Michael Powasnick v. Beitzel Corp., et al.

Summary

The United States District Court for the District of New Jersey holds that diversity jurisdiction was absent because the plaintiff and one defendant were both citizens of New Jersey. The court rejects the defendant's reliance on snap removal, vacates its prior opinion and order, and remands the action to the Superior Court of New Jersey, Law Division, Ocean County.

Holdings

1. All parties' citizenship must be considered when determining whether diversity jurisdiction exists under 28 U.S.C. § 1332(a). Because Plaintiff and Phoenix were both citizens of New Jersey, complete diversity was absent and the federal court lacked original subject-matter jurisdiction.
2. Snap removal does not permit a defendant to remove an action lacking complete diversity merely because a forum-state defendant had not yet been served.

Questions Presented

1. Whether the federal court had diversity subject-matter jurisdiction when the plaintiff and one defendant were citizens of New Jersey, notwithstanding that the New Jersey defendant had not been properly joined and served when the action was removed.
2. Whether the Third Circuit's decision in Encompass Insurance Co. v. Stone Mansion Restaurant, Inc. permitted snap removal where complete diversity under 28 U.S.C. § 1332(a) was absent.

Disposition

vacated