Mendez v. Rhoney

Background

Defendants removed the action from the Supreme Court of the State of New York, Bronx County, on November 19, 2020. The state-court action had begun when Mendez filed a summons and complaint on or about August 23, 2019.

The court explained that federal law generally does not allow a case based on diversity jurisdiction to be removed more than one year after the action began. An exception applies when the district court finds that the plaintiff acted in bad faith to prevent removal. The party seeking removal has the burden of showing that federal jurisdiction is proper.

Defendants argued that removal was timely under the bad-faith exception because Mendez deliberately failed to provide information about the amount in dispute for more than one year. The court noted that courts may extend the one-year period when a plaintiff engages in strategic conduct to prevent removal, but that delay alone does not necessarily establish bad faith. The court therefore issued an order requiring the parties to explain why the case should not be returned to state court for untimely removal.

Court’s Analysis

The parties responded to that order in December 2020 and January 2021. Mendez’s current counsel stated that counsel had discussed the delay with Mendez’s former counsel. Based on that discussion, current counsel admitted that former counsel’s delay was motivated at least in part by an attempt to delay timely removal to federal court.

The court concluded that this admission established that Mendez acted in bad faith to prevent removal. It therefore excused defendants’ delay in removing the case and stated that this resolved the order requiring an explanation for the potentially untimely removal.

Disposition

The court excused defendants’ delay in removal and did not remand the action in this order. It ordered the parties to file a joint status report by February 10, 2021. The order was signed by Andrew L. Carter, Jr., United States District Judge, on January 27, 2021.