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Preston v. Cigna Property and Cas. Ins. Co.

Citations: 785 F. Supp. 1466; 1992 U.S. Dist. LEXIS 9818Docket: 1:92-cr-00007

Court: District Court, N.D. Georgia; March 19, 1992; Federal District Court

Narrative Opinion Summary

This case involves a dispute removed from the State Court in Forsyth County, Georgia, to the United States District Court for the Northern District of Georgia, based on alleged diversity jurisdiction. The parties include the plaintiff, operating under a business name, and the defendants, including an insurance company and an individual. The primary legal issue concerns the court’s subject matter jurisdiction, specifically the requirement for complete diversity as established by Strawbridge v. Curtiss. Procedurally, during a conference, it was revealed that the defendants withdrew their claim of fraudulent joinder against the individual defendant, who, like the plaintiff, was a Georgia resident. Despite both parties expressing a desire to proceed in federal court, the court highlighted that subject matter jurisdiction cannot be conferred by agreement or waiver. Consequently, the court found that it lacked jurisdiction due to the absence of complete diversity and remanded the case to the state court. The decision underscores the non-negotiable nature of jurisdictional requirements, regardless of the parties' preferences.

Legal Issues Addressed

Non-Conferral of Jurisdiction by Agreement or Waiver

Application: Despite the parties' desire to remain in federal court, the court emphasized that jurisdiction cannot be conferred by agreement or waiver.

Reasoning: However, the court emphasized that parties cannot confer subject matter jurisdiction through agreement or waiver, as supported by precedent.

Requirement of Complete Diversity under Strawbridge v. Curtiss

Application: The case was remanded to the state court because the presence of a non-diverse defendant eliminated the possibility of complete diversity, a requirement for federal jurisdiction.

Reasoning: The court raised concerns about its subject matter jurisdiction after noting that both the plaintiff and defendant McElveen were residents of Georgia, which negated the requirement for complete diversity as established in Strawbridge v. Curtiss.

Subject Matter Jurisdiction in Federal Courts

Application: The court determined it lacked subject matter jurisdiction because complete diversity was not present, as both the plaintiff and one of the defendants were residents of Georgia.

Reasoning: The court raised concerns about its subject matter jurisdiction after noting that both the plaintiff and defendant McElveen were residents of Georgia, which negated the requirement for complete diversity as established in Strawbridge v. Curtiss.