R. DAVID PROCTOR, District Judge.
This case is before the court on Defendant Truck Insurance Exchange's ("Truck") Motion for Dismiss for Lack of Subject Matter Jurisdiction. (Doc. # 6), filed December 5, 2019. On December 20, 2019, Defendants Jackson Business ("Jackson") and Shezad Keshwani ("Keshwani") filed a response brief. (Doc. # 14).
Plaintiff's Complaint states that "[t]he United States District Court has subject matter jurisdiction of this declaratory judgment [action] pursuant to 28 U.S.C. § 2201." (Doc. # 1 at 1). Although not explicitly stated, it appears that Plaintiff relies on § 2201, the Declaratory Judgment Act, to confer federal question jurisdiction.
A federal court has subject matter jurisdiction over civil cases "arising under the Constitution, laws, or treaties of the United States," and over civil cases in which the amount in controversy exceeds $75,000, exclusive of interest and costs, and in which diversity of citizenship exists between the parties. 28 U.S.C. §§ 1331, 1332. Section 2201 is a procedural statute that provides a judicial declaration of rights under the Declaratory Judgment Act. It is well-settled that the Declaratory Judgment Act does not, on its own, confer subject matter jurisdiction. See Skelly Oil Co. v. Phillips Petroleum Co., 339 U.S. 667, 671-72 (1950) (holding that "the requirements of jurisdiction—the limited subject matters which alone Congress had authorized the District Courts to adjudicate—were not impliedly repealed or modified [by the Declaratory Judgment Act]."). Rather, a federal district court must have an independent basis for federal subject matter jurisdiction.
Through the procedural vehicle § 2201, Plaintiff has requested relief based on Alabama state law. (Doc. # 1 at 5-6). Specifically, Alabama Code § 6-6-222 and § 27-23-2. (Id.). Because a federal question is not asserted on the face of Plaintiff's complaint, there is not an independent basis for federal subject matter jurisdiction pursuant to 28 U.S.C. § 1331. So, the court looks see if there is diversity jurisdiction in this case.
Diversity jurisdiction is proper if (1) the amount in controversy exceeds $75,000, and (2) there is complete diversity of citizenship. 28 U.S.C. § 1332. In this case, the first prong is satisfied because Plaintiff seeks a declaratory judgment in the amount of $1,825,000. (Doc. # 1 at 5). But, the second prong is not satisfied because the parties are not completely diverse.
Here, Plaintiff Cahaba, an Alabama citizen, has sued three defendants: (1) Jackson Business, an Alabama citizen; (2) Shezad Keshwani, an Alabama citizen; and (3) Truck Insurance Exchange, a reciprocal insurance exchange.
Of course, this current alignment of the parties is not the only possible party alignment in this case. Under established Eleventh Circuit precedent, the court may re-align the insureds (Jackson and Keshwani) as "plaintiffs" alongside the judgment plaintiff (Cahaba), because of their common interest in the disposition of insurance proceeds. (Doc. # 14, at 1 n.1); City of Vestavia Hills v. General Fidelity Ins. Co., 676 F.3d 1310 (11th Cir. 2012). But, even if the parties were realigned, there still would not be complete diversity. In fact, even if realignment were to occur, citizens of Alabama remain on both sides of this case. Therefore, there is no conceivable way to arrange the parties in this case to achieve complete diversity. Thus, it follows that diversity jurisdiction does not exist here.
Because this court does not have subject-matter jurisdiction over this case, Defendant Truck's Motion to Dismiss (Doc. # 6) is due to be granted and this case is due to be dismissed without prejudice.