McCormick v. Independence Life and Annuity Co.

Dist. Ct. lacked subject matter jurisdiction to consider plaintiffs’ state-court action seeking declaration that they did not owe defendant-insurance company $44,000 in interest payments that accrued over years that plaintiffs borrowed against cash value of variable life-insurance policy issued by defendant, where plaintiffs’ action had been removed to federal court by defendant. Defendant could not establish requisite $75,000 amount in controversy requirement to establish removal jurisdiction, where said interest payments were well below jurisdictional threshold. Moreover, plaintiffs’ separate request in lawsuit to cancel entire loan balance of $70,000 could not be used to satisfy amount in controversy threshold requirement, where there was no legal basis for plaintiff’s request. Also, plaintiff’s subsequent amendment seeking to add federal securities-law claim did not supply Dist. Ct. with jurisdiction since: (1) applicable timeframe for establishing removal jurisdiction is date of removal; and (2) instant securities-law claim was time-barred.