Bakken

MEMORANDUM *

Joanne Marie Bakken suffered physical injury and property damage in a car accident with an underinsured motorist (UIM) and challenges deductions made by State Farm under her UIM insurance policy. Bakken’s State Farm policy has a $30,000 per person limit and State Farm deducted from its payment $15,000 that Bakken had *675 recovered in a settlement with the UIM’s insurance carrier and $11,498.27 that Bakken’s worker’s compensation carrier had paid on Bakken’s behalf, primarily for medical costs. Bakken filed a class action suit in San Diego Superior Court that challenged State Farm’s set-offs. State Farm removed Bakken’s class action to federal district court on the basis of diversity jurisdiction and moved to dismiss. The district court dismissed Bakken’s claims with prejudice and entered judgment; it did not certify a class. Bakken appeals the dismissal of her claims.

A district court does not have diversity jurisdiction unless the amount-in-controversy exceeds $75,000. 28 U.S.C. § 1332 . Even where the parties do not challenge jurisdiction on appeal, the court has an obligation to ensure that jurisdiction exists. Matheson v. Progressive Specialty Ins. Co., 319…