Opinion

Heine v. United Property & Casualty Insurance Company

Court
District Court, E.D. Louisiana
Filed
May 17, 2024
Cited by
0 cases
Authority
More cited than 22.4%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

MICHAEL HEINE CIVIL ACTION

VERSUS NO. 22-4891

UNITED PROPERTY AND SECTION “B”(2)

CASUALTY INSURANCE CO.

ORDER AND REASONS

Before the Court is plaintiff Michael Heine’s (“Plaintiff”) “Motion for Leave to File First

Supplemental and/or Amended Complaint” (“Motion for Leave”) (R. Doc. 23), wherein Plaintiff

moves the Court for an order allowing Plaintiff to file a first amended complaint adding Louisiana

Insurance Guaranty Association (“LIGA”) as a party defendant in the above-captioned case; and

“Memorandum in Support of Motion for Leave” (R. Doc. 23-2), wherein Plaintiff addresses the

effect of adding LIGA as a party-defendant on this Court’s jurisdiction over this case under 28

U.S.C. § 1332.

First considering Plaintiff’s Motion for Leave (R. Doc. 23), IT IS HEREBY ORDERED

that Plaintiff’s Motion for Leave is GRANTED, permitting Plaintiff to amend his Complaint to

add LIGA as a party defendant in the above-captioned case. Accordingly, Plaintiff’s proposed,

attached “First Supplemental and Amended Complaint” (R. Doc. 23-4) shall be FILED into the

record of the above-captioned case.

Next considering Plaintiff’s Memorandum in Support of Motion for Leave (R. Doc. 23-2),

IT IS FURTHER ORDERED that, for the following reasons, the above-captioned case be

DISMISSED WITHOUT PREJUDICE for lack of subject matter jurisdiction.

On December 4, 2022, Plaintiff filed his Complaint in this Court against defendant-insurer

United Property & Casualty Insurance Company (“UPC”), alleging damage to his Avondale,

Louisiana property from Hurricane Ida.1 Plaintiff’s original Complaint asserts federal jurisdiction

through 28 U.S.C. § 1332 “because there is complete diversity of citizenship as between [Plaintiff

and UPC], and the matter in controversy exceeds the sum or value of $75,000, exclusive of interest

and costs.”2 As for diversity of citizenship, Plaintiff’s original Complaint specifically alleges that

Plaintiff is a citizen of Louisiana, and UPC is a citizen of Florida.3

On May 14, 2024, filed the instant Motion for Leave, seeking to add LIGA as a party

defendant in this matter, which we granted by way of this Order supra. Plaintiff’s Memorandum

in Support of Motion for Leave addresses the effect of adding LIGA as a party defendant in this

case.4 Thus, we now address the effect of adding LIGA as a party defendant in this case.

As previously noted, this action is brought with subject matter jurisdiction through 28

U.S.C. § 1332, which requires an amount in controversy exceeding $75,000 and diversity of

citizenship of parties. 28 U.S.C. § 1332(a). Diversity of citizenship must be complete, that is,

where “all persons on one side of the controversy [are] citizens of different states than all persons

on the other side.” McLaughlin v. Mississippi Power Co., 376 F.3d 344, 353 (5th Cir. 2004)

(quotation omitted). For purposes of diversity subject-matter jurisdiction, “[c]itizenship for an

individual is synonymous with the person’s domicile.” English v. Aramark Corp., 858 F. App’x

115, 116 (5th Cir. 2021) (citing Mullins v. TestAmerica, Inc., 564 F.3d 386, 397 n. 6 (5th Cir.

2009)). 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

1 See R. Doc. 1

2 Id. at 2 ¶ 3

3 Id.

4 See generally R. Doc. 23-2.

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.).

Plaintiff’s Memorandum in Support of Motion for Leave acknowledges that both LIGA

and Plaintiff are citizens of Louisiana for purposes of federal diversity jurisdiction, and thus, that

jurisdiction under 28 U.S.C. § 1332 is destroyed:

“LIGA and Plaintiff are both citizens of and domiciled in Louisiana. Therefore,

should this Honorable Court grant Plaintiff’s request for Leave to file the First

Supplemental and/or Amended Complaint, Plaintiff submits this Honorable Court

would no longer have subject matter jurisdiction. Nonetheless, as LIGA is now an

indispensable party, this Honorable Court should grant Plaintiff’s request for leave

to file the First Supplemental and/or Amended Complaint, adding LIGA . . . ”5

However, Plaintiff’s Memorandum in Support of Motion for Leave then moves the Court

to “remand this matter sua sponte to the 24th Judicial District Court for the Parish of Jefferson.”6

Unfortunately, remand is impossible in this case. See 28 U.S.C. § 1447(c), (d) (describing

“remanding a case to the State court from which it was removed”); see also Evanston Ins. Co. v.

Marine Safety Servs., LLC., No. 055244, 2006 WL 1560823, at *1 (E.D. La. May 18, 2006) (“The

Court has no authority to remand this case because it did not originate in state court.”). Where

LIGA’s addition as a party to a federally filed complaint has stripped subject matter jurisdiction,

district courts in this circuit have dismissed the case without prejudice. See Buras v. United Prop.

5 Id. at 2.

6 Id.

& Cas. Ins. Co., No. 22-4286, 2023 WL 7412914, at *1 (E.D. La. Nov. 9, 2023) (“[C]omplete

diversity no longer exists between the parties, and the Court may no longer assert diversity

jurisdiction over this action.”); Garel v. S. Fid. Ins. Co., No. 22-5304, 2023 WL 7412916, at *1

(E.D. La. Nov. 9, 2023) (“Plaintiff has identified no other basis for the Court to continue asserting

subject matter jurisdiction over this matter, and the Court has found none. Thus, having determined

that it lacks subject matter jurisdiction, the Court must dismiss this action.”); Chatman v. Maison

Ins. Co., No. 22-1055, 2024 WL 347889 (M.D. La. Jan. 30, 2024); Perry v. Weston Prop. & Cas.

Ins. Co., No. 2:22-2618, 2023 WL 5958120 (W.D. La. Aug. 21, 2023), report and recommendation

adopted, No. 2:22-2618, 2023 WL 5942306 (W.D. La. Sept. 12, 2023); but see Pousson v. S. Fid.

Ins. Co., No. 6:22-4717, 2024 WL 251157 (W.D. La. Jan. 23, 2024) (denying dismissal where

LIGA was named a defendant through party substitution, not complaint amendment).

Here, Plaintiff’s First Supplemental and Amended Complaint, ordered to be filed into the

record supra, pursues an action grounded on diversity jurisdiction but without diversity of parties.

Parties have identified no other jurisdictional basis for the action. As such, this case must be

dismissed without prejudice for lack of subject matter jurisdiction.

New Orleans, Louisiana, this 16th day of May, 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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