Sostand v. Rolling Frito Lay Sales L P, 6:16-cv-01268

Plaintiff Robert Kennedy Sostand sued Frito‑Lay entities, a store employee (Lee Anthony Speyrer), Family Dollar (later voluntarily dismissed), and an insurer after being struck by a freight cart in a Family Dollar store on March 27, 2015.
Defendants removed the case to federal court asserting diversity jurisdiction and that the amount in controversy exceeded $75,000.
Removal was challenged by the presence of in‑state defendant Speyrer (Louisiana resident); defendants argued Speyrer was improperly (fraudulently) joined to destroy diversity.
Plaintiff alleges Speyrer personally struck him with the cart while acting in the course and scope of his employment and that Speyrer’s inattention and carelessness caused the injuries.
The magistrate applied the Smallwood fraudulent‑joinder framework and Louisiana’s Canter test to determine whether there was any possibility of recovery against Speyrer individually.
The court concluded the petition plausibly alleges that Speyrer personally breached a duty (not merely vicarious liability or general administrative control) and therefore remanded the case to state court for lack of complete diversity.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Speyrer was improperly joined so removal is justified	Sostand alleges Speyrer personally struck him with a cart and owed a personal duty to customers, creating a plausible claim under Canter and negligence principles	Defendants argue Speyrer cannot be personally liable under La. Civ. Code art. 2317 and Canter because plaintiff alleges only employer fault or general control, not personal fault or custody/control of a defective thing	Court held defendants failed to show no possibility of recovery against Speyrer; the complaint plausibly alleges personal fault under Canter, so joinder is proper and case remanded

Smallwood v. Illinois Central R.R., 385 F.3d 568 (5th Cir. 2004) (fraudulent‑joinder standard and when to use summary‑type inquiry)
Canter v. Koehring Co., 283 So.2d 716 (La. 1973) (employee personal liability test for duties delegated by employer)
St. Paul Reins. Co. v. Greenberg, 134 F.3d 1250 (5th Cir. 1998) (burden of proving federal subject matter jurisdiction rests on removing party)
Carriere v. Sears, Roebuck & Co., 893 F.2d 98 (5th Cir. 1990) (fraudulent joinder requires showing no possibility of recovery against in‑state defendant)
Coulter v. Texaco Inc., 117 F.3d 909 (5th Cir. 1997) (elements required for liability under La. Civ. Code art. 2317)
Hanks v. Entergy Corp., 944 So.2d 564 (La. 2006) (duty is threshold inquiry in Louisiana negligence law)
Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (Rule 12(b)(6) pleading standard)
Ashcroft v. Iqbal, 556 U.S. 662 (2009) (Rule 12(b)(6) plausibility standard)
Ford v. Elsbury, 32 F.3d 931 (5th Cir. 1994) (employees owe a general duty of care to avoid injuring third parties)
Kling Realty Co. v. Chevron U.S.A., 575 F.3d 510 (5th Cir. 2009) (Canter governs employee personal liability under Louisiana law)