Opinion

Allied Shipyard Inc v. Moore

Court
District Court, E.D. Louisiana
Filed
Dec 15, 2020
Cited by
0 cases
Authority
More cited than 22.3%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

ALLIED SHIPYARD INC. CIVIL ACTION

VERSUS NO: 20-2744

LOGAN MOORE SECTION: “H”

ORDER AND REASONS

Before the Court are Plaintiff Allied Shipyard Inc.’s Motion to Remand

(Doc. 8) and Defendant Logan Moore’s Motion to Consolidate Cases (Doc. 9).

For the following reasons, Plaintiff’s Motion is GRANTED, and Defendant’s

Motion is DENIED AS MOOT.

BACKGROUND

Plaintiff Allied Shipyard Inc. filed this action in the 17th Judicial District

Court for Louisiana seeking payment from Defendant Logan Moore pursuant

to an Act of Continuing Guaranty that obligates Moore to pay Plaintiff for debts

not paid by Marlin Oilfield Divers, Inc. (“Marlin”). Plaintiff and Marlin entered

into an agreement for Plaintiff to provide Marlin with certain materials and

services for the benefit of its vessel, the M/V IRON MAIDEN. Plaintiff alleges

that Marlin has failed to pay the amount owed under the contract, and it has

sought that amount from Moore in this action. Moore removed the suit against

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him to this Court on the basis of admiralty jurisdiction. Prior to Plaintiff’s state

court suit, Marlin, of which Moore is president and CEO, filed an action in this

Court seeking a declaratory judgment that it does not owe any amount to

Plaintiff because Plaintiff’s work resulted in a fire that damaged the M/V IRON

MAIDEN.1

There are two motions now pending in this matter. First, Plaintiff moves

for remand back to state court and for attorney’s fees and costs for the

prosecution of this motion. Second, Defendant seeks to consolidate this action

with Marlin’s earlier suit against Plaintiff.

LEGAL STANDARD

Generally, a defendant may remove a civil state court action to federal

court if the federal court has original jurisdiction over the action.2 The burden

is on the removing party to show “that federal jurisdiction exists and that

removal was proper.”3 When determining whether federal jurisdiction exists,

courts consider “the claims in the state court petition as they existed at the

time of removal.”4

LAW AND ANALYSIS

Plaintiff moves for remand of this action, arguing that this Court does

not have jurisdiction pursuant to the “savings to suitors” clause of 28 U.S.C. §

1 Marlin Oilfield Divers, Inc. v. Allied Shipyard, Inc. (No. 20-2431).

2 28 U.S.C. § 1441.

3 Barker v. Hercules Offshore, Inc., 713 F.3d 208, 212 (5th Cir. 2013) (quoting

Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d 720, 722 (5th Cir. 2002)).

4 Manguno, 276 F.3d at 723.

2

1333. Section 1333 states that district courts have original jurisdiction over

general maritime claims “saving to suitors in all cases all other remedies to

which they are otherwise entitled.” Under the “saving to suitors” clause,

general maritime law claims filed in state court were traditionally non-

removable.5 Defendant argues that the 2011 amendments to 28 U.S.C. § 1441

changed the law so that general maritime law claims are now removable. The

weight of courts considering this issue, however, has disagreed.6

Although the Fifth Circuit has not yet offered guidance on whether the

2011 amendments to § 1441 rendered maritime claims removable, every

district judge in the Eastern District of Louisiana to consider the issue,

including this one, “has maintained that general maritime law claims are not

removable under § 1333 as part of the original jurisdiction of the court absent

an independent basis for federal jurisdiction.”7 Defendant does not provide any

reason why this Court should deviate from this result. Accordingly, for the

reasons previously given by this Court and others, this matter cannot be

removed on the basis of general maritime jurisdiction alone.8 Defendant does

not argue that diversity or federal question jurisdiction is present in this case.

5 Alexis v. Hilcorp Energy Co., No. CV 20-2289, 2020 WL 5959744, at *5 (E.D. La.

2020) (citing In re Dutile, 935 F.2d 61, 63 (5th Cir. 1991)).

6 Id.

7 Island Ventures, LLC v. K-Mar Supply II, LLC, No. CV 20-2263, 2020 WL 6269136,

at *6 (E.D. La. Oct. 26, 2020) (Brown, J.) (and cases cited therein); Riley v. Llog Expl. Co.

LLC, No. CIV.A. 14-437, 2014 WL 4345002, at *4 (E.D. La. 2014) (Milazzo, J.). Defendant’s

Opposition points out that Judge Morgan held otherwise in Costanza v. Accutrans, Inc., No.

CV 17-5706, 2017 WL 4785004, at *2 (E.D. La. 2017), but that opinion offered no analysis of

the issue.

8 See Riley, 2014 WL 4345002, at *4; Gregoire v. Enter. Marine Servs., LLC, 38 F.

Supp. 3d 749, 764 (E.D. La. 2014).

3

Defendant does contend, however, that this Court may exercise

supplemental jurisdiction over this matter pursuant to 28 U.S.C. § 1367 if it is

consolidated with the previously filed, related action. Federal Rule of Civil

Procedure 42 allows the court to consolidate actions pending before it if they

have a common question of law or fact. Because this matter is not properly

before this Court, consolidation would likewise be improper. Further, “while

supplemental jurisdiction applies to claims asserted in the same action, it does

not apply to claims asserted in separate actions consolidated under Federal

Rule of Civil Procedure 42.”9 “[C]onsolidation does not cause one civil action to

emerge from two; the actions do not lose their separate identity.”10 Accordingly,

this argument too fails. Removal was improper, and remand is appropriate.

This Court does not find, however, that an award of attorney’s fees and

costs for the prosecution of this motion is warranted. Given that some courts

have reached a contrary conclusion on the interpretation of the 2011

amendments to § 1441, it cannot be said that Defendant had no objectively

reasonable basis for removal. This request is denied.

CONCLUSION

For the foregoing reasons, Plaintiff’s Motion to Remand is GRANTED,

and this matter is remanded to the 17th Judicial District Court of Louisiana.

Its request for attorney’s fees and costs for the prosecution of this Motion is

DENIED. Defendant’s Motion to Consolidate is DENIED AS MOOT.

9 Allen v. Occidental Fire & Cas. Co. of N. Carolina, No. CIV.A. 11-2806, 2012 WL

1118764, at *4 (E.D. La. 2012).

10 McKenzie v. United States, 678 F.2d 571, 574 (5th Cir. 1982).

4

New Orleans, Louisiana this 15th day of December, 2020.

g TRICHE hh

UNITED STATES DISTRICT JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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