American Motorists Insurance Co., and St. Paul Fire & Marine Insurance Co., Cross-Appellees v. American Employers' Insurance Company, Cross-Appellant

The parties in this action, three insurance companies, each contributed funds in settlement of a tort action brought against their common insured. Two of the companies then brought this declaratory judgment action against the third to determine the companies’ respective liabilities under the settlement agreement. The district court entered a judgment from which the plaintiffs appeal.

This court sua sponte raises a question concerning its subject matter jurisdiction. The alleged jurisdictional basis for this action is diversity of citizenship. When jurisdiction is based on diversity of…