Rising Star Roofing, LLC v. Wilshire Insurance Company
6:19-cv-01043
| M.D. Fla. | Jul 1, 2019Background
- Plaintiff Rising Star Roofing, LLC (Florida LLC) sued Wilshire Insurance Company in state court for breach of an insurance contract over roof-repair-related payments.
- Wilshire removed the case to federal court asserting diversity jurisdiction (Defendant NC-incorporated, principal place NC).
- The district court found the removal notice inadequate to establish complete diversity because the citizenship of each LLC member was not shown and ordered Wilshire to show cause.
- Wilshire produced corporate records showing Rising Star Restoration, LLC changed its name to Rising Star Roofing, LLC and identified Christopher Soverns (Connecticut) and Marcus Keilch (Florida) as members/managers.
- The court held the name-change records resolved the entity identification issue but found Wilshire’s submissions inadequate to establish members’ domiciles (citizenship) rather than mere residency.
- The court also found Wilshire failed to prove the amount in controversy exceeds $75,000 because the complaint alleges only incomplete/partial payment and Wilshire did not account for deductibles or payments already made. Wilshire was given a final opportunity to supplement by a deadline.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether complete diversity exists between the parties | Rising Star disputed that Wilshire had shown the LLC members’ citizenship and noted Wilshire relied on records for a differently named entity | Wilshire argued the Florida filing showing a name change and corporate records establish Christopher Soverns (CT) as sole member (and Keilch as resident of FL) | The court denied remand on the name/identity point (name-change records suffice) but held Wilshire still failed to establish each member’s domicile; residency evidence insufficient; must prove domicile for citizenship |
| Whether the amount in controversy exceeds $75,000 | Plaintiff did not plead a specific amount and alleges only incomplete/partial payment, suggesting any outstanding balance is indeterminate | Wilshire relied on a $100,954.72 repair estimate attached to the complaint to satisfy the jurisdictional amount | The court held the estimate alone is insufficient because the complaint suggests some payment may have been made; Wilshire must show deductible and payments credited to prove > $75,000 |
Key Cases Cited
- Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100 (removal statutes construed narrowly)
- Burns v. Windsor Ins. Co., 31 F.3d 1092 (11th Cir.) (removal construed narrowly)
- Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405 (11th Cir.) (doubts resolved in favor of remand)
- Owen Equip. & Recreation Co. v. Kroger, 437 U.S. 365 (complete diversity required)
- Pretka v. Kolter City Plaza II, Inc., 608 F.3d 744 (11th Cir.) (burden on removing defendant to establish jurisdiction)
- Williams v. Best Buy Co., Inc., 269 F.3d 1316 (11th Cir.) (jurisdiction must be proved by preponderance)
- Hertz Corp. v. Friend, 559 U.S. 77 (principal place of business = "nerve center")
- Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (11th Cir.) (LLC citizenship depends on members' citizenship)
- Taylor v. Appleton, 30 F.3d 1365 (11th Cir.) (citizenship, not residence, establishes diversity)
- Miss. Band of Choctaw Indians v. Holyfield, 490 U.S. 30 (domicile requires residence plus intent)
- McCormick v. Aderholt, 293 F.3d 1254 (11th Cir.) (domicile requires residence and intent to remain)