Renegade Swish, LLC v. Wright

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Renegade Swish filed suit against Emily Wright in state court for breach of employment agreement-related claims, and Wright counter-claimed based on violations of the Fair Labor Standards Act (FLSA). Renegade Swish nonsuited its claims without prejudice and moved to realign the parties in the state court. Renegade Swish then removed to federal court, and Wright moved for remand and attorney's fees. Even assuming arguendo that it use the abuse of discretion standard on review, the Fifth Circuit found that Renegade Swift did not have an objectively reasonable basis to remove to federal court, and the district court abused its discretion in finding otherwise. Renegade Swish has not identified an actual district court split as to whether removal is proper on the basis of federal counterclaims after a plaintiff nonsuits its claims. Accordingly, the court vacated in part and remanded for further proceedings. View "Renegade Swish, LLC v. Wright" on Justia Law