Takiya Benjamin Johnson v. Nissan North America Inc.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

TAKIYA BENJAMIN-JOHNSON, 2:24-cv-02338-DSF-AJRx Plaintiff, Order REMANDING Case v.

NISSAN NORTH AMERICA,

INC., et al., Defendants.

Defendant Nissan North America, Inc. (Nissan) removed this case based on diversity jurisdiction. However, Plaintiff and Defendant Lithia Nissan of Downtown Los Angeles are not diverse. Nissan nonetheless argues that removal is proper because Lithia Nissan was fraudulently joined. The Court disagrees. A defendant who is a resident of the forum state is fraudulently joined “‘if the plaintiff fails to state a cause of action against [the] resident defendant, and the failure is obvious according to the settled rules of the state.’” Morris v. Princess Cruises, Inc., 236 F.3d 1061, 1067 (9th Cir. 2001) (quoting McCabe v. Gen. Foods Corp., 811 F.2d 1336, 1339 (9th Cir. 1987)). “[T]he test for fraudulent joinder and for failure to state a claim under Rule 12(b)(6) are not equivalent.” Grancare, LLC v. Thrower, 889 F.3d 543, 549 (9th Cir. 2018). In evaluating a claim of fraudulent joinder, “a federal court must find that a defendant was properly joined and remand the case to state…