Fifth Circuit Approves “Snap Removals” of Diversity Cases by Non-Forum Defendants

Partner Nicholas Sarokhanian authored an article in The Texas Lawbook about a recent Fifth Circuit decision that blessed the “snap removal” tactic that allows out-of-state defendants to remove diversity cases to federal court before any in-state co-defendants have been served. In Texas Brine Company v. American Arbitration Association, the AAA, which is based in New York, was sued in Louisiana state court alongside two Louisiana-based defendants. The Fifth Circuit held that the AAA’s snap removal – which was done before either of the Louisiana-based defendants were served – was allowed. This ruling now makes the "snap removal" tactic available for companies sued in Texas, Louisiana or Mississippi. 

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