Alliance of Schools for Cooperative Insurance Programs v. Munich Reinsurance America, Inc.

I. BACKGROUND

Plaintiff is a JPA composed of public school districts and public educational agencies whose primary purpose is to expend state-provided funds of its members on a risk-sharing basis where all members contribute to indemnify each member

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against lawsuits. (Birgel Decl. Ex. C, ECF No. 10-3.) Defendant provides reinsurance coverage to Plaintiff. (Compl. ¶ 1, ECF No. 1-1.) Plaintiff filed an action in Los Angeles County Superior Court alleging that Defendant failed to provide full coverage to Plaintiff for its losses, and therefore violated the parties’ reinsurance agreement. (Id. ¶¶ 36–47.)

Defendant removed the action to this Court claiming that complete diversity exists because the amount in controversy exceeds $75,000 and because Defendant is a citizen of Delaware and New Jersey while Plaintiff is a citizen of California. (Notice of Removal ¶¶ 5–7.) Plaintiff then filed the present motion.

The narrow issue in front of the Court is whether, for the purposes of diversity jurisdiction, ASCIP is an arm of the state and, therefore, not a citizen for the…