ILNews

Case vacated over jurisdictional questions

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I was looking through some of your blog posts on this internet site and I conceive this web site is rattling informative ! Keep on posting . dfkcfdkdgbekdffe

  2. Don't believe me, listen to Pacino: https://www.youtube.com/watch?v=z6bC9w9cH-M

  3. Law school is social control the goal to produce a social product. As such it began after the Revolution and has nearly ruined us to this day: "“Scarcely any political question arises in the United States which is not resolved, sooner or later, into a judicial question. Hence all parties are obliged to borrow, in their daily controversies, the ideas, and even the language, peculiar to judicial proceedings. As most public men [i.e., politicians] are, or have been, legal practitioners, they introduce the customs and technicalities of their profession into the management of public affairs. The jury extends this habitude to all classes. The language of the law thus becomes, in some measure, a vulgar tongue; the spirit of the law, which is produced in the schools and courts of justice, gradually penetrates beyond their walls into the bosom of society, where it descends to the lowest classes, so that at last the whole people contract the habits and the tastes of the judicial magistrate.” ? Alexis de Tocqueville, Democracy in America

  4. Attorney? Really? Or is it former attorney? Status with the Ind St Ct? Status with federal court, with SCOTUS? This is a legal newspaper, or should I look elsewhere?

  5. Once again Indiana has not only shown what little respect it has for animals, but how little respect it has for the welfare of the citizens of the state. Dumping manure in a pond will most certainly pollute the environment and ground water. Who thought of this spiffy plan? No doubt the livestock industry. So all the citizens of Indiana have to suffer pollution for the gain of a few livestock producers who are only concerned about their own profits at the expense of everyone else who lives in this State. Shame on the Environmental Rules Board!

ADVERTISEMENT