Opinion ID: 672404
Heading Depth: 1
Heading Rank: 1

Heading: analysis

Text: 4 Roundy's believes that the district court erred when it awarded LaMotte $5,302 to compensate him for the attorney's fees he incurred as a result of Roundy's removal of the case from Wisconsin Circuit Court. Roundy's argues as follows: a district court may order a case remanded either because it lacks subject matter jurisdiction over the controversy or because there was a defect in the removal procedure (28 U.S.C. Sec. 1447(c)); the remand ordered here was based on a defect in removal procedure rather than on a lack of jurisdiction; and 28 U.S.C. Sec. 1447(c) provides for an award of attorney's fees only when the district court finds that it lacks jurisdiction and not when--as Roundy's claims is the case here--the remand is based on a procedural defect (Br. 9-10). 5 Although superficially plausible, Roundy's argument is, ultimately, unconvincing. First, as Roundy's acknowledges, it is an open question in this Circuit whether the ground on which the present case was remanded--that defendant Roundy's is a citizen of the state in which the action was brought--is a jurisdictional or a procedural defect. 3 But even were this Court to resolve this issue in Roundy's favor and conclude that the remand here was based on a defect in removal procedure, it is clear that 28 U.S.C. Sec. 1447(c) does not--as Roundy's would have us believe--prevent a district court from awarding attorney's fees and other costs when it remands a case based on a procedural defect. 6 The plain language of 28 U.S.C. Sec. 1447(c) makes this abundantly clear. Section 1447(c) provides, in relevant part, that [a]n order remanding the case may require the payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal. Nothing in this wording suggests that an award of costs or expenses is appropriate only where the remand order is based on a jurisdictional defect. Nor is there anything to indicate that such a limitation should be read into Sec. 1447(c). In fact, the evidence suggests just the opposite. Most significantly, although the previous version of Sec. 1447(c) expressly limited the award of costs to instances where the remanded case was removed without jurisdiction (28 U.S.C. Sec. 1447(c) (1975)), this jurisdictional limitation was removed by a 1988 amendment. 4 To hold as Roundy's asks would require this Court to read in what Congress expressly took out--a course of action we are loath to follow. 7 Consequently, we conclude that Sec. 1447(c) allows a district court to award costs pursuant to an order remanding a case either on the grounds that the court lacks subject matter jurisdiction or on the basis that the procedures for removal were not satisfied. The district court's award of attorney's fees to plaintiff is, therefore, affirmed. We decline, however, plaintiff's invitation to award sanctions against defendant Roundy's pursuant to 28 U.S.C. Secs. 1912, 1927 and Federal Rule of Appellate Procedure 38. Although strained, Roundy's argument on appeal was not frivolous. 8 JUDGMENT AFFIRMED.