Opinion ID: 8704068
Heading Depth: 4
Heading Rank: 2

Heading: Minimal Diversity of Citizenship

Text: The Plaintiff further argues that the diversity requirement of the CAFA is not satisfied here. Initially, the Court notes that the Plaintiff offers no authority for the assertion that she is “deemed a citizen of her principal place of business.” Pl.’s Mem. at 10. The Amended Complaint explicitly states that the Plaintiff brings this suit “as an individual,” and not in some corporate capacity representing her business. Am. Compl. at 2. In terms of natural persons that are citizens of the United States, the relevant inquiry regarding citizenship for diversity purposes is where the person is, domiciled. See Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 828, 109 S.Ct. 2218, 104 L.Ed.2d 893 (1989). The Plaintiff does not dispute the Defendants’ contention that she is domiciled in the state of Maryland. Wells Fargo Opp’n at 2-4. Having failed to refute this argument, the Plaintiff is considered a citizen of Maryland for purposes of this action. Hopkins v. Women’s Div., Gen. Bd. of Global Ministries, 284 F.Supp.2d 15, 25 (D.D.C.2003) (“It is well understood in this Circuit that when a plaintiff files an opposition to a dispositive motion and addresses only certain arguments raised by the defendant, a court may treat those arguments that the plaintiff failed to address as conceded.”). The Plaintiff alleges that the Defendants are all citizens of the District of Columbia because “there is insurance claims involved,” citing 28 U.S.C. § 1332(c)(1). Pl.’s Mem. at 10. Even if true, since the Plaintiff is a citizen of a different state, namely Maryland, the minimal diversity requirement of the Class Action Fairness Act would still be satisfied. Nevertheless, because the Defendants’ citizenship is relevant to the Plaintiffs argument regarding the Court’s discretionary jurisdiction under the CAFA, the Court shall address the merits of the Plaintiffs contention. Section 1332(c)(1) provides, in relevant part, 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 (A) every State and foreign state of which the insured is a citizen; (B) every State and foreign state by which the insurer has been incorporated; and (C) the State or foreign state where the insurer has its principal place of business[.] 28 U.S.C. § 1332(c)(1)(A)-(C) (emphasis added). However, Courts have uniformly defined the term “direct action” as used in this section as those cases in which a party suffering injuries or damage for which another is legally responsible is entitled to bring suit against the other’s liability insurer without joining the insured or first obtaining a judgment against him. Beckham v. Safeco Ins. Co. of Am., 691 F.2d 898, 901-901 (9th Cir.1982). In other words, this case is not a “direct action” for purposes of section 1332(e)(1) because the Plaintiff is not seeking payment from the Defendants under a policy insuring a third party who has not joined in the suit. Rather, the Plaintiffs claims arise from procedural issues relating to the issuance of an insurance policy to the Plaintiff. Thus the citizenship of the Defendants for purposes of the CAFA analysis in this case is governed by the general rules of citizenship for corporations, not the special provisions for direct actions against insurers. Defendant Wells Fargo Bank, N.A., is a national banking association with its principal place of business in South Dakota. Wells Fargo’s Opp’n at 4. For purposes of diversity jurisdiction, Wells Fargo Bank is considered a citizen of South Dakota only. Wachovia Bank v. Schmidt, 546 U.S. 303, 126 S.Ct. 941, 163 L.Ed.2d 797 (2006) (“[A] national bank ... is a citizen of the State in which its main office, as set forth in its articles of association, is located.”). Wells Fargo Insurance, Inc. is incorporated in Minnesota with its principal place of business in St. Louis Park, Minnesota. Wells Fargo’s Opp’n at 4; Am. Compl. ¶ 3. Pursuant to section 1332, Wells Fargo Insurance is a citizen of Minnesota only. 28 U.S.C. § 1332(c)(1) (“[A] corporation shall be deemed to be a citizen of every State ... by which it has been incorporated and of the State ... where it has its principal place of business.”). QBE Specialty Insurance Co. is incorporated in North Dakota and has its principal place of business in New York, while QBE FIRST Insurance Agency, Inc. (formerly known as Sterling Insurance Agency, Inc.) is incorporated in California and maintains its principal place of business in Georgia. Notice of Removal, ECF No. [1], ¶¶ 6-7. Therefore, the QBE Defendants are considered citizens of North Dakota and New York, and California and Georgia, respectively. The Plaintiff, as a citizen of Maryland, is a citizen of a different state than each of the Defendants, which more than satisfies the minimum diversity requirements of the CAFA. 28 U.S.C. § 1332(d)(2)(A). The Plaintiff urges the Court to decline jurisdiction under CAFA pursuant to subsection (3), 2 which provides that the Court may, in the interests of justice and looking at the totality of the circumstances, decline to exercise jurisdiction ... over a class action in which greater than one-third but less than two-thirds of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the State in which the action was originally filed based on consideration of [certain factors.] 28 U.S.C. § 1332(d)(3). Setting aside the question of the citizenship of the class members, none of the Defendants are citizens of the state in which the action was originally filed, the District of Columbia, therefore the Court has no discretion to decline jurisdiction over this matter.