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Home / Opinion Digests / Civil Practice / Civil Practice – Federal Jurisdiction – Diversity – Remand – Fraudulent Joinder Argument – Contract – Third-Party Beneficiary (access required)

Civil Practice – Federal Jurisdiction – Diversity – Remand – Fraudulent Joinder Argument – Contract – Third-Party Beneficiary (access required)

Sonic Automotive, Inc. v. Blanchard : Although defendant argues that the N.C. plaintiff fraudulently joined a Texas car dealership as a plaintiff in order to defeat diversity, the complaint alleges that the Texas dealership was a third-party beneficiary of the (allegedly breached) contract between the N.C. company and the Texas-resident defendant. In fact, the Texas dealership was defendant’s employer when the contract was executed. Defendant has failed to show that the Texas dealership was fraudulently joined.

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