Removal In A Snap: Third Circuit Endorses Pre-Service Removals

The Third Circuit recently served up an ace for resident defendants seeking to remove cases filed in their home states prior to being served. In its August 22, 2018 Encompass Insurance Co. v. Stone Mansion Restaurant Inc. decision, the court resolved a split among its district courts and became the first appellate court to endorse pre-service removals by in-state defendants, a practice commonly called the "snap removal."

In a world where venue can mean the difference between winning and losing on the merits, the Encompass decision will help set defendants up for early success. Quick-acting and astute defendants in the Third Circuit may avail themselves of the plain meaning of the "forum defendant rule" to remove actions filed in their home state. In addition, defendants in other circuits have additional persuasive appellate authority to cite in opposition to remand motions based on the forum defendant rule.