Fidelitad, Inc. v. Insitu, Inc., No. 17-35162 (9th Cir. 2018)Annotate this Case
Insitu designs and manufactures unmanned aerial systems (drones) and Fidelitad is a value-added reseller of Insitu's drones. Fidelitad filed suit in Washington state against Insitu, alleging that Insitu improperly delayed shipment of its orders, wrongfully terminated a purported distributorship agreement, and then moved into the Latin American market, appropriating Fidelitad's prior groundwork. Insitu removed to the district court under 28 U.S.C. 1442(a)(1).
The Ninth Circuit reversed the district court's denial of Fidelitad's motion to remand and grant of summary judgment to Insitu. The panel held that the motion to remand should have been granted because, even construed in the light most favorable to Insitu, the notice of removal did not establish that Insitu was acting under the direction of a federal officer in its relevant dealings with Fidelitad. Furthermore, the defect was not cured prior to entry of judgment and no party has suggested a basis for subject matter jurisdiction other than section 1442(a)(1). Accordingly, the panel remanded with instructions to remand to state court.