Carolina Cas. Ins. Co. v. Team Equip., Inc.

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Carolina filed suit asserting federal jurisdiction based on diversity against defendants for a declaratory judgment that Carolina was not liable under Dry Cleaning's insurance policy. The district court dismissed without leave to amend and, when Carolina filed a proposed amended complaint, the district court did not accept this complaint as sufficient because Carolina still pled its jurisdictional allegations on information and belief and still failed to establish the citizenship of some defendants. The court concluded that because the district court did not conclude that any amendment would be futile, the district court should not have dismissed the initial complaint with leave for Carolina to amend it to correct, as far as possible, the defective jurisdictional allegations; the district court should not have dismissed the complaint for failure to plead allegations of citizenship affirmatively and on knowledge, rather than on information and belief, when the necessary information was not reasonably available to Carolina; and, therefore, the court reversed and remanded. View "Carolina Cas. Ins. Co. v. Team Equip., Inc." on Justia Law