McKay v. Point Shipping Corp.
The Marine Engineers Beneficial Association (Union) filed a motion to remand an action previously removed to federal court by Point Vail Company. The Union sought to confirm an arbitrator's award against Point Vail and Point Shipping Corporation regarding a collective bargaining agreement dispute. Point Vail opposed the remand, claiming Point Shipping was fraudulently joined, thus obviating its need to consent to removal. The District Court found no evidence of fraudulent joinder, noting that the Union sought relief against Point Shipping, whose potential liability was substantial despite an indemnity agreement. Consequently, the court ruled the removal petition defective due to Point Shipping's non-joinder and ordered the case remanded to the New York Supreme Court, while denying the Union's request for litigation fees.