Thompson v. Greyhound Lines, Inc. - 574 F. App'x 407 (5th Cir. 2014)

Rule:

A party seeking to proceed under 28 U.S.C.S. § 1332 must establish complete diversity, which requires that all persons on one side of the controversy be citizens of different states than all persons on the other side. Diversity jurisdiction is based on the facts at the time of filing.

Facts:

Theodore J. Thompson ("Thompson") originally filed this action in the United States District Court for the Southern District of Alabama on September 7, 2012. Pursuant to 28 U.S.C. § 1406, the action was transferred to the United States District Court for the Southern District of Mississippi ("the district court") on December 13, 2012. On November 1, 2013, the district court dismissed this case for lack of subject matter jurisdiction under Rule 12(b)(1) of the Federal Rules of Civil Procedure. According to the district court, Thompson and one of the defendants-appellees, Terry Reeves ("Reeves"), were both citizens of Florida when this action was filed in Alabama on September 7, 2012. The court therefore lacked diversity jurisdiction under 28 U.S.C. § 1332, and no federal question was asserted under 28 U.S.C. § 1331. Thompson appealed.

Issue:

Could the diversity jurisdiction be sustained under 28 U.S.C.S. § 1332 in this case?

Answer:

No

Conclusion:

The court held that Thompson unsuccessfully argued that his citizenship should have been determined based on the facts as they were when he filed an earlier lawsuit against Reeves and others. The earlier case, which arose out of the same factual allegations as the present case, was dismissed, not transferred, for improper venue. The district court properly determined citizenship at the time the present case was filed. The district court properly concluded Thompson and Reeves were both Florida citizens, such that diversity jurisdiction could not be sustained under 28 U.S.C.S. § 1332.