Rockwell International Credit Corporation, a Delaware Corporation v. United States Aircraft Insurance Group, an Insurance Company

Rockwell International Credit Corporation (Rockwell) appeals from summary judgment in favor of United States Aircraft Insurance Group (USAIG). We find that federal jurisdiction does not exist and remand to the district court with directions to return the case to the courts of Arizona.

PROCEEDINGS

On April 2, 1985, Rockwell, a Delaware corporation, filed its complaint against USAIG in the Superior Court of Maricopa County, Arizona, seeking recovery on an insurance policy. On May 8, 1985, USAIG removed the case to the United States District Court on the basis of the diversity of the Connecticut citizenship of Aetna Casualty and Surety Company, the issuer of the insurance policy. USAIG’s removal petition stated that it was “the named defendant” and that the controversy was “wholly between citizens of different states.” Rockwell did not dispute the removal petition, and the district court assumed that jurisdiction existed. After summary judgment in favor of USAIG, Rockwell appealed to this court. Jurisdiction was still not disputed. After oral argument, however, we of our own accord raised the question of jurisdiction and requested briefing from both parties.

ISSUES: Does diversity…