Dolores J. Lasso, individually and as Administratrix of the Estate of Francisco Velasquez, Deceased v. Wheelabrator Group, Inc., et al.

Summary

The Eastern District of Pennsylvania granted Plaintiff Dolores J. Lasso’s motion to remand a products-liability action to the Philadelphia Court of Common Pleas. The court held that the nondiverse defendants were not fraudulently joined because the complaint stated colorable claims against them and Plaintiff demonstrated an intent to prosecute the claims. The court declined to reach the rule-of-unanimity issue and denied Plaintiff’s request for attorney’s fees and costs.

Holdings

1. K.J.S. Industrial Services, Inc. and Kasco Sales, Inc. were not fraudulently joined because Plaintiff demonstrated an intent to prosecute the claims and alleged colorable claims against them.
2. Because the nondiverse Pennsylvania defendants were properly joined, complete diversity was absent and the federal court lacked subject matter jurisdiction.
3. Plaintiff was not entitled to attorney fees and costs because the removing defendant had an objectively reasonable basis for seeking removal, even though its fraudulent-joinder theory was untimely and unsuccessful.

Questions Presented

1. Whether K.J.S. Industrial Services, Inc. and Kasco Sales, Inc. were fraudulently joined so that their Pennsylvania citizenship could be disregarded for diversity jurisdiction.
2. Whether the removing defendant's failure to assert fraudulent joinder in the notice of removal required remand.
3. Whether Plaintiff was entitled to attorney fees and costs under 28 U.S.C. § 1447(c).

Disposition

remanded