KAMIN v. TRAVELERS CASUALTY AND SURETY COMPANY

Filing 22

ORDER TO FILE AMENDED THIRD-PARTY COMPLAINT: For these reasons, the Court STRIKES Travelers' Third-Party Complaint, [Filing No. 21], and ORDERS it to file an Amended Third-Party Complaint by April 15, 2014, properly pleading a basis for this Court's jurisdiction over that claim. The third-party defendants shall answer or otherwise respond to Travelers' Amended Third-Party Complaint as contemplated by the Federal Rules of Civil Procedure. The parties are cautioned to carefully r espond to Travelers' jurisdictional allegations to avoid this Court having to issue a third jurisdictional entry in this case. Additionally, Travelers suggests that its name is actually The Standard Fire Insurance Company. [Filing No. 21 at 1.] The parties should conduct whatever investigation is necessary and file a joint motion to correct Travelers' name, should such correction be necessary ***SEE ORDER FOR ADDITIONAL INFORMATION***. Signed by Judge Jane Magnus-Stinson on 4/8/2014.(DW)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
INDIANAPOLIS DIVISION
DANIEL G. KAMIN,
Plaintiff,
vs.
TRAVELERS CASUALTY AND SURETY
COMPANY formerly known as THE AETNA
CASUALTY AND SURETY COMPANY,
Defendant.
______________________________________
TRAVELERS CASUALTY AND SURETY
COMPANY formerly known as THE AETNA
CASUALTY AND SURETY COMPANY,
Third Party Plaintiff,
vs.
KAMIN REALTY COMPANY,
DANIEL G. KAMIN EASTBROOK
ENTERPRISES,
Third Party Defendants.

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No. 1:13-cv-01593-JMS-TAB

ORDER TO FILE AMENDED THIRD-PARTY COMPLAINT
On April 7, 2014, Defendant Travelers Casualty and Surety Company (“Travelers”) filed
a Third-Party Complaint against Kamin Realty Company (“Kamin Realty”) and Daniel G.
Kamin Eastbrook Enterprises (“Kamin Trust”). [Filing No. 21.] Travelers asserts that this Court
has diversity jurisdiction over its third-party claim and also has jurisdiction under the
Declaratory Judgment Act. [Filing No. 21 at 2-3.] Although the Court has already accepted the
parties’ representations regarding its diversity jurisdiction over the underlying claim, [Filing No.

10], the jurisdictional propriety of Travelers’ third-party claim must be “assessed individually.”
Caterpillar Inc. v. Lewis, 519 U.S. 61, 67 (1996) (“Once federal subject matter jurisdiction is
established over the underlying case between plaintiff and defendant, the jurisdictional propriety
of each additional claim is to be assessed individually.”) (citation omitted). For the following
reasons, Travelers’ jurisdictional allegations are insufficient to establish this Court’s jurisdiction
over its third-party claim.
First, Travelers asserts that this Court has subject matter jurisdiction over its third-party
claim pursuant to the Declaratory Judgment Act.

28 U.S.C. § 2201.

“[T]he Declaratory

Judgment Act is not an independent source of federal subject matter jurisdiction,” and requires
an “independent basis for jurisdiction.” Wisconsin v. Ho-Chunk Nation, 512 F.3d 921, 935 (7th
Cir. 2008). Thus, this Court does not have jurisdiction over Travelers’ third-party claim simply
because Travelers seeks a declaratory judgment.
Second, Travelers asserts that this Court can exercise diversity jurisdiction over its thirdparty claim. Although Travelers correctly pleads jurisdictional allegations for itself and Kamin
Realty, the jurisdictional allegations for Kamin Trust are deficient. Travelers alleges that “[t]he
Kamin Trust is a Pennsylvania business trust with its principal place of business in Pittsburgh,
Pennsylvania.” [Filing No. 21 at 2.] But for purposes of diversity jurisdiction, “the citizenship
of a trust is the citizenship of its trustee,” and the trustee is not always clear. See Guar. Nat. Title
Co., Inc. v. J.E.G. Associates, 101 F.3d 57, 59 (7th Cir. 1996) (“Who is the trustee of the Jeffrey
J. Cohen 1989 Irrevocable Family Trust?

Cohen (a ‘resident’ of Massachusetts)? A trust

company? A bank? A brokerage house? A family friend? Might there be multiple trustees?
The parties’ joint statement is uninformative and therefore tells us nothing about the citizenship
of the trust.); see also White Pearl Inversiones S.A. (Uruguay) v. Cemusa, Inc., 647 F.3d 684,

686 (7th Cir. 2011) (“Businesses organized as trusts don’t have their own citizenship; they take
the citizenship of the trustee (or citizenships, if there are multiple trustees).”). Accordingly,
Travelers has not properly pled the citizenship of Kamin Trust to establish diversity jurisdiction.
It is possible that the Court has supplemental jurisdiction over Travelers’ third-party
claim, since Travelers’ allegations suggest that its claim arises out of the same case or
controversy as the underlying claim. 28 U.S.C. § 1367. But Travelers does not allege that
supplemental jurisdiction is present over its third-party claim, and the Court will not make
jurisdictional assumptions, given its independent duty to assure itself that jurisdiction over a
claim is secure. Eke v. Mukasey, 512 F.3d 372, 376 (7th Cir. 2008).
For these reasons, the Court STRIKES Travelers’ Third-Party Complaint, [Filing No.
21], and ORDERS it to file an Amended Third-Party Complaint by April 15, 2014, properly
pleading a basis for this Court’s jurisdiction over that claim. The third-party defendants shall
answer or otherwise respond to Travelers’ Amended Third-Party Complaint as contemplated by
the Federal Rules of Civil Procedure.

The parties are cautioned to carefully respond to

Travelers’ jurisdictional allegations to avoid this Court having to issue a third jurisdictional entry
in this case.
Additionally, Travelers suggests that its name is actually The Standard Fire Insurance
Company. [Filing No. 21 at 1.] The parties should conduct whatever investigation is necessary
and file a joint motion to correct Travelers’ name, should such correction be necessary.

04/08/2014
_______________________________
Hon. Jane Magnus-Stinson, Judge
United States District Court
Southern District of Indiana

Distribution:
Christopher J. Braun
PLEWS SHADLEY RACHER & BRAUN
[e-mail]
Gregory M. Gotwald
PLEWS SHADLEY RACHER & BRAUN
[e-mail]
Sean M. Hirschten
PLEWS SHADLEY RACHER & BRAUN
[e-mail]
Shannon L.H. Phillips
PLUNKETT COONEY
[e-mail]
Kenneth C. Newa
PLUNKETT COONEY, PC
[e-mail]