Special Fee Shifting Statute: District Judge Can Award Fees And Costs Against Party If Its Decision To Remove Was Objectively Unreasonable

That Was So In This Case Because Fraudulent Joinder Argument Lacked Merit Under The Circumstances.

            Under 28 U.S.C. § 1447(c), a district judge has discretion to award costs and attorney’s fees against a party if the removing party lacked an objectively reasonable basis for seeking removal, in the absence of unusual circumstances.

            The district judge did just that in GranCare, LLC v. Thrower, No. 16-15533 (9^th Cir. Apr. 26, 2018) (published), a determination affirmed on appeal against the removing party.  The removing party probably thought it had cause to remove based on a fraudulent joinder ruling involving an identical party, but the circumstances of that case were so different such that reliance on that prior decision was unreasonable in nature.