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The Insurance Coverage Law Bulletin

May 1, 2009

Does Joinder of a Forum Defendant Always Prevent Removal?

By Mary Clare Bonaccorsi and Dmitry Shifrin

A state-court action cannot, as a general rule, be removed to federal court where a resident of the forum state has been joined as a defendant. 28 U.S.C. §1441(b). This is commonly known as the "forum defendant rule." The rule reflects the assumption that "[federal] diversity jurisdiction is unnecessary because there is less reason to fear state court prejudice against the defendants if one or more of them is from the forum state." Spencer v.…

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