James Hughes v. Jackson National Life Insurance Company

CourtDistrict Court, C.D. California
DecidedAugust 22, 2025
Docket5:24-cv-02079
StatusUnknown

This text of James Hughes v. Jackson National Life Insurance Company (James Hughes v. Jackson National Life Insurance Company) 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
James Hughes v. Jackson National Life Insurance Company, (C.D. Cal. 2025).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES — GENERAL

Case No. 5:24-cv-02079-AH-(MARx) Date August 22, 2025 Title James Hughes v. Jackson National Life Insurance Company et al.

Present: The Honorable Anne Hwang, United States District Judge

Yolanda Skipper —__———NotReported Deputy Clerk Court Reporter

Attorney(s) Present for Plaintiff(s): Attorney(s) Present for Defendant(s): None Present None Present

Proceedings: (IN CHAMBERS) ORDER GRANTING DEFENDANT’S MOTION TO DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT (DKT. No. 44); GRANTING IN PART PLAINTIFF’S MOTION TO REMAND CASE (DKT. No. 47); AND DENYING DEFENDANT’S MOTION TO STRIKE THE CLASS ACTION ALLEGATIONS AS Moot (DKT. No. 45) Before the Court is Defendant Jackson National Life Insurance Company’s (“Defendant”) Motion to Dismiss Plaintiff James Hughes’s (“Plaintiff”) Second Amended Complaint (“SAC”) (Dkt. No. 44) and Motion to Strike the Class Action Allegations in Plaintiff’s Second Amended Complaint (Dkt. No. 45). Also before the Court is Plaintiff’s Motion to Remand Case (Dkt. No. 47). The matter is fully briefed, and the Court heard oral argument on August 20, 2025. For the reasons below, the Court GRANTS IN PART Plaintiff’s Motion to Remand; GRANTS Defendant’s Motion to Dismiss; and DENIES as moot Defendant’s Motion to Strike the Class Action Allegations. I. BACKGROUND Defendant is a Michigan corporation engaged in business involving the sale and administration of life insurance. SAC, Dkt. No. 41, § 8. Plaintiff is the owner

Page 1 of 21 CIVIL MINUTES — GENERAL Initials of Deputy Clerk YS

of a universal life insurance policy through Defendant. Id. ¶ 7. In August or September of 2023, Plaintiff received a “Payment Notice” from Defendant. Id. ¶ 58. Payment was made, but Plaintiff alleges that around the same time, he received notice that the policy had lapsed for nonpayment. Id. Plaintiff alleges that Defendant did not utilize a 60-day grace period by failing to give Plaintiff actual notice of the premium amount due. Id. ¶ 67. According to the SAC, Defendant did not send any notice of pending lapse to Plaintiff or anyone else with an interest in the policy. Id. ¶ 68. Plaintiff further alleges that “[a]t the time the Policy lapsed, Mr. Hughes was financially capable of making any premium payments required to keep the Policy in force and had no cause or reason to cease making premium payments on the Policy. In fact, there is not now, nor has there ever been, any evidence that Mr. Hughes did not want and desire to maintain this investment.” Id. ¶ 177.

Plaintiff sued Defendant on July 25, 2024 in the Superior Court of California, County of Riverside, bringing individual and class claims for Declaratory Relief, Breach of Contract, Unfair Competition, Financial Elder Abuse, and Bad Faith. See generally Compl., Dkt. No. 1-1. Plaintiff alleges that Defendant failed to comply with California Insurance Code Sections 10113.71 and 10113.72 (the “Statutes”). Id.

Defendant alleges that in August 2024, Defendant sent Plaintiff copies of the required notices and his policies. Mot. to Dismiss, Dkt. No. 44, at 4. These notices were dated July 24, 2023 and August 28, 2023, allegedly addressed to Plaintiff’s current mailing address and mailed by first class mail. Id. Defendant reinstated the policy, funded the premium needed to keep the Policy in force through November 24, 2024, and does not seek to recover that premium from Plaintiff. Id.

Defendant removed this action from the Superior Court on September 27, 2024. Dkt. No. 1. Plaintiff filed the First Amended Complaint (“FAC”) on January 6, 2025. Dkt. No. 21. On February 2, 2025, Defendant filed a Motion to Dismiss Case, Dkt. No. 24, and Motion to Strike Class Action Allegations, Dkt. No. 25. On May 22, 2025, the Court granted Defendant’s Motion to Dismiss without prejudice and without leave to amend as to Plaintiff’s insufficient interest claims (Counts Two and Four); granted the Motion to Dismiss with leave to amend as to Plaintiff’s declaratory relief, bad faith, elder abuse, and UCL claims (Counts One, Three, Five, and Six); and granted in part Defendant’s Motion to Strike Class Action Allegations as to Counts One, Two and Four, without leave to amend as to Counts Two and Four. Order, Dkt. No. 39. Plaintiff filed the SAC on June 5, 2025. SAC, Dkt. No. 41. On June 20, 2025, Defendant filed a Motion to Dismiss SAC, Dkt. No. 44, and a Motion to Strike Class Action Allegations, Dkt. No. 45. Plaintiff filed Oppositions to both motions on July 9, 2025. Dkt. Nos 46, 48. Defendant filed a Reply to each Opposition on August 6, 2025. Dkt. Nos. 53, 54. Defendant also filed a Request for Judicial Notice in support of the motions on August 6, 2025.1 Dkt. No. 55.

Additionally, Plaintiff filed a Motion to Remand on July 9, 2025. Dkt. No. 47. Defendant filed an Opposition on July 30, 2025, Dkt. No. 51, and Plaintiff replied on August 6, 2025, Dkt. No. 52.

II. LEGAL STANDARD

A. Motion to Remand

“Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). A defendant may remove a civil action in state court to federal court if the federal court has original jurisdiction. 28 U.S.C. § 1441(a). “CAFA gives federal district courts original jurisdiction over class actions in which the class members number at least 100, at least one plaintiff is diverse in citizenship from any defendant, and the aggregate amount in controversy exceeds $5 million, exclusive of interest and costs.” Ibarra v. Manheim Invs., Inc., 775 F.3d 1193, 1195 (9th Cir. 2015). “[N]o antiremoval presumption attends cases invoking CAFA,” because the statute was enacted “to facilitate adjudication of certain class actions in federal court.” Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 89 (2014). “If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c).

“A motion to remand the case on the basis of any defect other than lack of subject matter jurisdiction must be made within 30 days after the filing of the notice of removal.” 28 U.S.C. § 1447(c); see also Maniar v. FDIC, 979 F.2d 782, 786 (9th Cir. 1992). A plaintiff waives procedural defects in a defendant’s notice of removal by failing to timely object. Friedenberg v. Lane Cnty., 68 F.4th 1113, 1121 (9th Cir. 2023).

1 The Court does not rely on the matters for which judicial notice is sought. B. Federal Rule of Civil Procedure 12(b)(1)

A motion for lack of subject matter jurisdiction may be brought under Federal Rule of Civil Procedure 12(b)(1). A defendant’s challenge under Rule 12(b)(1) may be either facial or factual. Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004). A facial attack “accepts the truth of plaintiff’s allegations but asserts that they ‘are insufficient on their face to invoke federal jurisdiction.’” Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014) (quoting Safe Air for Everyone, 373 F.3d at 1039).

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James Hughes v. Jackson National Life Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-hughes-v-jackson-national-life-insurance-company-cacd-2025.