Wednesday, January 22, 2025

Federal Court Addresses When Time Begins To Run To Determine if Removal To Federal Court Was Filed Too Late


In the case of Baucom v. Vidal, No. 2:24-CV-01818-JFM (E.D. Pa. Dec. 12, 2024 Murphy, J.), the court addressed a Plaintiff’s Motion to Remand a motor vehicle accident case from federal court back down to state court. 

The court noted that the issue before it was when the Defendant’s thirty (30) day time period to remove a case to federal court begins to run.

According to the Opinion, the Plaintiffs filed this suit in the Court of Common Pleas of Philadelphia and alleged that the damages claimed were in excess of $50,000.00.

At some point in time after the statutory thirty (30) day removal clock had expired, the Plaintiffs made it known that they were actually seeking more than $350,000.00, that is, an amount more than enough to satisfy the $75,000 amount necessary to support diversity jurisdiction.

At that point in time, the Defendants filed a Notice of Removal to the federal court. The Plaintiff then moved to remand the case back to state court, saying that the removal was too late.

The court noted that the questions before it was whether the original Complaint filed in the state court put the Defendants on notice that the amount in controversy exceeded $75,000.00.

Judge Murphy noted that the answer to this question is straightforward under the Third Circuit Court of Appeals’ bright-line test.  Under the appropriate standard of review, the court noted that, if an initial pleading does not give the Defendant notice of the right to remove the case to federal court, the Defendants shall file a Notice of Removal within thirty (30) days after receipt, by the Defendant, of a copy of an amended pleading, motion, order or other paper from which it may be first ascertained that the case is one which is or has indeed become removable. In this regard, the court cited to the Third Circuit’s decision in McLaren v. UPS Store, Inc., 32 F.4th 232 (3d Cir. 2022).

This federal district court noted that the Defendants were not on notice that the amount in controversy exceeded $75,000.00 until the Plaintiffs made their $350,000.00 settlement demand. As such, the court found that the Defendant’s removal was timely. Accordingly, the Plaintiff’s Motion to Remand was denied.

Anyone wishing to review a copy of this decision may click this LINK.  The Court's companion Order can be viewed HERE.

Source: “The Legal Intelligencer Federal Case Alert.” www.Law.com (Jan. 2025).

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