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Foley v. Allied Interstate, Inc.

Citations: 312 F. Supp. 2d 1279; 2004 U.S. Dist. LEXIS 5668; 2004 WL 757845Docket: SA CV 03-1761 AHS(ANx)

Court: District Court, C.D. California; March 30, 2004; Federal District Court

Narrative Opinion Summary

This case involved a motion to remand filed by the plaintiff, Thomas Foley, in response to the removal of his lawsuit against multiple defendants, including Allied Interstate, Inc., from state court to the United States District Court for the Central District of California. The primary legal issue revolved around whether Allied's general counsel, Mike Nugent, had the authority to consent to the removal and if Allied had waived its right to remove by engaging in state court proceedings. Foley argued that the removal was improper due to the lack of unanimous consent among defendants and that Allied's actions in state court constituted a waiver. The court examined the procedural history, noting that after the case was removed on December 10, 2003, Foley contested the authority of Nugent as Allied's general counsel and claimed that Allied's participation in state court amounted to waiver. However, the court found that Nugent had the authority to consent and that Allied's actions in state court, such as filing an answer and serving interrogatories, did not constitute litigation on the merits or a clear waiver of removal rights. Therefore, the court denied the plaintiff's motion to remand, maintaining the case within the federal jurisdiction.

Legal Issues Addressed

Authority to Consent to Removal

Application: The court determined that general counsel can consent to removal on behalf of a corporation if they possess the authority to act for the corporation.

Reasoning: The Court found no legal authority preventing general counsel from consenting to removal under 28 U.S.C. § 1446, as long as they possess the authority to act for the corporation.

Litigation on the Merits and Waiver

Application: Actions short of litigation on the merits in state court do not constitute a waiver of the right to remove to federal court.

Reasoning: While the court agrees that litigating on the merits can lead to waiver, it clarifies that actions short of an adjudication on the merits do not.

Unanimity Rule in Removal

Application: All defendants must consent to removal for it to be valid, but the court found that the necessary consent was properly obtained in this case.

Reasoning: The Court concluded that the removal was timely and in accordance with the unanimity rule, rejecting the plaintiff's claims of improper joinder.

Waiver of Right to Remove

Application: Participation in state court proceedings after a case has been removed does not necessarily constitute a waiver of the right to remove if such actions do not result in an adjudication on the merits.

Reasoning: The court finds that merely filing an answer in state court does not invoke the court's jurisdiction and does not constitute a waiver of removal rights.