VINCENT L. BRICCETTI, District Judge.
Plaintiff Nationwide Mutual Fire Insurance Company ("Nationwide"), as subrogee of PKNY Properties Group, LLC ("PKNY"), brings this action against defendants POK Academy, LLC ("POK Academy"); Urban Green Builders, LLC; Urban Green Equities, LLC; Urban Green Equities II, LLC ("Urban Green Equities II"); and the City of Poughkeepsie.
Now pending is a motion to dismiss the complaint pursuant to Rule 12(b)(1) filed by defendants POK Academy and Urban Green Equities II. (Doc. #25).
For the following reasons, defendants' motion to dismiss is DENIED.
The Court has subject matter jurisdiction under 28 U.S.C. § 1332.
For purposes of ruling on a motion to dismiss, the Court accepts as true all well-pleaded factual allegations in the complaint, as summarized below.
Plaintiff is an insurance company incorporated in Illinois with its principal place of business in Ohio. Plaintiff issued a policy of insurance to non-party PKNY, which owned the property at 17 Academy Street in Poughkeepsie. The insurance policy provided coverage for PKNY's building and property.
Defendants POK Academy, Urban Green Builders, Urban Green Equities, and Urban Green Equities II owned, managed, or controlled the building and property located at 19 Academy Street, the neighboring parcel. Defendants are all alleged to be citizens of New York, and defendants do not contend otherwise. The City of Poughkeepsie, where the buildings are located, is charged with ensuring the safety of buildings and other structures under its building code.
At about 4:00 p.m. on June 18, 2018, the building at 19 Academy Street collapsed onto PKNY's building at 17 Academy Street, destroying the 17 Academy Street building. In addition to the destruction of the building and the loss of the property within, PKNY also incurred costs in connection with the emergency response to the collapse and subsequent debris removal. Plaintiff alleges PKNY sustained no less than $689,000 in damages.
After the collapse, PKNY submitted an insurance claim to plaintiff. In accordance with the policy, plaintiff paid more than $689,000 to PKNY or on its behalf.
Plaintiff, as subrogee of PKNY, brings negligence claims against defendants and seeks damages, including costs for the building and personal property, debris removal, emergency response, and loss of business income, plus interest and costs.
Because "federal courts are courts of limited jurisdiction and lack the power to disregard such limits as have been imposed by the Constitution or Congress,"
When, as here, the case is at the pleading stage, in deciding a motion to dismiss under Rule 12(b)(1), the Court "must accept as true all material facts alleged in the complaint and draw all reasonable inferences in the plaintiff's favor."
Defendants argue the parties to the suit are not diverse, and therefore, the Court lacks subject matter jurisdiction.
The Court disagrees.
A district court has jurisdiction over suits between citizens of different states, assuming the requisite amount in controversy.
For purposes of diversity jurisdiction, the parties "must be real and substantial parties to the controversy."
Here, plaintiff alleges it paid PKNY's entire loss pursuant to its insurance policy, and therefore, plaintiff is the only real party in interest. The Court agrees. Since plaintiff is a citizen of Illinois and Ohio, and defendants are alleged to be citizens of New York, there is complete diversity, and the Court has subject matter jurisdiction.
Accordingly, defendants' motion to dismiss for lack of subject matter jurisdiction must be denied.
Defendants' request that the Court transfer the instant action to state court to be consolidated with a pending state court case is also denied.
"[F]ederal courts lack the power to transfer originally commenced federal actions to a state court."
The motion to dismiss is DENIED.
POK Academy and Urban Green Equities II shall file an answer by May 10, 2019.
The Clerk is instructed to terminate the pending motion. (Doc. #25).
SO ORDERED.