GCube Insurance Services, Inc. v. Neighborhood Power Corporation
- Alison Nathan
- 1:20-cv-04912
- U.S. District Court · Southern District of New York
- 1
In GCube Insurance Services v. Neighborhood Power, Judge Nathan remanded the case to state court because complete diversity was absent.
GCube Insurance Services, Inc., the certain underwriters it represented, and Neighborhood Power Corporation were affected because the federal court sent the case back to the New York Supreme Court, New York County, and closed the federal case.
What happened
GCube Insurance Services, Inc. sued Neighborhood Power Corporation in a case involving certain underwriters subscribing to an insurance policy. The court questioned whether it had authority to hear the case because the parties were not completely diverse.
Neighborhood Power told the court that the opposing parties were not completely diverse, sought to withdraw its notice removing the case from state court, and agreed to remand.
Judge Alison J. Nathan ruled that the federal court lacked authority over the case, ordered it sent back to the New York Supreme Court, New York County, and directed the clerk to close the case.
The detailed version
- GCube Insurance Services, Inc. v. Neighborhood Power Corporation · No. 1:20-cv-04912
- Alison Nathan
- Aug. 5, 2020
Background
The case was filed in federal court after Neighborhood Power Corporation submitted a notice removing it from state court. On July 27, 2020, the court ordered Neighborhood Power to explain why the case should not be sent back to state court for lack of subject-matter jurisdiction, meaning the federal court’s legal authority to hear the case. The court also questioned whether complete diversity existed among the parties.
On August 4, 2020, Neighborhood Power filed a letter conceding that the opposing parties were not completely diverse. It also stated that it sought to voluntarily withdraw its notice of removal and agreed that the case should be sent back to state court.
Ruling
The court held that it lacked subject-matter jurisdiction because complete diversity was absent. The court directed the clerk to remand, or send back, the case to the New York Supreme Court, New York County, and to close the federal case. Judge Alison J. Nathan did not decide the underlying dispute.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.