Gardner

I. FACTS AND PROCEDURAL HISTORY

In 1994, Gardner purchased health insurance from PFL Life Insurance Company. More than ten years later, in 2005, Gardner canceled his insurance policy and filed an action in 15028 GARDNER v. MEGA LIFE AND HEALTH INS. the Superior Court of the State of California against MEGA, UICI, Transamerica Life Insurance Company (Transamerica),1 the National Association for the Self-Employed (the NASE), and Steven Alan Heyman (Heyman) (collectively “Defen- dants”) for violations of the Consumer Legal Remedies Act, breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, breach of fiduciary duty, negli- gence, and unfair competition based on the sale of the health insurance coverage. MEGA removed the case to district court on diversity grounds, asserting that Heyman, the only non- diverse defendant, was fraudulently joined to destroy diver- sity. In support of its notice of removal, MEGA argued that “[a]ll of the claims [Gardner] attempted to assert against . . . Heyman [were] barred by the applicable statutes of limita- tions.”

Gardner subsequently moved to remand the case to state court, asserting that because he…