Why The 3rd Circ. Allowed Removal In Encompass

By Brittany Wakim (September 7, 2018, 3:57 PM EDT) -- In what appears to be the first ever appellate court ruling on the issue, the U. S. Court of Appeals for the Third Circuit has held that the forum-defendant rule does not prohibit a defendant from removing a case to federal court on the basis of diversity jurisdiction before the plaintiff formally serves the forum state defendant. Encompass Ins. Co. v. Stone Mansions Restaurant Inc. is an important decision for businesses and others to closely examine.

28 U.S.C. § 1441(a) permits a defendant to remove a case to federal court where the federal court has diversity jurisdiction. However, a civil action...

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