American Family Mutual Insurance Company v. Baca, 2:10-cv-01879

American Family Mutual Insurance Company filed an interpleader action in Pinal County Superior Court to allocate insured benefits after a one-vehicle accident.
Policy limits were $100,000 per person and $300,000 per accident; the dispute involves injured passengers and their healthcare providers.
Defendants include four passengers (Elisia Baca, Kenneth King, Harmony Gibson, William Betz) and lienholders such as health plans and medical providers.
Kenneth King removed the case to federal court alleging diversity of citizenship under 28 U.S.C. § 1332(a)(1).
American Family moved to remand, arguing lack of subject matter jurisdiction and improper removal; University Medical Center consented to removal.
The court analyzed jurisdiction under 28 U.S.C. §§ 1332(a)(1) and 1335, and discussed forum defendant and unanimity defects as waivable.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the court has diversity jurisdiction under § 1332(a)(1).	American Family asserts complete diversity and adequate amount exceedance.	King and others are diverse from Wisconsin and exceed $75,000.	Yes, original jurisdiction exists under § 1332(a)(1).
Whether § 1335 interpleader jurisdiction exists given funds are not deposited.	Interpleader jurisdiction may exist with diversity and funds deposited.	Depositing funds into registry is required for § 1335; record lacks deposit.	No original jurisdiction under § 1335 due to lack of deposited funds.
Whether forum defendant rule defects were timely waived.	Removal violated forum defendant rule because an Arizona defendant is joined.	Rule is waivable non-jurisdictional defect; timely motion not filed within 30 days.	Waived; forum defendant rule defect not grounds for remand.
Whether failure to obtain unanimous consent from all served defendants invalidates removal.	Unanimity required; some served defendants did not consent.	Only defendant properly joined and served at time of removal matters; unanimity not violated.	Non-jjurisdictional defect waived; removal not infirm on this basis.

Lively v. Wild Oats Markets, Inc., 456 F.3d 933 (9th Cir. 2006) (forum defect waivable; merits addressed to determine jurisdiction)
Dolch v. United California Bank, 702 F.2d 178 (9th Cir. 1983) (diversity requirements for jurisdiction)
Gelfgren v. Republic Nat’l Life Ins. Co., 680 F.2d 79 (9th Cir. 1982) (interpleader jurisdiction depends on diversity and deposit into registry)
State Farm Fire & Casualty Co. v. Tashire, 386 U.S. 523 (1967) (minimal diversity allowed in interpleader actions)
Aguon-Schulte v. Guam Election Comm’n, 469 F.3d 1236 (9th Cir. 2006) (timeliness of removal defects under § 1447(c) affect waivable issues)
N. Cal. Dist. Council of Laborers v. Pittsburg-Des Moines Steel Co., 69 F.3d 1034 (9th Cir. 1995) (unanimity defect longstanding rule in removal procedure)