Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-almd-2_07-cv-00216/USCOURTS-almd-2_07-cv-00216-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:2201 Declaratory Judgement

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IN THE UNITED STATES DISTRICT COURT

FOR THE MIDDLE DISTRICT OF ALABAMA

NORTHERN DIVISION

ZURICH AMERICAN INSURANCE )

COMPANY, )

 )

PLAINTIFF, )

 )

v. ) CASE NO.: 2:07-cv-216-MEF-TFM

 )

JUNIORETTE GRIFFIN SMITH, as ) (WO-Not Recommended for Publication)

Administratrix of the Estate of Roger Dale )

Smith, )

 )

DEFENDANT. )

MEMORANDUM OPINION AND ORDER

This cause is before the Court on the Motion to Dismiss (Doc. # 9) filed on April 20,

2007 by Defendant Juniorette Griffin Smith (“Smith”). Smith contends that this Court lacks

subject matter jurisdiction over this action. The Court disagrees and finds that the Motion

to Dismiss is due to be DENIED. 

This is a declaratory judgment action filed by a foreign insurance company. Zurich

American Insurance Company (“Zurich”) is a corporate citizen of New York and Illinois.

The sole defendant to this action is a resident of Alabama. It is undisputed that more than

$75,000 is in controversy. Zurich contends that this Court has subject matter jurisdiction

over this action pursuant to 28 U.S.C. § 1332(a). Citing 28 U.S.C. § 1332(c), Smith argues

that is not the case. 

28 U.S.C. § 1332(c) provides as follows:

For purposes of this section and section 1441 of this title ---

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(1) a corporation shall be deemed to be a citizen of any State by

which it has been incorporated and of the State where it has its

principal place of business, except that in any direct action

against the insurer of a policy or contract of liability insurance,

whether incorporated or unincorporated, to which action the

insured is not joined as a party-defendant, such insurer shall be

deemed a citizen of the State of which the insured is a citizen ,

as well as of any State by which the insurer has been

incorporated and of the State where it has its principal place of

business; 

28 U.S.C. § 1332(c)(1) (emphasis added). By its very terms, this statutory provision makes

it plain that its direct action exception is inapplicable because this is not an action against the

insurer, rather it is an action brought by the insurer. See Northbrook Nat’l Ins. Co. v. Brewer,

493 U.S. 6, 9 (1989) (holding that this part of § 1332(c)(1) does not apply to suits brought

by insurers); 28 U.S.C. § 1332(c)(1). Consequently, Zurich is only deemed to be a citizen

of the states in which it is incorporated and the state where it has its principal place of

business. In this case, those states are not Alabama, and therefore, this Court has subject

matter jurisdiction over this action pursuant to 28 U.S.C. § 1332(a). Accordingly, the Motion

to Dismiss (Doc. # 9) for lack of subject matter jurisdiction is DENIED. 

DONE this the 16th day of May, 2007.

 /s/ Mark E. Fuller 

CHIEF UNITED STATES DISTRICT JUDGE 

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