Under what is known as the ?forum-defendant rule,? a lawsuit that is otherwise removable solely on the. basis of diversity jurisdiction may not be removed. to federal court ?if any of the parties in interest properly. joined and served as defendants is a citizen of the State in.
The so-called forum defendant rule prevents removal to federal district court based on diversity jurisdiction when there is a local in-state defendant in the lawsuit. The majority of cases involve disputes over whether the local in-state defendant is improperly (some prefer ?fraudulently?) joined.
Congress' Stance on the Forum Defendant Rule It clarified several aspects of the law and allows plaintiffs to keep the case at the state level, provided there is diversity and the case is filed in the defendant's state of incorporation or where it has its offices or headquarters.
Generally, the forum defendant rule precludes removal of a case to federal court where at least one of the named defendants is a citizen of the state where the action was filed.
Snap removal occurs whena defendant removes before the forum defendant has been properly served, ?snapping? the case into federal court. Three courts of appeals and a majority of district courts have endorsed this practice, concluding that it is consistent with the unambiguous text of 28 U.S.C.