5th Circ. Brings Consistency To Improper-Joinder Analysis

Law360, New York (June 27, 2016, 11:45 AM EDT) -- Weather events in recent years have led to a surge of lawsuits seeking coverage for property damage. Often, in an effort to defeat diversity jurisdiction, a Texas resident will sue both a foreign insurance company and a fellow Texas resident (usually a local insurance adjuster) in state court. By including the Texas resident as a defendant, a federal district court in Texas would presumably not have jurisdiction over the dispute due to the lack of complete diversity of citizenship between the parties.[1]

Nonetheless, defendants are responding by removing the lawsuit to federal court and contending that the nondiverse defendant was "improperly...

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