Opinion ID: 49004
Heading Depth: 1
Heading Rank: 2

Heading: standard of review

Text: We review the district court’s factual findings as to the citizenship of the parties for clear error. Acridge v. Evangelical Lutheran Good Samaritan Soc., 334 F.3d 444, 450 (5th Cir. 2003) (The district court’s “analysis of the facts and circumstances” relevant to determining domicile is reviewed under the clearly erroneous standard.); Coury v. Prot, 85 F.3d 244, 251 (5th Cir. 1996) (“Nevertheless, in practice, the district court’s determination of domicile is reviewed on appeal 1 On February 14, 2007, shortly after we granted permission to appeal in Preston, another panel of this court entered an order that granted a named defendant permission to appeal a remand order in Weems v. Touro, No. 07-30160. These two class action lawsuits involve nearly identical factual backgrounds; however, the parties and procedural histories are different. On appeal, both Appellants ask the court to determine whether the parties moving for remand introduced sufficient evidence to satisfy the citizenship requirement under CAFA’s exceptions to federal jurisdiction. Due to the factual similarities and the legal issues of first impression, the court consolidated these two appeals. Accordingly, we timely enter two separate judgments. 4 as a question of fact; it will be upheld unless ‘clearly erroneous.’”); Carrasco-Favela v. Immigration & Naturalization Serv., 563 F.2d 1220, 1222 (5th Cir. 1977) (“Whether petitioner abandoned this domicile . . . is mainly a question of fact turning on petitioner’s intent to remain indefinitely . . . or a lack of intent to make his home elsewhere.”); Welsh v. Am. Surety Co. of N.Y., 186 F.2d 16, 18 (5th Cir. 1951) (“The question is always one of compound fact and law . . . [and] we are not warranted in setting aside his findings and conclusions unless clearly erroneous.”). But see Evans v. Walter Indus., Inc. 449 F.3d 1159, 1161-62 (11th Cir. 2006) (conducting a de novo review of the district court’s citizenship determination under CAFA’s local controversy exception). A finding of fact is clearly erroneous only when “although there may be evidence to support it, the reviewing court on the entire [record] is left with the definite and firm conviction that a mistake has been committed.” Campos v. City of Baytown, Tex., 840 F.2d 1240, 1243 (5th Cir.1988) (citing Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 573 (1985)). The standard of review for a district court’s remand under the discretionary provision constitutes an issue of first impression. We review the district court’s remand order for abuse of discretion. In determining the burden of proof to show citizenship under the local controversy exception, courts treating the question in the first instance looked to 28 U.S.C. § 1441(a), the general removal statute. Frazier v. Pioneer Ams. L.L.C., 455 F.3d 542 (5th Cir. 2006) (determining that plaintiffs had the burden of proof to show citizenship based on analogy to the general removal statute); Hart v. FedEx Ground Packaging Sys., Inc., 457 F.3d 675 (7th Cir. 2006) (same); Evans v. Walter Indus., Inc., 449 F.3d 1159 (11th Cir. 2006) (same). In the traditional removal context, a district court “shall have original jurisdiction” over lawsuits involving a federal question or lawsuits satisfying statutory diversity and amount in 5 controversy requirements. 28 U.S.C. §§ 1331 & 1332(a). On the other hand, the district courts “may decline to exercise supplemental jurisdiction” over a prescribed list of state and federal law claims in certain circumstances. 28 U.S.C. § 1367(c). In interpreting the discretionary language of supplemental jurisdiction, this court reviews an order to remand pursuant to § 1367(c) for abuse of discretion. Smith v. Amedisys, Inc., 298 F.3d 434 (5th Cir. 2002) (upholding the district court’s remand of case based on existence of novel and complex issues of state law); Welch v. Thompson, 20 F.3d 636 (5th Cir. 1994) (upholding district court’s remand of case after dismissal of federal claims); Kaplan v. Clear Lake City Water Auth., 794 F.2d 1059 (5th Cir. 1986) (same); Jones v. Fitch, 665 F.2d 586 (5th Cir. 1982) (upholding district court’s remand of case based on the presence of a substantial state law claim). Similarly, the local controversy and home state exceptions read that the “district courts shall decline to exercise jurisdiction,” while the discretionary provision provides that the district court “may in the interests of justice and looking at the totality of the circumstances” decline to exercise jurisdiction. Compare §§ 1332(2) & (4) with § 1332(3). LifeCare cogently argues that the local controversy and home state exceptions should be construed narrowly and resolved in favor of federal jurisdiction based on the “shall decline to exercise jurisdiction” language, which represents the classic formulation for abstention. Under the discretionary jurisdiction provision, however, Congress permitted the district court greater latitude to remand class actions to state court. As with supplemental jurisdiction under 28 U.S.C. § 1367(c), the district court does not wield unfettered discretion over whether to remand a case; instead Congress provided a list of factors to guide the district court’s consideration.