Opinion

Francis v. Southern Fidelity Insurance Company

Court
District Court, E.D. Louisiana
Filed
Mar 29, 2023
Cited by
0 cases
Authority
More cited than 22.4%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

LLOYD FRANCIS CIVIL ACTION

VERSUS NO. 22-763

SOUTHERN FIDELITY INSURANCE SECTION “R” (1)

COMPANY, ET AL.

ORDER AND REASONS

Before the Court is plaintiff’s unopposed motion to remand this

matter to the Civil District Court for the Parish of Orleans.1 For the

following reasons, the Court grants plaintiff’s motion.

I. BACKGROUND

This is a property insurance dispute arising from damage caused

by Hurricane Ida in 2021.2 Plaintiff commenced this action in the Civil

District Court for the Parish of Orleans on February 9, 2022.3

Defendant Southern Fidelity Insurance Company (“Southern Fidelity”)

removed this case on March 24, 2022 on the basis of diversity

1 R. Doc. 24.

2 See generally R. Doc. 1.

3 See generally R. Doc. 6-2.

jurisdiction.4 Subsequently, this matter was stayed because Southern

Fidelity was declared insolvent and placed into liquidation by the

Second Judicial Circuit Court in Leon County, Florida.5 The Court lifted

the stay on January 10, 2023,6 and plaintiff filed an amended complaint

on January 11, 2023 substituting the Louisiana Insurance Guaranty

Association (“LIGA”) as the defendant in this case.7 Now, plaintiff

moves to remand this case because LIGA’s presence destroys complete

diversity.8 Plaintiff’s motion is unopposed. The Court considers the

motion below.

I. LEGAL STANDARD

A defendant may generally remove a civil action filed in state court

if the federal court has original jurisdiction over the action. See 28

U.S.C. § 1441(a). The removing party bears the burden of showing that

federal jurisdiction exists. See Allen v. R & H Oil & Gas Co., 63 F.3d

1326, 1335 (5th Cir. 1995). In assessing whether removal was

4 R. Doc. 1.

5 R. Doc. 8.

6 R. Doc. 10.

7 R. Doc. 17.

8 R. Doc. 24.

appropriate, the Court is guided by the principle, grounded in notions

of comity and the recognition that federal courts are courts of limited

jurisdiction, that removal statutes should be strictly construed. See,

e.g., Manguno v. Prudential Prop. & Cas. Ins., 276 F.3d 720, 723 (5th

Cir. 2002); Neal v. Kawasaki Motors Corp., No. 95-668, 1995 WL

419901, at *2 (E.D. La. July 13, 1995). Though the Court must remand

the case to state court if at any time before the final judgment it appears

that it lacks subject matter jurisdiction, the Court’s jurisdiction is fixed

as of the time of removal. 28 U.S.C. § 1447(c); Doddy v. Oxy USA, Inc.,

101 F.3d 448, 456 (5th Cir. 1996).

For diversity jurisdiction to exist, the amount in controversy must

exceed $75,000, and there must be complete diversity between

plaintiffs and defendants. See 28 U.S.C. § 1332(a); Owen Equip. &

Erection Co. v. Kroger, 437 U.S. 365, 373 (1978). Having a plaintiff and

a defendant who are citizens of the same state ordinarily destroys

complete diversity. See McLaughlin v. Miss. Power Co., 376 F.3d 344,

353 (5th Cir. 2004).

II. DISCUSSION

Plaintiff moves to remand on the basis that LIGA is a Louisiana

citizen for jurisdictional purposes and that therefore LIGA’s presence in

the case vitiates the Court’s subject matter jurisdiction. At the outset,

the Court notes that defendants have failed to respond to plaintiff’s

motion. “This alone provides sufficient grounds to remand.” Brown v.

Heintz, No. CV 16-13697, 2017 WL 604034, at *2 (E.D. La. Feb. 15, 2017)

(collecting cases). But remand is also warranted for the reasons set forth

in plaintiff’s motion. LIGA is an unincorporated association and “has

the citizenship for diversity purposes of each of its constituent member

insurers.” Temple Drilling Co. v. La. Ins. Guar. Ass’n, 946 F.2d 390,

394 (5th Cir. 1991). Multiple sections of this Court have remanded cases

because LIGA has constituent member insurers based in Louisiana. See,

e.g., Soza v. S. Fid. Ins. Co., No. 22-985, 2023 WL 315948, at *1 n.3 (E.D.

La. Jan. 19, 2023) (Ashe, J.); 14th St. Properties, LLC v. S. Fid. Ins. Co.,

No. CV 22-1593, 2023 WL 416317, at *1 (E.D. La. Jan. 26, 2023) (Brown,

C.J.). Here, LIGA did not file an opposition and therefore does not

contest plaintiff’s contentions that it is a citizen of Louisiana for

jurisdictional purposes. Accordingly, the Court grants plaintiff’s

motion.

Il. CONCLUSION

For all of the foregoing reasons, defendant’s motion is GRANTED.

The Court REMANDS this matter to the Civil District Court for the

Parish of Orleans.

New Orleans, Louisiana, this 29th _ day of March, 2023.

bern Varver

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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