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Plaintiff Liberty Mutual has not yet settled when the court granted removal, and thus the removal was invalid. Congress seems to have intended removal to not be reversed often, based on their short time frame for motions to remand.


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We hold that a district court's error in failing to remand a case improperly removed is not fatal to the ensuing adjudication if federal jurisdictional requirements are met at the time judgment is entered. Facts: Plaintiff was injured while using defendant's bulldozer and filed this lawsuit in Kentucky, where he is a resident, based on state-law claims.


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  • Liberty Mutual settled with Whayne three years later. Caterpillar won the jury trial. Issue: The question presented is whether the absence of complete diversity at the time of removal is fatal to federal-court adjudication. Plaintiff's Argument: Plaintiff Liberty Mutual has not yet settled when the court granted removal, and thus the removal was invalid.

    Caterpillar Inc. v. Lewis - 519 U.S. 61, 117 S. Ct. 467 (1996)

    Reasoning: Congress seems to have intended removal to not be reversed often, based on their short time frame for motions to remand. When a plaintiff files in state court a civil action over which the federal district courts would have original jurisdiction based on diversity of citizenship, the defendant or defendants may remove the action to federal court, 28 U.

    In a case not originally removable, a defendant who receives a pleading or other paper indicating the post-commencement satisfaction of federal jurisdictional requirements, for example, by reason of the dismissal of a nondiverse party, may remove the case to federal court within 30 days of receiving such information.

    No case, however, may be removed from state to federal court based on diversity of citizenship more than one year after commencement of the action.

    Caterpillar Inc. v. Lewis | Case Brief for Law School | LexisNexis

    Respondent, a Kentucky resident who was injured while operating a bulldozer, filed a state law suit with the Kentucky state court against the petitioner, an Illinois-based manufacturer and its Kentucky-based servicer. After the respondent settled with the servicer, the manufacturer filed a notice of removal with the district court, stating that the settlement resulted to a complete diversity of citizenship so as to produce federal jurisdiction. Respondent objected and moved for a remand of the case for lack of diversity but the district court denied his motion.

    Meanwhile, the servicer entered into a settlement of the subrogation claim with the insurance company which led to the dismissal of the servicer from the lawsuit by the district court. The case proceeded against the manufacturer as the sole defendant and judgment was entered for the manufacturer.

    This was reversed on appeal on the ground that the diversity of citizenship was incomplete since the insurance company remained a defendant by reason of subrogation.