482 U.S. 386 (1987)
Caterpillar Inc. v.
Does the presence of a non-diverse party at the time of removal destroy federal jurisdiction under the diversity requirement if the non-diverse party is later dismissed from the case?
For federal diversity jurisdiction to be appropriate, complete diversity between all plaintiffs and defendants must exist at the time the case is removed to federal court.
The United States Supreme Court held that the presence of a non-diverse party at the time of removal does not necessarily destroy jurisdiction if the case becomes completely diverse before judgment. Upon correcting the non-diversity, federal jurisdiction remains proper.
This ruling is significant for law students as it underscores the federal courts' emphasis on practical considerations over procedural technicalities, reflecting a flexible approach to jurisdictional challenges. It illustrates how principles of judicial economy and fairness can influence federal jurisdiction determinations.