Bond v. Liberty Mutual Insurance

CourtDistrict Court, D. Montana
DecidedJanuary 30, 2025
Docket9:24-cv-00059
StatusUnknown

This text of Bond v. Liberty Mutual Insurance (Bond v. Liberty Mutual Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bond v. Liberty Mutual Insurance, (D. Mont. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA MISSOULA DIVISION

ANITA BOND, CV 24-59-M-KLD Plaintiff,

vs. ORDER

LIBERTY MUTUAL INSURANCE; RURAL DEVELOPMENT, U.S. DEPARTMENT OF AGRICULTURE and FIRST AMERICAN TITLE,

Defendants.

This matter comes before Court on the following motions: (1) a motion by the United States, on behalf of Defendant Rural Development, U.S. Department of Agriculture (“USDA Rural Development”), to dismiss for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1) (Doc. 4); (2) a motion by Defendant First American Title1 to dismiss for insufficient process pursuant to Rule 12(b)(4) (Doc. 21); and (3) a motion by Defendant Liberty Mutual Insurance Company to dismiss for insufficient service of process pursuant to Rule 12(b)(5) and for failure to state a claim for relief pursuant to Rule 12(b)(6) (Doc. 25).

1 First American Title is now known as Flying S Title and Escrow of Montana,

Inc. (Doc. 21). The Court will refer to this Defendant as “FSTE”. I. Background2 Plaintiff Anita Bond, who is proceeding pro se, filed this action on April 8,

2024, in the Montana Fourth Judicial District Court, Missoula County. (Doc. 6). Bond initiated her lawsuit by filing a “Petition for Summary Judgment” (Doc. 6) and three “Motions for Summary Judgment” (Doc. 7 at 7-24) all of which the

Court liberally construes as a Complaint. On May 2, 2024, the United States timely removed the case to this Court pursuant to 28 U.S.C. § 1442 on the ground that it is a civil action against an agency of the United States for official conduct. Taking the allegations against USDA Rural Development as true, on August

24, 2020, Bond closed on a loan from USDA Rural Development to refinance her existing mortgage and repair her home. (Doc. 7 at 15). Also on August 24, 2020, Bond entered a Construction Disbursement Agreement with USDA Rural

Development and FSTE. (Doc. 7 at 15; Doc. 5-1). The disbursement agreement designated FSTE as the escrow holder responsible for disbursing funds in the amount of $40,756.13 for payment of necessary construction costs and required written approval by all parties prior to each disbursement. (Doc. 5-1 at 1).

On August 26, 2020—during the loan agreement’s three-day rescission period—USDA Rural Development and FSTE released $8,500 to contractor Mike

The following facts are taken from the pleadings and other documents that are 2 properly considered under the Rule 12(b) legal standards outlined below. McDanal without Bond’s written approval. (Doc. 7 at 15). McDanal was working on another project at the time, and Bond alleges that “the money should have gone

to” a different contractor selected by Rural Development, Justin Crandall. (Doc. 7 at 15). Crandall later caused “severe structural damage” to Bond’s home. (Doc. 7 at 15). In the fall of 2021, USDA Rural Development advised Bond “that they

would not see the remodel project to completion,” and the remodel of Bond’s home still is not complete. (Doc. 7 at 15). Bond alleges USDA Rural Development breached the loan agreement by failing to see the remodel project to completion and cancelling the contract. (Doc.

7 at 15). Bond further alleges that USDA Rural Development breached the terms of the disbursement agreement by releasing $8,500 to McDanal prematurely and without Bond’s written approval. (Doc. 7 at 15). Bond claims that USDA Rural

Development “breached said contract due to negligence by their contractors, by the loss of remodel funds by Mike McDanal and severe structural damage to the remodel done by Justin Crandall.” (Doc. 7 at 15). In her “Motion for Summary Judgment” against FSTE, Bond similarly

alleges that FSTE also violated the disbursement agreement by releasing funds from her “escrow account and issuing a post-dated check to Rural Development’s contractor Mike McDanal” without Bond’s authorization during the loan

agreement’s three-day rescission period.” (Doc. 7 at 20). Finally, in her “Motion for Summary Judgment” against Liberty Mutual, Bond alleges that Justin Crandall, doing business as Mud Man, is insured by

Liberty Mutual. (Doc. 7 at 9). Bond asserts that Crandall was hired by USDA Rural Development to remodel her home, but he was “unreliable and not professional in his trade.” (Doc. 7 at 9). Bond claims Crandall “has made the house

unlivable and unsafe due to his vandalism and lack of funding to complete the remodel.” (Doc. 7 at 9). Bond asks the Court to enter an order to “help in settling the claim against Liberty Mutual Insurance, who’s insured Justin Crandall caused severe structural damage” to Bond’s property while performing remodel work.

(Doc. 7 at 7). The United States moves to dismiss the Complaint for lack of subject matter jurisdiction pursuant to Rule 12(b)(1) on the ground that it has not waived its

sovereign immunity. FSTE moves to dismiss for insufficient process pursuant to Rule 12(b)(4) based on Bond’s failure to comply with applicable service requirements, and Liberty Mutual similarly moves to dismiss for insufficient service of process pursuant to Rule 12(b)(5). Liberty Mutual also moves to dismiss

for failure to state a claim for relief pursuant to Rule 12(b)(6). II. Legal Standards A. Rule 12(b)(1) and (6) A motion to dismiss under Rule 12(b)(1) challenges the court’s subject matter jurisdiction over the claims asserted. “Once challenged, the party asserting

subject matter jurisdiction has the burden of proving its existence.” Rattlesnake Coalition v. United States Environmental Protection Agency, 509 F.3d 1095, 1102 n. 1 (9th Cir. 2007).

A defendant may pursue a Rule 12(b)(1) motion to dismiss for lack of jurisdiction either as a facial challenge to the allegations of a pleading, or as a substantive challenge to the facts underlying the allegations. Savage v. Glendale Union High School, Dist. No. 205, Maricopa County, 343 F.3d 1036, 1039 n. 2

(9th Cir. 2003). A facial challenge to the jurisdictional allegations is one which contends that the allegations “are insufficient on their face to invoke federal jurisdiction.” Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004).

The success of a facial challenge to jurisdiction depends on the allegations in the complaint, and does not involve the resolution of a factual dispute. Wolfe v. Strankman, 392 F.3d 358, 362 (9th Cir. 2004). “By contrast, in a factual attack, the challenger disputes the truth of the allegations that, by themselves, would

otherwise invoke federal jurisdiction.” Safe Air for Everyone, 373 F.3d at 1039. Here, the United States argues that Bond has not alleged facts establishing a waiver of sovereign immunity, which raises a facial challenge to subject matter

jurisdiction. When considering a facial challenge, the court applies the same standard that applies to motions to dismiss under Rule 12(b)(6) and takes the allegations in the complaint as true, draws all reasonable inferences in the

plaintiff’s favor, and determines whether the allegations are sufficient to invoke the court’s jurisdiction. Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014).

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