Allied World Surplus Lines Insurance Company v. Arya Security Services, Inc.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES— GENERAL Case No. 5:24-cv-01703-SSS-DTBx Date August 21, 2024 Title Allied World Surplus Lines Insurance Co. v. Arya Security Servs., Inc.

Present: The Honorable SUNSHINE S. SYKES, UNITED STATES DISTRICT JUDGE Irene Vazquez Not Reported Deputy Clerk Court Reporter Attorney(s) Present for Plaintiff(s): Attorney(s) Present for Defendant(s): None Present None Present Proceedings: (IN CHAMBERS) ORDER TO SHOW CAUSE WHY THIS CASE SHOULD NOT BE REMANDED FOR LACK OF SUBJECT MATTER JURISDICTION Plaintiff Allied World Surplus Lines Insurance Company sues Defendant Arya Security Services, Inc. for breach of contract. [Dkt. 1, Compl.]. Allied World alleges this Court has diversity jurisdiction over this matter. [Id. ¶ 3].

Relevant here, it alleges “the amount in controversy exceeds the sum of $75,000, exclusive of interests and costs.” [Id.].

Federal district courts “have an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party.” Arbaugh v. Y&H Corp., 546 U.S. 500, 514 (2006). For diversity jurisdiction to exist, the amount in controversy must exceed $75,000. 28 U.S.C. § 1332(a). This amount is generally determined from the face of the pleadings.

See Crum v. Circus Circus Enters., 231 F.3d 1129, 1131 (9th Cir. 2000).

Conclusory allegations of the amount in controversy are insufficient to invoke diversity jurisdiction. Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090–91 (9th Cir. 2003). The party who invokes jurisdiction bears the burden of demonstrating its existence. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994).

Here, apart from the single conclusory allegation that the amount in controversy exceeds $75,000, Allied World fails to allege any facts to infer the jurisdictional threshold is met here. Accordingly, Allied World is ORDERED TO SHOW CAUSE in writing why this case should not be dismissed for lack of subject matter jurisdiction. Allied World’s response is due August 30, 2024. A hearing is set on this matter for September 6, 2024, at 1:00 p.m., via Zoom video conference.

IT IS SO ORDERED.