Aviator Nation, Inc. v. Allianz Global Risks US Insurance Co.

Summary

The United States District Court for the Central District of California ordered Aviator Nation, Inc. to show cause why its insurance coverage action against Allianz Global Risks U.S. Insurance Company should not be dismissed without prejudice for lack of subject matter jurisdiction. The court found that the complaint insufficiently alleged facts establishing that the amount in controversy exceeded $75,000, and set deadlines for responses from the parties.

Holdings

1. The party seeking to invoke diversity jurisdiction bears the burden of both pleading and proving that the amount in controversy exceeds the jurisdictional threshold.
2. When a plaintiff originally files in federal court, the amount in controversy is determined from the face of the pleadings, and a conclusory allegation that the amount exceeds $75,000 is insufficient without supporting factual allegations.

Questions Presented

1. Whether the Complaint adequately pleaded facts establishing that the amount in controversy exceeds $75,000 for purposes of diversity jurisdiction under 28 U.S.C. § 1332.
2. Whether the action should be dismissed without prejudice for lack of subject matter jurisdiction if Plaintiff fails to provide a satisfactory response to the order to show cause.

Disposition

other