Fields v. Aaa Life Insurance Company

Court of Appeals for the Ninth Circuit·Decided August 4, 2026·No. 25-5893·Unpublished

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS AUG 4 2026 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT

GINA FIELDS, The Estate of Thomas Lee No. 25-5893 Howard by and through the Independent D.C. No. Administrator Gina Fields, 5:24-cv-02704-JGB-SP Plaintiff - Appellant, MEMORANDUM* v.

AAA LIFE INSURANCE COMPANY, a Michigan corporation; GENENEN N. DUNN,

Defendants - Appellees,

and

DOES, 1-30,

Defendant.

Appeal from the United States District Court for the Central District of California Jesus G. Bernal, District Judge, Presiding

Submitted July 31, 2026**

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. ** The panel unanimously concludes this case is suitable for decision without oral argument. See Fed. R. App. P. 34(a)(2). Before: WARDLAW, BADE, and JOHNSTONE, Circuit Judges

Gina Fields (“Fields”) appeals the district court’s orders dismissing her

claims against AAA Life Insurance Company (“AAA”) and Genene Dunn

(“Dunn”) for lack of standing, and denying her motions to remand, for leave to file

a second amendment complaint, and for post-judgment relief. We have

jurisdiction under 28 U.S.C. § 1291. We affirm.

We review de novo the denial of a motion to remand to state court. Hunter

v. Philip Morris USA, 582 F.3d 1039, 1042 (9th Cir. 2009). “We review de novo

an order granting a motion to dismiss for lack of standing under Rule 12(b)(1).”

Southcentral Found. v. Alaska Native Tribal Health Consortium, 983 F.3d 411,

416 (9th Cir. 2020). We review the denial of leave to amend and the denial of

post-judgment relief under Federal Rules of Civil Procedure 59(e) and 60(b) for

abuse of discretion. V.V.V. & Sons Edible Oils Ltd. v. Meenakshi Overseas, LLC,

946 F.3d 542, 545 (9th Cir. 2019); Kona Enters., Inc. v. Est. of Bishop, 229 F.3d

877, 883 (9th Cir. 2000); Flores v. Rosen, 984 F.3d 720, 731 (9th Cir. 2020).

1. The district court correctly denied Fields’s motion to remand the case

to state court on the grounds that Dunn was fraudulently joined. “Diversity

removal requires complete diversity, meaning that each plaintiff must be of a

different citizenship from each defendant.” Grancare, LLC v. Thrower ex rel.

Mills, 889 F.3d 543, 548 (9th Cir. 2018). Under the doctrine of fraudulent joinder,

2 25-5893 however, “[i]f a plaintiff fails to state a cause of action against a resident

defendant, and the failure is obvious according to the well-settled rules of the state,

the joinder is fraudulent and the defendant’s presence in the lawsuit is ignored for

purposes of determining diversity.” United Comput. Sys., Inc. v. AT & T Corp.,

298 F.3d 756, 761 (9th Cir. 2002) (citation and quotation marks omitted).

Fields raises three contract-based claims against Dunn: “breach of contract,”

“breach of the implied covenant of good faith and fair dealing,” and “bad-faith.”

However, the record establishes that Dunn was not a party to the life insurance

policy that formed the basis of Fields’s claims. Accordingly, Fields cannot

establish a colorable breach of contract claim against Dunn. See id. at 761

(holding that a defendant who was “not a party to any relevant contract on which

plaintiff could predicate a claim against her” was fraudulently joined) (citation

omitted). For the same reason, Fields cannot establish a colorable implied

covenant or bad faith claim against Dunn. See Smith v. City and Cnty. of San

Francisco, 225 Cal. App. 3d 38, 49 (1990) (“The prerequisite for any action for

breach of the implied covenant of good faith and fair dealing is the existence of a

contractual relationship between the parties.”).

Nor does Fields present a colorable fraud claim against Dunn. Fields argues

that Dunn “submitted false probate documents—false domicile, false marital

status, false heirship, and an invalid death certificate.” A fraud claim under

3 25-5893 California law requires (1) a “misrepresentation”; (2) “knowledge of falsity”; (3)

“intent to defraud, i.e., to induce reliance”; (4) “justifiable reliance”; and (5)

“resulting damage.” Bank of the W. v. Valley Nat’l Bank of Ariz., 41 F.3d 471, 477

(9th Cir. 1994) (quoting Hackethal v. Nat’l Casualty Co., 189 Cal. App. 3d 1102,

1111 (1987)). The district court correctly determined that Fields does not allege

that Dunn made any misrepresentation to Fields, nor that Fields “relied on any

such misrepresentation to [her] detriment.”

2. The district court correctly determined that Dunn was not required to

join the removal petition. Fields argues that Dunn filed a sanctions motion

“[b]efore removal” and thus “was required to consent to removal but did not.”

Although “the usual rule is that all defendants in an action in a state court must join

in a petition for removal . . . the rule of unanimity does not apply to nominal,

unknown or fraudulently joined parties.” United Comput. Sys., Inc., 298 F.3d at

762 (citation and quotation marks omitted); see also 28 U.S.C. § 1446(b)(2)(A)

(requiring consent to remove by “all defendants who have been properly joined

and served”). Because Dunn was fraudulently joined, the district court correctly

held that Dunn was not required to join the petition for removal.

3. The district court correctly determined that Fields’s claims are not

covered by the “probate exception.” “[T]he probate exception reserves to state

probate courts the probate or annulment of a will and the administration of a

4 25-5893 decedent’s estate; it also precludes federal courts from endeavoring to dispose of

property that is in the custody of a state probate court.” Marshall v. Marshall, 547

U.S. 293, 311–12 (2006). But the probate exception “does not bar federal courts

from adjudicating matters outside those confines and otherwise within federal

jurisdiction.” Id. at 312. This suit is a damages action against AAA for allegedly

paying the wrong party, and it does not require the court to administer an estate or

dispose of property in the custody of a California probate court. Thus, the district

court correctly determined that the “probate exception” does not provide a ground

for remand.1

4. The district court correctly dismissed Fields’s claims against AAA

under Federal Rule of Civil Procedure 12(b)(1) for lack of standing. Fields raises

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Related

Marshall v. Marshall
547 U.S. 293 (Supreme Court, 2006)
Hunter v. Philip Morris USA
582 F.3d 1039 (Ninth Circuit, 2009)
Hackethal v. National Casualty Co.
189 Cal. App. 3d 1102 (California Court of Appeal, 1987)
Hatchwell v. Blue Shield of California
198 Cal. App. 3d 1027 (California Court of Appeal, 1988)
Smith v. City and County of San Francisco
225 Cal. App. 3d 38 (California Court of Appeal, 1990)
Grancare v. Ruth Thrower
889 F.3d 543 (Ninth Circuit, 2018)
Leland Wheeler v. City of Santa Clara
894 F.3d 1046 (Ninth Circuit, 2018)
Southcentral Foundation v. Anthc
983 F.3d 411 (Ninth Circuit, 2020)
Jenny Flores v. Jeffrey Rosen
984 F.3d 720 (Ninth Circuit, 2020)