McDuffy v. Unknown Defendant

Filing 16

MEMORANDUM ORDER: A hearing will be held on 10/12/2011 at 2:00 p.m. in Shreveport, Courtroom 3 before Magistrate Judge Mark L Hornsby. Mr. McDuffy is strongly encouraged to call Mr. Stamey as soon as possible to discuss whether this matter may be settled. Signed by Magistrate Judge Mark L Hornsby on 9/26/2011. (crt,Keifer, K)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
SHREVEPORT DIVISION

STEVEN ALONZO McDUFFY

CIVIL ACTION NO. 11-cv-0229

VERSUS

JUDGE WALTER

UNKNOWN DEFENDANT

MAGISTRATE JUDGE HORNSBY

MEMORANDUM ORDER
Steven McDuffy was driving a 2001 Mazda with more than 230,000 miles on it when,
according to a police accident report, a car that was leaving a gas station pulled forward and
bumped the rear of McDuffy’s car, causing what was described as minor damage. McDuffy
did not appear to be injured at the time of the accident, but he later went to the emergency
room.
The other car was owned by Heins Enterprises, LLC and insured by Canal Indemnity
Company. According to a letter from a Canal representative that McDuffy filed in the
record, Canal paid McDuffy the estimated amount of property damages based on an estimate
by McDuffy’s repair facility. A conference call was held with McDuffy, a Canal
representative, and medical providers to establish the amount of medical bills due. The bills
totaled $1,094.98 for two visits to the emergency room. Canal offered to pay more than that
to resolve the claim, but McDuffy demanded $7,000 to buy a new car because, he claimed,
the engine in his Mazda had seized up. Canal claimed there was no evidence the accident
caused damage to the engine.
Plaintiff filed a complaint with this court that states, in its entirety, as follows:

My car did not get fixed. My doctor bill did not get paid. And there was no
pain and suffering. I think I have had enough of their humiliation!
Plaintiff clarified in an amended complaint that the defendants were Heins and Canal. The
defendants filed answers, and a Scheduling Order has issued.
Federal courts are courts of limited jurisdiction, meaning they may hear only those
kinds of cases that Congress has authorized. The only potentially available basis to file a
claim of this nature in federal court is to establish diversity of citizenship jurisdiction under
28 U.S.C. § 1332. That requires that (1) McDuffy be a citizen of a different state than both
Canal and Heins and (2) the amount in controversy exceed $75,000. McDuffy, as the person
who filed the suit, has the burden of establishing the facts that permit the exercise of diversity
jurisdiction.
What McDuffy has filed thus far gives rise to serious doubts about whether the court
has jurisdiction to hear his case. The amount in controversy appears to be closer to $7,000
than exceeding $75,000. And it appears that McDuffy and Heins, a Louisiana limited
liability company, may share Louisiana citizenship. If either of those is the case, the court
lacks jurisdiction and will have to dismiss the case.
Before the court makes a final decision on whether it has jurisdiction, McDuffy will
be permitted an opportunity to appear in court and provide facts that establish a basis for
diversity jurisdiction. A hearing will be held on October 12, 2011 at 2:00 p.m., in
Courtroom 3, Fourth Floor, United States Court House, 300 Fannin Street, Shreveport LA.

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Attorney Joseph Stamey represents Canal and Heins. He is directed to attempt to
gather all necessary information regarding the identity and citizenship of the members of
Heins by the time of the hearing, as that is relevant to determining citizenship. See Harvey
v. Grey Wolf Drilling Co., 542 F.3d 1077 (5th Cir. 2008).
Mr. McDuffy is strongly encouraged to call Mr. Stamey at [phone] as soon
as possible to discuss whether this matter may be settled without the need for the hearing. If
the parties do settle the matter before the date of the hearing, Mr. Stamey is directed to
promptly alert the court to that settlement. If a settlement is not reached, the parties or their
counsel must appear for the hearing, and failure to do so may result in dismissal or other
appropriate sanction.
THUS DONE AND SIGNED in Shreveport, Louisiana, this 26th day of September,
2011.

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