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Rolfe v. Biomet, Inc.

United States District Court, E.D. Missouri, Eastern Division

July 14, 2014

PETER ROLFE and RHONDA ROLFE, Plaintiffs,
v.
BIOMET, INC.; BIOMET ORTHOPEDICS, LLC; MOHAMMAD HAQUE, M.D.; and KINDRED HOSPITALS EAST, LLC, Defendants.

MEMORANDUM AND ORDER

AUDREY G. FLEISSIG, District Judge.

This action is before the Court on Plaintiffs' motion to remand this case to the state court from which it was removed, due to lack of subject matter jurisdiction. Plaintiffs are husband and wife who assert products liability claims against two non-Missouri Defendants, and medical negligence claims against a Missouri Defendant and a non-Missouri Defendant. For the reasons set forth below, the claims against the two sets of Defendants shall be severed and Plaintiffs' motion to remand shall be denied as to the products liability claims and granted as to the medical negligence claims.

BACKGROUND

On February 24, 2014, Plaintiffs Peter Rolfe and Rhonda Rolfe filed this action in Missouri state court. They allege that on December 6, 2010, Peter Rolfe underwent surgery to have a reverse shoulder system manufactured by the Defendants Biomet, Inc., and Biomet Orthopedics, LLC, ("the Biomet Defendants"), implanted into his left shoulder. Within the next 14 months, two of the screws from the reverse shoulder system fractured causing Peter Rolfe to undergo numerous additional surgeries which led to postoperative infections and medical bills in excess of $590, 000. Plaintiffs assert various products liability claims against the Biomet Defendants linked to the manufacturing of the reverse shoulder system.

Plaintiffs further allege that in February and March of 2012, Defendants Kindred Hospitals East ("Kindred") and Mohammad Haque, M.D., committed medical negligence when they improperly prescribed and injected Lovenox[1] into Peter Rolfe's left thigh muscle. Plaintiffs demand that Kindred and Haque each pay $25, 000 in damages for the excessive pain and suffering they caused Peter Rolfe.

It is undisputed that Plaintiff Peter Rolfe is a citizen of Illinois; Plaintiff Rhonda Rolfe is a citizen of Missouri; Defendant Kindred is a Delaware Corporation with its principal place of business in Kentucky; Defendant Haque is a citizen of Missouri; and the Biomet Defendants are citizens of Indiana.

The state court file indicates that on March 14, 2014, Biomet Orthopedics, LLC, was served with the state court petition; on March 17, 2014, Kindred was served; and on March 21, 2014, Biomet, Inc. was served. Haque has not yet been served. On April 9, 2014, Kindred filed an answer. On April 14, 2014, the Biomet Defendants removed the action to this Court on the basis of diversity of citizenship pursuant to 28 U.S.C. ยง 1332(a)(1). They stated in their notice of removal that "there had been no proceedings in this action in the Circuit Court of the County of St. Louis, Missouri nor have any of the named Defendants filed responsive pleadings or otherwise pleaded to Plaintiffs' petition." (Doc. No. 1.)

The Biomet Defendants further asserted in their notice of removal that there was complete diversity in this case because Kindred and Haque were misjoined in the action and therefore Haque's Missouri citizenship is irrelevant for removal purposes. They argue that Plaintiffs' claims against Kindred and Haque were misjoined because those claims are factually and legally distinct from the claims against the Biomet Defendants, and thus fail to meet the permissive joinder requirements of Federal Rule of Civil Procedure 20(a)(2). The Biomet Defendants argue that the Court should sever Plaintiffs' claims against Kindred and Haque from Plaintiffs' claims against the Biomet Defendants pursuant to Rule 21, and dismiss Kindred and Haque without prejudice or remand the claims against Kindred and Haque to state court. This would leave this Court with diversity jurisdiction over the products liability claims. Kindred consented to removal on April 28, 2014.

For remand, Plaintiffs argue that pursuant to the federal permissive joinder rules, Plaintiffs are allowed to join all the named Defendants because Plaintiffs' claims for relief against them arise out of the same transactions or occurrences and give rise to common questions of law or fact as required by Rule 20(a)(2). Plaintiffs explain that Peter Rolfe was prescribed and injected with the Lovenox in his left thigh when he was hospitalized after having the reverse shoulder system removed from his left shoulder. They explain that the Lovenex injection was part of "postoperative treatment" made necessary by the Biomet Defendants' "improper acts, " and that it caused Peter Rolfe extreme pain, extended his need for medical care, and prolonged his recovery time.

Plaintiffs state that misjoinder has not been recognized by the Eighth Circuit as a basis for removal without a showing of "egregious" misjoinder. They argue that the Court should not sever the claims because severance will cause unjust prejudice to Plaintiffs forcing them to litigate two separate actions regarding the same events, and may lead to inconsistent judgments. Plaintiffs note that without severance of the claims, there is not complete diversity, and thus the entire case should be remanded.

Additionally, Plaintiffs argue that their motion to remand should be granted because the Biomet Defendants "waived" any right of removal when Kindred filed an answer in state court prior to removal, as this made unanimous consent to removal impossible. Plaintiffs maintain that Kindred's consent to removal was too late and should be disregarded.

In further support of their motion to remand, Plaintiffs assert that the Biomet Defendants failed to comply with Local Rule 81-2.03(4) (requiring removing defendants to file with the notice of removal "a copy of all process, pleadings, orders and other documents then on file in State Court") when they did not include a copy of Kindred's answer with their notice of removal. They argue that this failure to comply with the Local Rules is sufficient for remand given the strict construction of removal statutes.

In response to Plaintiffs' motion to remand, the Biomet Defendants raise three arguments. First, they assert, as they did in their notice of removal, that the Court should sever and remand the claims against Kindred and Haque to state court and retain jurisdiction over the claims against the Biomet Defendants because Kindred and Haque were fraudulently misjoined in an attempt to destroy federal subject matter jurisdiction and keep the action in state court. They maintain that the evidence for Plaintiffs' medical negligence claims against Kindred and Haque will be separate from the evidence for the products liability claims against the Biomet Defendants. The Biomet Defendants argue that a showing of an "egregious" attempt to avoid federal court should not be required, and even if it is, the standard is met here because the joined claims are not related, and in light of the litigation history of Plaintiffs' claims. The Biomet Defendants note that Plaintiffs first filed an action in state court on February 11, 2013, against the Biomet Defendants, the physician who implanted the shoulder system, and Kindred. The physician and Kindred were dismissed by Plaintiffs, and the Biomet Defendants removed the action to this Court on September 13, 2013. The case proceeded for five months - through scheduling and a submission of a confidentiality agreement to the Court - at which point Plaintiffs dismissed the case without prejudice. Five days later, Plaintiffs filed the present action in state court. According to the Biomet Defendants, "rather than file a separate action in state court against Kindred and Haque, Plaintiffs attempted to avoid this tribunal by dismissing the federal case and refiling against misjoined parties in state court."

Second, the Biomet Defendants assert that Plaintiffs' argument that Kindred waived the Biomet Defendants' statutory right to removal when it filed an answer in state court "goes against black letter law" and should be rejected. Third, they assert that they complied with Local Rule 81-2.03(4) because they had not ...


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