Marilyn,a resident of Ohio,suffered personal injury while operating her tractor in Ohio.She filed suit in state court against the manufacturer,Company A,incorporated in Delaware with its principal place of business in Illinois,and also against the seller,Company B,incorporated in Ohio with its principal place of business in Ohio.Marilyn and Company B informally agreed to settle out of court,but the agreement was subject to the agreement of Company B's insurer.Before a final agreement was reached in regard to settlement with Company B,Company A filed a motion in state court to remove the case to federal court.Although Marilyn opposed removal,the state court granted Company A's motion.After the case was removed to federal court,Marilyn and Company B finalized their settlement agreement and Company B was dismissed from the lawsuit.The federal district court proceeded to hear the case and ruled in favor of Company
A. Marilyn appealed on the basis that because diversity between the parties was lacking, the federal district court had no jurisdiction over the case. She claims that the case should be remanded to state court for a new trial. What should the appellate court rule regarding whether the state trial court properly granted the petition for removal and what will be the likely outcome on appeal?
Following the Caterpillar case discussed in the text, the appellate court will likely rule that the state court should not have granted Company A's initial motion to remove the case because the settlement was not complete, Company B was still in the case, and there was no diversity of citizenship. The ruling in favor of Company A, however, should be upheld because the settlement agreement was later approved, Company B was dismissed, and the case satisfied jurisdictional requirements by the time the federal district court issued its decision. Requiring the federal district court to send the case back to the state system would be an undue waste of judicial resources.

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The Answer of Marilyn,a resident of Ohio,suffered personal injury while operating her tractor in Ohio.She filed suit in state court against the manufacturer,Company A,incorporated in Delaware with its principal place of business in Illinois,and also against the seller,Company B,incorporated in Ohio with its principal place of business in Ohio.Marilyn and Company B informally agreed to settle out of court,but the agreement was subject to the agreement of Company B's insurer.Before a final agreement was reached in regard to settlement with Company B,Company A filed a motion in state court to remove the case to federal court.Although Marilyn opposed removal,the state court granted Company A's motion.After the case was removed to federal court,Marilyn and Company B finalized their settlement agreement and Company B was dismissed from the lawsuit.The federal district court proceeded to hear the case and ruled in favor of Company
A. Marilyn appealed on the basis that because diversity between the parties was lacking, the federal district court had no jurisdiction over the case. She claims that the case should be remanded to state court for a new trial. What should the appellate court rule regarding whether the state trial court properly granted the petition for removal and what will be the likely outcome on appeal?
Following the Caterpillar case discussed in the text, the appellate court will likely rule that the state court should not have granted Company A's initial motion to remove the case because the settlement was not complete, Company B was still in the case, and there was no diversity of citizenship. The ruling in favor of Company A, however, should be upheld because the settlement agreement was later approved, Company B was dismissed, and the case satisfied jurisdictional requirements by the time the federal district court issued its decision. Requiring the federal district court to send the case back to the state system would be an undue waste of judicial resources.

Marilyn,a Resident of Ohio,suffered Personal Injury While Operating Her Tractor