The court's decision rests entirely on a lack of complete diversity between the parties, rendering the novel removal theory irrelevant to the dispute.
Plaintiff Curtis O'Neil Moore filed a state-court negligence and breach of warranty suit in Alamance County Superior Court after sustaining serious injuries in a motorcycle accident near Burlington, North Carolina.
Moore sued Wheelihan Motor Group, Inc., a North Carolina corporation, and Harley-Davidson Motor Company, Inc., a Wisconsin corporation.
Harley-Davidson removed the case to federal court before Moore could serve either defendant, arguing that the forum-defendant rule does not bar removal when a non-diverse co-defendant has not yet been joined or served.
Judge Lindsey A. Freeman of the Middle District of North Carolina granted Moore's motion to remand, holding that diversity jurisdiction requires complete diversity at the time the complaint is filed.
Because Moore and Wheelihan are both domiciliaries of North Carolina, the court lacked original subject-matter jurisdiction under 28 U.S.C. § 1332(a).
The court noted that the removal statute does not expand original jurisdiction, meaning Harley-Davidson could not invoke diversity-based removal where complete diversity was absent.
While the parties focused their briefing on whether to endorse "snap removal" as a matter of first impression, the court stated it takes no position on that issue.
Judge Freeman wrote that nothing in the order should be construed as endorsing either side of the split on snap removal, leaving resolution for another day in a case exhibiting complete diversity.
The court emphasized that service of process does not matter when evaluating the diversity of parties, citing Supreme Court precedent that federal jurisdiction ordinarily depends on facts existing when the complaint is filed.
Harley-Davidson failed to cite any case supporting removal where complete diversity is lacking, and all cited authority involved parties exhibiting complete diversity.
The court concluded that the forum-defendant rule is procedural rather than jurisdictional and cannot confer jurisdiction where it does not exist.