NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA
v.
SHAW DEVELOPMENT, LLC
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The court held that it lacked subject matter jurisdiction over the case due to deficiencies in establishing diversity jurisdiction and the ripeness of the indemnification claim.
Plaintiff insurer sought a declaratory judgment that it need not defend or indemnify defendants in a state court suit. The defendants, an LLC, failed …
The full statement of facts, procedural history, and disposition for this case are member content.
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Third-Party Defendants. _________________________________/
ORDER1
Before the Court is Plaintiff National Union Fire Insurance Company of Pittsburgh, PA’s Complaint (Doc. 1) and Defendant Shaw Development, LLC’s
405, 410 (11th Cir. 1999) (stating district courts must “inquire into subject matter jurisdiction sua sponte whenever it may be lacking”). Jurisdiction is questionable for two reasons. First, to have diversity jurisdiction, the parties must be completely diverse. 28 U.S.C. § 1332(a). An
LLC—like Shaw—is a citizen of every state in which one of its members is domiciled. Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F. 3d 1020 (11th Cir. 2004). So every member of the LLC must be diverse from the opposing party. See Lincoln Prop. Co. v. Roche, 546 U.S. 81, 89 (2005).
The Complaint alleges that “Shaw Development is a Florida limited liability company domiciled in Florida.” But it identifies no members or their domiciles. (Doc. 1 at 2). The Answer and Third-Party Complaint similarly fall short. They admit Shaw is a Florida LLC but state all Shaw’s membership is owned by an unidentified Delaware LLC. (Doc. 5 at 2; Doc. 9 at 3). But neither
the Court cannot conclude the parties are completely diverse. Second, Plaintiff wants the Court to declare it has no duty to indemnify the Defendants in the state court action. But until the state case ends, the duty to indemnify claim is unripe. See Mid-Continent Cas. Co. v. Delacruz
Drywall Plastering & Stucco, Inc., 766 F. App’x 768, 771 (11th Cir. 2019) (concluding an insurer’s duty to indemnify “is not ripe for adjudication until the underlying lawsuit is resolved”). So if Plaintiff files an amended complaint correcting the citizenship deficiency, it must show cause in a separate brief—
not to exceed five pages—why any duty to indemnify claim is ripe for adjudication. Accordingly, it is now ORDERED:
1. Plaintiff National Union Fire Insurance Company of Pittsburgh, PA’s Complaint (Doc. 1) is DISMISED without prejudice for lack of subject matter jurisdiction. a. Plaintiff may file an amended complaint on or before
November 4, 2021. Failure to file an amended complaint may cause the Court to close this case without further order. b. If Plaintiff files an amended complaint, it must come with a brief—not to exceed five pages—addressing ripeness. 2. Defendant Shaw Development, LLC’s Third-Party Complaint (Doc. 9) is DISMISSED without prejudice for lack of subject matter jurisdiction. a. Defendant Shaw may file an amended third-party complaint on
or before November 4, 2021. b. Failure to file an amended complaint may cause the Court to close this case without further order. DONE and ORDERED in Fort Myers, Florida on October 21, 2021.
UNITED STATES DISTRICT JUDGE
Copies: All Parties of Record