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This ?forum defendant rule? is encompassed in 28 U.S.C. § 1441(b)(2) and generally prevents removal on the basis on diversity when the suit is filed in the defendant's home state.
See 28 U.S.C. § 1332. One seemingly simple way to destroy diversity jurisdiction and curb federal power is to name a non-diverse defendant?with sometimes limited ties to the litigation?among otherwise diverse defendants, for the sole purpose of defeating a motion for removal (i.e., improper joinder).
Since diversity jurisdiction concerns the court's subject matter jurisdiction over the matter, it cannot be waived by the parties and can be considered by the parties and the court at any time in the litigation.
In the United States, removal jurisdiction allows a defendant to move a civil action or criminal case filed in a state court to the United States district court in the federal judicial district in which the state court is located. A federal statute governs removal.
(b) Any civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties.