Burkett v. United Property & Casualty Insurance Company

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

CRAIG BURKETT CIVIL ACTION

AND COURTNEY BURKETT

VERSUS NO. 22-5320

UNITED PROPERTY & CASUALTY SECTION “B”(2)

INSURANCE COMPANY

ORDER AND REASONS

Considering plaintiffs Craig Burkett and Courtney Burkett’s first amending and

supplemental complaint (Rec. Doc. 12) and parties’ memoranda on the effects of the addition of

Louisiana Insurance Guaranty Association (“LIGA”) as a defendant (Rec. Docs. 13; 14),

IT IS HEREBY ORDERED that this case is REMANDED to the 24th Judicial District

Court for the Parish of Jefferson.

The Court permitted plaintiffs’ leave to amend their complaint to add LIGA as a defendant,

but in so doing, also required parties to submit memoranda on the effect the addition would have

on our subject matter jurisdiction under 28 U.S.C. § 1332. See Rec. Doc. 11. In their memorandum,

plaintiffs contend that the addition of LIGA strips the Court of jurisdiction “because complete

diversity no longer exists in this case.” Rec. Doc. 13 at 2. As both plaintiffs and defendant LIGA

are Louisiana citizens, plaintiffs suggest that the case should be remanded to state court. See id. at

2–3.

Although misconstruing plaintiffs’ action as a substitution of parties and not an amendment

of the complaint, LIGA does not contradict plaintiffs’ underlying arguments. See Rec. Doc. 14 at

1. While not providing its citizenship for diversity jurisdiction purposes, LIGA does submit it has

various ties to Louisiana. See id. (“LIGA is a Louisiana private nonprofit unincorporated legal

entity created pursuant to La. R.S. § 22:2056; domiciled in the Parish of East Baton Rouge, State

of Louisiana pursuant to La. R.S. § 22:2058(C)(2); with its primary place of business located at

2142 Quail Run Drive, Baton Rouge, Louisiana 70808.”). The Fifth Circuit has determined LIGA

has the citizenship for diversity purposes of each of its constituent member insurers. Temple

Drilling Co. v. Louisiana Ins. Guar. Ass’n, 946 F.2d 390, 394 (5th Cir. 1991). Other sections of

the Eastern District court have concluded that a constituent member of LIGA has Louisiana

citizenship; thereby, LIGA adopts the citizenship of Louisiana. See, e.g., Soza v. S. Fid. Ins. Co.,

No. 22-1400, 2023 WL 2770125, at *5 (E.D. La. Apr. 4, 2023) (Vitter, J.); Andry v. United

Property and Casualty Ins., No. 22-4544, 2023 WL 6442866, at *1 (E.D. La. Oct. 3, 2023) (Fallon,

J.); McDonald v. United Prop. & Cas. Ins. Co., No. 22-3757, 2023 WL 6464772, at *2 (E.D. La.

Oct. 4, 2023) (Morgan, J.); 14th St. Properties, LLC v. S. Fid. Ins. Co., No. 22-1593, 2023 WL

416317, at *1 (E.D. La. Jan. 26, 2023) (Brown, C.J.); Soza v. S. Fid. Ins. Co., No. 22-985, 2023

WL 315948, at *1 n.3 (E.D. La. Jan. 19, 2023) (Ashe, J.).

As plaintiffs and LIGA are Louisiana citizens, subject matter jurisdiction under 28 U.S.C.

§ 1332 is lost. McLaughlin v. Mississippi Power Co., 376 F.3d 344, 353 (5th Cir. 2004) (quotation

omitted) (“The concept of complete diversity requires that all persons on one side of the

controversy be citizens of different states than all persons on the other side.”); Hensgens v. Deere

& Co., 833 F.2d 1179, 1181 (5th Cir. 1987) (“[A]ddition of a nondiverse party will defeat

jurisdiction.”). Therefore, this case must be remanded. See Soza v. S. Fid. Ins. Co., No. 22-1400,

2023 WL 2770125, at *5 (E.D. La. Apr. 4, 2023) (“Because the Court is granting the Motion for

Leave and allowing Plaintiffs to amend their original Petition to name LIGA, a non-diverse

defendant, § 1447(e) requires this Court to remand the matter to [state court], for lack of subject

matter jurisdiction.”).

As this case was removed from the 24th Judicial District Court for the Parish of Jefferson,

see Rec. Doc. 1 at 1, remand is proper to that state court.

New Orleans, Louisiana, this 27th day of November, 2023

_______________________________________

SENIOR UNITED STATES DISTRICT JUDGE