The Ninth Circuit affirmed the district court’s order denying the plaintiffs’ motion to remand and dismissing their claims against the Oregon citizen defendants, Peter and Bette Richards. The court held that the non-diverse defendants were fraudulently joined because the plaintiffs failed to state a cause of action against them under settled Oregon law, thereby satisfying the exception to the complete diversity requirement for removal jurisdiction. The court applied the standard for fraudulent joinder, which requires the removing party to show that the plaintiff “fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state.” The panel analyzed the plaintiffs’ claims under Oregon’s Employer Liability Law (ELL) and the Oregon Safe Employment Act (OSEA), concluding that the Richards were not liable as “employers,” “owners,” or “indirect employers” because the work was performed at a private home by nonsubject workers. Regarding the negligence claim, the court noted that Oregon law generally limits liability for dangerous work to the extent of ELL liability, which did not exist here. Finally, the premises liability claim failed because the injury resulted from defective equipment owned by an independent contractor rather than a condition of the premises. As a practical consequence, the federal court retains subject matter jurisdiction over the case based on diversity between the remaining parties, and the dismissal of the claims against the Richards defendants stands, leaving the case to proceed solely against the non-diverse defendant, Vermeer Manufacturing Company.