Auto Insurance Lacks Diversity for Subject-Matter Jurisdiction in Class Action Lawsuit

Robert Turner and other Louisiana residents filed a class-action lawsuit against GoAuto car insurance. GoAuto filed a notice to move the case to federal court. The district court found the company lacked diversity for subject-matter jurisdiction. GoAuto filed an appeal with the Fifth Circuit. In its opinion, the court stated “A basic precept of our federal system is that federal courts do not exercise authority over the proceedings of a sovereign state’s judiciary as it relates to that state’s laws.” Because Turner amended his complaint to redefine the class to “citizens of Louisiana,” the class cannot include anyone who is not a citizen of Louisiana thus preventing GoAuto from moving the case to federal jurisdiction. Read more here.