Fifth Circuit Approves “Snap Removals” of Diversity Cases by Non-Forum Defendants

Companies sued in state court often prefer removal to federal court if possible. Most corporate defense counsel routinely assess their chances of removal on the basis of diversity jurisdiction. More aggressive counsel go further and ask whether a diversity-destroying party can be disregarded for one reason or another – misjoinder, misalignment of parties and so on.

A new tool is now available for companies sued in Texas, Louisiana or Mississippi, thanks to a recent Fifth Circuit decision that blessed the “snap removal” tactic that allows out-of-state defendants to remove diversity cases to federal court before any in-state co-defendants have been served.