should be remanded to state court. Lillard moves to dismiss, contending that Alviar has not stated a claim against him on which relief can be granted.
For a case to be removed based on diversity jurisdiction, "`all persons on one side of the controversy [must] be citizens of different states than all persons on the other side.'" Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1079 (5th Cir. 2008) (quoting McLaughlin v. Miss. Power Co., 376 F.3d 344, 353 (5th Cir. 2004) (per curiam)). This means that no plaintiff can be a citizen of the same state as even one defendant. Moreover, under 28 U.S.C. § 1441(b), a case cannot be removed based on diversity jurisdiction if any properly-joined defendant is a citizen of the state in which the action is brought (here, Texas).
"The doctrine of improper joinder . . . entitle[s] a defendant to remove to a federal forum unless an in-state defendant has been `properly joined.'" Smallwood v. Ill. Cent. R.R. Co., 385 F.3d 568, 573 (5th Cir. 2004) (en banc). "When a defendant removes a case to federal court on a claim of improper joinder [of an in-state defendant], the district court's first inquiry is whether the removing party has carried its heavy burden of proving that the joinder was improper." Id. at 576. The defendant can establish improper joinder by showing that there was actual fraud in the pleading of jurisdictional facts or that the plaintiff is unable to establish a cause of action against the non-diverse defendant in state court. Id. at 573 (citing Travis v. Irby, 326 F.3d 644, 646-47 (5th Cir. 2003)).
In this case, defendants maintain that Alviar is unable to establish a cause of action against Lillard. To meet their heavy burden of proving improper joinder, defendants must demonstrate "that there is no possibility of recovery by the plaintiff against [Lillard], which stated differently means that there is no reasonable basis for the district court to predict that the plaintiff might be able to recover against [Lillard]." Id. The court must "evaluate all of the factual allegations in the light most favorable to the plaintiff, resolving all contested issues of substantive fact in favor of the plaintiff." Guillory v. PPG Indus., Inc., 434 F.3d 303, 308 (5th Cir. 2005) (internal quotation marks and citation omitted). Thus "[t]he party seeking removal bears a heavy burden of proving that the joinder of the in-state party was improper." Smallwood, 385 F.3d at 574.
To predict whether plaintiff has a reasonable basis of recovery under state law, "[t]he court may conduct a Rule 12(b)(6)-type analysis, looking initially at the allegations of the complaint to determine whether the complaint states a claim under state law against the in-state defendant." Id. at 573. "Ordinarily, if a plaintiff can survive a Rule 12(b)(6) challenge, there is no improper joinder." Id. In considering the allegations against in-state defendants, the court must look to the live pleadings at the time of removal. Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir. 2002) ("To determine whether jurisdiction is present for removal, we consider the claims in the state court petition as they existed at the time of removal."). The court is not permitted to "mov[e] . . . beyond jurisdiction and into a resolution of the merits[.]" Smallwood, 385 F.3d at 574.
Alviar maintains that Lillard has been properly joined as a defendant and that the parties are not completely diverse. He contends that Lillard interfered with his contract of employment with Macy's "by making it more difficult for him to perform his work duties through regularly making inappropriate comments regarding, and ultimately terminating him because of his status as a veteran and his PTSD/disability," and that because Lillard, acting in his own interest, tortiously interfered with Alviar's contract with Macy's, there is not complete diversity of citizenship, and this case should be remanded to state court. P. 7/13/16 Br. 7.
Defendants respond that, to the extent Alviar intended to plead his TCHRA claims against Lillard, he cannot recover against Lillard individually because the TCHRA only allows for liability against employers, not individual supervisors or managers like Lillard; that Alviar's tortious interference claim against Lillard is preempted by the TCHRA; that Alviar's tortious interference claim against Lillard is barred under Texas law because the employment-at-will doctrine bars a tortious interference claim against a supervisor of an at-will employee like Alviar; that Alviar has failed to plausibly allege that Lillard acted solely in his own interests, and evidence of Alviar's performance issues supports the conclusion that Lillard acted with a mixed motive in terminating Alviar; that Alviar has failed to plead facts showing that Lillard acted solely in his own interest at the expense of the company; and that Alviar's petition fails to plead facts showing that defendants complained about Lillard's actions.
Under Texas law, the elements of tortious interference with contract are: (1) the existence of a contract, (2) willful and intentional interference, (3) interference that proximately caused damage, and (4) actual damage or loss. Powell Indus., Inc. v. Allen, 985 S.W.2d 455, 456 (Tex. 1998) (citing ACS Investors, Inc. v. McLaughlin, 943 S.W.2d 426, 430 (Tex. 1997)). "When the defendant is both a corporate agent and the third party who allegedly induces the corporation's breach, the second element is particularly important." Id. at 456-57. This is because, by definition, a party to a contract cannot tortiously interfere with its own contract. See Holloway v. Skinner, 898 S.W.2d 793, 796 (Tex. 1995); Hussong v. Schwan's Sales Enters., Inc., 896 S.W.2d 320, 326 (Tex. App. 1995, no writ). Accordingly, "[t]o maintain a tortious interference suit against a corporate agent or representative, a plaintiff must show that the agent acted willfully and intentionally to serve the agent's personal interests at the corporation's expense." Mumfrey v. CVS Pharmacy, Inc., 719 F.3d 392, 402-03 (5th Cir. 2013) (citing Powell Indus., Inc., 985 S.W.2d at 457). "A corporate officer's mixed motives—to benefit both himself and the corporation—are insufficient to establish liability." Powell Indus., Inc., 985 S.W.2d at 457 (citing ACS Investors, Inc., 943 S.W.2d at 432). "The Texas Supreme Court has provided guidance on determining when a[] corporation's agent is acting against the corporation's interests: If a corporation does not complain about [its] agents actions, then the agent cannot be held to have acted contrary to the corporation's interests." Mumfrey, 719 F.3d at 403 (citing Powell Indus., Inc., 985 S.W.2d at 457).
Alviar alleges that Lillard committed the following acts: he expressed hostility to Alviar's PTSD condition, asked him inappropriate questions, and made inappropriate statements, such as "your PTSD pissed me off," and "with your PTSD are you sure you can handle the job?" Pet. 4; Lillard terminated Alviar's employment; and Lillard made the performance of Alviar's employment contract more difficult on account of Alviar's disability and status as a veteran, in violation of the policy of Macy's that disapproves of discrimination based on disability and veteran/military status. Alviar does not allege that Lillard was acting to serve his own personal interests. See Mumfrey, 719 F.3d at 403 (concluding that corporate agents were improper joined where employee sued them but did not "allege that the individual defendants were acting to serve their own personal interests."). In fact, Alviar alleges that "Defendants at all relevant times acted through [their] agents and employees."
In addition, Macy's has adduced evidence that Alviar was terminated, at least in part, as a result of performance issues.
Ds. 8/3/16 App. 6-7. Alviar does not dispute this evidence or argue that he was not terminated, at least in part, based on performance issues. As explained above, a corporate officer's mixed motives are insufficient to establish liability for tortious interference. Powell Indus., Inc., 985 S.W.2d at 457 (citing ACS Investors, Inc., 943 S.W.2d at 432).
Accordingly, the court concludes that Macy's has met its heavy burden of demonstrating that there is no reasonable basis for the court to predict that Alviar might be able to recover against Lillard.
In his motion to remand, Alviar relies heavily on Rush v. Jacobs Engineering Group, 2015 WL 1511122 (N.D. Tex. Apr. 2, 2015) (Boyle, J.), in which a member of this court reasoned in denying a similar motion to remand:
Id. at *4. The judge also stated in a footnote that, where "the corporation has proactively expressed its disapproval of an agent's actions in a published code of conduct, it seems overly technical to also require the plaintiff to show that the corporation complained about those actions after they occurred." Id. at *4 n.2.
The court respectfully disagrees with Rush.
Accordingly, the court holds that defendants have carried their heavy burden of demonstrating that there is no reasonable basis for the court to predict that the Alviar might be able to recover against Lillard for tortious interference, and that Lillard has been improperly joined. Because Macy's and MRHI—the properly-joined defendants—are diverse, non-Texas citizens, this case was properly removed, and Alviar's motion to remand must be denied.
Because the court holds that Lillard was improperly joined according to a Rule 12(b)(6)-type analysis, it follows that he is entitled to dismissal of the tortious interference claim against him based on his Rule 12(b)(6) motion. See Berry v. Hardwick, 152 Fed. Appx. 371, 373-74 (5th Cir. 2005) (per curiam) (holding that district court properly granted defendants' motion to dismiss when it determined that they had been improperly joined).
For the reasons explained, Alviar's motion to remand is denied, Lillard's motion to dismiss is granted, and Alviar's action against Lillard is dismissed with prejudice by Rule 54(b) judgment filed today.
Smallwood, 385 F.3d at 573. The court concludes that this is a case in which a summary inquiry is appropriate. But even if it is not, the court would still conclude that Lillard was improperly joined, even without considering the evidence adduced by Macy's that Alviar was terminated, at least in part, based on performance issues.