Appeals of remand orders: The bigger the error, the less appealable . . .

April 15, 2018

In Alice in Wonderland, the Mad Hatter remarked: “If I had a world of my own . . . Nothing would be what it is, because everything would be what it isn’t. And contrary wise, what is, it wouldn’t be. And what it wouldn’t be, it would. You see?” In that spirit,  under 28 U.S.C. §  1447(d), a remand order is unreviewable on appeal if issued under one of the grounds in § 1447(c) – either a lack of subject matter jurisdiction, or the plaintiff moves ” to remand the case on the basis of any defect other than lack of subject matter jurisdiction . . .  within 30 days after the filing of the notice of removal.” In Exxon Mobil Corp. v. Starr Indemnity, the plaintiff argued that the district court erred by remanding based on subject matter jurisdiction, when the issue before it was properly characterized as a late-raised procedural matter. The Fifth Circuit agreed, but held: “[Defendants],  however, cannot evade the reviewability bar of § 1447(d) by establishing this defect. . . . . Indeed, each passage from the district court’s order to which the Insurers point as a clear and affirmative statement of a non-§ 1447(c) ground in fact expressly invokes that court’s perceived lack of subject matter jurisdiction. This belief, however erroneous, ‘sufficiently cloaks the remand order in the § 1447(c) absolute immunity from review’ and ends the inquiry.” No. 16-20821 (March 26, 2018, unpublished).

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