Eric Murdock v. Costco Wholesale Corporation et al.

Summary

The Central District of California granted Plaintiff Eric Murdock’s motion to remand his premises-liability and negligence action to San Bernardino County Superior Court. The court held that Defendant Edward Walton was not fraudulently joined because Plaintiff stated colorable claims against him as a Costco store manager. Walton’s California citizenship therefore defeated complete diversity, depriving the federal court of subject-matter jurisdiction.

Holdings

1. Walton was not a sham or fraudulently joined defendant because Plaintiff had at least a non-fanciful possibility of stating negligence and premises-liability claims against him under California law.
2. Plaintiff stated colorable claims against Walton because the allegations plausibly connected his managerial control of the premises to a duty to maintain safe conditions and to the alleged injury.
3. Complete diversity did not exist because Plaintiff and Walton were both California citizens, and Walton's citizenship could not be disregarded as a fraudulently joined defendant.

Questions Presented

1. Whether Edward Walton was fraudulently joined as a nondiverse defendant so that his California citizenship could be disregarded for diversity-jurisdiction purposes.
2. Whether the allegations stated a colorable California negligence or premises-liability claim against Walton.
3. Whether the presence of Walton defeated complete diversity and required remand to state court.

Disposition

remanded