Nicholas Fugedi, in His Official Capacity as Trustee of Carb Pura Vida Trust v. Initram, Incorporated, et al.
Arbitration ERISA Jurisdiction JusticiabilityDoctri
Whether the proper standard to be applied by a court determining if diversity jurisdiction has been improperly manufactured is the motive test or the substantial-stake test
The fraudulent joinder and misjoinder doctrines, and 28 U.S.C. § 1359, require courts to determine whether diversity of citizenship has been improperly manufactured to avoid or secure federal court jurisdiction. There is broad disagreement, commented on by Congress, commentaries, and the lower courts on what standard should be applied when a court determines whether jurisdiction has been manufactured. The Supreme Court has not addressed the issue since the early 1900s. This case presents the following federal question: Whether the proper standard to be applied by a court determining if diversity jurisdiction has been improperly manufactured is the motive test applied by some circuits or the substantialstake test applied by other circuits.