Insurer Ordered to Show Why COVID-19 Coverage Fight Belongs in Federal Court

TUSCALOOSA, Ala. — An Alabama federal judge has ordered Owners Insurance Co. to explain why a COVID-19 business interruption coverage action should not be remanded, noting it is not apparent from the notice of removal whether complete diversity exists.

In a July 27 order, Judge L. Scott Coogler of the U.S. District Court for the Northern District of Alabama said the notice does not allege that the owners of plaintiff Part Two LLC are citizens of the state, noting they are only listed as “residents.”

“Citizenship is equivalent to ‘domicile’ for purposes of diversity jurisdiction,” the judge explained. “A person’s …