Sonnik v. Allstate Insurance Company et al

Filing 3

ORDER signed by Magistrate Judge Gregory G. Hollows on 2/26/18: The complaint is dismissed with leave to amend. Within 30 days of the date of this Order the plaintiff shall file an amended complaint. (Kaminski, H)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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RUVIM SONNIK,

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No. 2:18-cv-0366-TLN-GGH PS

Plaintiff,
v.

ORDER

ALLSTATE INSURANCE COMPANY, et
al.,
Defendants.

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Plaintiff, a person who was involved in a traffic accident, has filed a complaint against

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Allstate, and literally hundreds of individuals, asserting a violation of California state insurance

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law, and an alleged claim of discrimination in the offering of insurance benefits.

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The court is unable to determine a jurisdictional basis for this action. A federal court is a

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court of limited jurisdiction, and may adjudicate only those cases authorized by the Constitution

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and by Congress. See Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). The

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United States Constitution dictates this result insofar as Article III, section 1 provides that the

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judicial power of the United States is vested in the Supreme Court, “and in such inferior Courts as

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the Congress may from time to time ordain and establish.” Congress therefore confers

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jurisdiction upon federal district courts, as limited by Article III, section 1. See Ankenbrandt v.

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Richards, 504 U.S. 689, 697–99 (1992). Lack of subject matter jurisdiction may be raised at any
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time by either party or by the court. See Attorneys Trust v. Videotape Computer Products, Inc.,

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93 F.3d 593, 594–595 (9th Cir.1996). The burden to establish jurisdiction rests upon the plaintiff

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who seeks access to the federal court. Thompson v. McCombe, 99 F3d. 352, 353 (9th Cir. 1996).

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Plaintiff has failed to meet this burden.

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A.

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Federal Question Jurisdiction
The basic federal jurisdiction statutes, 28 U.S.C. §§ 1331 & 1332, confer “federal

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question” and “diversity” jurisdiction, respectively. Statutes which regulate specific subject

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matter may also confer federal jurisdiction. See generally, W.W. Schwarzer, A.W. Tashima & J.

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Wagstaffe, Federal Civil Procedure Before Trial § 2:5. Unless a complaint presents a plausible

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assertion of a substantial federal right, a federal court does not have jurisdiction. See Bell v.

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Hood, 327 U.S. 678, 682 (1945). A federal claim which is so insubstantial as to be patently

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without merit cannot serve as the basis for federal jurisdiction. See Hagans v. Lavine, 415 U.S.

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528, 537-538 (1974).

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Simple reference to federal law does not create subject-matter jurisdiction. Avitts v.

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Amoco Prod. Co., 53 F.3d 690, 694 (5th Cir.1995). Subject-matter jurisdiction is created only by

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pleading a cause of action within the court's original jurisdiction. Id. Plaintiff here predicates his

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basis for federal question jurisdiction on a reference 28 U.S.C.§ 1331 which confers original

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jurisdiction in civil cases that “aris[e] under the Constitution, laws, or treaties of the United

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States.” ECF No. 1 at ¶ 3. Plaintiff’s basic statutory claim is a violation of California’s Fair

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Settlement Practices Act and adverts to no federal statute or federal Constitutional provision the

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violation of which resulted in his claimed injury. Instead he refers to 28 U.S.C. sections 2201 and

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2202 which establish the availability of the remedy of declaratory relief, but neither of those

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sections confer jurisdiction. In other words, under these statutes if there is an independent basis

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for federal jurisdiction, the court may award declaratory relief, but the fact that the remedy is

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theoretically available does not itself create federal jurisdiction. County of Santa Clara v. Trump,

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267 F. Supp. 2d 1201, 1216 (N.D.Cal. 2017). In other words, the declaratory relief sections do

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not establish federal jurisdiction.

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Secondarily, plaintiff claims jurisdiction under 28 U.S.C.§ 1343, asserting a violation of

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42 U.S.C. § 1983, but a reading of that statute makes clear that it is a civil rights provision which

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again requires allegations that a specific federal law or Constitutional provision has been violated

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by a defendant acting under color of state law. American Mfrs. Mutual etc. v. Sullivan, 526 U.S.

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40, 51 (2012). Simply doing business in a state which might be regulated by state law does not

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mean that the person or entity is acting “under color of state law.” Id. at 51. The fact that a

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private company is perceived to have violated the Constitutional right of equal protection does

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not itself give rise to a federal claim under section 1983. There is, nor does it appear that there

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can be, such an allegation brought against the defendants identified in this case since their

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violation, if any, relates to doing business in a state which is simply regulated by the state law

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referenced in plaintiff’s complaint. Whether a claim is stated under section 1981 is not before the

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court.

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B.

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Diversity Jurisdiction
28 U.S.C. grants the federal court jurisdiction between citizens of the state who are suing

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citizens of another state so long as the damages alleged exceed $75,000. The purpose of diversity

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jurisdiction is to provide a “neutral” forum in cases where one or more of the parties is a citizen

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of another state or country and to protect against local prejudice that may exist in state courts. J.

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A. Olson Co. v. Wiona, Miss., 818 F.2d 401, 404 (5th Cir. 1987); Asher v. Pacific Power and

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Light Co., 249 F.Supp. 671, 674 (N.D.Cal. 1965). Here plaintiff alleges that the first named

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defendant, Allstate Insurance Company, is amenable to jurisdiction under this statute as it fits the

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criteria of section 1332(c)(1), i.e., it is a corporation incorporated under the laws of State of New

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York and has its principal place of business in a State other than the State of Connecticut.1 The

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court will assume the reference to Connecticut is a typographical error and plaintiff meant to say

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its principal place of business is not California, thus establishing diversity between himself and

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Allstate. If the court is correct, and Allstate were the only defendant named, plaintiff would be

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close to establishing diversity jurisdiction. However, he must demonstrate complete diversity

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To assure a jurisdictional basis plaintiff should allege where defendant’s principal place of
business is, rather than where it is not.
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between himself and each and every of the defendants named. See 28 U.S.C. § 1332(a)(1).

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Plaintiff does not even attempt to do so here.

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CONCLUSION

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In light of the foregoing it is clear that the plaintiff has not stated a viable basis for

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jurisdiction in this court as the Complaint now stands. Plaintiff is further advised that if he names

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individual defendants, each and every one of those defendants must have participated in some

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way in the violation of rights complained of.

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IT IS THEREFORE ORDERED that:

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1.

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The complaint is dismissed with leave to amend in conformity with the findings of

this Court;
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Within 30 days of the date of this Order the plaintiff will file an amended

complaint; failure to do so will result in a recommendation that the case be dismissed.
IT IS SO ORDERED.
Dated: February 26, 2018
/s/ Gregory G. Hollows
UNITED STATES MAGISTRATE JUDGE

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