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