MELINDA HARMON, District Judge.
The above referenced cause, alleging negligence and gross negligence and seeking damages under the Jones Act, 46 U.S.C. § 30104, general maritime law, and the "saving to suitors clause," 28 U.S.C. § 1333, for injuries Plaintiff Tyrell Waddell ("Waddell") allegedly suffered when he was electrocuted by a defective electrical relay while working in navigable waters on board a vessel owned by Defendant Edison Chouest Offshore ("ESO")
It is undisputed that this action was timely removed within thirty days after the suit was commenced in Texas state court and that the Federal Courts Jurisdiction and Venue Clarification Act of 2011 was then in effect.
"`Federal courts are courts of limited jurisdiction'"; they possess "`only that power authorized by Constitution and by statute.'" Gunn v. Minton, ___ U.S. ___, 133 S.Ct. 1059, 1064, 185 L.Ed.2d 72 (2013), quoting Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). Under 28 U.S.C. § 1441(a) any state court action over which federal courts would have original jurisdiction may be removed from state to federal court. Gasch v. Hartford Accident & Indemnity Co., 491 F.3d 278, 282 (5th Cir.2007); Gutterrez v. Flores, 543 F.3d 248, 251 (5th Cir.2008) ("A district court has removal jurisdiction in any case where it has original jurisdiction."). The original jurisdiction for purposes of removal may be federal question jurisdiction under 28 U.S.C. § 1331 ("The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.") or diversity jurisdiction under 28 U.S.C. § 1332(a) (where there is complete diversity of citizenship between the sides and the amount in controversy exceeds the sum of $75,000.00, excluding interest and costs).
The removing party bears the burden of showing that subject matter jurisdiction exists and that removal was proper. Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir. 2002). Because removal deprives the state court of an action properly before it, removal raises significant federalism concerns and the statute is therefore to be strictly construed, with any doubt about the propriety of removal resolved in favor of remand. Gutierrez v. Flores, 543 F.3d 248, 251 (5th Cir.2008).
Title 28 U.S.C. § 1333(1) provides, "The district courts shall have original jurisdiction, exclusive of the courts of the States, of ... [a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled." "Federal admiralty jurisdiction exists giving a court jurisdiction over a dispute if the tort occurs on navigable waters
Traditionally a plaintiff had three possible options for bringing an admiralty or maritime claim: he could bring his suit in admiralty jurisdiction in federal court under the grant of original and exclusive subject matter jurisdiction under § 1333, typically with no right to trial by jury; he could bring a diversity of citizenship claim in a federal district court, with the right to a jury if one party demands it, and he could limit that jurisdiction with a binding forum-selection clause; or he could assert his claim at law (at common law), grounded in tort or contract, under the saving to suitors clause in a state court.
Also traditionally, the saving to suitors clause referenced in § 1333(1) was interpreted to allow a plaintiff to file admiralty and maritime actions with claims "at law," otherwise exclusively within the jurisdiction of the federal courts in state court. Baris v. Sulpicio Lines, Inc., 932 F.2d 1540, 1542 (5th Cir.1991), citing 1 S. Friedell, Benedict On Admiralty, § 122 (6th ed.1991). If a plaintiff elected to bring admiralty and maritime claims in state court, the claims could not be removed in the absence of diversity of citizenship unless there was another basis for jurisdiction besides admiralty. In re Eckstein Marine Service, LLC, 672 F.3d 310, 315-16 (5th Cir.2012), cert. denied, ___ U.S. ___, 133 S.Ct. 96, 183 L.Ed.2d 735 (2012); see also Morris v. TE Marine Corp., 344 F.3d 439, 444 (5th Cir.2003) (General maritime law claims saved to suitors, by themselves, are not removable from state court.), citing Romero v. Int'l Terminal Operating Co., 358 U.S. 354, 377-79, 79 S.Ct. 468, 3 L.Ed.2d 368 (1959) (superseded by statute on other grounds, 45 U.S.C. § 59) ("saving to suitors" claims are not removable because maritime claims do not
The Federal Courts Jurisdiction and Venue Clarification Act of 2011, enacted on December 7, 2011, effective as of January 6, 2012, amended 28 U.S.C. § 1441. The previous version of § 1441 provided that general maritime claims were not removable absent federal question or diversity jurisdiction and stated in relevant part [emphasis on key portions for the instant dispute added by this Court],
While federal courts have original jurisdiction over maritime and admiralty claims, such claims do not present a federal question because they do not "arise under" the Constitution or laws of the United States. Romero v. Int'l Terminal Operating Co., 358 U.S. 354, 367-68, 79 S.Ct. 468, 3 L.Ed.2d 368 (1959). See also In re Dutile, 935 F.2d 61, 62-63 (5th Cir. 1991) (citing Romero) (Based on the words in § 1441(a), "Except as otherwise expressly provided by Act of Congress," and in § 1441(b), "founded on a claim or right arising under the Constitution, treaties or laws of the United States," the Fifth Circuit held that (1) maritime claims filed in state court are not removable absent diversity jurisdiction because they do not arise under the Constitution, treaties or laws of the United States, i.e., no federal question jurisdiction]; (2) the old version of § 1441 was an "Act of Congress" that barred removal of such claims, by themselves; and (3) maritime claims are governed by the phrase "any other such action" [one lacking federal question jurisdiction]
Thus before the enactment of the Federal Courts Jurisdiction and Venue Clarification Act, it was settled law that to remove a case filed in state court and arising under general maritime law to federal court, there had to be an independent basis for jurisdiction, e.g., a federal statute granting jurisdiction to federal courts or diversity jurisdiction (with no defendant from the forum state). See Dutile, 935 F.2d at 63 ("The practical effect" of § 1441(a) and (b) "is to prevent removal of admiralty claims pursuant to § 1441(a) unless there is complete diversity of citizenship (predicated upon out-of-state defendants.)").
In December 2011, § 1441, under a new title, "Removal of Civil Actions," was revised in relevant part to state as follows:
Thus in the new version the "arising under" language in the prior § 1441(a) has been removed and there is no distinction between claims arising under federal law and "[a]ny other such actions" in § 1441(b); rather, the latter provision relates only to removals based on diversity jurisdiction.
The amendment expressly applies only to actions commenced on or after expiration of the 30-day period beginning on the date of enactment (December 7, 2011), i.e., it expired on January 6, 2012. Pub.L. 112-63, § 105, 125 Stat. 758 (2011). Moreover it is not retroactive: Congress stated that the amended § 1446 applies to "any action that is removed from a State court to a United States district court and that had been commenced, within the meaning of State law, on or after such effective date [January 6, 2012]." Pub.L. No. 112-63 § 205, 125 Stat. 758, 764-65 (2011). "An action or prosecution commenced in State court and removed to Federal court shall be deemed to commence the date the action or prosecution was commenced, within the meaning of State law, in State court." Id.; see also, e.g., Meeks v. Damillie, Civ. A. No. 2:11CV253-NBB-JMV, 2013 WL 5464639, at *2 (N.D.Miss. Sept. 30, 2013).
There is an ongoing dispute among the district courts of this Circuit about the effect of the "clarification" (the Fifth Circuit's term, used deliberately, in contrast to "amendment") of the removal statute, which has not still not been resolved by the Fifth Circuit Court of Appeals. Barker v. Hercules Offshore, Inc., 713 F.3d 208, 223 (5th Cir.2013) (opining that "the updated version is a clarification, as opposed to
A key district court decision by the Honorable Gray H. Miller, Ryan v. Hercules Offshore, Inc., 945 F.Supp.2d 772 (S.D.Tex.2013), found the changes under the Clarification Act to be substantial and denied a motion to remand based on the new § 1441(b) on the grounds that the court now had original jurisdiction over Ryan's general maritime law claims. Id. at 776. Noting that the previous § 1441(a), limiting removal to claims over which the court had original jurisdiction unless they are barred by an Act of Congress, remained (with both old and new section 1441(a)s referencing "original" jurisdiction), he reasoned that the unambiguous, amended version of § 1441(b) addresses only cases removed on diversity of citizenship. He emphasized that the two phrases that the Fifth Circuit cited as constituting an Act of Congress limiting removal of general maritime claims, "arising under the Constitution" and "[a]ny other such action," were deleted by the revision. The "clear and unambiguous" language of Section 1441(b) now bars only removal of claims based on diversity jurisdiction where a defendant is a citizen of the forum state; according to Judge Miller, the revision therefore allowed removal of all claims over which federal district courts have original jurisdiction, including their original jurisdiction over personal injury claims brought under general maritime law pursuant to § 1331(1). Ryan, 945 F.Supp.2d at 778. He concluded that the savings to suitors clause preserves the right of maritime suitors to pursue non-maritime remedies, but it does not guarantee them a nonfederal forum. Id. at 774. In accord, see, e.g., Perio v. Titan Maritime, LLC, No. Civ. A. H-13-1754, 2013 WL 5563711, at *10 (S.D.Tex. Oct. 8, 2013); Wells v. Abe's Boat Rentals, Inc., Civ. A. No. H-13-1112, 2013 WL 3110322, at *2-4 (S.D.Tex. June 18, 2013); Provost v. Offshore Service Vessels, LLC, Civ. A. No. 14-89-SDD-SCR, 2014 WL 2515412, at *3 (M.D.La. June 4, 2014); Bridges v. Phillips 66 Co., Civ. A. 13-477, 2013 WL 6092803, at *4 (M.D.La. Nov. 19, 2013); Carrigan v. M/V AMC Ambassador, No. H-13-3208, 2014 WL 358353, at *2 (S.D.Tex. Jan. 31, 2014).
A number of district courts, indeed the majority
"A Jones Act
Generally Jones Act cases are not removable. 28 U.S.C. § 1445(a). Preston v. Grant Advertising, Inc., 375 F.2d 439 (5th Cir.1967).
Many district courts, mindful of the established principle that all doubts about the propriety of removal should be resolved in favor of remand, have found the conflicts over the 2011 amendment/revision sufficient to warrant remand. See, e.g., cases remanded until controversy is resolved by Congressional or judicial action: Parker, 2014 WL 7338850 at *6; Hamerly, 62 F.Supp.3d at 559-60, 2014 WL 5149752 at *4-5; Harbor Docking & Towing Co. LLC v. Rolls Royce Marine North America, No. 2:14-CV-2487, 2014 WL 6608354, at *3 ("Until the Fifth Circuit, Congress or the Supreme Court determine otherwise, this court will adopt the reasoning previously espoused in this district which exempts from removal maritime claims filed pursuant to the savings to suitors clause absent a separate basis for federal court jurisdiction, i.e., diversity of citizenship."); Rutherford, 59 F.Supp.3d at 813-14, 2014 WL 6388786 at *4-5; Harrold v. Liberty Ins. Underwriters, Civ. A. No. 14-762, 2014 WL 5801673, at *3-4 (M.D.La. Nov. 7, 2014); Dyche v. U.S. Environmental Services, LLC, 72 F.Supp.3d 692, 697-98, 2014 WL 5473238, at *4-5 (E.D.Tex.2014); Figueroa, 28 F.Supp.3d at 681-82; Porter v. Great American Ins. Co., No. 13-3069, 2014 WL 3385148, at *1 (W.D.La. July 9, 2014).
Noting that this case was removed by Chevron solely on general maritime law, Waddell argues that it provides no basis for removal because (1) the interpretation of the saving to suitors clause in Romero
Waddell reasons that if a party is able to remove under maritime jurisdiction, the only way a party could proceed on a general maritime claim in state court is if the defendant chooses not to remove; indeed a claimant would only be allowed a jury trial if the defendant chose not to remove. He also claims that the legislative history of the amendment of § 1441(b) demonstrates that Ryan was wrongly decided. The House Report
Waddell challenges Defendants' reliance on Ryan, 945 F.Supp.2d 772, by arguing that Ryan errs in the following ways: (1) Ryan did not reach the issue of whether the "saving to suitors" clause is an "Act of Congress" prohibiting removal because it guarantees the common law right of jury and concurrent jurisdiction of state and federal courts; and (2) it cannot be squared" with Romero, Madruga v. Superior Court, 346 U.S. 556, 560, 74 S.Ct. 298, 98 L.Ed. 290 (1954) (holding that the "saving to suitors" clause preserved a claimant's right "to sue on maritime claims in common law courts."), and Barker, all still good law.
In his notice of additional authority (# 17), Waddell cites seven new federal cases, including some the Court discussed supra, that have held remand is proper because cases cannot be removed based solely on maritime jurisdiction based on the same reasoning as those which the Court summarized supra.
As noted, Defendants rely on Ryan, 945 F.Supp.2d 772, which noted that the Fifth Circuit's Barker opinion interpreted the previous version of § 1441 and which held that Barker did not bar removal of maritime claims under the clear language of the revised statute. Defendants assert that Waddell relies on "outdated procedure and authorities."
To Waddell's argument that removal here would be "absurd" because he would not be allowed a jury trial, Defendants respond that if Waddell properly preserves this remedy, he may be entitled to a jury trial on his maritime claims in federal court. See Kenneth G. Engerrand, Admiralty Jury Trials Reconsidered, 12 Loy. Mar. L.J. 73, 123 (2013). While the Supreme Court "has held that the Seventh Amendment does not require jury trials in admiralty cases, neither that Amendment nor any other provision of the Constitution forbids them. Nor does any statute of Congress or Rule of Procedure, Civil or Admiralty, for bid jury trials in maritime cases." Fitzgerald v. U.S. Lines Co., 374 U.S. 16,
This Court notes that Luera was issued before the enactment of the 2011 revisions to § 1441. Moreover, the rule in Luera applies where a claim that has a jury by right is joined with an in rem admiralty claim, both arise from the same set of facts. The court in Luera allowed both to be tried to a jury for judicial efficiency and for fair administration of justice, "which override the historic traditions of trying admiralty claims the bench." Id. at 192. This Court observes that Luera does not guarantee, but only creates a possibility of a jury trial. More important here is that the Fifth Circuit explicitly limited its holding: "To be clear, we do not hold today that a plaintiff bringing an in rem admiralty claim,
In the alternative, if the Court determines that the removal was improper under the 2011 amendments, Defendants argue that Waddell may also be entitled to a jury trial under the Court's diversity jurisdiction. Plaintiff alleges that he is a citizen of Alabama, that Chevron is a Pennsylvania company that does a substantial amount of business in Texas, and that Island Ventures is organized under the laws of Louisiana, and that he is seeking damages in excess of $75,000. Notice of Removal, # 1, Ex. 1 at pp. 1-2.
Waddell objects that the Notice of Removal does not mention diversity jurisdiction. Hasbun v. Pan American Life Ins. Co., Cause No. H-13-830, Order Granting Remand (Doc. No. 18, March 28, 2014) (Hittner, J.) (Ex. A to # 17) (holding that a failure to mention a basis for removal requires the court to ignore that ground in determining remand); Barron v. Miraglia, No. 4:04-CV-376-A, 2004 WL 1933225, at *3 (N.D.Tex. Aug. 30, 2004), quoting Hinojosa v. Perez, 214 F.Supp.2d 703, 707 (S.D.Tex.2002) (Kazan, J.) ("Defendants clearly may not remove on grounds not even obliquely referred to in the Notice of Removal.... It would be substantial injustice to allow Defendants to remove a case on one ground and then, when faced with a serious challenge to that ground, attempt
The Court agrees. See Cormier v. Chet Morrison Contractors, LLC, 85 F.Supp.3d 880, No. 3:14-CV-208, 2015 WL 507513 (S.D.Tex. Feb. 6, 2015) (Ellison, K.), citing Hinojosa and New Bethlehem Missionary Baptist Church v. Church Mut. Ins. Co., No. Civ. A. H09-3901, 2010 WL 936477, at *3 (S.D.Tex. March 11, 2010) (Werlein, J.). Furthermore, a removing defendant is required to "distinctly and affirmatively allege[] each party's citizenship." Stafford v. Mobil Oil Corp., 945 F.2d 803, 804-05 (5th Cir.1991); Getty Oil Corp. v. Ins. Co. of N. Am., 841 F.2d 1254, 1259 (5th Cir.1988). "[W]hen jurisdiction depends upon diverse citizenship[,] the absence of sufficient averments or of facts in the record showing such required diversity of citizenship is fatal and cannot be overlooked by the court, even if the parties fail to call attention to the defect, or consent that it may be waived." Thomas v. Bd. of Trustees of Ohio State Univ., 195 U.S. 207, 211, 25 S.Ct. 24, 49 L.Ed. 160 (1904). For a corporation a party invoking jurisdiction must allege both the state of incorporation and the principal place of business. 28 U.S.C. § 1332(c). Neither side has alleged a principal place of business for the defendant corporations, and it is the removing parties' burden to do so here.
Furthermore, the black letter rule that because removal deprives the state court of an action properly before it, removal raises significant federalism concerns and the statute is therefore to be strictly construed, with any doubt about the propriety of removal resolved in favor of remand. Gutierrez v. Flores, 543 F.3d 248, 251 (5th Cir.2008). The Court has demonstrated the conflict among courts in this Circuit has to the effect of the 2011 amendments to § 1441, as well as both sides' failure to plead properly the citizenship of the Defendant corporations and Defendants' failure to assert diversity jurisdiction in their Notice of Removal. Accordingly, the Court
ORDERS that Waddell's motion to remand this case to 56th District Court of Galveston County, Texas.
(c) For purposes of this section and section 1441 of this title —
Subsequently this test has been applied to "all bodies of water, not just rivers, natural as well as artificial." Sanders, 861 F.2d at 1377 (In short, then, navigable waters of the United States are those waters capable, in fact, of navigation in interstate travel or commerce, and distinctions between natural and manmade bodies of water are immaterial.").