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Court remands case for lack of diversity
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Court Report
Wednesday, April 12, 2023
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After a nonparty defaulted on loans it granted, and filed for bankruptcy, the bankruptcy trustee learned the nonparty’s corporate form had been dissolved before the execution of the loans and commenced an adversary proceeding. The lender filed suit against the title insurer for declaratory relief and breach of contract, arguing the title insurer was liable under the title policy for defective title. After the title insurer removed the case to federal court, the lender amended the complaint asserting claims against title agents and seeks to remand the case to state court.
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