The timing of events was crucial to the outcome of the Caterpillar case. At the time Lewis filed the case in the state court system, one of the defendants and the plaintiff were from the same state, so the state court system had jurisdiction. Once the supply company reached an agreement with Lewis, the other defendant, Caterpillar, filed a motion to exercise its right of removal because diversity of citizenship existed in the absence of the Kentucky defendant. But the agreement was not final at the time of the motion because the agreement was subject to the insurer’s approval. Thus, the appellate court ruled that because the sup- ply company was still a party to the agreement, the federal court system could not exercise
jurisdiction over the case.