Paul, a citizen of California, has health insurance through…
Paul, a citizen of California, has health insurance through Despicable Company, a California corporation. Paul makes a claim for health insurance benefits which is rejected by Despicable Company. Paul sues Despicable Company in California state court. Paul’s Complaint asserts claims against Despicable Company for breach of contract and violation of Federal health insurance regulations. Despicable Company removes the case to Federal Court in the Northern District of California. During the litigation, Paul discovers that his doctor colluded with Despicable Company to deny Paul’s claim. Paul wants to add the doctor as a defendant to the lawsuit. However, the Federal Judge has set a last date in his courtroom in which a party can be added. This date has already come and gone. When Paul asks the Judge for an exception to add the doctor, the Judge denies the request citing to his deadline requirement to add a party. If the case had remained in California state court, Paul would have had until the first day of trial to add a party. Question 1: Which law applies? The law of California or the Federal law regarding adding the party. Assume there is no Federal Rule of Civil Procedure on the timeliness of adding a party. Question 2: Was Despicable Company’s removal to Federal Court proper?