PERCY ANDERSON, District Judge.
Before the Court is a Notice of Removal filed by defendant Infinity Insurance Company ("Infinity"). Infinity asserts that this Court has jurisdiction over the action brought against it by plaintiff Silvia Moran ("Plaintiff") based on the Court's diversity jurisdiction.
Federal courts are courts of limited jurisdiction, having subject matter jurisdiction only over matters authorized by the Constitution and Congress.
In attempting to invoke this Court's diversity jurisdiction, Infinity must prove that there is complete diversity of citizenship between the parties and that the amount in controversy exceeds $75,000. 28 U.S.C. § 1332. To establish citizenship for diversity purposes, a natural person must be a citizen of the United States and be domiciled in a particular state.
The Notice of Removal alleges that "Infinity is informed and believes that the named plaintiff, Silvia Esmeralda Moran, is and was at the commencement of the state court action and at the time of removal, a citizen and resident of the County of Los Angeles, State of California, as well as of the United States (Complaint, ¶ 1, Exhibit A). There is no indication that plaintiff is or was a citizen of Indiana, the only fact that would destroy diversity of citizenship." (Notice of Removal ¶ 10.) The Complaint, on which the Notice of Removal relies, only alleges Plaintiff's residence. Because residence is not the same as citizenship, the Notice of Removal's allegations, alleged on information and belief, are insufficient to establish Plaintiff's citizenship. "Absent unusual circumstances, a party seeking to invoke diversity jurisdiction should be able to allege affirmatively the actual citizenship of the relevant parties."
Infinity has additionally failed to establish the Court's diversity jurisdiction as a result of the Complaint's claim for declaratory relief against defendant Pablo Aguedo. Although the Notice of Removal appears to acknowledge that Mr. Aguedo and Plaintiff are not diverse for purposes of diversity jurisdiction, Infinity seeks to have Mr. Aguedo's citizenship disregarded as a result of his having been fraudulently joined in this action. If a plaintiff "fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state, the joinder of the resident defendant is fraudulent."
"There is a presumption against finding fraudulent joinder, and defendants who assert that plaintiff has fraudulently joined a party carry a heavy burden of persuasion."
The Notice of Removal asserts that Plaintiff's claim against Aguedo is a sham because "Plaintiff previously sued Mr. Aguedo and obtained a judgment against him. Plaintiff cannot sue Mr. Aguedo twice over the same alleged auto accident." (Notice of Removal ¶ 11.) Contrary to Infinity's assertions concerning fraudulent joinder, Plaintiff's Complaint does not appear to be suing Aguedo twice for the same injury. Instead, Plaintiff asserts a claim for declaratory relief against Aguedo seeking to resolve an alleged dispute concerning their respective rights concerning an assignment of rights Aguedo allegedly gave to Plaintiff. Specifically, the Complaint alleges: "An actual controversy has arisen and now exists between Plaintiff and Aguedo as to their respective rights and duties under the assignment. . . ." (Compl. ¶ 32.) At least on this record, the Complaint does not foreclose the possibility of Plaintiff succeeding on her declaratory relief claim against Aguedo. Nor has Infinity satisfied its burden to establish that Plaintiff would not be granted leave to amend to cure any purported deficiency.
Because Infinity has failed to meet its heavy burden of showing that Aguedo was fraudulently joined, Infinity has not met its burden to establish this Court's diversity jurisdiction. Accordingly, the Court remands this action to the Los Angeles County Superior Court, Case No. BC556587, for lack of federal subject matter jurisdiction.