Rizvi v. Allstate Corp.

Dist. Ct. did not err in dismissing for lack of subject matter jurisdiction plaintiff-creditor’s request to have defendant-insurance company in instant citation to discover assets proceeding turnover proceeds from insurance policy that defendant had issued to debtor in order to satisfy debt that debtor-insured owed to creditor. Record showed that defendant denied that it had insurance proceeds that it owed to debtor, and that defendant had same citizenship as plaintiff, which destroyed any diversity jurisdiction between plaintiff and defendant. Moreover, defendant’s response that it had no assets belonging to debtor-insured completed citation to discover assets proceeding, and thus, although plaintiff had ability to maintain separate action against defendant for recovery of any insurance proceeds to extent that plaintiff believed that defendant was not truthful with respect to existence of said proceeds, plaintiff needed to establish subject matter jurisdiction in order to do so, because said action relied upon different facts and law than plaintiff’s underling breach of contract claim against insured that had separate basis of subject matter jurisdiction.