Hughes

ORDER

The Opinion of this court, filed on October 8, 2003, is amended as follows:

Slip op. pp. 14984-85: At the end of the first full paragraph, “Allstate alleged ... delete the period and delete the subsequent full paragraph beginning “Under Washington law ...” Replace with:

Appellant Allstate Insurance Company’s Motion for Clarification on Issuance of Mandate is DENIED as moot.

OPINION

This is a subrogation action by the fire insurance carrier arising out of the destruction by fire, of a Seattle-area residence. Plaintiff, Allstate Insurance Company (“Allstate”), appeals from the March 11, 2002 Order of the District Court of the Western District of Washington granting defendants, Devon and Penny Hughes’ and Devon Hughes Construction’s (“Hughes”), motion for summary judgment. Allstate also appeals the order denying Allstate’s motion for reconsideration and the order granting Hughes’ motion for attorney fees and costs. Finding that federal court diversity jurisdiction is lacking, we remand to the district court with directions to vacate its prior orders and dismiss the action. .

I. BACKGROUND

Devon and Penny Hughes sold a home in Woodinville, Washington to Tom and Cheri…