Moss V. Princip et al
Filing
84
Memorandum Opinion and Order. The Court drops dispensable, nondiverse Defendants Videogames YouTube Channel and Game Guide, LLC from the above-styled action. Denying as moot 80 Motion to Dismiss/Lack of Jurisdiction filed by Bryan Martin, Marko Princip; and Granting 81 Motion to Dismiss Dispendable Nondiverse Parties filed by Brandon Keating. (see order) (Ordered by Magistrate Judge Paul D Stickney on 4/15/2016) (mcrd)
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
DAVID TYLER MOSS, et al.,
Plaintiffs,
v.
MARKO PRINCIP, et al.,
Defendants.
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No. 3:14-CV-3088-BF
MEMORANDUM OPINION AND ORDER
Before the Court are Defendants’ Motion to Dismiss for Lack of Subject Matter Jurisdiction
[D.E. 80] and Plaintiffs’ Rule 21 Motion to Dismiss Dispensable Nondiverse Parties [D.E. 81]. In
their motion, Defendants argue that the Court lacks jurisdiction over the case because complete
diversity of parties does not exist. Defs.’ Mot. [D.E. 80 at 2-6]. Plaintiffs’ motion is aimed directly
at this issue and seeks to cure the lack of diversity of parties by expelling nondiverse Defendants
Defendants Videogames YouTube Channel and Game Guide, LLC. Pls.’ Mot. [D.E. 81 at 1-3].
LEGAL STANDARD
“[T]he question always is, or should be, when objection is taken to the jurisdiction of the
court by reason of the citizenship of some of the parties, whether . . . they are indispensable parties,
for if their interests are severable and a decree without prejudice to their rights may be made, the
jurisdiction of the court should be retained and the suit dismissed as to them.” Groupo Dataflux v.
Atlas Global Group, L.P., 541 U.S. 567, 572 (2004) (quoting Horn v. Lockhart, 84 U.S. 570, 579
(1873)). The Federal Rules of Civil Procedure permit courts to add or drop parties as necessary
through motion of the parties or on a court’s own initiative. FED. R. CIV. P. 21. Indeed, “it is well
settled that Rule 21 invests district courts with authority to allow a dispensable nondiverse party to
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be dropped at any time, even after judgment has been rendered.” Groupo, 541 U.S. at 572-73.
Furthermore, even when complete diversity does not exist at the time of removal, this defect in
diversity does not require dismissal of an action. Id. at 573.
ANALYSIS
Although Defendants’ argument that complete diversity does not exist is well taken, case law
makes it clear that this action should not be dismissed for lack of diversity of the parties. See
Groupo, 541 U.S. at 572. Instead, this Court is obligated to remove dispensable, nondiverse
Defendants Videogames YouTube Channel and Game Guide, LLC to preserve jurisdiction. See id.
Furthermore, the Federal Rules of Civil Procedure have empowered this Court to take such action
on Plaintiffs’ motion even after a judgment is entered. See FED. R. CIV. P. 21. Because no judgment
has been entered in this case, and because even “courts of appeals also have the authority to cure a
jurisdictional defect by dismissing a dispensable nondiverse party,” this Court retains authority to
dismiss dispensable, nondiverse Defendants Videogames YouTube Channel and Game Guide, LLC
from the action. See Groupo, 541 U.S. at 573. This authority remains vested in this Court, even
though the jurisdictional defect existed at the time of removal. Id.
CONCLUSION
Therefore, the Court drops dispensable, nondiverse Defendants Videogames YouTube
Channel and Game Guide, LLC from the above-styled action. Plaintiffs’ Rule 21 Motion to Dismiss
Dispensable Nondiverse Parties [D.E. 81] is GRANTED. Defendants’ Motion to Dismiss for Lack
of Subject Matter Jurisdiction [D.E. 80] is DENIED as moot.
SO ORDERED, April 15, 2016.
_____________________________________
PAUL D. STICKNEY
UNITED STATES MAGISTRATE JUDGE
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