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Seventh Circuit Rejects Extension of Fraudulent Joinder Doctrine, as an Exception to Diversity Jurisdiction, to Examination of Whether the Plaintiff’s Legal Team Intends to Pursue Claims Against the Non-Diverse Defendants

In In re Abbott Laboratories, No. 25-2327 (7th Cir. July 28, 2026), the Seventh Circuit reverses an order denying a remand of a products liability case to state court, holding that the district court exceeded the bounds of the fraudulent joinder doctrine by considering whether the plaintiffs’ lawyers “demonstrated sufficient intent to pursue claims against”…

Second Circuit Enters Curious Circuit Split Over Whether Article III Subject-Matter Jurisdiction Principles Apply to Article I Courts

In In Re Laura Charlene Goebel, No. 25-103 (2d Cir. 2026), the Second Circuit joins a circuit split over whether Article I bankruptcy courts are constrained by Article III case or controversy requirements. The IRS appealed a decision of a bankruptcy judge not to dismiss a debtor’s pending adversary action for “lack of subject matter…

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