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Chart Development Corp. v. West Slope Water District

Citations: 22 F. Supp. 2d 1169; 1998 U.S. Dist. LEXIS 16528; 1998 WL 723698Docket: Civ. 98-904-JO

Court: District Court, D. Oregon; October 15, 1998; Federal District Court

Narrative Opinion Summary

In a legal dispute between Chart Development Corporation and West Slope Water District, the plaintiff filed a lawsuit in state court claiming nuisance, unjust enrichment, and other violations, including substantive due process under the Fourteenth Amendment. The defendant removed the case to federal court, prompting the plaintiff to move for a remand on the grounds that the removal was untimely under 28 U.S.C. § 1446(b). The central legal question was whether the 30-day removal period commenced upon the defendant's receipt of the complaint or upon service. The court adhered to the 'receipt rule,' finding the removal untimely as the defendant acknowledged receipt more than 30 days before filing for removal. The plaintiff's motion to remand was granted, but the court denied the request for costs and attorney fees, citing its discretionary power and the absence of bad faith, despite acknowledging the district's consistent application of the receipt rule. The case was remanded to state court for further proceedings, with all pending motions declared moot.

Legal Issues Addressed

Attorney Fees under 28 U.S.C. § 1447(c)

Application: The court exercised its discretion to deny the plaintiff's request for costs and attorney fees related to the removal, noting the lack of bad faith and the legal ambiguity surrounding the removal rule.

Reasoning: Regarding the plaintiff's motion for costs and attorney fees under 28 U.S.C. § 1447(c), the court noted that an award does not require a showing of bad faith, but it has discretion in such matters.

Mandatory Time Limits for Removal

Application: The court emphasized that the time limit for removal is mandatory, placing the burden on the defendant to demonstrate timely action.

Reasoning: The court emphasized that while the removal statute's time limit is not jurisdictional, it is mandatory, placing the burden on the defendant to prove that removal was proper.

Removal Procedure under 28 U.S.C. § 1446(b)

Application: The court applied the receipt rule, determining that the 30-day period for removal begins upon receipt of the complaint, not upon service.

Reasoning: The key legal issue was whether the 30-day removal period begins upon receipt of the complaint (receipt rule) or upon completion of service (service rule). The court adhered to the receipt rule, which it had previously adopted, concluding that the defendant did not meet the removal deadline.