Certain Underwriters at Lloyd's, London Subscribing to Policy No. BRT3A002360-02, Lloyd's Syndicate 2987 v. Labrenz

• Court: District Court, S.D. Illinois
• Decided: September 27, 2022
• Docket: 3:21-cv-01217
• Status: Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

CERTAIN UNDERWRITERS AT ) LLOYD’S LONDON SUBSCRIBING TO ) POLICY NO. BRT3A002360-02, ) LLOYD’S SYNDICATE 2987, ) ) Case No. 21-CV-1217-SMY Plaintiff, ) ) vs. ) ) DENNIS JONES d/b/a Eagle Window & ) Siding, JACOB M. SITZE, TRENT ) LABRENZ, ) ) Defendants. ) ) ) ) ) MEMORANDUM AND ORDER YANDLE, District Judge: Plaintiff Certain Underwriters at Lloyd’s London Subscribing to Policy No. BRT3A002360-02, Lloyd’s Syndicate 2987, filed this action seeking a declaratory judgment (Doc. 1). Now pending before the Court are two motions to dismiss for lack of subject matter jurisdiction (Docs. 18, 25). A federal court always has a responsibility to ensure that it has jurisdiction. Hukic v. Aurora Loan Servs., 588 F.3d 420, 427 (7th Cir. 2009); Indiana Gas Co. v. Home Ins. Co., 141 F.3d 314, 319 (7th Cir. 1998) (dismissing case for lack of jurisdiction because diversity did not exist between plaintiff and defendant underwriting syndicate). “In a diversity case, whenever there is an unconventional party (that is, someone or something other than either a natural person suing in his own rather than a representative capacity, or a business corporation) a jurisdictional warning flag should go up.” Cosgrove v. Bartolotta, 150 F.3d 729, 731 (7th Cir. 1998). Here, the Complaint alleges the decedent Megan Labrenz left a surviving spouse, Trent Labrenz, who is domiciled and a resident of Illinois (Doc. 1, § 9). The Complaint further alleges the citizenship of the parties as follows: e Defendant Jacob M. Sitze is domiciled and a resident of Illinois (Doc. 1, § 8); e Defendant Dennis Jones d/b/a Eagle Windows & Siding is domiciled and a resident of Illinois (Doc. 1, § 8); It is unclear however where Defendant Lloyd’s Syndicate 2987 should be placed for diversity purposes. While Lloyd’s Syndicate 2987 asserts its foreign citizenship from England as if it were a corporation (Doc. 6), the Seventh Circuit has held that “[u]nderwriting syndicates are not corporations” and has noted that an underwriting syndicate has “the personal-liability characteristics of a general partnership and the management structure of a limited partnership.” Indiana Gas, 141 F.3d at 316-317 (7th Cir. 1998). Therefore, an underwriting syndicate must be treated like a partnership when determining its citizenship; it is a citizen of every state of which any partner or member is a citizen. /d. See also, Dexia Credit Local v. Rogan, 629 F.3d 612, 619 (7th Cir. 2010) (noting that Indiana Gas held that “all of the members belonging to a Lloyd’s of London syndicate to be considered for purposes of diversity jurisdiction”). Accordingly, the Motions to Dismiss (Docs. 18, 25) are TAKEN UNDER ADVISEMENT. Lloyd’s Syndicate 2987 is ORDERED to file a jurisdictional statement by October 3, 2022, alleging each participating member’s citizenship. IT IS SO ORDERED. DATED: September 27, 2022 Aer HX. Cole STACIM.YANDLE ————iis—‘—s~S United States District Judge

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