Walker v. Walmart, Inc.
5:25-cv-00009
W.D. Ky.Apr 25, 2025Background
- Wilma Walker sued Walmart, Inc. and related defendants in state court; defendants removed the case to federal court based on diversity jurisdiction.
- Defendants failed to timely file their corporate disclosure statements as required by Rule 7.1, leading them to request an extension.
- Walker (plaintiff) moved to remand the case back to state court, arguing the lack of timely disclosures failed to establish diversity jurisdiction.
- Defendants cured the disclosure defect and confirmed all relevant entities are not Kentucky citizens, preserving diversity jurisdiction.
- The matter was referred to Magistrate Judge King to resolve the competing motion for extension and motion to remand.
- The recent Sixth Circuit decision clarified courts retain jurisdiction if complete diversity is ultimately established, even after late disclosures.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Rule 7.1 disclosure | Late disclosures fail to establish diversity at removal; warrants remand | Initial defect in Rule 7.1 cured; remand not the proper remedy | Extension granted; defective disclosure cured |
| Remedy for disclosure defects under Rule 7.1 | Remand to state court is required for late or insufficient disclosure | Federal cases say remand is not the remedy for corporate disclosure defects | Remand denied; late filing is not grounds for remand |
| Existence of complete diversity jurisdiction | Defendants haven’t shown complete diversity due to untimely disclosure | All defendants confirmed not Kentucky citizens; diversity exists | Complete diversity confirmed; federal jurisdiction ok |
| Impact of recent appellate clarification | (Not specifically addressed) | Recent 6th Circuit holds court can retain jurisdiction if diversity exists | Follow binding appellate decision; federal court keeps case |
Key Cases Cited
- Rogers v. Walmart Stores, Inc., 230 F.3d 868 (6th Cir. 2000) (removing defendant has the burden to prove diversity jurisdiction)
