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Russell Petroleum Corp. v. Environ Products, Inc.

Citations: 333 F. Supp. 2d 1228; 2004 U.S. Dist. LEXIS 15838; 2004 WL 1798309Docket: Civil Action No. 2:04cv440-T

Court: District Court, M.D. Alabama; August 10, 2004; Federal District Court

Narrative Opinion Summary

In this case, Russell Petroleum Corporation initiated a lawsuit in Alabama state court against multiple defendants, including Environ Products, Inc., ATOFINA Chemicals, Inc., and Ken's Sales and Services Company, Inc., alleging various state-law claims related to the sale and installation of Environ's allegedly defective flexible piping. Seeking a class action status, Russell aimed to represent other fuel dispensing facility owners. The case was removed to federal court by ATOFINA on the basis of diversity jurisdiction, asserting that Ken's, the sole non-diverse defendant, was fraudulently joined to destroy diversity. The court denied Russell's motion to remand the case to state court, finding the claims against Ken's either time-barred or unaccrued, thus supporting fraudulent joinder. Additionally, procedural defects in the removal process were noted, but not raised timely by Russell, precluding remand. Furthermore, the court dismissed Ken's from the case and denied Russell's subsequent motion to reconsider, which inappropriately introduced new arguments. Ultimately, the court upheld the removal to federal court, dismissing the fraudulent joinder claims and maintaining the focus on federal jurisdiction criteria, including the amount in controversy and complete diversity among parties.

Legal Issues Addressed

Fraudulent Joinder in Federal Diversity Jurisdiction

Application: The court evaluates whether the non-diverse defendant, Ken's, was fraudulently joined to defeat federal diversity jurisdiction. The court determines that Ken's was fraudulently joined, as Russell cannot establish a viable claim against Ken's due to time-barred and unaccrued claims.

Reasoning: The court concurs with Environ and ATOFINA that Russell's claims against Ken's are either time-barred or have not accrued.

Motions to Reconsider

Application: The court denies Russell's motion to reconsider the denial of remand, emphasizing the principle that such motions should not introduce new arguments or legal theories.

Reasoning: Russell's subsequent motion to reconsider this denial presents new arguments not previously raised, which violates the principle that motions to reconsider should not introduce new legal theories, as stated in Mays v. United States Postal Service.

Procedural Defects in Removal

Application: The court identifies procedural defects in the removal process, including the failure to obtain consent from all defendants and untimeliness, but these defects are not grounds for remand since they were not raised within 30 days.

Reasoning: More than 30 days have elapsed since the removal of the case, rendering any motion to remand based on procedural defects untimely, as established in Smith v. Atkinson.

Statute of Limitations for Negligence and Wantonness Claims

Application: Russell's claims against Ken's for negligence and wantonness are subject to a two-year statute of limitations under Alabama law, which begins to run when the cause of action accrues.

Reasoning: Russell’s claims of negligence and wantonness, which arose from the installation of pipes in 1998 and 1999, are subject to a two-year statute of limitations.