“Among the factors that may justify denial of leave to amend are undue delay, bad faith, and futility.”
How later courts described this case
- “Among the factors that may justify denial of leave to amend are undue delay, bad faith, and futility.”
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
SUZANNE SCAFFIDI, Civil Action No. 20-8534
INDIVIDUALLY, AND AS
ADMINISTRATRIX AD
PROSEQUENDUM OF THE ESTATE OPINION
OF DANIEL SCAFFIDI, et al.,
Plaintiffs,
v.
THE HAMMONTON BOARD OF
EDUCATION, et al.,
Defendants.
APPEARANCES:
JEFFREY ROY YOUNGMAN
FEITLIN, YOUNGMAN, KARAS
& GERSON, L.L.C.
HERITAGE PLAZA II
65 HARRISTOWN ROAD
SUITE 207
GLEN ROCK, NJ 07452
JONATHAN MICHAEL ETTMAN
POFF & BOWMAN LLC
1600 ROUTE 208 NORTH
P.O. BOX 24
HAWTHORNE, NJ 07507
On behalf of Plaintiffs
BENJAMIN HENRY ZIEMAN
ANDERSON SHAH LLC
457 HADDONFIELD ROAD
SUITE 120
CHERRY HILL, NJ 08002
On behalf of Defendants.
HILLMAN, District Judge
This matter comes before the Court by way of Plaintiffs’
First Motion to Remand and Plaintiffs’ Motion to Amend Complaint
and Second Motion to Remand. (ECF Nos. 4, 6.) For the reasons
stated below, the Court will deny Plaintiffs’ First Motion to
Remand and grant Plaintiffs’ Motion to Amend Complaint and
Second Motion to Remand.
BACKGROUND
Plaintiffs originally filed their Complaint in the Superior
Court of New Jersey on May 15, 2020. Defendants removed the
case to this Court on July 9, 2020 due to Plaintiffs’ inclusion
of federal constitutional claims actionable under 42 U.S.C. §
1983. (ECF No. 1.)
On July 17, 2020, Plaintiffs filed a Motion to Remand
(“First Motion to Remand”) moving to dismiss their federal
claims under 42 U.S.C. § 1983 and to remand this matter to state
court. (ECF No. 4.) On July 19, 2020, Defendants responded by
pointing out two deficiencies with Plaintiffs’ First Motion to
Remand. First, Plaintiffs’ motion did not rely on the correct
procedural mechanism and instead Plaintiffs’ should have first
sought leave to amend under Federal Rule of Civil Procedure 15.
(ECF No. 5.) Second, Defendants argued Plaintiffs cannot divest
this Court of subject matter jurisdiction simply by dismissing
their actionable 42 U.S.C. § 1983 claims. Instead Plaintiffs
must also limit their New Jersey Civil Rights Act (“NJCRA”)
claims to alleged violations of the New Jersey Constitution and
not the Federal Constitution. (Id.)
On June 22, 2020, Plaintiffs filed the instant Motion to
Amend Complaint and Second Motion to Remand, seeking to amend
the Complaint to remove all federal claims and to then remand
this case to state court. In Plaintiffs’ amended complaint
they: (1) omit their 42 U.S.C. § 1983 claims; and (2) explain
violations of Plaintiffs’ state constitutional rights form the
sole basis of their NJCRA claims. (ECF No. 6.) Defendants have
not filed an opposition to Plaintiffs’ Motion to Amend Complaint
and Second Motion to Remand.
DISCUSSION
1. Legal Standard
a. Motion to Amend Complaint
Federal Rule of Civil Procedure 15(a)(2) provides that “a
party may amend its pleading . . . with the opposing party's
written consent or the court’s leave.” Leave to amend is to be
freely granted unless there is a reason for denial, “such as
undue delay, bad faith or dilatory motive on the part of the
movant, repeated failure to cure deficiencies by amendments
previously allowed, undue prejudice to the opposing party by
virtue of allowance of the amendment, futility of amendment,
etc.” Foman v. Davis, 371 U.S. 178, 182 (1962); see also Arthur
v. Maersk, 434 F.3d 196, 204 (3d. Cir. 2006) (“Among the factors
that may justify denial of leave to amend are undue delay, bad
faith, and futility.”).
b. Motion to Remand
In an action removed to federal court under 28 U.S.C.
§1441, the removing party bears the burden of showing that
federal subject matter jurisdiction exists. Samuel-Bassett v.
KIA Motors Am., Inc., 357 F.3d 392, 396 (3d Cir. 2004); Boyer v.
Snap-On Tools Corp., 913 F.2d 108, 111 (3d Cir. 1990). The
removal statute is strictly construed against removal and all
doubts are to be resolved in favor of remand. Entrekin v.
Fisher Scientific, Inc., 146 F. Supp. 2d 594, 604 (3d Cir.
2001); Batoff v. State Farm Ins. Co., 977 F.2d 848, 851 (3d Cir.
1992); Steel Valley Auth. v. Union Switch & Signal Div., 809
F.2d 1006, 1010 (3d Cir. 1987). For removal to be proper, “a
right or immunity created by the Constitution or laws of the
United States must be an element, and an essential one, of the
plaintiffs cause of action.” Boncek v. Pennsylvania R. Co., 105
F. Supp. 700, 705 (D.N.J. 1952) (quoting Gully v. First National
Bank, 299 U.S. 109, 112 (1936)). Under the “well-pleaded
complaint” rule, a plaintiff is ordinarily entitled to remain in
state court so long as its complaint does not, on its face,
affirmatively allege a federal claim. See Beneficial Nat’l Bank
v. Anderson, 539 U.S. 1, 6 (2003).
2. Analysis
a. Motion to Amend Complaint
Plaintiffs seek to amend their Complaint in order to remove
(1) their 42 U.S.C § 1983 claims and (2) allegations regarding
violations of Plaintiffs’ federal constitutional rights in
support of their NJCRA claims. This Court finds that Defendants
have not set forth any reasons that justify denying Plaintiffs’
Motion to Amend, such as bad faith, undue delay, futility, or
prejudice to Defendants. Therefore, Plaintiffs’ Motion to Amend
Complaint will be granted.
b. Motions to Remand
i. First Motion to Remand
Plaintiffs’ First Motion to Remand was filed before
Plaintiffs’ Motion to Amend Complaint was filed. Because this
Court is granting Plaintiffs’ Motion to Amend Complaint, and
because Plaintiffs have filed a Second Motion to Remand that is
specific to Plaintiffs’ Amended Complaint, Plaintiffs’ First
Motion to Remand is no longer relevant. Accordingly,
Plaintiffs’ First Motion to Remand will be denied.
ii. Second Motion to Remand
Having granted Plaintiffs’ Motion to Amend Complaint to
omit from the amending pleading the sole basis for original
jurisdiction, this Court next considers whether it should retain
supplemental jurisdiction over their remaining state law claims
under 28 U.S.C. § 1367. Defendants did not file an Opposition
to Plaintiffs’ Second Motion to Remand presumably agreeing to
remand if the two deficiencies previously noted were cured. As
set forth in their original opposition, Defendants argued:
Thus, if Plaintiffs wish to return to state
court, they must move for leave to amend
pursuant to Fed. R. Civ. P. 15 and L. Civ. R.
15.1. That motion must be accompanied by a
proposed amended complaint which omits all
federal constitutional claims, and any
remaining NJCRA claim in the proposed pleading
must only be based on an asserted violation of
the New Jersey Constitution. See Concepcion
v. CFG Health Sys. LLC, 2013 U.S. Dist. LEXIS
159134, at *6-10(D.N.J. Nov. 6, 2013)(granting
second motion to remand because the NJCRA
claim in the proposed amended complaint only
alleged violations of the plaintiff’s state
constitutional rights).
(Id. at 2). Accordingly, it seems Defendants would agree remand
of this matter is now proper given the Plaintiffs have resolved
both issues highlighted in Defendants’ Opposition letter.
Now that it is clear that only state law claims remain in
the case, the issue is whether this Court should, in its
discretion retain jurisdiction over the case. As Defendants
state or imply the original removal petition in this action was
proper as Plaintiff expressly included a claim under federal
law. It is axiomatic that once subject matter attaches it must
ordinarily be exercised. However, “when all federal claims
against a party have been eliminated from a case, the district
court may, in its discretion, decline to extend supplemental
jurisdiction over the remaining state law claims.” Rothman v.
City of Northfield, 716 F. Supp. 2d 369, 373 (D.N.J. 2010)
(citing Lentz v. Mason, 961 F. Supp 709, 717 (D.N.J. 1997)).
Where the federal claims are dismissed at an early stage in
litigation, courts generally decline to exercise supplemental
jurisdiction over state law claims. See United Mine Workers v.
Gibbs, 383 U.S. 715, 726 (1966); Growth Horizons, Inc. v.
Delaware Cty., Pa., 983 F.2d 1277, 1284-1285 (3d Cir. 1993).
In this case, as the Plaintiffs are voluntarily omitting
the only claim over which this Court may have had original
subject matter jurisdiction at an early stage in the litigation,
the Court declines to exercise supplemental jurisdiction over
Plaintiffs’ remaining state law claims pursuant to 28 U.S.C. §
1367(c)(3). Accordingly, Plaintiffs’ Second Motion to Remand
will be granted.
CONCLUSION
For the reasons stated above, the Court will grant
Plaintiffs’ Motion to Amend Complaint and Second Motion to
Remand and deny Plaintiffs’ First Motion to Remand.
An appropriate Order will be entered.
Date: December 28, 2020 s/ Noel L. Hillman
At Camden, New Jersey NOEL L. HILLMAN, U.S.D.J.