Opinion ID: 7011523
Heading Depth: 2
Heading Rank: 2

Heading: Removal Procedures

Text: Vasquez filed an action in state court. He alleged claims for personal injury, premises liability, product defect and product liability, and general negligence. His wife alleged loss of consortium. Amtrak removed the case to federal court on the ground that the company is a federally chartered corporation and the United States of America owns more than one-half the company’s capital stock. 28 U.S.C. §§ 1331, 1349, 1441(a). Only one other Defendant, North County Transit District, joined in Amtrak’s notice of removal, and no party sought remand to the state court within 30 days after the filing of the notice of removal. See 28 U.S.C. § 1447(c). Because Vasquez’ injuries occurred while he was engaged in his duties as a police officer, he was entitled to workers’ compensation benefits. The City, Vasquez’ workers’ compensation provider, filed a complaint in intervention in state court, pursuant to California Labor Code § 3852, 2 seeking to recover the benefits it paid to Vasquez. Although the City properly served the other parties with its state-court complaint in intervention, it failed to serve the Board before the action was removed to federal court. After removal, the City neglected to perfect service against the Board within 120 days as required by 28 U.S.C. § 1448 and Federal Rule of Civil Procedure 4(m). 3 The Board moved to dismiss the City’s claim on this ground and on the ground that the district court lacked jurisdiction. The Board asserted that the City’s claim could not be removed to federal court because of 28 U.S.C. § 1445(c), which provides: “A civil action in any State court arising under the workmen’s compensation laws of such State may not be removed to any district court of the United States.” (Emphasis added.) The district court ruled that the City’s claim did not “aris[e] under” section 3852 and, therefore, removal of the claim was allowed. However, because the City had failed to effect proper service, the district court dismissed without prejudice the City’s complaint against the Board. The City then filed an amended complaint in intervention, in federal court, which it properly served on the Board and the other parties. In addition to seeking reimbursement for standard workers’ compensation benefits, the City sought to recover the excess cost of Vasquez’ disability retirement.