Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_10-cv-08191/USCOURTS-azd-3_10-cv-08191-1/pdf.json

Nature of Suit Code: 245
Nature of Suit: Real Property Product Liability
Cause of Action: 28:1441 Petition for Removal- Product Liability

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Truck Insurance Exchange,

 Plaintiff,

vs.

The Manitowoc Company, et al.,

 Defendants.

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No. CV-10-8191-PCT-PGR

(Yavapai County Superior Court

 No. P1300CV201000897)

 

 

 ORDER OF REMAND

 

Defendant American Shizuki Corporation removed this action on October

1, 2010 solely on the basis of diversity of citizenship jurisdiction pursuant to 28

U.S.C. § 1332. On October 5, 2010, the Court entered an order requiring

American Shizuki to file an amended notice of removal in order to cure

deficiencies in its jurisdictional allegations, including those related to plaintiff

Truck Insurance Exchange (“TIE”). On October 14, 2010, American Shizuki filed

an Amended Notice of Removal of Civil Action in which it stated in part that

“Plaintiff is a California corporation with its principal place of business at 4680

Wilshire Boulevard, Los Angeles, California 90010.” On October 20, 2010, TIE

filed its corporate disclosure statement in which it stated that it “is a reciprocal or

interinsurance exchange organized pursuant to the California Insurance Code”

Case 3:10-cv-08191-PGR Document 20 Filed 01/18/11 Page 1 of 3
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and that it “is owned by its subscribers or policyholders.” 

Based on its serious concerns as to whether TIE is in fact a corporation as

alleged, which were based on cited federal case law noting that TIE, as an

interinsurance exchange, is an unincorporated association for diversity

jurisdiction purposes, the Court entered an order on October 20, 2010 that

required American Shizuki to file an addendum to its amended notice of removal

explaining the legal and factual bases for its allegation that TIE is a California

corporation. Rather than doing that, American Shizuki filed a motion on

November 8, 2010 wherein it in part requested the opportunity to conduct

jurisdiction-related discovery related to TIE. On December 1, 2010, the Court

entered an order that denied American Shizuki’s motion based on its

determination that TIE, as a matter of California and federal case law, is an

unincorporated association and as such its citizenship for diversity of jurisdiction

purposes is that of each of its members. Since the defendants in this action are

citizens of Wisconsin or Nebraska, the Court required TIE to inform the Court as

to whether any of its subscribers were citizens of Wisconsin or Nebraska at the

time this action was commenced in state court and at the time it was removed. 

On December 13, 2010, TIE filed a certification stating that its policyholders are

its member/owners and that in the last six months it had members who resided in

both Nebraska and Wisconsin. On January 6, 2011, the Court ordered American

Shizuki to show cause why this action should not be remanded for lack of

diversity of citizenship jurisdiction. On January 14, 2011, American Shizuki filed

its response stating that in light of TIE’s membership certification it is unable to

show cause why this action should not be remanded on lack of diversity grounds.

It is axiomatic that federal jurisdiction under § 1332(a) requires complete

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diversity of citizenship between parties opposed in interest. Since it is clear that

complete diversity is absent here, given that TIE is in part both a citizen of

Wisconsin, as are defendants The Manitowoc Company and Manitowoc Food

Service Companies, LLC, and a citizen of Nebraska, as is removing defendant

American Shizuki, the Court finds that it has no diversity of citizenship jurisdiction

over this action. Therefore,

IT IS ORDERED that the Order Setting Scheduling Conference (Doc. 11) is

vacated.

IT IS FURTHER ORDERED that this action is remanded to the Yavapai

County Superior Court pursuant to 28 U.S.C. § 1447(c) for lack of subject matter

jurisdiction.

DATED this 16th day of January, 2011.

Case 3:10-cv-08191-PGR Document 20 Filed 01/18/11 Page 3 of 3