Case vacated over jurisdictional questions

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The 7th Circuit Court of Appeals remanded a case to an Indiana District Court to determine whether the plaintiffs in a suit have citizenship in Indiana or Arizona.

In Charles A. Craig and Barbara J. Craig v. Ontario Corp., Nos. 06-4409, 08-1013, Ontario Corp. challenged Charles and Barbara Craig's claims they were Arizona citizens so federal court is the appropriate venue for their lawsuit against an Indiana company.

Charles worked for Ontario and offered to sell his shares of the company back when he retired. Instead of receiving cash, he received three promissory notes from Ontario. Later, the Craigs sued in the Southern District of Indiana, Indianapolis Division after Ontario sent a notice of default on the notes.

The District Court entered judgment for the Craigs on their suit in No. 06-4409 and denied Ontario's motion for relief from judgment. Ontario filed a second appeal after the District Court declined to hear the company's motion for relief from judgment while the original case was on appeal to the 7th Circuit. Ontario discovered evidence the Craigs may actually be citizens of Indiana, not Arizona, so the federal court wouldn't have jurisdiction to hear their suit. The District Court held it had no jurisdiction to rule on the motion, conduct a hearing, or to review new filings while the original case was on appeal.

The 7th Circuit vacated the original ruling by the District Court because it was mistaken to believe it lost authority to explore the facts relating to subject-matter jurisdiction, wrote Judge Diane Wood.

The appellate court also reversed the District Court's order denying the Rule 60(b)(4) motion by Ontario in case No. 08-1013 and remanded for an evidentiary hearing on subject matter jurisdiction. Ontario collected evidence showing the Craigs purchased an Indiana property right before filing their complaint and sold another property in Indiana after they filed the complaint. Barbara voted in Indiana after the suit was filed, which is allowed only if one is a resident of the precinct for at least 30 days. These and other facts called into question the Craigs' citizenship and they must prove otherwise in order to retain their suit in federal court, wrote the judge.


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  1. Great observation Smith. By my lights, speaking personally, they already have. They counted my religious perspective in a pro-life context as a symptom of mental illness and then violated all semblance of due process to banish me for life from the Indiana bar. The headline reveals the truth of the Hoosier elite's animus. Details here: Denied 2016 petition for cert (this time around): (“2016Pet”) Amicus brief 2016: (“2016Amici”) As many may recall, I was banned for five years for failing to "repent" of my religious views on life and the law when a bar examiner demanded it of me, resulting in a time out to reconsider my "clinging." The time out did not work, so now I am banned for life. Here is the five year time out order: Denied 2010 petition for cert (from the 2009 denial and five year banishment): (“2010Pet”) Read this quickly if you are going to read it, the elites will likely demand it be pulled down or pile comments on to bury it. (As they have buried me.)

  2. if the proabortion zealots and intolerant secularist anti-religious bigots keep on shutting down every hint of religious observance in american society, or attacking every ounce of respect that the state may have left for it, they may just break off their teeth.

  3. "drug dealers and traffickers need to be locked up". "we cannot afford just to continue to build prisons". "drug abuse is strangling many families and communities". "establishing more treatment and prevention programs will also be priorities". Seems to be what politicians have been saying for at least three decades now. If these are the most original thoughts these two have on the issues of drug trafficking and drug abuse, then we're no closer to solving the problem than we were back in the 90s when crack cocaine was the epidemic. We really need to begin demanding more original thought from those we elect to office. We also need to begin to accept that each of us is part of the solution to a problem that government cannot solve.

  4. What is with the bias exclusion of the only candidate that made sense, Rex Bell? The Democrat and Republican Party have created this problem, why on earth would anyone believe they are able to fix it without pushing government into matters it doesn't belong?

  5. This is what happens when daddy hands over a business to his moron son and thinks that everything will be ok. this bankruptcy is nothing more than Gary pulling the strings to never pay the creditors that he and his son have ripped off. they are scum and they know it.