Yuna Suffered a Personal Injury While Operating Her Tractor at Home

Essay

Yuna suffered a personal injury while operating her tractor at home in California. She filed suit in state court against the manufacturer, Company A. Company A is incorporated in Delaware with its principal place of business in Illinois. Yuna also sued the seller, Company B, which is incorporated in California with its principal place of business in California. Yuna and Company B informally agreed to settle out of court, but the agreement was subject to approval by Company B's insurer. Before a final agreement was reached regarding settlement with Company B, Company A filed a motion in state court to remove the case to federal court. Although Yuna opposed removal, the state court granted Company A's motion. After the case was removed to federal court, Yuna and Company B finalized their settlement agreement and Company B was dismissed from the lawsuit. The federal district court proceeded to hear the case and ruled in favor of Company A. Yuna appealed on the basis that diversity between the parties was lacking so the federal district court had no jurisdiction over the case. She claims that the case should be remanded to state court for a new trial. What should the appellate court rule regarding whether the state trial court properly granted the petition for removal and what will be the likely outcome on appeal?