Madonna Perry v. United Parcel service, Inc.
2:24-cv-04884
C.D. Cal.Jun 27, 2024Background
- Madonna Perry filed a complaint in Los Angeles County Superior Court against United Parcel Service, Inc. (UPS) and two individual defendants (DellaRipa and Torres), alleging violations of California's Fair Employment and Housing Act (FEHA) among other claims.
- UPS removed the case to federal court, claiming diversity jurisdiction under 28 U.S.C. § 1332.
- Plaintiff is a California citizen; UPS is a citizen of Ohio and Georgia; the individual defendants apparently are also California citizens.
- UPS asserted that the citizenship of the individual defendants should be ignored, arguing they were fraudulently joined solely to destroy diversity.
- The court, on its own review and without oral argument, concluded it lacked subject matter jurisdiction and remanded the case to state court.
Issues
| Issue | Perry's Argument | UPS's Argument | Held |
|---|---|---|---|
| Whether federal diversity jurisdiction exists | No complete diversity; individual CA defts destroy diversity | Defendants' citizenship should be ignored as 'sham' | No diversity jurisdiction; remanded to state court |
| Whether individual defendants were fraudulently joined | Claims against individual defts are colorable | No plausible claim against individual defts; mere formal joiner | Defendants not proven sham; claims could be amended |
| Standard for fraudulent joinder | Heavy burden on removing defendant | Merely alleging deficient pleadings suffices | Heavy burden not met; doubts resolved against removal |
| Disposition of other pending federal motions | -- | -- | All pending motions denied as moot |
Key Cases Cited
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (removing party bears burden of establishing proper jurisdiction; doubts resolved in favor of remand)
- Caterpillar Inc. v. Lewis, 519 U.S. 61 (1996) (complete diversity required for federal diversity jurisdiction)
- Grancare, LLC v. Thrower ex rel. Mills, 889 F.3d 543 (9th Cir. 2018) (standards and burdens for finding fraudulent joinder)
- Kelton Arms Condo. Owners Ass’n, Inc. v. Homestead Ins. Co., 346 F.3d 1190 (9th Cir. 2003) (subject matter jurisdiction cannot be waived, and remand required if lacking)
- Allen v. Boeing Co., 784 F.3d 625 (9th Cir. 2015) (joinder is fraudulent when plaintiff’s failure is obvious per state law)
- Hamilton Materials, Inc. v. Dow Chem. Corp., 494 F.3d 1203 (9th Cir. 2007) (clear and convincing evidence needed for fraudulent joinder)