Isabel Simental v. The Hanover Insurance Company

Summary

The United States District Court for the Central District of California grants Plaintiff Isabel Simental’s motion to remand an employment action against The Hanover Insurance Company and Melissa Gutzman. The court concludes that removal was improper under the forum defendant rule and that Defendants failed to establish that Gutzman was fraudulently joined, remanding the case to Orange County Superior Court.

Holdings

1. Defendants did not establish that removal was proper because the action included a California forum defendant, Melissa Gutzman, and removal occurred before she was served. The forum defendant rule does not permit defendants to avoid the rule through snap removal in these circumstances.
2. Defendants failed to show that Gutzman was fraudulently joined or that she was a sham defendant whose citizenship could be disregarded for diversity purposes.

Questions Presented

1. Whether removal was proper when a nondiverse forum defendant had not been served before removal.
2. Whether the forum defendant rule permits snap removal by an out-of-state defendant before service on a nondiverse in-state defendant.
3. Whether Melissa Gutzman was fraudulently joined or was a sham defendant whose citizenship could be disregarded for diversity purposes.

Disposition

remanded