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In Simmerman v. Ace Bayou Corp., the parents of a three-year-old sued several parties following the death of their child, who became trapped in a beanbag chair. The parents filed a product liability action against the manufacturer of the allegedly defective chair, the department store where they purchased the item, and the manager of the store in Fayette County Circuit Court. In response to the lawsuit, the defendants removed the case to the U.S. District Court for the Eastern District of Kentucky in Lexington based upon diversity of citizenship. In general, a defendant may remove a case to federal court as long as the defendants are from different states than the plaintiff and the amount in controversy exceeds $75,000.

Next, the parents filed a motion to remand the case back to Fayette County Circuit Court. Although the store manager was a resident of Kentucky, the remaining corporate defendants have main corporate headquarters in other states. According to the plaintiffs, the Kentucky manager destroyed diversity and required the case to be tried in state court. The store manager, however, countered that she was fraudulently joined in the case solely to defeat federal diversity jurisdiction.

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