MacEy

MacEy v. Allstate Property & Casualty Insurance

Caution
2002 Daily Journal DAR 11141·220 F. Supp. 2d 1116·2002 WL 31050745·2002 U.S. Dist. LEXIS 17311
United States District Court, Northern District of CaliforniaSeptember 11, 2002C 02-2594 WDBCalifornia6,457 words

Opinion

Opinion

Brazil, J.

ORDER GRANTING MOTION TO REMAND

INTRODUCTION

On April 29, 2002, plaintiff filed his complaint in state court. In it he asserts claims against his insurance provider, Mí- state, and his insurance agents, Gary and Adam Korbas. Plaintiff and the Korbases are California citizens. Allstate is an Illinois citizen. On May 30, 2002, defendants removed this action to federal court-alleging jurisdiction on the basis of diversity. According to defendants, the Korbases' citizenship does not destroy diversity because they are "sham" defendants-that is, they are "fraudulently joined." McCabe v. Gen. Foods Corp., 811 F.2d 1336, 1339 (9th Cir. 1987).

On June 28, 2002, plaintiff filed a Motion to Remand (“Motion”), arguing that he did not “fraudulently” join the Korbases, and therefore, that defendants cannot demonstrate diversity.

On Wednesday, August 28, 2002, the court heard oral argument in connection with plaintiffs Motion. The court RULES as follows.

APPLICABLE STANDARDS

Defendants must bear the burden of proving all facts necessary to support jurisdiction. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir.1992). In order to prove “fraudulent joinder,” defendants must prove that…

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