NATIONWIDE ANESTHESIA SERVICES, INC.
v.
DIAZ
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A later-named defendant cannot remove a case to federal court if the first-named defendants failed to remove within the statutory time limit and waived their right to remove by proceeding in state court.
Plaintiff sued multiple defendants in state court. One defendant, Atkinson, removed the case to federal court nearly five months after the initial def…
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MERRYDAY, District Judge.
On December 5, 2005, Nationwide Anesthesia Services (“the plaintiff’) sued Juan M. Diaz (“Diaz”) and U.S. Anesthesia, Inc., (“USAI”) in state court for breach of contract and misappropriation of trade secrets. On April 17, 2006, the plaintiff amended its state-court complaint (Doc. 2) to add defendants Kelly Atkinson (“Atkinson”) and KLMD, LLC, (“KLMD”). Asserting diversity jurisdiction under 28 U.S.C. § 1332(a), Atkinson removed (Doc. 1) this action on May2, 2006, within thirty days of service. The plaintiff moves to remand and argues,
inter alia,
that Atkinson’s removal is defective because the first-named defendants (Diaz and USAI) waived removal by failing to remove within thirty days of service (Doc. 10-1 at 13).
Pursuant to 28 U.S.C. § 1446(b), notice of removal must be filed “within thirty days after receipt by the defendant,
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through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based ...In a case with multiple defendants, every defendant must consent to removal.
Russell Corp. v. Am. Home Assur. Co.,
264 F. 3d 1040, 1049 (11th Cir.2001) (“The unanimity requirement mandates that in cases involving multiple defendants, all defendants must consent to removal.”). The Eleventh Circuit has yet to determine whether a later-named defendant may properly remove a case after the first-named defendant failed to remove within thirty days.
1
Although courts disagree, most hold that “ ‘if the first served defendant abstains from seeking removal or does not effect a timely removal, subsequently served defendants cannot remove ... due to the rule of unanimity among defendants which is required for removal.’ ”
Brown v. Demco, Inc.,
792 F. 2d 478, 481 (5th Cir.1986)(citing 1A James WM. Moore et al., Moore’s Federal Practice ¶ 0.168 [3.5-5], at 586-87 (2d ed.1985)).
See McKinney v. Board of Trustees of Mayland Comm. College,
955 F. 2d 924, 926 n. 3 (4th Cir.1992). Several district courts in this circuit have adopted this approach.
See, e.g., Adams v. Charter Comm. VII, LLC,
356 F. Supp. 2d 1268, 1273 (M.D.Ala.2005);
Smith v. The Health Center of Lake City, Inc.,
252 F. Supp. 2d 1336, 1341-46 (M.D.Fla.2003);
Faulk v. Superior Indus. Int’l, Inc.,
851 F.Supp. 457, 458 (M.D.Fla.1994);
Noble v. Bradford Marine, Inc.,
789 F.Supp. 395, 397 (S.D.Fla.1992)(“The addition of a new Defendant in an Amended Complaint ... does not start the time for removal anew when the original complaint itself was removable.”)
Atkinson removed this case nearly five months after service of defendants Diaz and USAI. For diversity of citizenship purposes, all four defendants are citizens of Georgia and the plaintiff (allegedly) is a citizen of Florida.
2
Rather than file a notice of removal within thirty days, the first-named defendants (Diaz and USAI) willingly proceeded in state court, deposed the plaintiffs president, answered interrogatories, requested document production, and moved to compel discovery and to dismiss the plaintiffs original complaint (Doc. 10-2). Because the plaintiffs original complaint contained the same jurisdictional allegations as its amended complaint, Diaz and USAI may not consent to removal.
3
This conclusion “follows logically from the unanimity requirement, the thirty-day time limit, and the fact that a defendant may waive removal by proceeding in state court.”
Brown,
792 F. 2d at 482. The Eleventh Circuit has urged dis
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trict courts to heed the “bright line limitations on federal removal jurisdiction” as “an inevitable feature of a court system of limited jurisdiction that strictly construes the right to remove.”
Russell Corp. v. Am. Home Assur. Co.,
264 F. 3d 1040, 1050 (11th Cir.2001).
Accordingly, the plaintiffs Motion to Remand (Doc. 10) is GRANTED and this action is REMANDED. The plaintiffs request for attorney fees incurred from its motion to remand is DENIED.
See Smith,
252 F. Supp. 2d at 1346 (“Given that there is no Eleventh Circuit precedent on point and the different conclusions reached by various courts concerning when the thirty day period for removal begins in this situation, the Court declines to award fees and costs.”) The Clerk is directed to (1)mail a certified copy of this order, pursuant to 28 U.S.C. § 1447(c), to the Clerk of the Circuit Court for Hillsbor-ough County, (2) terminate any pending motion, and (3) close the case.
ORDERED.
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Citator
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Mitsui Lines Ltd. v. CSX Intermodal, Inc., 564 F. Supp. 2d 1357 (S.D. Fla. 2008)…"later-served rule” can create, the Court will follow other courts in applying the “first-served rule.” See, e.g., Getty Oil Corp. v. Ins. Co. of N. Am., 841 F.2d 1254, 1263 (5th .Cir. 1988); Nationwide Anesthesia Services, Inc. v. Diaz, 442 F.Supp.2d 1231, 1232 (M.D.Fla.2006) (citing Brown v. Demco, Inc., 792 F.2d 478, 481 (5th Cir.1986)); Cartee v. Precise Cable Const., Inc., 2005 WL 2893951, *3 (S.D.Ala. Nov. 1, 2005); Adams v. Charter Comm. VII, LLC, 356 F.Supp.2d 1268, 1273 (M.D…
Authorities Cited
- Russell Corp. v. Am. Home Assurance Co., 264 F.3d 1040 (11th Cir. 2001)
- Brown v. Demco, Inc., 792 F.2d 478 (5th Cir. 1986)
- In re Ocean Marine Mut. Prot. & Indem. Ass'n, Ltd., 3 F.3d 353 (11th Cir. 1993)
- McKINNEY v. Bd. OF Trs. OF Mayland Cmty. Coll., 955 F.2d 924 (4th Cir. 1992)
- Faulk v. Superior Indus. Int'l, Inc., 851 F. Supp. 457 (M.D. Fla. 1994)
- Smith v. Health Ctr. of Lake City, Inc., 252 F. Supp. 2d 1336 (M.D. Fla. 2003)
- Noble v. Bradford Marine, Inc., 789 F. Supp. 395 (S.D. Fla. 1992)