Ortiz v. Biscanin

190 F. Supp. 2d 1237, 2002 U.S. Dist. LEXIS 2851, 2002 WL 398304
CourtDistrict Court, D. Kansas
DecidedFebruary 15, 2002
DocketCIV.A. 01-2425-CM, CIV.A. 01-2294-CM
StatusPublished
Cited by9 cases

This text of 190 F. Supp. 2d 1237 (Ortiz v. Biscanin) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ortiz v. Biscanin, 190 F. Supp. 2d 1237, 2002 U.S. Dist. LEXIS 2851, 2002 WL 398304 (D. Kan. 2002).

Opinion

MEMORANDUM AND ORDER

MURGUIA, District Judge.

The court consolidated the above-captioned actions for pretrial purposes. In Ortiz v. Biscanin, No. 01-2425-CM (“the garnishment action”), plaintiff Maria Ortiz seeks to garnish Guarantee National Insurance Co. (GNIC) to obtain satisfaction of a state court wrongful death judgment against defendant John Biscanin. 1 Ms. Ortiz is the widow of Gilberto Ortiz, who was killed in an automobile accident with Theodoro Hernandez, who also was killed. Mr. Hernandez was driving a car owned by Sandra Simental, who was insured by GNIC. Mr. Biscanin is the administrator of Mr. Hernandez’s estate. In Guaranty National Insurance Co. v. Ortiz, et al., No. 01-2294-CM (“the federal declaratory judgment action”), plaintiff GNIC seeks a declaratory judgment determining its rights and liabilities regarding the application of its obligations under the insurance policy to the wrongful death settlement. Pending before the court are motions to remand the garnishment action by plaintiff Ortiz (Doc. 4) and defendant Biscanin (Doc. 9). Also before the court are motions to stay or dismiss the declaratory judgment action by defendant Biscanin (Doc. 10), and a motion to dismiss the declaratory judgment action filed by Ms. Ortiz, who is a defendant in that action (Doc. 12). Finally, plaintiff GNIC has moved the court in the declaratory judgment action to stay the garnishment proceedings until the federal declaratory judgment action is adjudicated (Doc. 16).

For the reasons set forth below, the court grants plaintiff Ortiz and defendant Biscanin’s motions to remand the garnishment action to the District Court of Wyan-dotte County, Kansas. The court grants in part and denies in part defendant Bisca-nin’s motion to stay or dismiss the declaratory judgment action. Defendant Ortiz’s motion to dismiss the declaratory judgment action is denied. Plaintiff GNIC’s motion to stay the garnishment action is denied.

I. Facts

Both actions stem from a March 24, 1997, automobile accident in which Mr. Ortiz and Mr. Hernandez were killed. Mr. Hernandez was driving a car owned by Ms. Simental and insured by GNIC. On August 11, 1997, Med James, Inc., the managing general agent of GNIC, denied coverage under the policy based on allegations that Ms. Simental made material mis *1240 representations at the time of the application process. In August 1997, Med James, acting on behalf of GNIC, filed a declaratory judgment action (No. 97-C-3371) (“the state declaratory judgment action”) in the District Court of Wyandotte County, Kansas. GNIC sought a declaration that the insurance policy covering the vehicle driven by Mr. Hernandez was void ab ini-tio. Ms. Ortiz intervened in this action by agreement of the parties in December 1997. In March 1998, Ms. Ortiz filed a wrongful death action (No. 98-C-1309) (“the wrongful death action”) in the District Court of Wyandotte County, Kansas, against Mr. Biscanin. GNIC refused to provide a defense. The state declaratory judgment and wrongful death actions were consolidated for discovery purposes. In July 1998, the declaratory judgment case was tried before the Hon. Daniel Duncan. In April 2000, Judge Duncan issued a memorandum decision in the state declaratory judgment action finding that GNIC’s policy was in effect at the time of the accident and denying GNIC’s petition for declaratory judgment.

In May 2000, the District Court of Wyandotte County approved a settlement of $500,000 in the wrongful death action to be paid to Ms. Ortiz by Mr. Hernandez’s estate. GNIC then intervened in the case, and appealed it to the Kansas Court of Appeals on June 12, 2000. GNIC then dismissed the appeal on July 11, 2000, and the clerk of the court entered the dismissal of the appeal on July 14, 2000. In the declaratory judgment action, the Kansas Court of Appeals affirmed Judge Duncan’s decision denying declaratory judgment on June 1, 2001. On June 13, 2001, GNIC paid Ms. Ortiz $25,000 in partial satisfaction of the $500,000 wrongful death judgment. The balance remains unsatisfied.

Also on June 13, 2001, GNIC filed the federal declaratory judgment action in this court, seeking a judgment that GNIC has no obligation to pay in excess of its policy limits on the settlement obtained by Ms. Ortiz against Mr. Biscanin in the state wrongful death action. The following day, June 14, 2001, Ms. Ortiz filed a request for garnishment in the wrongful death action, and filed an order of garnishment on July 12, 2001. On July 16, 2001, Kansas Insurance Commissioner Kathleen Sebeli-us received the order of garnishment and answer. The office of the Insurance Commissioner mailed the garnishment order to GNIC on July 17, 2001, and GNIC’s mail courier signed for it as certified mail on July 19, 2001. GNIC filed a notice of removal of the state garnishment action on August 20, 2001. This court granted garnishee GNIC’s motion to consolidate the garnishment action with the federal declaratory judgment action for pretrial purposes because adjudication of the merits of the disputes would require examination of common issues of law and fact (Doc. 18).

Plaintiff Ortiz filed a motion on August 28, 2001, to remand the garnishment action to the District Court of Wyandotte County, and defendant Biscanin filed a motion on September 12, 2001, to remand the action. Defendant Biscanin filed a motion to stay or dismiss the federal declaratory judgment action pending resolution of the garnishment action, which he claims was improperly removed to federal court. Defendant Ortiz also seeks dismissal of the federal declaratory judgment action. Finally, garnishee GNIC has moved the court to stay the garnishment action pending resolution of the federal declaratory judgment action. The court considers each motion in turn.

II. Plaintiff Ortiz and Defendant Bis-canin’s Motions to Remand the Garnishment Action

Plaintiff Ortiz asserts several bases upon which the court should remand this action to state court: (1) that garnishee GNIC *1241 failed to file the notice of removal within thirty (30) days as required by 28 U.S.C. § 1446(b); (2) that because the wrongful death action which gave rise to the garnishment action was pending in state court for more than one year, the garnishment action is nonremovable under 28 U.S.C. § 1446(b); (3) that garnishee GNIC failed to obtain defendant Biscaniris consent to removal; and (4) that removal was improper because the court lacks diversity jurisdiction under 28 U.S.C. § 1332(a). 2 In his motion to remand, defendant Biscanin incorporates all of plaintiff Ortiz’s arguments. 3

The court notes at the outset that because federal courts are courts of limited jurisdiction, there is a presumption against removal jurisdiction. Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir.1974).

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190 F. Supp. 2d 1237, 2002 U.S. Dist. LEXIS 2851, 2002 WL 398304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-v-biscanin-ksd-2002.