National Youth Placement Corp., Inc. and Education System Management Inc. v. Manufacturers Alliance Insurance Company

Summary

The United States District Court for the Northern District of Georgia grants Plaintiffs’ motion to remand an insurance coverage action to the Superior Court of Clayton County, Georgia. The court holds that the defendant’s removal was untimely under 28 U.S.C. § 1446(b)(3) because the amended complaint seeking damages was served more than 30 days before removal, and earlier written demands had established the amount in controversy. The court rejects the argument that alleged discovery noncooperation extended the removal period.

Holdings

1. Removal was untimely because Plaintiffs' amended complaint, together with their prior written demands for approximately $1 million in insurance benefits, clearly established for the first time that the case was removable, and Defendant did not remove within 30 days after receiving the amended complaint.
2. A plaintiff's alleged failure to cooperate in discovery does not extend or toll the 30-day removal period established by 28 U.S.C. § 1446(b)(3).

Questions Presented

1. Whether Defendant's notice of removal was timely under 28 U.S.C. § 1446(b)(3) when it was filed more than 30 days after Defendant received Plaintiffs' amended complaint seeking damages exceeding $75,000.
2. Whether Plaintiffs' alleged lack of cooperation in discovery excused Defendant's failure to remove within the statutory 30-day period.

Disposition

remanded