Galveston Federal District Court Judge Grants Motion to Remand

On July 1, 2013, a United States District Court Judge in Galveston granted a plaintiff’s motion to remand an insurance subrogation case, with Eggleston + Briscoe acting as local counsel, sending the case back to state court where originally filed. Focusing on the citizenship of the plaintiff insurance syndicate’s managing agents, the defendant sought to remove the case to federal court, asserting that complete diversity existed between the parties. The Court disagreed, finding that the individual underwriters subscribing to the syndicate, and not the managing agents, were the real parties in interest, and it was their citizenship at the time that liability attached that was relevant for diversity purposes. The pleadings and an affidavit showing one underwriter had common citizenship with the defendant were sufficient to show a lack of the necessary diversity between the parties, resulting in remand.