{"ID":63028,"name":"Home Depot U.S.A., Inc. v. Jackson","href":"https:\/\/api.oyez.org\/cases\/2018\/17-1471","view_count":0,"docket_number":"17-1471","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Home Depot U.S.A., Inc.","second_party":"George W. Jackson","timeline":[{"event":"Granted","dates":[1538024400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54368"},{"event":"Argued","dates":[1547532000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54404"},{"event":"Decided","dates":[1559019600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54516"}],"lower_court":{"ID":9,"name":"United States Court of Appeals for the Fourth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/9"},"facts_of_the_case":"\u003Cp\u003EIn 2016, Citibank initiated a debt-collection action in a North Carolina state court against George W. Jackson, alleging that Jackson had failed to pay for a water treatment system he purchased using a Citibank-issued credit card. In responding to Citibank\u2019s complaint, Jackson asserted a counterclaim against Citibank and third-party class-action claims against Home Depot and Carolina Water Systems (CWS). In these third-party claims, Jackson alleged that Home Depot and CWS had engaged in unfair and deceptive trade practices with respect to the water treatment systems; Jackson\u2019s counterclaim against Citibank alleged that Citibank was jointly and severally liable to him because Home Depot had sold or assigned the transaction to Citibank. Citibank subsequently dismissed its claims against Jackson.\u003C\/p\u003E\n\u003Cp\u003EHome Depot filed a notice of removal in federal court, citing federal jurisdiction under the Class Action Fairness Act (CAFA). Home Depot then filed a motion to realign parties with Jackson as plaintiff and Home Depot, CWS, and Citibank as defendants. Jackson moved to remand the case to state court and amended his third-party complaint to remove any reference to Citibank.\u003C\/p\u003E\n\u003Cp\u003EThe district court denied Home Depot\u2019s motion to realign parties, finding that there were not \u201cantagonistic parties on the same side,\u201d and granted Jackson\u2019s motion to remand because Home Depot was not a \u201cdefendant\u201d eligible to remove under CAFA. The US Court of Appeals for the Fourth Circuit affirmed, finding that the district court properly declined to realign the parties because the purpose of realignment\u2014to prevent parties from fraudulently manufacturing diversity jurisdiction\u2014was not implicated in the dispute. Moreover, the Fourth Circuit found that allowing Home Depot to remove would be inconsistent with its prior interpretations of CAFA\u2019s removal statute.\u003C\/p\u003E\n","question":"\u003Col\u003E\n\u003Cli\u003EDoes the Class Action Fairness Act permit removal to federal court by a third-party counterclaim defendant?\u003C\/li\u003E\n\u003Cli\u003EDoes \u003Ca href=\u0022https:\/\/supreme.justia.com\/cases\/federal\/us\/313\/100\/\u0022\u003E\u003Cem\u003EShamrock Oil \u0026amp; Gas Corp. v. Sheets\u003C\/em\u003E, 313 U.S. 100 (1941)\u003C\/a\u003E\u2014which holds that an original plaintiff may not remove a counterclaim against it\u2014extend to third-party counterclaim defendants?\u003C\/li\u003E\n\u003C\/ol\u003E\n","conclusion":"\u003Cp\u003ENeither the general removal statute, 28 U.S.C. \u00a7 1441, nor the Class Action Fairness Act (CAFA), 28 U.S.C. \u00a7 1453(b), permits removal to federal court by a third-party counterclaim defendant. Writing for a 5-4 majority, Justice Clarence Thomas found that while Home Depot is a \u201cdefendant\u201d to a \u201cclaim,\u201d section 1441(a) refers to the defendant of a \u201ccivil action,\u201d not a claim. If Congress intended for defendants to remove such actions to federal court, it would have done so as it has done in other contexts. Interpreting section 1441(a) to allow for removal by a party who was not a defendant to the original action defies the text of the statute, as well as the history and purpose of the removal procedure.\u003C\/p\u003E\n\u003Cp\u003ENor does 28 U.S.C. \u00a7 1453(b) permit removal by Home Depot in this circumstance. The Court found unpersuasive Home Depot\u2019s argument that section 1453(b) permits removal by \u201cany defendant\u201d to a \u201cclass action.\u201d This interpretation would require interpreting the term \u201cdefendant\u201d to have different meanings in different sections of the statute, rendering the the removal provisions incoherent. The same holding in \u003Ca href=\u0022https:\/\/supreme.justia.com\/cases\/federal\/us\/313\/100\/\u0022\u003E\u003Cem\u003EShamrock Oil \u0026amp; Gas Corp. v. Sheets\u003C\/em\u003E, 313 U.S. 100 (1941)\u003C\/a\u003E\u2014that a counterclaim defendant who was the original plaintiff is not one of \u201cthe defendants\u201d\u2014applies equally to third-party counterclaim defendants.\u003C\/p\u003E\n\u003Cp\u003EJustice Samuel Alito filed a dissenting opinion, in which Chief Justice Roberts and Justices Neil Gorsuch and Brett Kavanaugh joined. The dissent argued that third-party counterclaim defendants are defendants within the language of the statute and that the distinction the Court draws between various parties leaves third-party defendants unprotected under both CAFA and section 1441. The dissent described this distinction as \u201cirrational\u201d and contrary to the plain meaning and context of removal laws generally.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":63088,"name":"William P. Barnette","href":"https:\/\/api.oyez.org\/people\/william_p_barnette","view_count":0,"last_name":"Barnette","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"william_p_barnette"},"advocate_description":"for the petitioner","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/22639"},{"advocate":{"ID":23603,"name":"F. Paul Bland, Jr.","href":"https:\/\/api.oyez.org\/people\/f_paul_bland_jr","view_count":0,"last_name":"Bland,","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"f_paul_bland_jr"},"advocate_description":"for the respondent","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/22640"}],"oral_argument_audio":[{"id":24798,"title":"Oral Argument - January 15, 2019","public_note":null,"unavailable":false,"display_title":null,"href":"https:\/\/api.oyez.org\/case_media\/oral_argument_audio\/24798"}],"citation":{"volume":"587","page":null,"year":"2019","href":"https:\/\/api.oyez.org\/case_citation\/case_citation\/27628"},"decisions":[{"description":"A third-party counterclaim defendant cannot invoke removal under the general removal statute, 28 U.S.C. \u00a7 1441, or the Class Action Fairness Act (CAFA), 28 U.S.C. \u00a7 1453(b).","votes":[{"member":{"ID":15100,"name":"Clarence Thomas","href":"https:\/\/api.oyez.org\/people\/clarence_thomas","view_count":0,"last_name":"Thomas","roles":[{"id":2744,"type":"scotus_justice","date_start":688194000,"date_end":0,"appointing_president":"George H. 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