ND Bar Practice Questions - North Dakota Bar Examination Exam

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A defendant removes a case from North Dakota state court to the U.S. District Court for the District of North Dakota based on diversity. The plaintiff later amends to add a non-diverse defendant whose joinder is proper and necessary. Under 28 U.S.C. § 1447(e), what is the court's authority?

The court must permit joinder and retain jurisdiction by realigning the parties The court may deny joinder, or permit joinder and remand the action to state court The court must deny joinder because it would destroy diversity The court must dismiss the action entirely for lack of subject-matter jurisdiction

Correct Answer:

The court may deny joinder, or permit joinder and remand the action to state court

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