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FRCP 15(c) Does Not Revive a State Time-barred Discrimination Claim on Removal: Fifth Circuit
Practical Law Legal Update 9-560-4905 (Approx. 4 pages)
FRCP 15(c) Does Not Revive a State Time-barred Discrimination Claim on Removal: Fifth Circuit
by Practical Law Labor & Employment
| Published on 11 Mar 2014 • USA (National/Federal) |
In Taylor v. Bailey Tool & Manufacturing Company, the US Court of Appeals for the Fifth Circuit held, in a case of first impression, that federal claims that were time-barred when filed in state court are subject to the Texas relation back rules and cannot be revived by Federal Rule of Civil Procedure (FRCP) 15(c) after removal because the federal rules do not apply until after a case is removed to federal court.
On March 10, 2014, the US Court of Appeals for the Fifth Circuit in Taylor v. Bailey Tool & Manufacturing Company held that federal claims barred by the statute of limitations when filed in state court and then removed to federal court cannot be revived by FRCP 15(c) because the federal rules do not apply until after the case has been removed (No. 13-10715 (5th Cir. Mar. 10, 2014)).
Background
In March 2011, the plaintiff filed suit against his former employer in Texas state court alleging racial discrimination and retaliation in violation of Chapter 21 of the Texas Labor Code. In December 2012, the plaintiff filed an amended complaint adding federal claims of racial discrimination and retaliation in violation of Title VII and Section 1981 of the Civil Rights Act of 1866 (Section 1981).
The employer removed the case to the district court based on the newly-asserted federal claims and moved to dismiss them for being time-barred. The plaintiff argued that his federal claims were not time-barred, even though they were filed after the limitations period had expired, because under FRCP 15(c)(1) the claims relate back to the date his original petition was filed in state court in March 2011.
The district court agreed with the employer and granted the motion to dismiss, holding that:
- The Texas relation back rules applied to the plaintiff's federal claims, not FRCP 15(c)(1).
- Removal of the claims to federal court did not resuscitate the time-barred claims.
The plaintiff appealed the dismissal to the Fifth Circuit.
Outcome
As a matter of first impression, the Fifth Circuit affirmed the district court's holding that the Texas relation back statute applies and that the plaintiff's claims were time-barred.
In reaching this conclusion, the Fifth Circuit noted that:
- The timeliness of the plaintiff's claims turns on whether the court holds that:
- the Texas relation back statute applies and the plaintiff's claims are time-barred; or
- FRCP 15(c) applies and the plaintiff's claims are timely.
- The federal rules provide that they only apply to a civil action after it is removed from state court (FRCP 81(c)(1)).
- Although there is no circuit precedent on point, the US Courts of Appeals for the Sixth and Ninth Circuits have applied the state law rules, not the federal rules, in analogous cases.
- The Fifth Circuit has previously held that state rules apply to cases that are pending in state court prior to removal, not federal rules.
- There is nothing in FRCP 15(c) that provides for the revival of a claim after it has been removed to federal court.
Since the court found that the federal rules do not apply to the plaintiff's claims until after they were removed to federal court, the Fifth Circuit held that the federal claims asserted in the plaintiff's amended complaint are governed by the Texas relation back statute and therefore are time-barred.
Practical Implications
Employers faced with litigation should take note of this holding, as three circuit courts have concluded that federal rules do not apply to limitations periods until after the claims are removed to federal court.