Great Divide Insurance Company v. Hawaiian Kamalii, Inc.

Filing 68

ORDER Remanding Cross Claims and Denying Pending Motions and Joinders re 33 42 44 45 .The Clerk's Office is DIRECTED to effectuate the remand of the Cross-claim on April 5, 2019, unless a timely motion for reconsideration of either the 3/15/19 Order or the instant Order is filed. After the remand is effectuated, the Clerk's Office is DIRECTED to enter final judgment in favor of Great Divide on the Complaint and to close the case. Signed by JUDGE LESLIE E. KOBAYASHI on 3/15/2019. (cib)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAII
GREAT DIVIDE INSURANCE
COMPANY,

)
)
)
Plaintiff,
)
)
vs.
)
)
HAWAIIAN KAMALI`I INC., dba
)
HAWAIIAN CANOE CLUB; HAWAIIAN )
)
CANOE RACING ASSOCIATION;
KIHEI CANOE CLUB; and MARK
)
)
DAVID STEVENS,
)
Defendants.
)
_____________________________ )

CIVIL 18-00140 LEK-RLP

ORDER REMANDING CROSS-CLAIM AND
DENYING PENDING MOTIONS AND JOINDERS
Plaintiff Great Divide Insurance Company (“Great
Divide”) filed its Complaint for Declaratory Judgment
(“Complaint”) on April 17, 2018, based on diversity jurisdiction
and the Declaratory Judgment Act.1
28 U.S.C. §§ 1332, 2201).]

[Dkt. no. 1 at ¶¶ 6-7 (citing

Defendant Mark David Stevens’s

(“Stevens”) amended answer to the Complaint, filed July 27, 2018,
included a Cross-claim against Defendants Hawaiian Kamali`i,
Inc., doing business as Hawaiian Canoe Club (“HCC”), Hawaiian

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Although Great Divide invoked the Declaratory Judgment Act
as a basis for jurisdiction, “‘[t]he operation of the Declaratory
Judgment Act is procedural only’ and does not confer arising
under jurisdiction.” See Cal. Shock Trauma Air Rescue v. State
Comp. Ins. Fund, 636 F.3d 538, 543 (9th Cir. 2011) (quoting
Skelly Oil Co. v. Phillips Petroleum Co., 339 U.S. 667, 671, 70
S. Ct. 876, 94 L. Ed. 1194 (1950)).

Canoe Racing Association (“HCRA”), and Kihei Canoe Club (“KCC”
and collectively “Club Defendants”).

[Dkt. no. 21-1.]

The

Cross-claim does not assert any basis for jurisdiction that is
independent of the basis for jurisdiction over the claims in the
Complaint.
diverse.

Further, the parties to the Cross-claim are not

See Cross-claim at ¶¶ 1-3 (alleging each of the Club

Defendants is a Hawai`i entity with its principal place of
business in Hawai`i), ¶ 4 (alleging Stevens is a Hawai`i
resident).

Federal jurisdiction over the Cross-claim is based on

supplemental jurisdiction.

See 28 U.S.C. § 1367.

On March 15, 2019, an order was issued granting summary
judgment in favor of Great Divide as to all issues in the
Complaint (“3/15/19 Order”).

[Dkt. no. 67.]

Because all of the

issues in the Complaint have been resolved and because there have
been limited proceedings in this case regarding the Cross-claim,
this Court declines to continue its exercise of supplemental
jurisdiction over the Cross-claim.

See § 1367(c)(3).

This Court

therefore REMANDS the Cross-claim to the State of Hawai`i Second
Circuit Court.
In light of the remand, the following matters are
HEREBY DENIED: 1) HCC’s October 23, 2018 motion to dismiss – or,
in the alternative, to stay and sever – the Cross-claim (“HCC
Motion); [dkt. no. 33;] 2) a similar motion filed by KCC on
November 13, 2018 (“KCC Motion”); [dkt. no. 42;] and 3) HCRA’s
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joinders of simple agreement in the KCC Motion and the HCC
Motion, both filed on December 6, 2018, [dkt. nos. 44, 45,]
(collectively “HCRA Joinders”).

The denial of the HCC Motion,

the KCC Motion, and the HCRA Joinders is WITHOUT PREJUDICE to the
refiling of such matters in the state court after remand.

This

Court expresses no opinion on the merits of the HCC Motion, the
KCC Motion, and the HCRA Joinders.
The Clerk’s Office is DIRECTED to effectuate the remand
of the Cross-claim on April 5, 2019, unless a timely motion for
reconsideration of either the 3/15/19 Order or the instant Order
is filed.

After the remand is effectuated, the Clerk’s Office is

DIRECTED to enter final judgment in favor of Great Divide on the
Complaint and to close the case.
IT IS SO ORDERED.
DATED AT HONOLULU, HAWAII, March 15, 2019.

/s/ Leslie E. Kobayashi
Leslie E. Kobayashi
United States District Judge

GREAT DIVIDE INSURANCE COMPANY VS. HAWAIIAN KAMALII, INC., ET
AL.; CV 18-00140 LEK-RLP; ORDER REMANDING CROSS-CLAIM AND DENYING
PENDING MOTIONS AND JOINDERS

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