State of Maine v. McGraw-Hill Companies Inc et al
Plaintiff: State of Maine
Defendant: Standard and Poor's Financial Services LLC and MCGraw-Hill Companies Inc
Amicus: United States Of America
Case Number: 1:2013cv03969
Filed: June 11, 2013
Court: US District Court for the Southern District of New York
Office: Foley Square Office
County: XX Out of State
Presiding Judge: Jesse M. Furman
Nature of Suit: Other Statutory Actions
Cause of Action: 28 U.S.C. ยง 1441 Notice of Removal
Jury Demanded By: None

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Date Filed Document Text
June 3, 2014 Opinion or Order Filing 73 OPINION AND ORDER: For the foregoing reasons, the Court concludes that subject-matter jurisdiction is lacking with respect to the State Cases and that those cases must be remanded to the state courts from which they were removed. Additionall y, in light of that result, and the important state interests implicated by the State Cases, the Court is compelled to dismiss the Declaratory Judgment Cases on the grounds of Younger abstention. The Court does not reach those conclusions lightly. Putting aside the natural "tempt[ation] to find federal jurisdiction every time a multi-billion dollar case with national implications arrives at the doorstep of a federal court," Greenwich Fin. Servs. Distressed Mortg. v. Count rywide Fin. Corp., 654 F. Supp. 2d 192, 204 (S.D.N.Y. 2009), the federal courts undoubtedly have advantages over their state counterparts when it comes to managing a set of substantial cases filed in jurisdictions throughout the country. Through the MDL process, federal cases can be consolidated for pretrial purposes or more, promoting efficiency and minimizing the risks of inconsistent rulings and unnecessary duplication of efforts. Nevertheless, the state courts have devised creative m eans to coordinate among themselves when appropriate. See, e.g., Paula L. Hannaford-Agor, Comment: Federal MCL Fourth and Suggestions for State Court Management of Mass Litigation (National Center for State Courts 2006), available at http://cdm165 01.contentdm.oclc.org/cdm/ref/collection/civil/id/58 (last visited June 3, 2014). And in any event, as any student of the Constitution knows, efficiency is not the only interest served by this country's federalist system of state and federal courts. In the final analysis, this Court is not free to disregard or evade "[t]he limits upon federal jurisdiction, whether imposed by the Constitution or by Congress." Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365, 374 (1978). That is, "[w]ith few exceptions, the doors to federal court do not swing open merely because a [party] has a national presence or is alleged to have committed wrongdoing that is national in scope," McGraw-Hill Cos., 2013 WL 1759864 , at *4-5, or merely because litigation in federal court might be more efficient. As discussed above, these cases do not trigger any of the relevant exceptions that would allow the Court to open its doors to federal jurisdiction. At bottom, the di sputes in these cases are disputes arising under state law that belong in state courts. Accordingly, the States' motions are GRANTED, the State Cases are remanded back to state court, and the Declaratory Judgment Cases are dismissed. Mississi ppi's motion for fees and costs, on the other hand, is DENIED. The Clerk of Court is directed to (1) terminate all open motions in 13 MD 2446 and all its member cases; (2) dismiss the Declaratory Judgment Cases, 13 Civ. 4100 and 13 Civ. 4052; and (3) remand all other member cases to the state courts from which they were removed in the first instance. As that disposes of all cases pending before this Court, there is no reason for the MDL to remain open. Accordingly, the Clerk of Court is also directed to close 13 MD 2446 and all its member cases, and to notify the Judicial Panel on Multidistrict Litigation of that closure. (Signed by Judge Jesse M. Furman on 6/3/2014) Filed In Associated Cases: 1:13-md-02446-JMF et al. ***Pursuant to instructions from Chambers, docketed in all member/related cases.(mro) Modified on 6/3/2014 (mro).
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Defendant: Standard and Poor's Financial Services LLC
Represented By: Michael S. Smith
Represented By: Sigmund D. Schutz
Represented By: Susan Buckley
Represented By: Floyd Abrams
Represented By: Samantha Walsh
Represented By: Adam N. Zurofsky
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Defendant: MCGraw-Hill Companies Inc
Represented By: Adam N. Zurofsky
Represented By: Samantha Walsh
Represented By: Michael S. Smith
Represented By: Sigmund D. Schutz
Represented By: Susan Buckley
Represented By: Floyd Abrams
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Plaintiff: State of Maine
Represented By: Linda Conti
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Amicus: United States Of America
Represented By: Anoiel Khorshid
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