Allstate Insurance v. Ford Motor Co.

955 F. Supp. 667, 1996 U.S. Dist. LEXIS 20537, 1996 WL 788649
CourtDistrict Court, W.D. Louisiana
DecidedDecember 17, 1996
DocketCivil Action 96-2511
StatusPublished
Cited by2 cases

This text of 955 F. Supp. 667 (Allstate Insurance v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Insurance v. Ford Motor Co., 955 F. Supp. 667, 1996 U.S. Dist. LEXIS 20537, 1996 WL 788649 (W.D. La. 1996).

Opinion

RULING

LITTLE, Chief Judge.

Before this court is plaintiff Allstate Insurance Company’s Motion to Remand this action to the Ninth Judicial District Court, Rapides Parish, Louisiana. For the following reasons, we GRANT Allstate’s motion and award Allstate its costs and expenses incurred as a result of Ford’s improper removal.

I.

Allstate filed this suit on 4 October 1996 in the Ninth Judicial District Court, Rapides Parish, Louisiana. Allstate alleged that Ford, a foreign corporation authorized to do business in Louisiana, defectively manufactured a 1995 Ford Ranger automobile that was purchased by Timothy Leger. On 9 October 1995 the Ranger allegedly caught fire because of a manufacturing defect, suffering extensive damage. Allstate insured the Ranger for Leger and paid Leger $14,511 for the loss of the Ranger. Leger, in turn, assigned his claim against Ford to Allstate. After Allstate filed suit in state court, Ford timely filed a notice of removal to this court on 28 October 1996. Allstate now moves to remand this action to the state court pursuant to 28 U.S.C. § 1447 on the ground that we lack subject matter jurisdiction under 28 U.S.C. § 1332. Pursuant to 28 U.S.C. § 1447(c), Allstate also seeks to recover from Ford its costs and expenses incurred as a result of the removal.

II.

The general rules of removal from state court to the United States District Court are set forth in 28 U.S.C. § 1441(a): “any civil *669 action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.”

The procedure for removal is set forth in 28 U.S.C. § 1446(a): “A defendant or defendants desiring to remove any civil action from a State court shall file in the district court ... a notice of removal ... containing a short and plain statement of the grounds for removal.” The notice of removal shall be filed within thirty days after the defendant is served with the complaint. 28 U.S.C. § 1446(b).

A motion to remand must be made within thirty days after the filing of the notice of removal. 28 U.S.C. § 1447(c). A motion to remand may be made on the basis of “any defect in removal procedure” Id. The district court has general authority to remand a case under any of the following circumstances: (1) it must act on a timely motion to remand based on a defect in removal procedure; (2) it must remand a case over which it has no subject matter jurisdiction; and (3) it has discretion to remand state law claims that were removed along with one or more federal question claims. 28 U.S.C. § 1447; Buchner v. F.D.I.C., 981 F.2d 816, 819 (5th Cir.1993).

In this case, Allstate contends that remand is mandated because this court lacks subject matter jurisdiction. Ford maintains that subject matter jurisdiction is satisfied by diversity of citizenship between the parties. District courts have original jurisdiction over all civil actions where the amount in controversy exceeds $50,000 and there is total diversity of citizenship between the parties. 28 U.S.C. § 1332(a). For removal purposes, diversity must exist both at the time of removal and at the time the suit was commenced. Kellam v. Keith, 144 U.S. 568, 12 S.Ct. 922, 36 L.Ed. 544 (1892); United Food & Commercial Workers Union, Local 919, AFL-CIO v. CenterMark Properties Meriden Square, Inc., 30 F.3d 298, 301 (2d Cir.1994). The parties do not contest the fact that total diversity existed both at the time of removal and at the commencement of the action. 1 The sole jurisdictional question is whether the amount in controversy exceeds $50,000.

III.

Several recent Fifth Circuit decisions have furnished a clear analytical framework for resolving removal disputes concerning the amount in controversy. Plaintiffs in Louisiana state court commonly do not specify a damage claim because the state civil procedure code disallows damage claims for specific amounts. La.Code Civ.Proe. art. 893. When the complaint does not allege a specific amount of damages, the removing defendant must prove by a preponderance of the evidence that the amount in controversy exceeds $50,000. De Aguilar v. Boeing Co., 11 F.3d 55, 58 (5th Cir.1993). The defendant can make this showing in either of two ways: (1) by demonstrating that it is “facially apparent that the claims are likely above $50,-000,” or (2) “by setting forth the facts in controversy — preferably in the removal petition, but sometimes by affidavit — that support a finding of the requisite amount.” Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th Cir.1995) (emphasis in original). Regardless of the path followed, the defendant may not rely upon conclusory statements. Id. Any facts are judged at the time of removal. Id.

Once a defendant has made this initial showing, the plaintiff may still establish that removal is improper by showing that it is “legally certain” that his recovery will not exceed the amount prayed for in the state court complaint. De Aguilar v. Boeing Co., 47 F.3d 1404, 1412 (5th Cir.1995).

In this case, we find that Ford has not satisfied its initial burden of demonstrating by a preponderance of the evidence that the amount in controversy exceeds $50,000. First, we examine the face of the complaint. *670

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stott v. Revere Transducers, Inc.
993 F. Supp. 125 (N.D. New York, 1998)
Jenkins v. Sandoz Pharmaceuticals Corp.
965 F. Supp. 861 (N.D. Mississippi, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
955 F. Supp. 667, 1996 U.S. Dist. LEXIS 20537, 1996 WL 788649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-insurance-v-ford-motor-co-lawd-1996.