Summary
The court grants Plaintiff Amy Robertson’s unopposed motion to remand a first-party insurance dispute to the Civil District Court for the Parish of Orleans. After removal based on diversity jurisdiction, the plaintiff amended the petition to add Cajun Underwriters Reciprocal Exchange, alleged to be a Louisiana citizen, destroying complete diversity. The court remands the claims under 28 U.S.C. § 1447(e).
Topics
Practice areas
Questions Presented
- Whether the post-removal addition of Cajun Underwriters Reciprocal Exchange, an allegedly nondiverse defendant, destroyed complete diversity and required remand.
- Whether the court could remand under 28 U.S.C. § 1447(e) after permitting the plaintiff to join a defendant whose citizenship defeated subject matter jurisdiction.
Holdings
- The addition of Cajun Underwriters Reciprocal Exchange, alleged to be a Louisiana citizen like Plaintiff, destroyed complete diversity and vitiated the court's subject matter jurisdiction under 28 U.S.C. § 1332.
- The court was required to remand Plaintiff's claims to the Civil District Court for the Parish of Orleans because it lacked subject matter jurisdiction.
Key quotations
“If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.”
“If after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction, the court may . . . permit joinder and remand the action to the State court.”
Factual background
Robertson brought a first-party insurance action arising from a June 15, 2022 property loss. After removal based on diversity jurisdiction, Safepoint's corporate representative testified that Cajun Underwriters Reciprocal Exchange, rather than Safepoint, was the proper defendant and insurer. Robertson amended her petition to add Cajun, which was alleged to be a Louisiana citizen, as was Robertson.
Procedural history
Amy Robertson filed the action in the Civil District Court for the Parish of Orleans on February 29, 2024. Safepoint removed the case to federal court on May 8, 2024, invoking diversity jurisdiction. After a corporate deposition indicated that Cajun Underwriters Reciprocal Exchange was the proper insurer, Robertson obtained leave to amend and added Cajun as a defendant. Because Cajun and Robertson were alleged to be Louisiana citizens, Robertson moved unopposed for remand, which the court granted.
Remand instructions
The plaintiff's claims were remanded to the Civil District Court for the Parish of Orleans, Louisiana.