Poche v. Canadian National Railway Company

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

STEVEN POCHE, ET AL. CIVIL ACTION

VERSUS NO. 23-1327

CANADIAN NATIONAL RAILWAY SECTION “R” (1)

COMPANY, ET AL.

ORDER AND REASONS

Before the Court is defendants Canadian National Railway Company

(“CNRC”) and Illinois Central Railroad Company’s (“Illinois Central”)

unopposed motion to remand.1 For the following reasons, the Court grants

the motion.

I. BACKGROUND

Plaintiffs filed this action in Louisiana state court on November 2,

2022.2 In their complaint, plaintiffs allege that a train, operated by an

employee of CNRC, was hauling hydrochloric acid in St. James Parish.3

Plaintiffs further allege that CNRC and its employee operated the train

1 R. Doc. 7.

2 R. Doc. 1-1.

3 Id.

negligently, causing it to derail.4 As a result of the derailment, plaintiffs

claim that they suffered personal and economic injuries.5

Illinois Central filed a petition for intervention to unite with CNRC to

defend the action, asserting that it has a justiciable interest in the proceeding

because it was the carrier of the railroad car and the owner of the railroad

tracks involved in the derailment.6 CNRC and Illinois Railroad then

removed this matter to the Eastern District of Louisiana on April 20, 2023.7

In their notice of removal, defendants contend that this Court has

jurisdiction pursuant to 28 U.S.C. § 1332(a) because there is complete

diversity of citizenship and the amount in controversy exceeds the $75,000

statutory threshold.8 Although the original state court complaint averred

that the amount in controversy was less than $75,000, defendants assert that

the recent addition of Cary and Kathy Washington (“Washington plaintiffs”)

as intervening plaintiffs offers grounds for removal. According to

defendants, the Washington plaintiffs’ complaint expanded the injuries

encompassed in the original complaint and notably did not adopt the portion

of the original complaint limiting the amount in controversy to under

4 Id.

5 Id.

6 R. Doc. 1.

7 Id.

8 Id.

$75,000.9 With the addition of the Washington plaintiffs’ claims, defendants

assert that the damages sought “may reasonably exceed $75,000,” thus

satisfying the amount-in-controversy threshold for diversity jurisdiction.

On May 2, 2023, the Washington plaintiffs filed a binding stipulation

stating that they “will neither seek nor accept an award of damages in excess

of $75,000,” and renouncing their right to accept a judgment in excess of

that amount.10 Defendants now move to remand the action to state court in

accordance with the stipulation.11 Plaintiffs consent to the motion.12

The Court considers the motion below.

II. LEGAL STANDARD

A defendant may generally remove a civil action filed in state court if

the federal court has original jurisdiction over the action. See 28 U.S.C.

§ 1441(a). The removing party bears the burden of showing that federal

jurisdiction exists. See Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th

Cir. 1995). In assessing whether removal was appropriate, the Court is

guided by the principle, grounded in notions of comity and the recognition

9 Id.

10 R. Doc. 6.

11 R. Doc. 7.

12 Id.

that federal courts are courts of limited jurisdiction, that removal statutes

should be strictly construed. See, e.g., Manguno v. Prudential Prop. & Cas.

Ins., 276 F.3d 720, 723 (5th Cir. 2002); see also St. Paul Mercury Indem. Co.

v. Red Cab Co., 303 U.S. 283, 288 (1938) (“The intent of Congress drastically

to restrict federal jurisdiction in controversies between citizens of different

states has always been rigorously enforced by the courts.”). Though the

Court must remand the case to state court if at any time before the final

judgment it appears that it lacks subject matter jurisdiction, the Court’s

jurisdiction is fixed as of the time of removal. 28 U.S.C. § 1447(c); Doddy v.

Oxy USA, Inc., 101 F.3d 448, 456 (5th Cir. 1996).

For diversity jurisdiction to exist, the amount in controversy must

exceed $75,000, and there must be complete diversity between plaintiffs and

defendants. See 28 U.S.C. § 1332(a); Owen Equip. & Erection Co. v. Kroger,

437 U.S. 365, 373 (1978). Under Fifth Circuit law, if a plaintiff pleads

damages less than the jurisdictional amount, this figure will generally control

and bar removal. See Allen, 63 F.3d at 1335. If a defendant can show by a

preponderance of the evidence that the amount in controversy exceeds

$75,000, then removal is proper. See Simon v. Wal-Mart Stores, Inc., 193

F.3d 848, 850 (5th Cir. 1999); Allen, 63 F.3d at 1335. But if the plaintiffs

establish with legal certainty that the claims are for less than $75,000, then

they can defeat removal. See De Aguilar v. Boeing Co., 47 F.3d 1404, 1411-

12 (5th Cir. 1995); see also Allstate Fire & Cas. Ins. Co. v. Love, 71 F.4th 348,

355 n.4 (5th Cir. 2023) (affirming same).

Additionally, “post-removal affidavits may be considered in

determining the amount in controversy at the time of removal . . . if the basis

for jurisdiction is ambiguous at the time of removal.” Gebbia v. Wal-Mart

Stores, Inc., 233 F.3d 880, 883 (5th Cir. 2000). But “if it is facially apparent

from the [state court complaint] that the amount in controversy exceeds

$75,000 at the time of removal, post-removal affidavits, stipulations, and

amendments reducing the amount do not deprive the district court of

jurisdiction.” Id. (citations omitted).

III. DISCUSSION

As a threshold matter, plaintiffs’ decision not to oppose defendants’

remand motion “alone provides sufficient grounds to remand.” Brown v.

Heintz, No. 16-13697, 2017 WL 604034, at *2 (E.D. La. Feb. 15, 2017)

(collecting cases); see also Jackson v. City of New Orleans, No. 95-1340,

1995 WL 599046, at *1 (E.D. La. Oct. 10, 1995) (holding that plaintiff’s

remand motion “could be granted as unopposed”).

Further, it is not facially apparent from the original petition or the

Washington plaintiffs’ intervening petition that the jurisdictional amount is

satisfied. The original plaintiffs stated that each of their claims involved less

than $75,000.13 The Washington plaintiffs have stipulated that they will not

seek or accept more than $75,000 in damages.14 Defendants do not contest

the stipulation, nor do they offer evidence that the amount in controversy in

this matter exceeds $75,000. Based on the foregoing factors, the Court finds

that the jurisdictional amount is not satisfied, and the case must be

remanded. See De Aguilar, 47 F.3d at 1406 (“Post-removal affidavits

sometimes can be relevant where the jurisdictional amount question is

unresolved.”); Guillory v. Chevron Stations, Inc., No. 03-2385, 2004 WL

1661201, at *2 (E.D. La. July 22, 2004) (“Given that the amount in

controversy is not facially apparent from the complaint and [defendant’s]

inability to show by a preponderance of the evidence that more than $75,000

is in controversy, the Court credits [plaintiff’s] affidavit.”).

13 R. Doc. 1-1 at 5.

14 R. Doc. 6.

IV. CONCLUSION

For the foregoing reasons, the Court GRANTS defendants’ motion to

remand.

New Orleans, Louisiana, this __25th_ day of July, 2023.

Lora k Vier.

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE