In a precedential decision, the U.S. Court of Appeals for the Third Circuit concluded that district courts lack the authority to award attorney fees under 28 U.S.C. Section 1447(c) when a case has been properly removed from state court but subsequently remanded based on a forum-selection clause.

In an Aug. 9 opinion, authored by Third Circuit Judge David J. Porter, the court vacated a district court’s awarding of attorney fees to the Medical Associates of Erie, concluding that, because a forum-selection clause isn’t a removal defect and doesn’t deprive the district court of subject matter jurisdiction, the court can’t remand and award attorney fees under 28 U.S.C. Section 1447(c).

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