Legal Loophole Gives Corporations Favorable Lawsuit Forums

Sharp-eyed corporations sued in their home state courts can move to potentially friendlier federal forums after a recent federal appeals court decision.

The Third Circuit’s ruling was the first federal appeals court ruling to address “snap removal,” which gets its name because the removal must occur before the defendant is served. The court “clearly and emphatically” allowed the practice, refusing to send the case back to state court, Arthur D. Hellman, a federal courts professor, said.

The practice benefits corporations who may want to go to federal court because of rules there that make it easier to get a ...