Darryl A. Vachon v. Travelers Home and Marine Insurance Company

20 F.4th 1343
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 14, 2021
Docket20-12765
StatusPublished
Cited by17 cases

This text of 20 F.4th 1343 (Darryl A. Vachon v. Travelers Home and Marine Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darryl A. Vachon v. Travelers Home and Marine Insurance Company, 20 F.4th 1343 (11th Cir. 2021).

Opinion

USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 1 of 19

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 20-12765 ____________________

DARRYL A. VACHON, Plaintiff-Appellee, versus TRAVELERS HOME AND MARINE INSURANCE COMPANY,

Defendant-Appellant.

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 8:20-cv-01201-TPB-SPF ____________________ USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 2 of 19

2 Opinion of the Court 20-12765

Before WILLIAM PRYOR, Chief Judge, LAGOA, Circuit Judge, and WATKINS, * District Judge. WILLIAM PRYOR, Chief Judge: This appeal requires us to decide whether we have appellate jurisdiction over an order that remanded a case to state court be- cause of an untimely notice of removal. Because federal law bars us from reviewing orders remanding cases based on a defect in re- moval, see 28 U.S.C. § 1447(d), we lack jurisdiction. So we dismiss this appeal. I. BACKGROUND Darryl Vachon, a citizen of Florida, was involved in a car accident in 2011. After the other driver’s insurance did not cover all of Vachon’s damages, Vachon sought to recover the balance from Travelers Home and Marine Insurance Company, his provider of “uninsured/underinsured” insurance coverage. Travelers refused to pay. In March 2013, Vachon sued Travelers in a Florida court. Travelers, a citizen of Connecticut, could not remove the action to federal court because Travelers’s “maximum coverage exposure under the . . . policy it issued was $25,000,” which is below the min- imum amount in controversy necessary to invoke diversity juris- diction. See 28 U.S.C. § 1332(a) (“The district courts shall have

*Honorable W. Keith Watkins, United States District Judge for the Middle District of Alabama, sitting by designation. USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 3 of 19

20-12765 Opinion of the Court 3

original [diversity] jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000[.]”). At trial in January 2020, the jury determined that Vachon had incurred $1,022,780 in damages, and the state court awarded Vachon $25,000, the policy maximum. See Nationwide Mut. Fire Ins. Co. v. Voigt, 971 So. 2d 239, 242 (Fla. Dist. Ct. App. 2008) (“[W]hen no dispute exists as to the policy limits . . . , the trial court should . . . grant an insurer’s motion to limit the judgment to the policy limits.”). Under Florida law, a plaintiff who recovers from his insurance company in an underinsurance suit may bring a claim against the company for “[n]ot attempting in good faith to settle [the original underinsurance] claim[.]” FLA. STAT. § 624.155(b)(1). As part of this “bad faith” claim, the plaintiff may seek “any dam- ages” reflected in the jury verdict “in excess of the policy limits.” Fridman v. Safeco Ins. Co. of Ill., 185 So. 3d 1214, 1222 (Fla. 2016). In its final judgment, the state court “reserve[d] jurisdiction to de- termine the Plaintiff’s right to amend his Complaint to seek and litigate bad faith damages from the Defendant as a result of [the] jury verdict in excess of policy limits.” See id. at 1229 (permitting state courts to retain jurisdiction for that purpose after entering judgment). In April 2020, Vachon moved to amend his complaint to add a bad faith claim. Travelers argued that the court should require Vachon to file a separate lawsuit to recover additional damages be- cause the company could “los[e] the opportunity to pursue re- moval” to federal court if Vachon was permitted to amend his USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 4 of 19

4 Opinion of the Court 20-12765

complaint. The state court granted Vachon’s motion on April 27. The same day, Vachon filed an amended complaint containing a new claim for “[s]tatutory [b]ad [f]aith,” and seeking “the total damages suffered by [Vachon].” Because the value of the action now “exceed[ed] the sum or value of $75,000,” Travelers removed the lawsuit to federal court on May 26, 2020, based on diversity jurisdiction. 28 U.S.C. § 1332(a); see also id. § 1441(a) (“[A]ny civil action brought in a State court of which the district courts of the United States have original jurisdiction . . . may be removed [to fed- eral district court].”). Vachon moved to remand on the ground that removal was untimely because Travelers had not filed its notice of removal within “1 year after commencement of the action” in March 2013. Id. § 1446(c)(1). Travelers responded that the one-year period for removal restarted when Vachon amended his complaint because “a bad faith claim is separate, distinct, and does not exist until the conclusion of an underlying [underinsurance] claim.” Travelers also argued that it would violate the Supremacy Clause to permit Vachon to “manipulate[] rules of procedure to prevent Travelers from removing an otherwise removable case to federal court.” The district court granted the motion to remand because “[section] 1446 as drafted” required it to treat the one-year removal period as having run from the date Vachon filed his first complaint in 2013. Travelers timely appealed, and we requested additional briefing about our jurisdiction. See 28 U.S.C. § 1447(d). USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 5 of 19

20-12765 Opinion of the Court 5

II. STANDARD OF REVIEW “We review our appellate jurisdiction de novo.” Overlook Gardens Props., LLC v. ORIX USA, L.P., 927 F.3d 1194, 1198 (11th Cir. 2019). III. DISCUSSION Travelers argues that it timely removed the case from state court, but we lack jurisdiction to consider that issue in this appeal. “[T]he existence of appellate jurisdiction in a specific federal court over a given type of case is dependent upon authority expressly conferred by statute.” Carroll v. United States, 354 U.S. 394, 399 (1957). Ordinarily, courts of appeals “have jurisdiction of appeals from all final decisions of the district courts.” 28 U.S.C. § 1291. An order of remand is a final decision, see In re Bethesda Mem’l Hosp., Inc., 123 F.3d 1407, 1408 (11th Cir. 1997), but Vachon argues that we lack jurisdiction because Congress has proscribed appellate re- view of certain orders remanding cases to state court, see 28 U.S.C. § 1447(d). Section 1447(d) deprives us of jurisdiction over this appeal. It provides that “[a]n order remanding a case to the State court from which it was removed is not reviewable on appeal or other- wise.” Id. Despite the broad statutory language, the Supreme Court has explained that section 1447(d) strips courts of appeals of jurisdiction to review only those orders remanding for one of the two reasons identified in section 1447(c)—“a lack of subject matter jurisdiction or a defect in removal procedure.” BP P.L.C. v. Mayor USCA11 Case: 20-12765 Date Filed: 12/14/2021 Page: 6 of 19

6 Opinion of the Court 20-12765

of Balt., 141 S. Ct. 1532, 1541 (2021); see also 28 U.S.C. § 1447(c). All “other remand orders remain appealable.” BP P.L.C., 141 S.

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Bluebook (online)
20 F.4th 1343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darryl-a-vachon-v-travelers-home-and-marine-insurance-company-ca11-2021.