Carolina Vasquez v. Alto Bonito Gravel Plant Corporation and Caterpillar, Inc.

E. GRADY JOLLY, Circuit Judge:

This wrongful death case requires us to determine whether a case becomes removable from a Texas state court under our diversity jurisdiction once the plaintiffs and the nondiverse defendant negotiate a settlement. Applying Texas law, we hold that it does not become removable and that the district court should have remanded this case to state court because, although the nondiverse defendant and the plaintiffs may have negotiated an agreement to settle, the settlement had not become irrevocable under Texas law. Absent such an irrevocable settlement, the nondiverse…