Cain v. Hartford Life & Accident Insurance

890 F. Supp. 2d 1246, 2012 U.S. Dist. LEXIS 130356, 2012 WL 3893599
CourtDistrict Court, C.D. California
DecidedSeptember 7, 2012
DocketCase No. CV 12-5421 R (JEMx)
StatusPublished
Cited by13 cases

This text of 890 F. Supp. 2d 1246 (Cain v. Hartford Life & Accident Insurance) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cain v. Hartford Life & Accident Insurance, 890 F. Supp. 2d 1246, 2012 U.S. Dist. LEXIS 130356, 2012 WL 3893599 (C.D. Cal. 2012).

Opinion

ORDER DENYING PLAINTIFF CAIN’S MOTION FOR REMAND

MANUEL L. REAL, District Judge.

On May 22, 2012, Plaintiff Nancy Amparo Cain filed this lawsuit in Los Angeles Superior Court, alleging causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing (“bad faith”) against Defendant Hartford Life and Accident Insurance Company (“Hartford”). Defendant Hartford timely removed the case to federal court on the grounds of diversity jurisdiction. 28 U.S.C. § 1332(a). Plaintiff Cain subsequently filed a Motion to remand the case back to state court on the grounds that Defendant Hartford had not established the “amount in controversy” requirement of Section 1332. The Motion was heard and decided by this Court on September 4, 2012, at 10:00 a.m. Michael Horrow of Donahue & Horrow appeared on behalf of Plaintiff Cain. Melissa M. Cowan of Burke, Williams & Sorensen, LLP, appeared on behalf of Defendant Hartford.

Based on the hearing, as well as review of the parties’ papers and applicable law, the Court hereby orders that Plaintiffs Motion for Remand is denied.

I. BACKGROUND

This case arises out of Plaintiffs claim for long term disability insurance benefits under a group policy Hartford issued to her former employer, the State Bar of California. (Complaint, ¶ 1.) The Complaint alleges that disability benefits are payable under the policy for total disability [1248]*1248at an amount equal to 60% of Plaintiffs Pre-Disability Earnings following a 90 day Elimination Period, until age 65, presuming Plaintiff continues to meet the definition of Disability under the Plan. (Complaint, ¶1¶ 5-7.)

Plaintiff alleges that she was a paralegal for the State Bar of California for over thirteen years. She alleges that as her health declined and her pain levels increased, she could no longer competently perform the material and substantial duties of her occupation. (Complaint, ¶ 1.) The Complaint alleges that Plaintiff submitted a claim for disability benefits under the policy, which Hartford approved on or about January 4, 2011. (Complaint, ¶ 18.) Plaintiffs physician, Dr. Sobol, confirmed her ongoing disability. (Complaint, ¶¶ 19, 21.) Plaintiff asserts that on or about January 10, 2012, Hartford denied her claim for continuing benefits. (Complaint, ¶¶ 19, 21.)

In her Second Cause of Action, Plaintiff alleges that Hartford breached the contract by failing to pay benefits. (Complaint, Second Cause of Action, ¶¶ 11-12.) In her First Cause of Action, Plaintiff alleges that Hartford breached the duty of good faith and fair dealing in a number of ways, including: (a) unreasonably failing to make payments to Plaintiff at a time when Defendants knew that she was entitled to the payments under the terms of the Policy; (b) unreasonably delaying payments to Plaintiff knowing Plaintiffs claim for benefits under the Policy to be valid; (c) unreasonably withholding payments from Plaintiff knowing Plaintiffs claim for benefits under the Policy to be valid; (d) unreasonably misrepresenting to Plaintiff pertinent facts and Insurance Policy provisions relating to the coverage in issue; (e) Failing to reasonably and promptly investigate and process Plaintiffs claim for benefits; (f) not attempting in good faith to effectuate a prompt, fair and equitable settlement of Plaintiffs claim for benefits in which liability has become reasonably clear; and (g) failing to promptly provide a reasonable explanation of the basis relied upon in the Policy, in relation to the applicable facts, for the denial of Plaintiffs claim for benefits. (Complaint, First Cause of Action, ¶¶ 1-2.)

As a result, Cain alleges that she suffered contract and tort damages, including damages for failure to pay benefits under the Policy, prejudgment interest, other economic and consequential damages, emotional distress damages, and attorneys’ fees. (Complaint, First Cause of Action, ¶¶ 3-5; Prayer, First Cause of Action, ¶¶ 1-2; Second Cause of Action, ¶¶ 12; Prayer, Second Cause of Action, ¶ 1.) Cain further claims that Hartford’s conduct was malicious, oppressive and fraudulent, warranting the imposition of punitive damages. (Complaint, First Cause of Action, ¶ 6; Prayer, First Cause of Action, ¶ 3.)

II. Legal Standard

Federal law permits “any civil action brought in a State court of which the district courts of the United States have original jurisdiction” to “be removed by the defendant ... to the district court of the United States for the district and the division embracing the place where such action is pending.” 28 U.S.C. § 1441(a).

Diversity jurisdiction exists where the parties are diverse and the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). The amount in controversy for jurisdictional purposes is determined by the amount of damages or the value of the property that is the subject of the action. Hunt v. Washington State Apple Advertising Commission, 432 U.S. 333, 97 S.Ct. 2434, 53 L.Ed.2d 383 (1977). When the amount in controversy [1249]*1249is not clear from the face of the complaint, the defendant must show by a preponderance of the evidence that the jurisdictional threshold has been met. Sanchez v. Monumental Life Ins. Co., 102 F.3d 398, 403-04 (9th Cir.1996). In measuring the amount in controversy, a court must assume that the allegations of the complaint are true and assume that a jury will return a verdict for the plaintiff on all claims made in the complaint. Kenneth Rothschild Trust v. Morgan Stanley Dean Witter, 199 F.Supp.2d 993, 1001 (C.D.Cal.2002). “The ultimate inquiry is what amount is put “in controversy” by the plaintiffs complaint, not what a defendant will actually owe.” Korn v. Polo Ralph Lauren Corp., 536 F.Supp.2d 1199, 1205 (E.D.Cal.2008).

Evidence offered in opposition to a motion to remand can be construed as an amendment to the notice of removal. Cohn v. Petsmart, Inc., 281 F.3d 837, 840 n. 1 (9th Cir.2002); see also Willingham v. Morgan, 395 U.S. 402, 405 n. 3, 89 S.Ct. 1813, 23 L.Ed.2d 396 (1969) (“it is proper to treat the removal petition as if it had been amended to include the relevant information contained in the later-filed affidavits”).

III. Discussion

The Court finds that it has jurisdiction over this case pursuant to Section 1332. 28 U.S.C. § 1332.

A. Complete Diversity

The parties do not dispute that the diversity prong of the Section 1332 has been met. Cain is and was a citizen of the state of California at all relevant times.

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890 F. Supp. 2d 1246, 2012 U.S. Dist. LEXIS 130356, 2012 WL 3893599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cain-v-hartford-life-accident-insurance-cacd-2012.