Del Carmen Esparza v. Jozwiak

Citations: 391 F. Supp. 2d 504; 2005 U.S. Dist. LEXIS 37443; 2005 WL 1177884Docket: 4:04 CV 398, 4:04 CV 454

Court: District Court, E.D. Texas; May 18, 2005; Federal District Court

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Maria Del Carmen Esparza and others, representing the estate of Manuel Esparza and several minor children, filed a lawsuit in the 193rd Judicial District Court of Dallas County, Texas, against Miroslaw Janusz Jozwiak, KV Trucking, Inc., KV Express, Eagle Express Lines, Inc., and Sta-Dri Company, Inc. The case arises from a tragic accident on September 20, 2004, where Jozwiak lost control of his semi-truck, resulting in the deaths of five passengers in a Ford Expedition and five out of seven passengers in a Ford F-150 pickup truck. Manuel Esparza, the decedent, was driving the pickup and was employed by Sta-Dri at the time of the incident.

The plaintiffs allege gross negligence by Sta-Dri for operating a vehicle that was unsafe for the number of passengers it carried, seeking exemplary damages under Texas Labor Code § 408.001. The defendants removed the case to the United States District Court for the Northern District of Texas, claiming fraudulent joinder of Sta-Dri, a Texas corporation, to defeat diversity jurisdiction.

On November 24, 2004, the plaintiffs amended their petition to include surviving passengers and filed a motion to abstain and remand, arguing that their claims were grounded in Texas workers' compensation laws, which would prevent federal removal under 28 U.S.C. § 1445(c). The plaintiffs also contended that the involvement of Sta-Dri destroyed complete diversity. The defendants countered that the wrongful death claim does not fall under workers' compensation laws and challenged the validity of the plaintiffs' claims against Sta-Dri, asserting it was improperly joined.

The court granted the plaintiffs' motion to abstain and remand, determining their claims against Sta-Dri were indeed non-removable.

Texas Workers' Compensation laws, specifically Title 28 U.S.C. 1445(c), prohibit the removal of civil actions arising under state workers' compensation laws to federal district courts. A claim is considered to "arise under" these laws if the workers' compensation statute creates the cause of action. In the case at hand, Sta-Dri had workers' compensation insurance at the time of the accident on September 20, 2004.

The surviving plaintiffs, Candelario Esparza and Javier Esparza, filed claims of negligence and gross negligence under Section 408.001 of the Texas Labor Code, which states that workers' compensation benefits are the exclusive remedy against an employer for work-related injuries, although exemplary damages may be pursued in cases of intentional acts or gross negligence by the employer. Consequently, the plaintiffs' claims are barred by the Workers' Compensation Act, meaning their exclusive remedy is workers' compensation benefits, and thus their claims cannot be removed to federal court.

Manuel Esparza's representatives claimed gross negligence seeking exemplary damages under Section 408.001. The defendants contended that this section does not create a cause of action for exemplary damages, arguing that such claims arise under the Texas Wrongful Death Act instead. However, various courts, including the Southern District of Texas and others, have concluded that a wrongful death claim for gross negligence does exist under the Texas Workers' Compensation Act, affirming that the plaintiffs' claims arise under these laws.

As a result, the court determined that the case must be remanded to the 193rd Judicial District Court of Dallas County, Texas, as it falls within the scope of the Texas workers' compensation laws which preclude federal jurisdiction.

Improper joinder is deemed moot as the case will be remanded to state court under 28 U.S.C. § 1445(c), thus the court does not need to address the Defendants' arguments regarding improper joinder. The Plaintiffs have sought an award for attorney's fees and expenses following the remand. Under 28 U.S.C. § 1447(c), a remand order may require payment of just costs, including attorney fees, incurred due to removal, but awarding such fees is discretionary. Courts do not automatically grant fees for improper removal; they consider the circumstances surrounding the removal and the extent of its impropriety. After careful evaluation, the court has decided not to award attorney's fees and expenses to the Plaintiffs. The court grants the Plaintiffs' motion to abstain and remand, severing the current lawsuit from cause number 4:04-cv-398 and restoring it to its original cause number, 4:04-cv-454, which is remanded to the 193rd Judicial District Court of Dallas County, Texas. The court’s focus remains on the claims against Sta-Dri, where the Plaintiffs allege gross negligence and failure to provide adequate training and transportation for employees. The Defendants did not address the implications of 28 U.S.C. § 1445(c) concerning the surviving claims against Sta-Dri. The excerpt also references the statutory background related to the Workers' Compensation Act.