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In Re Maine Asbestos Cases

Citations: 44 F. Supp. 2d 368; 1999 WL 193918Docket: Lead Civil Docket No. 98-368-P-H. Nos. 2:98-369, 2:98-370, 2:98-371, 2:98-372, 2:98-373, 2:98-374, 2:98-375, 2:98-376, 2:98-377, 2:98-378

Court: District Court, D. Maine; March 17, 1999; Federal District Court

Narrative Opinion Summary

In re MAINE ASBESTOS CASES concerns multiple plaintiffs who initiated lawsuits against several corporations, including W.L. Blake Co., for alleged damages due to asbestos exposure at Bath Iron Works in Maine. The defendants attempted to remove the cases to federal court under diversity jurisdiction, but the presence of W.L. Blake Co., a Maine-based entity, obstructed complete diversity. The plaintiffs moved to remand the cases to state court, arguing that W.L. Blake Co.'s inclusion defeated federal jurisdiction. The court examined whether Blake was fraudulently joined to manipulate jurisdiction and concluded that the defendants did not meet the burden of proving fraudulent joinder. The court emphasized the necessity of objective bad faith evidence, which was not presented by the defendants, as they failed to show that the plaintiffs knew their claims against Blake were untenable. Consequently, the court granted the plaintiffs' remand motions, ruling there was no federal jurisdiction. The plaintiffs' request for costs was denied due to the reasonable ambiguity surrounding fraudulent joinder standards. The case underscores the rigorous proof requirements for asserting fraudulent joinder and the importance of a good faith basis for jurisdictional claims.

Legal Issues Addressed

Determination of Removability

Application: A plaintiff retains control over the removability of their case, with removability determined by the pleadings at the time of removal.

Reasoning: The determination of whether a case that was initially non-removable becomes removable later hinges on the plaintiff's actions in shaping the pleadings.

Diversity Jurisdiction and Fraudulent Joinder

Application: The court evaluated whether the inclusion of W.L. Blake Co., a Maine corporation, was an attempt to defeat federal jurisdiction through fraudulent joinder.

Reasoning: The defendants failed to prove fraudulent joinder, as the plaintiffs claimed they included Blake due to its provision of asbestos insulation materials to BIW during the relevant employment periods.

Jurisdictional Amount Requirement

Application: The court assessed whether the plaintiffs' claims met the federal jurisdictional amount threshold, emphasizing good faith in asserting jurisdiction.

Reasoning: The jurisdictional amount requirement was deemed unsatisfied when the claim could not reasonably be viewed as meeting the minimum, despite no deliberate bad faith being present.

Plaintiff's Good Faith in Pleading

Application: A claim's good faith is central to jurisdictional challenges, with fraudulent joinder requiring evidence of the plaintiff’s objective bad faith.

Reasoning: Objective bad faith can be established if a claim is attached to known facts in a manner that no reasonable person would find significant under applicable law.

Standards for Proving Fraudulent Joinder

Application: Defendants must demonstrate to a legal certainty that no reasonable basis exists for the plaintiff's claim against the nondiverse defendant.

Reasoning: The defendants must demonstrate that no reasonable person, familiar with the law, could have believed the claim against Blake was viable at the time of filing.