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Video and Sound Service, Inc v. Amag Technology

December 19, 2012

VIDEO AND SOUND SERVICE, INC., PLAINTIFF,
v.
AMAG TECHNOLOGY, INC., AND ) INTRANSA, INC., DEFENDANTS.



The opinion of the court was delivered by: James F. Holderman, Chief Judge:

MEMORANDUM OPINION AND ORDER

On August 13, 2012, plaintiff Video and Sound Service, Inc. ("VSS") filed a five-count Complaint against defendants AMAG Technology, Inc. ("AMAG") and Intransa, Inc. ("Intransa") in the Circuit Court of Cook County, Illinois, Law Division, alleging claims for breach of contract (Counts I and II), breach of warranty (Counts III and IV), and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (Count V). (Dkt. No. 3-1 ("Compl.").) AMAG thereafter removed the case to this federal district court on September 13, 2012, asserting that this court has subject-matter jurisdiction over VSS's claims pursuant to 28 U.S.C. § 1332(a).

Pending before the court is VSS's "Motion for Remand," alleging improper removal under 28 U.S.C. § 1446(b). (Dkt. No. 17). For the reasons set forth below VSS's motion for remand in denied.

BACKGROUND

Plaintiff VSS "is in the business of designing, installing and servicing integrated security management and control systems for commercial, industrial and government buildings." (Compl. ¶ 1.) As alleged in the Complaint,

On or about June 14, 2010, VSS entered into a contract with Martel Construction, Inc. ("Martel") whereby VSS agreed to install a communication/security system at the Gallatin Airport ("Airport") located at 850 Gallatin Field Road, Belgrade, Montana 59714 ("Project"). In general terms, the Project consisted of the integration and installation of AMAG software and hardware onto an Intransa computer server ("AMAG/Instransa System"). (Id. ¶ 4.) In short, VSS alleges that the AMAG/Intransa System did not work and ultimately had to be replaced. VSS seeks damages for material costs, labor, parts, subcontracts, miscellaneous expenses, lost profits, and attorneys' fees.

On August 13, 2012, the same day VSS filed its Complaint in state court, counsel for VSS sent a file-stamped copy of the Complaint via email and overnight delivery to counsel for AMAG. The letter accompanying the Complaint stated, in relevant part, "Enclosed please find copies of the Summons and Complaint filed today on behalf of Video and Sound Service, Inc. and against AMAG Technology, Inc. and Intransa, Inc. Please advise us by August 20, 2012 if you will agree to accept service of the same on behalf of your clients." (Pl.'s Ex. A.) Counsel for AMAG responded via email on August 22, 2012, "I am in the process of hiring outside counsel. In the interim, I will accept service on behalf of AMAG Technology, Inc." (Pl.'s Ex. B.) VSS made no additional effort to serve AMAG with process. As noted above, AMAG filed its notice of removal on September 13, 2012.

VSS effected in-person service on Intransa on August 21, 2012. (Pl.'s Ex. C.) Intransa filed its "Statement in Support of Removal" with this court on October 16, 2012, stating that it "consents to and joins in removal of this action to this Court" and "had consented to removal of this action as of the time of filing of the notice of removal by [AMAG]." (Dkt. No. 19.) This document was signed by Intransa's attorney. (Id.)

LEGAL STANDARD

Pursuant to statute, a notice of removal "shall be filed within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading." 28 U.S.C. § 1446(b)(1). Despite the plain language of the statute, the Supreme Court has held that the deadline for filing a notice of removal is not triggered "by mere receipt of the complaint unattended by any formal service." Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344, 347-48 (1999).*fn1 Thus, the Supreme Court in Murphy Brothers rejected the plaintiff's argument that the 30-day deadline for removal ran from the date the plaintiff faxed a "courtesy copy" of a file-stamped complaint to the defendant's representative, before officially serving the defendant with service of process. Id. at 348.

Section 1446(b)(2) addresses removal in the context of multiple defendants, stating:

(A) When a civil action is removed solely under section 1441(a), all defendants who have been properly joined and served must join in or consent to the removal of the action.

(B) Each defendant shall have 30 days after receipt by or service on that defendant of the initial pleading or summons described in paragraph (1) to file the notice of removal.

(C) If defendants are served at different times, and a later-served defendant files a notice of removal, any earlier-served defendant may consent to the removal even though that earlier-served ...


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