Do Restaurants, Inc. v. Aspen Specialty Insurance

984 F. Supp. 2d 1342, 2013 WL 6182619
CourtDistrict Court, S.D. Florida
DecidedNovember 26, 2013
DocketCase No. 13-62376-Civ.
StatusPublished
Cited by22 cases

This text of 984 F. Supp. 2d 1342 (Do Restaurants, Inc. v. Aspen Specialty Insurance) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Do Restaurants, Inc. v. Aspen Specialty Insurance, 984 F. Supp. 2d 1342, 2013 WL 6182619 (S.D. Fla. 2013).

Opinion

[1344]*1344 Order Denying Motion for Remand And Requiring Amended Notice Of Removal

ROBERT N. SCOLA, JR., District Judge.

THIS MATTER is before the Court on Plaintiffs Motion for Remand (DE 6). Having reviewed the Motion, the record, and the relevant legal authorities, for the reasons that follow, the Motion is denied. However, because the Notice of Removal does not enable the Court to determine whether it has subject matter jurisdiction over this case, Defendant Aspen Specialty Insurance (“Aspen”) must file an amended Notice of Removal.

Background

This is a civil action originally filed in August 2013 in the Circuit Court of the Seventeenth Judicial Circuit, in and for Broward County. In the Complaint, Plaintiff DO Restaurant Inc. d/b/a Café Maxx (“Café Maxx”) sought damages for breach of contract based on a policy insurance issued by Defendant Aspen. Café Maxx alleged that the damages were in excess of $15,000. In October 2013, Aspen filed its Notice of Removal (DE 1) to remove the action to this Court.

Aspen claims that this Court has jurisdiction based on diversity of citizenship and the amount in controversy between Aspen and Café Maxx exceeds $75,000. To, satisfy the amount in controversy Aspen relies on (1) Café Maxx’s allegation in the original Complaint that the amount in controversy would exceed the Circuit Court’s jurisdictional limit of $15,000; (2) Café Maxx’s $64,056.36 damages estimate; and (3) Café Maxx’s request for attorney’s fees — estimated by Aspen to be $50,000— under Fla. Stat. 627.428. Aspen argues that these amounts should be considered collectively and therefore exceed the $75,000 requirement.

Café Maxx claims that Aspen failed to establish by a preponderance of evidence that the amount in controversy exceeds $75,000. Café Maxx argues that Aspen’s estimate of $50,000 in attorney’s fees is speculative and therefore cannot be used to meet the jurisdictional limit. As a result, according to Café Maxx, this case should be remanded because the amount in controversy at the time of removal is $64,056.36.

Legal Standard for Diversity Jurisdiction

Federal courts are courts of limited jurisdiction. Federated Mut. Ins. Co. v. McKinnon Motors, LLC, 329 F.3d 805, 807 (11th Cir.2003). A civil action may be removed from state court to federal district court if the action is within the “original jurisdiction” of the federal court. 28 U.S.C. § 1441(a). Original jurisdiction exists when a civil action raises a federal question, or where the action is between citizens of different states and the amount in controversy exceeds $75,000. See 28 U.S.C. §§ 1331,1332. Aspen removed this action based upon diversity jurisdiction and therefore has the burden to prove by a preponderance of the evidence that federal jurisdiction exists. Pretka v. Kolter City Plaza II, Inc., 608 F.3d 744, 751 (11th Cir.2010) (citing Vega v. T-Mobile USA, Inc., 564 F.3d 1256, 1268 n. 12 (11th Cir.2009)).

The parties dispute whether or not the amount in controversy in this action exceeds $75,000.00, as required by § 1332(a). Where, as in this case, the complaint alleges an unspecified amount of damages, “the district court is not bound by the plaintiffs representations regarding its claim,” and may review the record for evidence relevant to the amount in controversy. Roe v. Michelin N. Am., Inc., 613 F.3d 1058, 1061 (11th Cir.2010). The jurisdictional requirements of removal do not [1345]*1345limit the types of evidence that may be used to satisfy the preponderance of the evidence standard and defendants may introduce their own “affidavits, declarations, or other documentation” to meet their burden. Pretka, 608 F.3d at 755.

Analysis

I. Diversity Of Citizenship

Under 28 U.S.C § 1332(c)(1), a corporation is considered a citizen of its state of incorporation and of the state where it has its principal place of business. Aspen sufficiently alleges its citizenship, but fails to adequately allege the citizenship of Café Maxx: Aspen states that Café Maxx is a Florida corporation, but it does not indicate Café Maxx’s state of incorporation or principal place of business. (DE 1 at 2.) The Court needs that information to assess jurisdiction. Aspen, therefore, must file an amended Notice of Removal with this information.

II. Amount In Controversy

Café Maxx did not claim a specific amount of damages in its complaint and simply alleges that damages exceed $15,000. As a result, Aspen must prove by a preponderance of the evidence that the amount in controversy exceeds the jurisdictional requirement of $75,000. See Pretka, 608 F.3d at 751.

a. Café Maxx’s Expected Damages

Aspen submitted a $64,056.36 estimate of damages to meet the amount in controversy. (DE 1-1.) The estimate of damages was produced by Café Maxx in response to Aspen’s Request for Production. (DE 1 at 3.) Café Maxx does not contest the amount or the sufficiency of the evidence provided, but states only that Aspen is over $10,000 short of the Court’s jurisdictional threshold of $75,000. To be exact, Aspen is $10,943.65 short if the Court only considers the estimate of damages. But the Court is not limited to the estimate of damages and can review the record for evidence relevant to the amount in controversy. See Roe, 613 F.3d at 1061. As a consequence, this Court can retain jurisdiction if it determines that Café Maxx’s request for unspecified attorney’s fees, combined with the $64,056.36 damages estimate, suffices to place the amount in controversy over $75,000.

b. Café Maxx’s Request For Attorney’s Fees

When a statute authorizes the recovery of attorney’s fees, and the plaintiff has requested attorney’s fees, a reasonable amount of those fees is included in the amount in controversy. Missouri State Life Ins. Co. v. Jones, 290 U.S. 199, 201, 54 S.Ct. 133, 78 L.Ed. 267 (1933); Morrison v. Allstate Indemnity Co., 228 F.3d 1255, 1265 (11th Cir.2000). To determine whether those fees are reasonable a court may look at evidence within the complaint and the defendants may introduce their own “affidavits, declarations, or other documentation” to meet their burden. See Pretka, 608 F.3d at 755; Mirras v. Time Ins. Co., 578 F.Supp.2d 1351, 1352 (M.D.Fla.2008); Northup Props., Inc. v. Chesapeake Appalachia LLC, 567 F.3d 767, 770-71 (6th Cir.2009) (concluding that the defendant’s affidavits were specific enough to prevent the determination of the amount in controversy “from becoming a matter of judicial star-gazing”).

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Bluebook (online)
984 F. Supp. 2d 1342, 2013 WL 6182619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/do-restaurants-inc-v-aspen-specialty-insurance-flsd-2013.