Lamondra Townsend, Jr. v. Trustees of Elkhart Aerie 395 Fraternal Order of Eagles et al.

CourtDistrict Court, N.D. Indiana
DecidedOctober 22, 2025
Docket3:25-cv-00445
StatusUnknown

This text of Lamondra Townsend, Jr. v. Trustees of Elkhart Aerie 395 Fraternal Order of Eagles et al. (Lamondra Townsend, Jr. v. Trustees of Elkhart Aerie 395 Fraternal Order of Eagles et al.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamondra Townsend, Jr. v. Trustees of Elkhart Aerie 395 Fraternal Order of Eagles et al., (N.D. Ind. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA SOUTH BEND DIVISION

LAMONDRA TOWNSEND, JR.,

Plaintiff, v. CAUSE NO. 3:25cv445 DRL-SJF TRUSTEES OF ELKHART AERIE 395 FRATERNAL ORDER OF EAGLES et al.,

Defendants.

OPINION AND ORDER Lamondra Townsend, Jr. filed suit in state court, seeking several declarations against the Trustees of the Elkhart Aerie 395 Fraternal Order of Eagles, the organization’s insurer (Scottsdale Insurance), and Saadallah Altameemi regarding the allocation of insurance coverage after a shooting at the Eagles club in which he says he was injured. Scottsdale removed. The court addresses two matters: Scottsdale’s motion to realign the parties (which accompanied the removal notice) and Mr. Townsend’s motion to remand (opposing realignment and joined by Mr. Altameemi). The court grants realignment and denies remand. BACKGROUND In the late-night hours of April 16, 2022, a shooting occurred at the Eagles club. Messrs. Townsend and Altameemi allege they were injured, and each filed personal injury lawsuits against the Trustees in state court (on August 4, 2023 and February 1, 2024 respectively) [1 ¶ 1; 1-2; 7- 2]. On April 24, 2025, Mr. Townsend filed this suit in Elkhart Superior Court seeking several declarations regarding the amount of insurance coverage and the proper allocation of proceeds [4]. Scottsdale removed this declaratory judgment action. As alleged here, at the time of the shooting, the Trustees had an insurance policy with Scottsdale that had a general limit of liability of $1 million per occurrence and a $2 million aggregate limit [4 ¶ 6]. Mr. Townsend says Scottsdale is claiming that a sublimit of only $25,000

applies to his claim, and that Scottsdale is taking a similar position as to Mr. Altameemi’s claim [id. ¶ 8, 12]. Mr. Townsend alleges that the Trustees hold the same sublimit positions as Scottsdale [id. ¶ 13]. Mr. Townsend thinks their positions on coverage are wrong. Mr. Townsend also contends that his injuries and Mr. Altameemi’s injuries might result from separate occurrences, as defined under the insurance policy [id. ¶ 21]. Mr. Townsend says Scottsdale’s position is that their injuries resulted from only one occurrence under the policy, and

that the Trustees agree with Scottsdale’s position [id. ¶ 18-19]. According to Mr. Townsend, his claim exceeds $1 million [id. ¶ 20]. The policy reportedly includes an assault and battery limited liability coverage endorsement, which modifies certain liability limits [id. ¶ 31]. For claims arising from an assault or battery, the endorsement defines an “event” as “an act or series of acts based on or arising out of the same assault and/or battery” [id. ¶ 30]. According to Mr. Townsend, Scottsdale and the

Trustees contend that the injuries to Mr. Townsend and Mr. Altameemi arose from a single “event” within the meaning of this endorsement such that the $25,000 sublimit applies to both claims [id. ¶ 29, 31]. Mr. Townsend disputes application of this endorsement [id. ¶ 32]. Mr. Townsend thus seeks a declaratory judgment in five seemingly alternative respects. In count one, he asks the court to declare (against Scottsdale and the Trustees) that his claim is not limited to the $25,000 sublimit, and instead the $1 million general limit applies [id. ¶ 16]. In count

two, he seeks a declaration (against Scottsdale, the Trustees, and Mr. Altameemi) that the injuries of both Mr. Townsend and Mr. Altameemi stemmed from separate occurrences such as to guide a proper allocation of insurance proceeds between the two men [id. ¶ 22]. In count three, Mr. Townsend requests a declaration (against Scottsdale, the Trustees, and Mr. Altameemi) regarding

the allocation of insurance proceeds between him and Mr. Altameemi, “if the court finds that there was only one occurrence under the policy,” based on a future controversy between the two men about the severity of their injuries and the extent of their damages [id. ¶ 24-27]. In count four, Mr. Townsend seeks a declaration (against Scottsdale, the Trustees, and Mr. Altameemi) that allocates proceeds between the two men “if the court decides that the endorsement applies and it also decides that both [Mr.] Townsend and [Mr.] Altameemi[’s] injuries were from the same

‘event’” [id. ¶ 36]. Finally, in count five, Mr. Townsend requests a declaration (against all) that the endorsement doesn’t apply; that the injuries to Mr. Townsend and Mr. Altameemi were from separate “events” within the meaning of the endorsement; and that allocates proceeds between Mr. Townsend and Mr. Altameemi [id. ¶ 46]. Scottsdale timely removed the suit and filed a motion to realign the parties to establish diversity jurisdiction. The insurer argues that the interests of Mr. Altameemi and the Trustees are

aligned with Mr. Townsend, and these parties should be treated functionally as “plaintiffs,” with Scottsdale as the sole defendant. Mr. Townsend, Mr. Altameemi, and the Trustees are all citizens of Indiana, whereas Scottsdale is a citizen of Arizona and Ohio.1 The amount in controversy seems satisfied. If Mr. Altameemi and the Trustees are realigned, only then will complete diversity

1 Scottsdale’s notice of removal has deficiencies, but the court has alternate sources of information to remedy the notice’s shortcomings. Scottsdale asserts Mr. Townsend’s and Mr. Altameemi’s residences rather than their citizenship (domiciles), which aren’t the same concept. See Tylka v. Gerber Prods. Co., 211 F.3d 445, 447 (7th Cir. 2000). Mr. Townsend’s complaint nonetheless pleads both he and Mr. Altameemi are citizens of Indiana [4 ¶ 2, 10]. Scottsdale is a citizen of both Ohio (place of incorporation) and Arizona (its principal place of business). exist, and Scottsdale can invoke diversity jurisdiction. Mr. Townsend and Mr. Altameemi both oppose removal and argue realignment is improper. STANDARD

For a case to be within the diversity jurisdiction of the federal courts, diversity of citizenship must be “complete,” meaning that no plaintiff may be a citizen of the same state as any defendant. Wis. Dep’t of Corr. v. Schacht, 524 U.S. 381, 388 (1998). “Diversity jurisdiction cannot be conferred upon the federal courts by the parties’ own determination of who are plaintiffs and who are defendants.” Indianapolis v. Chase Nat’l Bank, 314 U.S. 63, 69 (1941). At the same time, a “party isn’t permitted to destroy federal diversity jurisdiction by naming as a

defendant someone against whom he doesn’t seek relief.” R.C. Wegman Constr. Co. v. Admiral Ins., 629 F.3d 724, 726 (7th Cir. 2011). The court has a duty to “look beyond the pleadings and to arrange the parties according to their true sides in the dispute,” Indianapolis, 314 U.S. at 69—that is, whether their classification as plaintiffs and defendants “conforms with their true interests in the litigation,” Am. Motorists Ins. v. Trane Co., 657 F.2d 146, 149 (7th Cir. 1981). The court may realign parties when no actual,

substantial controversy exists between the parties on one side of the dispute and their named opponents. Id. Realignment is “improper when the court finds that an actual, substantial controversy exists on one side of the dispute and its named opponent.” Krueger v. Cartwright, 996 F.2d 928, 932 n.5 (7th Cir. 1993). DISCUSSION A. Citizenship of the “Eagles.” As an initial matter, the parties debate Eagles’s citizenship. As pointed out by Scottsdale,

Mr. Townsend has not sued the organization but instead its Trustees.

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