Curtis O’Neil Moore v. Wheelihan Motor Group, Inc. and Harley-Davidson Motor Company, Inc.

Summary

The United States District Court for the Middle District of North Carolina grants the plaintiff’s motion to remand a state-law tort and warranty action to state court. The court holds that complete diversity was lacking because the plaintiff and one defendant were both North Carolina domiciliaries, and that pre-service or “snap removal” cannot cure the absence of complete diversity. The court expressly declines to decide whether snap removal is otherwise permissible under 28 U.S.C. § 1441(b)(2).

Holdings

1. A state-court action may not be removed based on diversity jurisdiction unless complete diversity exists among the parties. Because Moore and Wheelihan were both North Carolina domiciliaries, the action lacked complete diversity and was not within the court's original diversity jurisdiction.
2. Snap removal, to the extent it is permissible under 28 U.S.C. § 1441(b)(2), cannot be invoked to cure or avoid a lack of complete diversity and cannot create federal subject-matter jurisdiction.
3. The court was not required to decide whether § 1441(b)(2) generally permits snap removal because the absence of complete diversity independently required remand.
4. The court had a duty to assure itself that subject-matter jurisdiction existed and could raise the absence of complete diversity sua sponte; Moore's failure to identify the defect did not waive it.

Questions Presented

1. Whether the district court had original diversity jurisdiction over the removed action when the plaintiff and one defendant were both citizens of North Carolina.
2. Whether pre-service or 'snap removal' under 28 U.S.C. § 1441(b)(2) could permit removal despite the absence of complete diversity.
3. Whether the lack of complete diversity required the court to remand the action sua sponte or upon the plaintiff's motion.

Disposition

remanded