Aramini et al v. City of Buffalo et al
Filing
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DECISION AND ORDER FINDING that the City of Buffalo was fraudulently joined in this action; TERMINATING the City of Buffalo as a defendant; DIRECTING the Clerk of the Court to Amend the Caption to reflect the termination of the City of Buffalo; DENYING as moot the City of Buffalo's 14 Motion to Dismiss; DENYING as moot CSX's 17 Motion to Dismiss. Signed by William M. Skretny, Chief Judge U.S.D.C. on 5/22/2012. (MEAL)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NEW YORK
PETER ARAMINI, MARGRET ARAMINI,
Plaintiffs,
v.
DECISION AND ORDER
11-CV-745S
CITY OF BUFFALO,
CSX TRANSPORTATION, INC.,
Defendants.
I. INTRODUCTION
Plaintiff, Peter Aramini, commenced this personal injury action by filing a Summons
and Complaint in New York State Supreme Court against the County of Erie (subsequently
dismissed from the case), the City of Buffalo, and CSX Transportation, Inc. (“CSX”).1 On
September 2, 2011, CSX removed the action to this Court based on diversity of citizenship.
Although Aramini and the City of Buffalo are citizens of the same state, CSX claims that
the City of Buffalo was fraudulently joined because there is no possibility that Aramini can
state a claim against it.2 (Docket No. 1.)
Both remaining defendants, CSX and the City of Buffalo, have since filed motions
to dismiss in favor of the City of Buffalo. (Docket Nos. 14, 17.) The City of Buffalo and
CSX argue that dismissal is appropriate for the same reasons that CSX has claimed that
1
Peter Aram ini’s wife, Margret Aram ini, also brings a derivative loss of consortium claim . Because
that claim is not relevant to these m otions, this Court will refer to Peter Aram ini as sim ply, “Aram ini.”
2
Aram ini and the City of Buffalo are both residents of the State of New York for purposes of
jurisdiction. (Com pl., ¶¶ 1, 2.) CSX is a Virginia Corporation with its principal place of business in Florida.
(Id., ¶ 4.)
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the City was fraudulently joined. Although Aramini did not move to remand the case or
otherwise contest CSX’s stated basis for removal, it now opposes Defendants’ motions to
dismiss.
Because Aramini’s claims are barred by New York law, the City of Buffalo will be
terminated as a defendant. Accordingly, Defendants’ motions to dismiss will be denied as
moot.
II. BACKGROUND3
As they stand at this point, the facts are brief and straightforward: On May 1, 2010,
in his capacity as a City of Buffalo Sanitation Department employee, Aramini was riding on
the back of a sanitation truck traveling westbound on West Ferry Street when it attempted
to pass underneath a railroad bridge, which was owned and operated by CSX. (Compl.,
¶¶ 10-12, 23.) The top of the truck struck the bridge, bringing it to a sudden stop and
injuring Aramini. (Id., ¶ 13.) Aramini contends that a nearby sign, presumably meant to
indicate the height of the bridge, was in someway inadequate. (Id., ¶ 14.)
As a result of this incident, Aramini filed a Workers’ Compensation claim and
received benefits from the City of Buffalo to compensate him for his injures. (Quinn Decl.,
¶ 18; Docket No. 14-1; Workers’ Compensation Board Decision, attached as Ex. “F” to
Quinn Decl.; Docket No. 14-7.)
III. DISCUSSION
As noted, CSX removed this case based on diversity jurisdiction, which Aramini did
3
Facts alleged in Plaintiffs' com plaint are accepted as true for the purposes of resolving this
m otion. See ATSI Com m c'ns, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir. 2007).
2
not oppose. Yet, Aramini continues to assert his claims against the City of Buffalo, a nondiverse party. Therefore, at the outset, this Court must consider whether it has subjectmatter jurisdiction over this case.
A.
Fraudulent Joinder
CSX argues that the City of Buffalo, whose presence in this case would typically
destroy the long-standing requirement of complete diversity, see, e.g., Strawbridge v.
Curtiss, 7 U.S. (3 Cranch) 267 (1806), overruled on other grounds by Louisville, C. & C.R.
Co. v. Letson, 43 U.S. (2 How.) 497, 555 (1844), should not be considered in the diversity
analysis because, based upon the allegations in the complaint, there is no possibility
Aramini can state a claim against it.
To establish fraudulent joinder, a defendant must demonstrate by clear and
convincing evidence that there is outright fraud in the plaintiff’s pleadings, or that there is
no possibility of stating a claim against the non-diverse defendant in state court.
Pampillonia v. RJR Nabisco, Inc., 138 F.3d 459, 461 (2d Cir. 1998). “The defendant bears
the heavy burden of proving this circumstance [and] all factual and legal ambiguities [must
be] resolved in favor of plaintiff.” Collins v. Flynn, No. 08-CV-59, 2008 WL 3851842, at *3
(W.D.N.Y. Aug. 15, 2008) (citing Briarpatch Ltd., L.P. v. Phoenix Pictures, Inc., 373 F. 3d
296, 302 (2d Cir. 2004)). The defendant’s burden is greater than the requisite burden to
dismiss for failure to state a claim. Stan Winston Creatures, Inc. v. Toys “R” Us, Inc., 314
F. Supp. 2d 177, 182-83 (S.D.N.Y. 2003) (“In order to show that a defendant was
fraudulently joined to defeat removal, it is not sufficient to argue that the complaint fails to
state a claim against that defendant; rather, the removing party ‘must demonstrate, by
clear and convincing evidence, . . . that there is no possibility, based on the pleadings, that
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a plaintiff can state a cause of action against the . . . defendant in state court.’”). If there
is a possibility that a right to relief exists under the governing law, fraudulent joinder will not
be found. Id. at 183 (citation omitted).
In making the inquiry into whether a defendant has been fraudulently joined, courts
may look outside the pleadings. See, e.g., Pampillonia, 138 F. 3d at 461-62 (looking to
affidavits to determine if plaintiff’s complaint alleged sufficient factual foundation to support
his claim); In re Consolidated Fen-Phen Cases, Nos. 03-CV-3081, 03-CV-4869, 2003 WL
22682440, at *3 (E.D.N.Y. Nov. 12, 2003); Areseneault v. Congoleum, No. 01-CV-10657,
2002 WL 472256, at *6 (S.D.N.Y. Mar. 26, 2002) (deciding fraudulent joiner issue and
looking outside the pleadings to depositions and other evidence in the record because
“[t]he Second Circuit . . . has said that, on jurisdictional issues ‘federal courts may look
outside [the] pleadings to other evidence in the record’”) (quoting United Food &
Commercial Workers Union, Local 919, AFL-CIO v. CenterMark Props. Meriden Square,
Inc., 30 F. 3d 298, 305 (2d Cir. 1994)).
Accordingly, this Court can consider affidavits and exhibits attached to Defendants’
motions.
B.
Plaintiff has not stated, and cannot state, a claim against the City of Buffalo
Aramini alleges that the City of Buffalo is liable for his injuries due to its failure to
post and maintain legible signs concerning the clearance height of the railroad bridge.
Aramini’s claim, however, is barred by New York State law.
It is undisputed that at the time of the injury, Aramini was engaged in activities
pursuant to his occupation for the City of Buffalo. It is further undisputed that Aramini
sought and received benefits from the City of Buffalo pursuant to New York’s Workers’
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Compensation Law. That law provides that the “liability of an employer prescribed by [this
law] shall be exclusive and in place of any liability whatsoever [] to such employee . . . or
anyone otherwise entitled to recover damages.” N.Y. Workers' Comp. Law § 11. In other
words, “when an employee is injured in the course of his employment, his sole remedy
against his employer lies in his entitlement to a recovery under the Workers' Compensation
Law.” Billy v. Consol. Mach. Tool Corp., 51 N.Y.2d 152, 156, 432 N.Y.S.2d 879, 412
N.E.2d 934 (1980) (citation omitted); see also McClary v. O'Hare, 786 F.2d 83, 85 (2d
Cir.1986); Chrzanowski v. Lichtman, 884 F. Supp. 751, 756 (W.D.N.Y. 1995) (“It is
well-settled that claims for accidental injuries arising out of employment are governed
exclusively by the Worker's Compensation Law.”). Further still, Aramini does not allege that
his injuries were the result of intentional conduct. See id.; Hill v. Delta Intern. Machinery
Corp., 386 F. Supp.2d 427, 432 (S.D.N.Y. 2005) (citing Patterson v. Salvation Army, 203
A.D.2d 87, 610 N.Y.S.2d 42, 43 (1st Dep't 1994) (noting exception to conventional rule
where employer intentionally caused the injury in question). Because Aramini was subject
to the protections and limitations of the Workers’ Compensation Law, he is precluded from
bringing separate litigation against the City of Buffalo.
Aramini is aware of this bar, but argues that his claim should be allowed to proceed
under Billy, 51 N.Y.2d 152. In Billy, an employee of USM Corporation was killed when a
boring mill malfunctioned while he working in the company’s industrial plant. Id. at 157.
The boring mill was designed and manufactured by two separate companies,
Consolidated Machine Tool Corporation and Farrel-Birmingham Company. Id. However,
through a series of consolidations and mergers, those two companies were absorbed into
USM Corporation, which assumed their liabilities and obligations. Id. Thus, the question
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before the court was whether, notwithstanding the exclusive remedy provision of the
Workers’ Compensation Law, the employee‘s executrix could hold USM Corporation liable
for the malfunctioning boring mill. The court answered “yes”; it explained:
Through its merger with Consolidated and Ferrel, USM
voluntarily assumed any obligations that those corporations
may have had to individuals who might suffer injury as result
of a defect in their product. . . . Inasmuch as Plaintiff’s action
represents essentially an attempt to recover from third-party
manufacturer through a suit against their corporate successor,
plaintiff should be permitted to maintain the action,
notwithstanding that the successor corporation is also an
employer which would otherwise be immune from suit under
Section 11.
Id. at 162.
Aramini seeks to apply the above reasoning to this case. He notes that under
previous law – New York’s Vehicle and Traffic Law of 1929 – railroad corporations, “would
have also been liable for negligently failing to post and/or maintain clearly legible clearance
signs.” (Pl.'s Br. in Opp. to Mot. to Dismiss, at 4; Docket No. 19). Under current law, he
notes that this task is now the sole responsibility of the city or village. See N.Y. Veh. & Traf.
Law § 1640; see also Akers Motor Lines v. City of New York, 72 Misc. 2d 751, 753, 339
N.Y.S.2d 514 (N.Y. Civ. Ct. 1972) (pointing out the distinction between the two versions of
the law). He argues that because it is unknown when the sign was affixed to the railroad
bridge, “the granting of a motion to dismiss prior to the opportunity to conduct meaningful
discovery [would be] highly prejudicial to Plaintiff’s overall claim.” (Id. at 5.)
But this court finds any analogy from Billy to this case strained and inapposite. The
Billy court was careful to limit its holding to the narrow facts before it. Indeed, it explicitly
held as much, finding “the principle of exclusivity embodied in section 11 [of the Workers’
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Compensation Law] to be inapplicable to the unique set of facts presented in this case.”
Billy, 51 N.Y2d at 157 (emphasis supplied). It cannot be said the aforementioned change
in law placed the City of Buffalo “in the shoes of” CSX, or that the City assumed the
“obligations and liabilities” of CSX. Although the Billy court did find that an employer can
assume the obligations of a third-party tortfeasor “by operation of law,” it is manifest that
the court did not contemplate the meaning that Aramini now wishes to assign to this
language. Rather, consistent with the remainder of its opinion, the court held that in
situations of corporate merger, assets, obligations, and liabilities can merge “by operation
of law” – specifically New York Business Corporation Law § 906(b)(3), which provides,
“The surviving or consolidated corporation shall assume and be liable for all the liabilities,
obligations and penalties of each of the constituent entities.” There is no indication
whatsoever that the court intended a broader interpretation. See Billy, 51 N.Y2d at passim
(citing Business Corporation Law § 906(b)(3)).
The Billy court carved out an acutely limited exception to the general rule that an
employee's recovery from his employer is limited to his Workers' Compensation award.
See Reich v. Manhattan Boiler & Equip. Corp., 91 N.Y.2d 772, 780, 698 N.E.2d 939, 676
N.Y.S.2d 110 (1998) (noting the “tight rein” the Court of Appeals has kept on the scope of
the exceptions and remarking that it has “resisted many attempts to breach the wall of
exclusivity of the workers' compensation remedy”). The decision was premised on the
specific facts before the court: by operation of a corporate merger and the assumption of
liabilities, an employer could be held responsible for the tort of a third-party. Those facts
are far afield from this case. And Aramini cites no authority for the apparently novel
proposition that Billy should be extended beyond that set of circumstances. Instead, cases
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following Billy do so only where the facts neatly align with it. See Preston v. APCH, Inc.,
89 A.D.3d 65, 71-72, 930 N.Y.S.2d 722 (4th Dep’t 2011) (“As in Billy, the merger at issue
occurred before the accident and the surviving corporation employed decedent”); Kern v.
Frye Copysystems, Inc., 878 F. Supp. 660 (S.D.N.Y. 1995) (applying Billy where
employer's liability arose out of its express agreement to assume all liabilities of
predecessor); Lynn v. McDonnell Douglas Corp., 134 A.D.2d 328, 329-30, 520 N.Y.S.2d
804 (2nd Dep’t 1987) (“Here, Pan Am assumed all the liabilities and obligations of National
as a result of the merger. Since National, the alleged third-party tortfeasor, may not invoke
the exclusivity provisions of the Workers' Compensation Law as a defense to the
common-law action, Pan Am, which stands in the shoes of National with respect to the
question of liability, may likewise not do so”); see also Molinari v. Kar-San Dev., Ltd., 117
A.D.2d 194, 197, 502 N.Y.S.2d 552 (3rd Dept. 1986) (restricting Billy to its facts); Hill v.
State, 157 Misc. 2d 109, 112, 595 N.Y.S.2d 850 (Ct. Cl. 1993) (limited exception “based
on the assumption by one corporation of another's liabilities after a merger”).
There is, therefore, no possibility that Aramini has a right to relief under New York
law against the City of Buffalo. His claim is barred by Section 11 of the Workers’
Compensation Law and the City must be dismissed as a party.4
IV. CONCLUSION
Defendants have shown that there is no possibility that Aramini can state a
negligence claim against the City of Buffalo. Accordingly, the City will be terminated from
4
Although not argued by Aram ini, it should be noted that the City’s position as both Aram ini’s
em ployer and the relevant m unicipality responsible for signage does not save Aram ini’s claim against it.
See Billy, 51 N.Y.2d at 160 (rejecting “dual-capacity” exception to W orkers’ Com pensation Law)
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this case and Defendants’ motions to dismiss will be denied as moot. Upon termination of
the fraudulently joined Defendant, diversity jurisdiction exists and the case was properly
removed.
V. ORDERS
IT HEREBY IS ORDERED, that the City of Buffalo, which was fraudulently joined
in this action, be TERMINATED as a defendant.
FURTHER, that the Clerk of the Court is directed to Amend the Caption to reflect
the termination of the City of Buffalo.
FURTHER, that the City of Buffalo’s Motion to Dismiss (Docket No. 14) is DENIED
as moot.
FURTHER, that CSX’s Motion to Dismiss (Docket No. 17) is DENIED as moot.
SO ORDERED.
Dated:
May 22, 2012
Buffalo, New York
/s/William M. Skretny
WILLIAM M. SKRETNY
Chief Judge
United States District Court
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