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Nicholas Fugedi, in His Official Capacity as Trustee of Carb Pura Vida Trust v. Initram, Incorporated, et al.
Paid petition · United States Court of Appeals for the Fifth Circuit, No. 24-40283 · judgment September 9, 2025
Before the decision, well below the 4.1% base rate, with no standout signals pointing toward a grant.
Question presented
The fraudulent joinder and misjoinder doctrines, and 28 U.S.C. § 1359, require courts to determine whether diversity of citizenship has been improperly manufactured to avoid or secure federal court jurisdiction. There is broad disagreement, commented on by Congress, commentaries, and the lower courts on what standard should be applied when a court determines whether jurisdiction has been manufactured. The Supreme Court has not addressed the issue since the early 1900s. This case presents the following federal question: Whether the proper standard to be applied by a court determining if diversity jurisdiction has been improperly manufactured is the motive test applied by some circuits or the substantialstake test applied by other circuits.
Counsel of record
For petitioner
Timothy A. Hootman
For respondent
Susan Jeanne Clouthier
Clouthier Law, PLLC
Case
Conference history
Distributed for 1 conference
Proceedings
- Feb 23 2026Petition DENIED.
- Feb 04 2026DISTRIBUTED for Conference of 2/20/2026.
- Jan 22 2026Waiver of right of respondent Initram, Incorporated, et al. to respond filed.
- Jan 13 2026Petition for a writ of certiorari filed. (Response due February 17, 2026)