DCP Operating Company, LP v. Travelers Indemnity Company

CourtDistrict Court, D. New Mexico
DecidedFebruary 5, 2025
Docket2:24-cv-00628
StatusUnknown

This text of DCP Operating Company, LP v. Travelers Indemnity Company (DCP Operating Company, LP v. Travelers Indemnity Company) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DCP Operating Company, LP v. Travelers Indemnity Company, (D.N.M. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

DCP OPERATING COMPANY, LP, and DCP MIDSTREAM, LP,

Plaintiffs,

v. No. 2:24-cv-628 SMD/KRS

TRAVELERS INDEMNITY COMPANY,

Defendant.

JURISDICTIONAL ORDER This matter is before the Court sua sponte. Federal courts are courts of limited jurisdiction, and have a duty to address the question of their subject matter jurisdiction sua sponte whenever it could be in doubt. See Arbaugh v. Y&H Corp., 546 U.S. 500, 514 (2006); Shields Law Grp., LLC v. Stueve Siegel Hanson LLP, 95 F.4th 1251, 1279 (10th Cir. 2024); Evitt v. Durland, No. 00-6130, 242 F.3d 388 (Table), 2000 WL 1750512, at *2 (10th Cir. 2000) (unpublished). On November 19, 2024, Defendant was ordered to file an amendment or supplement to the Notice of Removal, clarifying the basis for diversity jurisdiction—specifically, the factual basis for Defendant’s allegation that Plaintiffs are both citizens of Colorado. On December 3, 2024, Defendant filed an “Amendment to Notice of Removal Jurisdictional Statement” (hereinafter “Amendment”) (Doc. 28), which fails to provide the information necessary to clarify Plaintiffs’ citizenship. Additionally, it has come to the Court’s attention through recent filings by both parties that the identity of the defendant may be in question. Correctly naming the defendant is essential for the Court to assess whether there is diversity jurisdiction over the case. Accordingly, the Court addresses both of these issues in this order.1 DISCUSSION On November 15, 2023, Plaintiffs DCP Operating Company, LP (hereinafter “DCP

Operating LP”) and DCP Midstream, LP (hereinafter “Midstream LP”) (collectively referred to as “the DCP Plaintiffs”) filed a complaint in the First Judicial District, Santa Fe County, New Mexico, naming “Travelers Indemnity Company” as the defendant. See (Doc. 1-1). More than six months later, on June 20, 2024, the case was removed to this Court by St. Paul Fire & Marine Insurance Company (“St. Paul”), which claimed that, although it had never been served, it was the defendant named in the state court complaint albeit “improperly designated as Travelers Indemnity Company.” (Doc. 1 at 1). The Notice of Removal states that St. Paul obtained a copy of the complaint “from the Court’s electronic docket,” and that it was “waiving formal service of the same.” (Id.). The asserted basis for removal is federal court jurisdiction under the diversity statute, 28 U.S.C. § 1332(a). See (Doc. 1 at 2).

To invoke diversity jurisdiction, “a party must show that complete diversity of citizenship exists between the adverse parties, and that the amount in controversy exceeds $75,000.” Dutcher v. Matheson, 733 F.3d 980, 987 (10th Cir. 2013) (internal quotation marks and citation omitted). Whether these requirements have been met is “determined with reference to the facts as they existed at the time of filing.” Grynberg v. Kinder Morgan Energy Ptners., L.P., 805 F.3d 901, 905 (10th Cir. 2015) (internal quotation marks and citations omitted). The Notice of Removal alleges

1 Defendant cited to the allegations in the Notice of Removal when it asserted in a recent filing that “[t]his Court held that it has subject matter jurisdiction over the above-captioned action.” (Doc. 32 at 11). The statement is incorrect. This Court has not yet determined whether it has subject matter jurisdiction based on diversity of citizenship. that the requirements for diversity jurisdiction are met because (1) St. Paul is a Connecticut corporation with its principal place of business in Connecticut, while Plaintiffs are “limited partnership[s] with both the general and the limited partner’s [sic] citizenship in Colorado” (Doc. 1 at 2); and (2) Plaintiffs seek reimbursement from St. Paul for the amount they paid to settle a

personal injury action brought against them in state court (“the Underlying Tort Action”), which amount exceeds $75,000.00 (id. at 3). In a case removed from state court, the defendant, as the party invoking federal court jurisdiction, bears the burden of pleading and ultimately proving the facts necessary for establishing the court’s subject matter jurisdiction. Spring Creek Exploration & Production Co., LLC v. Hess Bakken Inv., II, LLC, 887 F.3d 1003, 1013–14 (10th Cir. 2018); see Dutcher, 733 F.3d at 985 (“Since federal courts are courts of limited jurisdiction, we presume no jurisdiction exists absent an adequate showing by the party invoking federal jurisdiction.” (internal quotation marks and citation omitted)). As part of that burden, the removing defendant must overcome the presumption against removal jurisdiction in general. See Anderson v. XTO Energy, Inc., 341

F. Supp. 3d 1272, 1275 (D.N.M. 2018). “At the point of the filing of the notice of removal, … the defendant need only state the facts upon which jurisdiction is based.” McEntire v. Kmart Corp., No. CIV 09-0567 JB/LAM, 2010 WL 553443, at *3 (D.N.M. Feb. 9, 2010). But the existence of federal subject matter jurisdiction must be established on the face of the petition or notice of removal through allegations of non-conclusory facts. Laughlin v. Kmart Corp., 50 F.3d 871, 873 (10th Cir. 1995) (“Both the requisite amount in controversy and the existence of diversity must be affirmatively established on the face of either the petition or the removal notice.”); Penteco Corp. Ltd. P’ship--1985A v. Union Gas Sys., Inc., 929 F.2d 1519, 1521 (10th Cir. 1991) (“To determine whether a party has adequately presented facts sufficient to establish federal diversity jurisdiction, … courts must look to the face of the [notice of removal], ignoring mere conclusory allegations of jurisdiction. The party seeking the exercise of jurisdiction in his favor must allege in his pleading the facts essential to show jurisdiction.” (internal citations and quotation marks omitted)); see also Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 89 (2014) (the allegations

supporting federal jurisdiction in a defendant’s notice of removal must satisfy the plausibility standard of pleading). If the removing defendant is unable to affirmatively allege facts essential to a showing of federal subject matter jurisdiction, the case must be remanded to state court. See 28 U.S.C. § 1447(c). Defendant has adequately alleged facts showing that the amount in controversy exceeds the jurisdictional minimum. The focus of this Order, therefore, is the requirement of complete diversity. Complete diversity means that no plaintiff may be a citizen of the same state as any defendant. Dutcher, 733 F.3d at 987. An individual’s citizenship is determined by his or her domicile, which is defined as the place in which the party has a residence in fact with the intent to remain indefinitely. McEntire, 2010 WL 553443, at *3. Corporations are considered citizens of

both the state where they are incorporated and the state where their principal place of business is located. See 28 U.S.C. § 1332(c)(1). But in Carden v.

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