In CCP Golden/7470 LLC v. Breslin, No. 24-2731 (7th Cir. Dec. 3, 2025), the Seventh Circuit rejects an effort to defeat diversity jurisdiction, holding (contrary to prior dicta on the subject) that co-parties to a contract who are jointly and severally liable need not always be deemed indispensable parties for purposes of Fed. R. Civ.Continue reading “Co-Guarantors to Contracts May Not Be Indispensable Parties Under Fed. R. Civ. P. 19(b), Holds Seventh Circuit”
Tag Archives: Diversity Jurisdiction
Citing the Probate Exception, Sixth Circuit Holds District Court Lacked Equitable Jurisdiction to Compel Arbitration of Action Proceeding In Rem in State Court
In Johnson v. Johnson, No. 24-2058 (6th Cir. Oct. 24, 2025), the Sixth Circuit affirms dismissal of an action to compel arbitration under Section 4 of the Federal Arbitration Act, holding that – under the probate exception – the lower court lacked equitable jurisdiction to interfere with a state in rem proceeding. The decedent “Mrs.Continue reading “Citing the Probate Exception, Sixth Circuit Holds District Court Lacked Equitable Jurisdiction to Compel Arbitration of Action Proceeding In Rem in State Court”
Joining Circuit Split, Ninth Circuit Holds That District Court May Not Establish Diversity of Citizenship by Judicial Notice
In Rosenwald v. Kimberly-Clark Corp., No. 24-299 (9th Cir. Sept. 24, 2025), the Ninth Circuit dismisses an appeal for lack of subject-matter jurisdiction, holding that the district court erred in taking judicial notice of the corporate defendant’s citizenship. It thus took the side of the Tenth Circuit, which holds that a court cannot judicially noticeContinue reading “Joining Circuit Split, Ninth Circuit Holds That District Court May Not Establish Diversity of Citizenship by Judicial Notice”
Fifth Circuit Holds That 28 U.S.C. § 1359 Precludes Appointment of a “Sham” Trustee to Create Diversity Jurisdiction
In Fugedi v. Initram, Inc., No. 24-40283 (5th Cir. Sept. 9, 2025), the Fifth Circuit affirms dismissal of a case for lack of diversity jurisdiction, holding that appointment of a supposedly diverse trustee was a sham in violation of 28 U.S.C. § 1359. Section 1359 provides that “A district court shall not have jurisdiction ofContinue reading “Fifth Circuit Holds That 28 U.S.C. § 1359 Precludes Appointment of a “Sham” Trustee to Create Diversity Jurisdiction”
Tenth Circuit Holds That Federal Claim Preclusion Applies to Supplemental State-Law Claim Dismissed Without Prejudice in First Federal Action, If Plaintiff Could Have Originally Asserted Diversity Jurisdiction Over That Claim
In Markley v. U.S. Bank NA, No. 24-1163 (10th Cir. June 24, 2025), the Tenth Circuit opens up a potential trap for the unwary, holding that if “a party could have litigated a claim in a prior lawsuit by asserting diversity jurisdiction but fails to do so,” then that claim is precluded in a secondContinue reading “Tenth Circuit Holds That Federal Claim Preclusion Applies to Supplemental State-Law Claim Dismissed Without Prejudice in First Federal Action, If Plaintiff Could Have Originally Asserted Diversity Jurisdiction Over That Claim”
Sixth Circuit Charts Its Own Course on Abstention from Declaratory Actions That Are Part of a “Mixed Action” Seeking Injunctive or Legal Relief
In Fire-Dex, LLC v. Admiral Ins. Co., No. 24-3781 (6th Cir. June 2, 2025), the Sixth Circuit rejects the holdings of seven other circuits and holds that when a demand for relief under the Declaratory Judgment Act, 28 U.S.C. § 2201(a), is combined with a claim for injunctive relief or damages (“coercive relief”), it isContinue reading “Sixth Circuit Charts Its Own Course on Abstention from Declaratory Actions That Are Part of a “Mixed Action” Seeking Injunctive or Legal Relief”
Diversity Allegations on “Information and Belief” Are Insufficient to Establish Subject-Matter Jurisdiction Beyond the Pleadings Stage and Judicial Notice Under Fed. R. Evid. 201 Cannot Bridge the Gap, Holds Fifth Circuit
In PNC Bank v. 2013 Travis Oak, No. 24-50101 (5th Cir. May 5, 2025), the Fifth Circuit remands the appeal of actions to enforce a settlement agreement, holding that claims severed from the original action require a separate, independent basis for diversity jurisdiction, and that the jurisdictional allegations in the complaint “on information and belief”Continue reading “Diversity Allegations on “Information and Belief” Are Insufficient to Establish Subject-Matter Jurisdiction Beyond the Pleadings Stage and Judicial Notice Under Fed. R. Evid. 201 Cannot Bridge the Gap, Holds Fifth Circuit”
Seventh Circuit Becomes the First to Hold That an EU “Societas Europaea” (SE) Is a “Corporation” for Diversity Jurisdiction Purposes
In Starstone Ins SE v City of Chicago, No. 23-2712 (7th Cir. Apr. 2, 2025), the Seventh Circuit holds that the plaintiff – a “Societas Europaea” (SE) organized under the rules of the European Union – is a citizen of a foreign state under the federal diversity statute, 28 U.S.C. § 1332(c)(1). Under section 1332(a)(2),Continue reading “Seventh Circuit Becomes the First to Hold That an EU “Societas Europaea” (SE) Is a “Corporation” for Diversity Jurisdiction Purposes”
Eleventh Circuit Splits with Fifth in Holding That Non-Party Removal of a Case to Federal Court Is a Waivable Procedural Defect Subject to the 30-Day Limit Under § 1447(c)
In Wilson v. Hearos, LLC, No. 23-12550 (11th Cir. Feb. 18, 2025), the Eleventh Circuit holds that a plaintiff who failed to challenge a non-party’s removal of an action to federal court under the general removal statute, 28 U.S.C. § 1441(a), within the 30 days provided by 28 U.S.C. § 1447(c) waived his objection. TheContinue reading “Eleventh Circuit Splits with Fifth in Holding That Non-Party Removal of a Case to Federal Court Is a Waivable Procedural Defect Subject to the 30-Day Limit Under § 1447(c)”
City’s Unexplained Failure to Name State as a Party Prevents Remand of Removed Case to State Court Under 28 U.S.C. § 1447, Holds Fifth Circuit
In New Orleans City v. Aspect Energy, LLC, No. 24-30199 (5th Cir. Jan. 23, 2025), the Fifth Circuit holds that the unexplained failure of the City of New Orleans to add the State of Louisiana as a party to its complaint meant that the federal court had diversity jurisdiction over the removed case. “Appellant, NewContinue reading “City’s Unexplained Failure to Name State as a Party Prevents Remand of Removed Case to State Court Under 28 U.S.C. § 1447, Holds Fifth Circuit”
Paul Mollica's Federal Courts Blog 