Opinion

Joseph v. FedNat Insurance Company

Court
District Court, E.D. Louisiana
Filed
Apr 19, 2024
Cited by
0 cases
Authority
More cited than 22.4%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

SEBASTIAN JOSEPH CIVIL ACTION

AND CATHERINE JOSEPH

VERSUS NO. 22-846

FEDNAT INSURANCE COMPANY SECTION “B”(4)

ORDER AND REASONS

Considering parties’ joint motion to dismiss with prejudice (Rec. Doc. 40),

IT IS HEREBY ORDERED that the motion is GRANTED based on lack of subject

matter jurisdiction.

On October 5, 2023, this Court granted plaintiffs’ motion to lift the stay in this case and to

seek leave to amend their complaint to add Louisiana Insurance Guaranty Association (“LIGA”)

as a defendant. Rec. Doc. 32. After plaintiffs sought leave for such an amendment, this Court

granted the motion and, therein, ordered “that no later than November 17, 2023, parties shall file

memoranda addressing the effect of adding LIGA as a defendant on the Court’s jurisdiction over

this matter under 28 U.S.C. § 1332.” Rec. Doc. 35 (emphasis in original). In their memorandum

on the subject matter jurisdiction question, plaintiffs conceded “LIGA’s citizenship for diversity

purposes is considered to be Louisiana.” Rec. Doc. 38 at 2. Although acknowledging that our

Order refused to grant party substitution, plaintiffs nevertheless contend that because subject

matter jurisdiction existed at filing “the Court’s subject matter jurisdiction remains intact, even

after LIGA’s substitution.” Id. at 2–3. LIGA was added as a defendant, not substituted.

LIGA filed no briefing on the issue. In its first appearance in this suit, LIGA joins plaintiffs

to move to dismiss this case with prejudice. Rec. Doc. 40. The instant motion submits that parties

have “settled in full[.]” Id. at 1.

Plaintiffs submit that they have Louisiana citizenship. Rec. Doc. 1-2 at 5. Further,

plaintiffs’ memorandum admits “LIGA’s citizenship for diversity purposes is considered to be

Louisiana.” Rec. Doc. 38 at 2. 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. 2:22-04544, 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. See McLaughlin, 376 F.3d at 353; Hensgens, 833 F.2d at 1181.

New Orleans, Louisiana, this 19th day of April, 2024

_______________________________________

SENIOR 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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