Opinion
Civil No. 19-1834 (FAB)
10-07-2019
NATIONAL WESTERN LIFE INSURANCE COMPANY, Plaintiff, v. Ashley BORRERO-SOTOMAYOR, et al., Defendants.
Alejandro Garcia-Carballo, Omayra Sepulveda-Vega, O'Neill & Borges, LLC, San Juan, PR, for Plaintiff.
Alejandro Garcia-Carballo, Omayra Sepulveda-Vega, O'Neill & Borges, LLC, San Juan, PR, for Plaintiff.
MEMORANDUM AND ORDER
BESOSA, District Judge.
On September 4, 2019 plaintiff National Western Life Insurance Company ("National Western") commenced a civil action against defendants Eva E. Vázquez-Rivera ("Vázquez") and Ashley Borrero-Sotomayor ("Borrero") (collectively, "beneficiaries"). (Docket No. 1.) National Western requests that the Court order the beneficiaries to "interplead as to who has the right to receive [the proceeds of an insurance policy]" pursuant to Federal Rule of Civil Procedure 22 (" Rule 22"). Id. at p. 7.
Federal courts are courts of limited jurisdiction. Destek Grp. v. State of N.H. Pub. Utils. Comm'n, 318 F.3d 32, 38 (1st Cir. 2003). The Court "has an obligation to inquire sua sponte into its own subject matter jurisdiction." McCulloch v. Vélez, 364 F.3d 1, 5 (1st Cir. 2004) ; Fina Air, Inc. v. United States, 555 F. Supp. 2d 321, 323 (D.P.R. 2008) (noting that the Court "ha[s] the duty to construe [its] jurisdictional grants narrowly") (Besosa, J.). National Western shoulders the burden of establishing federal jurisdiction by the preponderance of the evidence. See Bank One, Texas, N.A. v. Montle, 964 F.2d 48, 50 (1st Cir. 1992).
Interpleader actions "must be based upon the general jurisdiction statutes applicable to civil actions in the federal courts." Arnold v. KJD Real Estate, LLC, 752 F.3d 700, 704 (7th Cir. 2014) (citation omitted). National Western invokes the Court's diversity jurisdiction. (Docket No. 1 at p. 3) (citing 42 U.S.C. § 1332.) Accordingly, National Western must demonstrate that the amount in controversy exceeds $75,000, and that all plaintiffs are diverse from all defendants. 28 U.S.C. § 1332(a) ; Álvarez-Torres v. Ryder Mem. Hosp., 582 F.3d 47, 53 (1st Cir. 2009) ("Where it applies, diversity jurisdiction requires ‘complete diversity’ of citizenship as between all plaintiffs and all defendants.") (citation omitted).
The beneficiaries reside in Puerto Rico. (Docket No. 1 at p. 2.) National Western asserts that it is "an insurance company licensed in 49 states, the District of Columbia, and several U.S. territories, including Puerto Rico. National Western's principal place of business is [in Austin, Texas]." Id. A corporation "shall be deemed to be a citizen of every State and foreign state by which it has been incorporated and of the State or foreign state where it has its principal place of business." 28 U.S.C. § 1332(c)(1). The complaint does not identify National Western's state of incorporation. The absence of this information precludes the Court from conducting a complete jurisdictional analysis.
National Western also argues that the Court possesses jurisdiction pursuant to 28 U.S.C. section 1335 (" section 1335"). (Docket No. 1 at p. 3.) Section 1225 provides that "district courts shall have original jurisdiction of any civil action for interpleader" when the amount in controversy exceeds $500 and:
Two or more adverse claimants, of diverse citizenship ... are claiming or may claim to be entitled to such money or property, or to any one or more of the benefits arising by virtue of any note, bond, certificate, policy or other instrument, or arising by virtue of any such obligation.
28 U.S.C. § 1335(a)(1). Interpleader actions arising pursuant to section 1335 require "minimal diversity under which it is sufficient that at least two opposing claimants be of diverse citizenship." Star Ins. Co. v. Cedar Valley Express, LLC, 273 F. Supp. 2d 38, 41 (D.D.C. 2002) (noting that jurisdiction pursuant to section 1335 is proper "so long as at least two of the claimants are citizens of difference states"). Because both beneficiaries reside in Puerto Rico, there is no "minimal diversity" among the adverse claimants. Accordingly, section 1335 is inapplicable.
National Western is allowed until October 15, 2019 to file an amended complaint in accordance with this memorandum and order. Failure to do so may entail the dismissal of the complaint, without prejudice.
IT IS SO ORDERED .