G.T. v. Liberty Mutual Fire Insurance Company

CourtDistrict Court, E.D. Missouri
DecidedJune 26, 2025
Docket4:25-cv-00128
StatusUnknown

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

Bluebook
G.T. v. Liberty Mutual Fire Insurance Company, (E.D. Mo. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

G.T., ) ) Plaintiff, ) ) v. ) No. 4:25-CV-128 HEA ) LIBERTY MUTUAL FIRE ) INSURANCE COMPANY, et al., ) ) Defendants. )

OPINION, MEMORANDUM AND ORDER This matter is before the Court on Plaintiff G.T.’s Motion to Remand, which Defendant James McLaurie joins.1 (ECF Nos. 37 and 41). Defendant Liberty Mutual Fire Insurance Company (“Liberty Mutual”) opposes the motion, which is fully briefed and ripe for review. Based on Defendant James McLaurie’s joinder in the Motion to Remand, this matter will be remanded to state court. I. Background On May 3, 2023, Plaintiff G.T. brought suit in the Circuit Court of St. Charles County, Missouri against James and Susan McLaurie for the physical and sexual

1Also pending before the Court are Liberty Mutual’s Motions to Strike Blake Markus’s Entry of Appearance on Behalf of Decedent Susan McLaurie, to Strike Decedent Susan McLaurie’s Disclosure Statement, to Bifurcate and Stay Discovery and Trial as to Counts II-V of Plaintiff’s Complaint, to Stay Pending Ruling on Plaintiff’s Motion to Remand, and to Strike and to Enforce the Parties’ Agreed Upon Stay, (EFC Nos. 13, 33, 43, 49, and 72), as well as Plaintiff’s Motion to Appoint Defendant ad Litem and Motion to Strike Answer to Complaint, (ECF Nos. 19 abuse she endured while she was in their care during certain periods of time between

March 2008 and May 2009, when she 3-4 years old.2 See G.T. v. McLaurie, et al., Case No. 2311-CC00467 (“Underlying Litigation”). Plaintiff brought separate claims of negligence against James McLaurie and Susan McLaurie for negligent supervision. On October 30, 2024, following a bench trial, the Honorable W.

Christopher McDonough entered Judgment in favor of Plaintiff G.T. and against Defendants James McLaurie for $150,000,000, and in favor of Plaintiff G.T. and against Susan McLaurie for $150,000,000, for a total judgment of $300,000,000.

On January 17, 2025, Plaintiff filed a Petition against Defendants Liberty Mutual, James McLaurie, and Susan McLaurie in the Circuit Court of St. Charles County, Missouri seeking to collect on the Judgment entered in the Underlying Litigation. G.T. v. Liberty Mutual Fire Insurance Company, Case No. 2511-

CC00068. In her Petition, Plaintiff brings claims for Equitable Garnishment under Mo. Rev. Stat. § 379.200 against all three defendants (Count I). Plaintiff also brings claims of Bad Faith (Count II), Breach of Contract (Count III), and Breach of

Fiduciary Duty (Count IV) against Liberty Mutual. Plaintiff alleges Liberty Mutual

2 Susan McLaurie died on August 1, 2022, approximately nine months before the Underlying Litigation was filed. The state court appointed attorney Blake I. Markus as defendant ad litem to act as the legal representative of Susan McLaurie, the deceased wrongdoer and insured. See Mo. Rev. Stat. § 537.021(1).

2 provided Susan and James McLaurie with coverage under three insurance policies,

and that the policies provided coverage for the negligence claims asserted in the Underlying Litigation. Liberty Mutual denied coverage under the polices and refused to provide Defendants James and Susan McLaurie a defense. On January 31, 2025, Defendant Liberty Mutual removed the cause of action

to this Court. Defendant James McLaurie was not served at the time of removal and has never been served. Defendant James McLaurie voluntarily entered an appearance on February 21, 2025. He did not join in Liberty Mutual’s Notice of

Removal, and in fact, on March 13, 2025, he joined Plaintiff’s Motion to Remand. Defendant Susan McLaurie also did not join in the removal. In its Notice of Removal, Liberty Mutual avers this Court has original jurisdiction over the dispute pursuant to 28 U.S.C. § 1332, because there is complete

diversity of citizenship between Plaintiff and each of the Defendants and that the amount in controversy exceeds $75,000. (ECF No. 1 at 5). Complete diversity, however, is lacking on the face of the Petition, as Plaintiff and Defendant James

McLaurie are alleged to be citizens of Missouri.3 Liberty Mutual avers that

3Liberty Mutual avers that it is an insurance company organized and existing under the laws Wisconsin with its principal place of business in Massachusetts. Prior to her death, Susan McLaurie was an individual resident and citizen of the State of Tennessee. However, as Susan McLaurie is deceased, Liberty Mutual argues her citizenship should be disregarded for purposes of diversity.

3 Defendant James McLaurie, who is presently incarcerated at the Potosi Correctional

Center in Mineral Point, Missouri, is a citizen of Texas. Alternatively, Liberty Mutual argues Defendants James McLaurie should be realigned with Plaintiff. Plaintiff GT and Defendant James McLaurie seek remand under 28 U.S.C. § 1447(c).

II. Legal Standard For diversity jurisdiction to exist under 28 U.S.C. § 1332(a)(1) there must be complete diversity of citizenship between plaintiffs and defendants. Buckley v.

Control Data Corp., 923 F.2d 96, 97, n.6 (8th Cir. 1991). Diversity jurisdiction requires “complete diversity, that is where no defendant holds citizenship in the same state where any plaintiff holds citizenship.” Junk v. Terminix Int'l Co., 628 F.3d 439, 445 (8th Cir. 2010). “It is settled, of course, that absent complete

diversity a case is not removable because the district court would lack original jurisdiction.” Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 564 (2005) (cited case omitted). Where complete diversity of citizenship does not exist, 28

U.S.C. § 1447(c) requires a district court to remand the case to state court for lack of subject matter jurisdiction.

4 III. Discussion

In moving to remand, Plaintiff G.T. and Defendant James McLaurie assert that this Court lacks jurisdiction because complete diversity does not exist between the parties. See 28 U.S.C. § 1332. Specifically, they argue both Plaintiff G.T. and Defendant James McLaurie are citizens of Missouri.4 In opposing remand, Liberty

Mutual argues that Defendant James McLaurie is a citizen of Texas. It also urges the Court to realign the parties so that Defendant James McLaurie is aligned with Plaintiff G.T. and not the defendants. The Court will first address the alignment

issue before turning to the citizenship of Defendant James McLaurie. A. Alignment of Parties According to Liberty Mutual, there is no actual, substantial controversy between G.T. and James McLaurie. The company points to the fact that G.T. is not

bringing claims against James McLaurie in Counts II-IV of her Amended Complaint, and it contends G.T. and James McLaurie are not adverse with respect to Count I, the equitable garnishment claim, but rather their interests are aligned. Liberty

Mutual argues both parties have an interest in having all or a part of the judgment in the Underlying Litigation satisfied by the insurer. Liberty Mutual asserts James

4 There is no dispute that the requisite amount in controversy is met. See 28 U.S.C. § 1332(a).

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G.T. v. Liberty Mutual Fire Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gt-v-liberty-mutual-fire-insurance-company-moed-2025.