Driver v. Sam's West Inc
2:25-cv-00720
E.D. Wis.May 23, 2025Background
- Plaintiff Devon Driver alleges personal injury from an incident at a Sam’s Club in Wisconsin, seeking damages for permanent injuries and resulting medical expenses.
- Driver originally filed the action in Waukesha County Circuit Court, naming Sam’s West, Inc. and Walmart Claims Services, Inc. as defendants, and several entities (the State of Wisconsin Department of Health Services, The Rawlings Group, and Wisconsin Casualty Recovery, HMS) as involuntary plaintiffs due to their potential subrogation interests from paying Driver’s medical claims.
- Defendants removed the case to the Eastern District of Wisconsin, claiming diversity jurisdiction under 28 U.S.C. § 1332, asserting the parties are citizens of different states and the amount in controversy is sufficient.
- The Defendants' Notice of Removal failed to properly allege Plaintiff’s (Driver’s) domicile and inadequately described the citizenship of the involuntary plaintiffs, particularly in not identifying each member of the LLC (Rawlings Group) and the structure of Wisconsin Casualty Recovery.
- The Defendants suggested the citizenship of involuntary plaintiffs is irrelevant because they are “nominal” parties, though the court disagreed, finding them to be real parties in interest due to potential subrogation rights.
- The court ordered Defendants to file an amended notice of removal to cure these deficiencies or face remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether diversity jurisdiction exists based on party citizenships | N/A (not argued by plaintiff at this stage) | Notice of removal sufficiently alleges diversity | Notice deficient: needs proper allegations of citizenship |
| Whether the involuntary plaintiffs’ citizenship is relevant for diversity | Involuntary plaintiffs may have subrogation interest | Involuntary plaintiffs are nominal—citizenship irrelevant | Involuntary plaintiffs are real parties—citizenship relevant |
| Adequacy of alleging Plaintiff's citizenship | N/A | Stated Plaintiff’s residence (not domicile) | Domicile must be alleged, not just residence |
| Adequacy of alleging LLC citizenship | N/A | Stated Rawlings Group’s incorporation/principal place | Must allege citizenship of every LLC member |
Key Cases Cited
- City of Indianapolis v. Chase Nat’l Bank, 314 U.S. 63 (realignment of parties for diversity jurisdiction)
- United States v. Aetna Cas. & Sur. Co., 338 U.S. 366 (subrogees as real parties in interest for diversity)
- Am. Motorists Ins. Co. v. Trane Co., 657 F.2d 146 (alignment of parties and consideration of subrogee’s interest in jurisdiction)
- Wis. Cent. Ltd. v. Est. of Pickard, 300 F. Supp. 2d 776 (court’s obligation to ensure diversity and party alignment)
- Wise v. Wachovia Sec., LLC, 450 F.3d 265 (LLC citizenship determined by all members)