Republic Western Insurance v. International Insurance

ORDER DENYING PLAINTIFF’S MOTION TO REMAND

I. INTRODUCTION

Plaintiff Republic Western Insurance Company, dba Oxford Property & Casualty Insurance Company (“Oxford”) moves the Court, pursuant to 28 U.S.C. § 1447 (c), for an order remanding this action to superior court on the ground that the presence of a “local” defendant defeats removal jurisdiction. Defendant First State Insurance Company (“First State”), the party which removed the instant case to federal court, argues that the case was properly removed under 28 U.S.C. § 1441 (b) because Industrial Indemnity Company, a citizen of California, (and, therefore, a “local” defendant) had not been served at the time that First State filed its removal petition. Good cause appearing therefor, plaintiffs motion to remand is hereby DENIED.

II. BACKGROUND

On February 25, 1991, Oxford filed a complaint against eight insurance companies in Santa Clara County Superior Court. On March 15, 1991, First State removed this action to federal court. At the time that First State filed its notice of removal, no other defendant had been served. It is undisputed that complete diversity of citizenship exists as no defendant in the action has the…