Removal: Amount in Controversy in Declaratory Judgment Actions
A defendant seeking removal on the basis of diversity jurisdiction has the burden of proving that the amount in controversy exceeds the $75,000 jurisdictional threshold. So, what does a defendant do when the sole claim is one for a declaratory judgment, and the complaint alleges no dollar amount in controversy? The defendants in a recent case from the Eastern District of Tennessee, Burkhart v. Starr Crest Owners Association, Inc., 2010 WL 1687078 (E.D. Tenn. Apr. 26, 2010), probably asked themselves the same question.
By Removal: Ascertaining the Amount in Controversy
Normally, a defendant seeking to remove a case to federal court must file a notice of removal within 30 days of service of the complaint. However, if the case stated by the complaint is not removable, the period for removal becomes 30 days from the time the defendant receives an amended pleading, motion, order or other paper indicating that the case is removable. The recent case of Franklin American Mortgage Co. v. Eagle National Bank, 2010 WL 1628998 (M.D. Tenn. Apr. 21, 2010), clarifies what it means for a defendant to ascertain the removability of a case.
Rules of Service Important in Removal Actions
The U.S. District Court for the Western District of Tennessee has issued another decision highlighting the critical role service of process plays in federal removal actions. Last week, in “Removal in the Sixth Circuit: Ask Questions Now, Remove Later,” I discussed a recent case in which the Court granted a plaintiff’s motion to remand because the defendant seeking removal had improperly determined which parties had been served in the case. Now, the Court has issued another opinion involving service of process in the context of a federal removal action.
Removal in the Sixth Circuit: Ask Questions Now, Remove Later
When it comes to satisfying the federal removal procedure statute, 28 U.S.C. ยง 1446, some circuits allow parties to “remove first and ask questions later.” Not so in the Sixth Circuit. As one defendant seeking removal recently learned, the proper procedure in this circuit is to ask questions now and remove later.
