Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_17-cv-00247/USCOURTS-casd-3_17-cv-00247-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1441bc Removal- Breach of Contract

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

MEHDI VOSSOUGHI,

Plaintiff,

v.

AIG PROPERTY CASUALTY 

COMPANY, NATIONAL UNION 

FIRE INSURANCE COMPANY OF 

PITTSBURGH PENNSYLVANIA, 

and DOES 1 through 20, inclusive,

Defendants.

Case No.: 17cv0247 BTM BGS

ORDER DISCHARGING ORDER 

TO SHOW CAUSE

[ECF NO. 6]

On February 27, 2017, the Court issued an order requiring defendant 

National Union Fire Insurance Company of Pittsburgh Pennsylvania (“National 

Union”) to Show Cause why this action should not be remanded to state court 

(the “OSC”) for failure to state in its notice of removal whether defendant AIG 

Property Casualty Company (“AIG”) had been served, and if so, whether it joined 

in or consented to removal. (ECF No. 6.) For the reasons below, the OSC will 

be discharged.

On February 8, 2017, National Union removed this insurance bad faith 

action from San Diego Superior Court on the assertion of diversity jurisdiction

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pursuant to 28 U.S.C. § 1441(b). However, its notice of removal failed to 

address whether AIG has been served, and if so, whether it joined in or 

consented to removal. Since all defendants in the state court action must join the 

petition for removal, see, e.g., Hewitt v. City of Stanton, 798 F.2d 1230, 1233 (9th 

Cir. 1986), the Court issued an OSC requiring National Union to explain why AIG 

was omitted from the notice of removal. 

On March 6, 2017, National Union filed a timely response to the OSC. 

(ECF No. 7.) National Union stated that AIG was served with the summons and 

complaint on January 9, 2017, the same day as National Union; that AIG had, in 

fact, consented to removal; and that National Union’s failure to include AIG’s 

consent in the removal notice was an oversight. (ECF No. 7.) Also on March 6, 

2017, AIG filed a joinder in the notice of removal. (ECF No. 8.) AIG’s joinder 

indicates that at the time the action was removed on February 8, 2017, it was 

attempting to negotiate a dismissal, that it did actually consent to removal and 

National Union’s failure to address AIG’s consent in the removal notice was an 

oversight. 

The OSC gave Plaintiff until March 13, 2017, to file a responsive brief, but 

Plaintiff elected not to file a response, nor has Plaintiff moved to remand or 

otherwise objected to the Court’s exercise of removal jurisdiction over this action. 

As the Court indicated in its OSC, failure to join all properly served 

defendants in a removal petition renders the removal procedurally defective. See

Emrich v. Touche Ross & Co., 846 F.2d 1190, 1193 n.1 (9th Cir. 1988). 

However, non-jurisdictional procedural requirements for removal may be waived 

by the plaintiff. Kelton Arms Condominium Owners Assoc., Inc. v. Homestead 

Ins. Co., 346 F.3d 1190, 1192 (9th Cir. 2003); Smith v. Mylan Inc., 761 F.3d 

1042, 1044-46 (9th Cir. 2014). If the plaintiff waives procedural defects in the 

removal process, the Court may not address them by remanding the action sua 

sponte. Smith, 761 F.3d. at 1046; 28 U.S.C. § 1447(c) (addressing post-removal 

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authority to remand). Here, the plaintiff did not respond to the OSC, move to 

remand, or otherwise register any opposition to removal, and thus has “implicitly 

waived any procedural defect in removal.” Id. Therefore, the Court may not 

remand this action sua sponte on the basis of the procedural flaws in National 

Union’s notice of removal. Id.

 Also, “the district court may allow the removing defendants to cure the 

defect by obtaining joinder of all defendants prior to the entry of judgment.” 

Destfino v. Reiswig, 630 F.3d 952, 957 (9th Cir. 2011); see Soliman v. Phillip 

Morris Inc., 311 F.3d 966, 970 (9th Cir. 2002). Here, since Plaintiff does not 

object, the Court accepts AIG’s belated joinder as having cured the deficiency in 

National Union’s removal notice. 

Accordingly, the Order to Show Cause is DISCHARGED.

IT IS SO ORDERED:

Dated: April 21, 2017

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