As the new year loomed, the Eighth Circuit, sitting en banc, overruled its prior cases dealing with a specific application of the forum-defendant exception to removal on the basis of diversity jurisdiction. Under the forum-defendant rule, a defendant who is a citizen of the forum state cannot remove a lawsuit from state court to federal court if the removal is solely on the basis of diversity jurisdiction. Before this decision, the Eighth Circuit stood alone in holding that the forum-defendant rule was jurisdictional and could never be waived. The unanimous en banc court overruled its prior cases and aligned with all other federal circuits to consider the question, concluding that violation of the forum-defendant rule is not a jurisdictional defect and therefore must be raised as a basis for remanding a case back to state court within 30 days after removal or the argument is waived. Among other practical consequences of the decision, plaintiffs who believe a defendant has improperly removed a case in violation of the forum-defendant rule now must raise the violation in 30 days or risk waiving it.
Read the full article on the Faegre Drinker website.
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.
