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