Martinez v. WinCo Holdings, Inc.

Summary

The United States District Court for the Eastern District of California ordered WinCo Holdings, Inc. to show cause why the action should not be remanded for lack of subject matter jurisdiction. The order addresses diversity jurisdiction, alleged fraudulent joinder of California defendants, and whether the court should assess the original or amended complaint. Plaintiff was also directed to respond regarding jurisdiction and was advised that any late opposition to the motion to dismiss would require leave of court.

Holdings

1. The court must determine whether it has subject matter jurisdiction before making any determination on the merits of WinCo's motion to dismiss.
2. A defendant is not fraudulently joined merely because the claim against that defendant may fail under Rule 12(b)(6); fraudulent joinder requires proof of outright fraud in the jurisdictional allegations or that there is absolutely no possibility the plaintiff can establish a cause of action against the in-state defendant in state court.

Questions Presented

1. Whether the court had subject matter jurisdiction where Plaintiff and two individual defendants were alleged to be California citizens and WinCo relied on fraudulent joinder to establish diversity jurisdiction.
2. Whether the court should determine fraudulent joinder by examining the original complaint at the time of removal or a subsequently filed amended complaint.
3. Whether the court should address WinCo's Rule 12(b)(6) motion before resolving the existence of subject matter jurisdiction.

Disposition

other