The question
Whether a district court's later erroneous dismissal of a nondiverse defendant cures the lack of complete diversity that existed when the case was removed to federal court, so that a court of appeals need not vacate the resulting judgment.
Hain Celestial Group, Inc. v. Palmquist
What the Court decided
Affirmed. The Fifth Circuit correctly vacated the judgment Hain had won, because the jurisdictional defect that existed at removal was never cured. Complete diversity was missing when Hain removed the case, since Whole Foods and the Palmquists are all Texas citizens. The District Court's dismissal of Whole Foods was erroneous and interlocutory, so when the Fifth Circuit reversed it, Whole Foods returned to the case and diversity remained destroyed.
How the justices split
UnanimousThe Court's opinion
Sotomayor, joined by Roberts, Thomas, Alito, Kagan, Gorsuch, Kavanaugh, Barrett, Jackson
A court of appeals must assess jurisdiction based on the facts that existed when a case was filed or removed, and must vacate a merits judgment if the district court lacked jurisdiction then. Complete diversity was absent at removal because Whole Foods and the Palmquists are all Texas citizens. The dismissal-cures-defect exception from Caterpillar Inc. v. Lewis does not apply, because the District Court's dismissal of Whole Foods was erroneous and interlocutory rather than a final dismissal that left a completely diverse set of parties. When the Fifth Circuit reversed that dismissal, it restored Whole Foods and destroyed complete diversity, so the defect lingered through judgment and vacatur was required.
Concurring
Thomas, writing alone
Thomas filed a concurring opinion. The syllabus records the concurrence but does not state its reasoning.
How we know · 5 sourced claims
Complete diversity was absent when Hain removed the case because Whole Foods and the Palmquists are all Texas citizens.
Source: syllabus, Held
The District Court's dismissal of Whole Foods as improperly joined was erroneous and interlocutory.
Source: syllabus, Held
When the Fifth Circuit reversed the dismissal, it restored Whole Foods to the case and destroyed complete diversity.
Source: syllabus, Held
Under Caterpillar Inc. v. Lewis, a jurisdictional defect cured before final judgment does not require vacatur, but a defect that lingers through judgment does.
Source: syllabus, Held
Sotomayor delivered the opinion for a unanimous Court, and Thomas filed a concurring opinion.
Source: syllabus, lineup