ROSARIO v. HARTFORD FIRE INSURANCE COMPANY

CourtDistrict Court, D. New Jersey
DecidedMarch 4, 2020
Docket1:19-cv-13328
StatusUnknown

This text of ROSARIO v. HARTFORD FIRE INSURANCE COMPANY (ROSARIO v. HARTFORD FIRE INSURANCE COMPANY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ROSARIO v. HARTFORD FIRE INSURANCE COMPANY, (D.N.J. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

VICTOR ROSARIO, NILDA 1:19-cv-13328-NLH-KMW MALDONADO, JOSE FLORES, and NOEMI FLORES, OPINION

Plaintiffs,

v.

HARTFORD FIRE INSURANCE COMPANY,

Defendant.

APPEARANCES:

LOUIS GIANSANTE GIANSANTE & ASSOCIATES, LLC 23 E. MAIN STREET MOORESTOWN, NEW JERSEY 08057

Attorneys for Plaintiffs.

PATRICK D. BONNER, JR. MENZ BONNER KOMAR & KOENIGSBERG LLP 125 HALF MILE ROAD SUITE 200 RED BANK, NEW JERSEY 07701

Attorneys for Defendant.

HILLMAN, District Judge

This matter comes before the Court on motion of Plaintiffs Victor Rosario, Nilda Maldonado, Jose Flores, and Noemi Flores (collectively, “Plaintiffs”) to remand this action for untimely removal (ECF No. 7) (the “Motion”).1 While the parties present

the issue before this Court as relatively simple, it is actually fairly complex. For the reasons that follow, this Court concludes it lacks subject matter jurisdiction over this action. As such, this matter must be sua sponte remanded to the Superior Court of New Jersey. BACKGROUND I. The Initial State Court Action On November 19, 2018, Plaintiffs filed an initial complaint in the Superior Court of New Jersey, Law Division, naming The Hartford Insurance Company (“Defendant”),2 Dominic Antonini (“Antonini”), and Marco Construction & Management, Incorporated

(“Marco Construction”) as defendants (the “Initial State Court Action”). See (ECF No. 7-1 (“Giansante Cert.”) at ¶2, Ex. A). The Initial State Court Action bore docket number CUM-L-814-18. (Giansante Cert. at ¶2). The complaint in the Initial State Court Action contained two counts, one against Antonini and

1 Also before the Court is Plaintiffs’ motion to join additional parties (ECF No. 21). The Court will discuss this motion further, to the extent relevant, infra. 2 The Hartford defendant in this action, Hartford Fire Insurance Company, argues that the Hartford defendant named in the state- court action is a wrongfully pled, non-existent entity different from the one appearing in this action. For purposes of this Court’s analysis, the distinction is one without difference. Marco Construction, and one against Defendant. (Giansante Cert., Ex. A at 7-8). As the matter was first filed in state court, the complaint does not plead the citizenship of any party.3 See (ECF No. 14 at ¶3) (“the citizenship of the plaintiffs was not made explicit in the [c]omplaint”). II. The Initial State Court Action Is Transferred To The Chancery Division

On March 22, 2019, the Initial State Court Action was sua sponte transferred from the Superior Court’s Law Division to the Chancery Division.4 (Giansante Cert. at ¶7). Upon transfer, the matter was assigned a new docket number indicative of its pendency before the Chancery Division: CUM-C-9-19. At some point thereafter, the parties advised the chancery court that Antonini filed for bankruptcy. See (Giansante Cert. at ¶8). As a result, the Chancery Division scheduled a case

3 Plaintiffs now admit that they are all citizens of New Jersey, and that Antonini and Marco Construction are both New Jersey citizens. (Giansante Cert. at ¶3; ECF No. 10). Moreover, the parties submitted a Joint Certification of Citizenship representing that Defendant is a Connecticut citizen. (ECF No. 10).

4 New Jersey’s Court Rules (“N.J.R.”) explain that the Chancery Division handles actions “in which the plaintiff’s primary right or the principal relief sought is equitable in nature[,]” N.J.R. 4:3-1(a)(1), while the Law Division handles other civil actions (with limited exceptions) not handled by the Chancery Division, see N.J.R. 4:3-1(a)(5). New Jersey’s court rules further explain that actions may be transferred between the various

divisions for case management purposes. See N.J.R. 4:3-1(b). management conference to address continued proceedings. (Giansante Cert. at ¶9). Before the case management conference, on April 17, 2019, Defendant filed a letter with the Chancery Division explaining that “plaintiff’s sole claim against Hartford is legal in nature” and “but for the equitable claims [brought against other defendants,] this would be a typical . . . coverage litigation handled in the Law Division.” (Giansante Cert., Ex. E). As such, Defendant asked the Chancery Division to “retain jurisdiction over [claims against other defendants] while transferring the insurance contract claims back to the Law Division for resolution.” (Id.).

On April 22, 2019, the Chancery Division entered an order transferring part of the state-court action to the Law Division (the “Transfer Order”). (Giansante Cert., Ex. F). Most notably, the Transfer Order provides that “Count Two of the Complaint is transferred to the Law Division, Cumberland County” and the transferred portion of the “case will be managed by the undersigned pending further order.” (Id.). The Transfer Order sets forth various case management deadlines for the Law Division portion of the case, including, that “Plaintiffs have leave to file an amended complaint by May 13, 2019.” (Giansante Cert., Ex. F). III. Post-Transfer Events In State Court

On April 26, 2019, the Clerk of the Superior Court issued an electronic notification following entry of the Transfer Order. (Giansante Cert., Ex. G). The Clerk’s notification indicates that the Law Division and Chancery Division portions of the case would proceed under separate docket numbers. (Id.). The notice identifies no change in parties between the Law Division docket and the Chancery Division docket. (Id.). Despite the caption remaining the same, notification of the Clerk’s message was sent exclusively to counsel for Plaintiffs, Defendant, and an interested third party. (Id.). Notice was not electronically mailed to Marco Construction or Antonini.

(Id.). On May 14, 2019, Plaintiffs filed a first amended complaint in the Law Division, naming only Defendant as a defending party (the “First Amended Law Division Complaint”). (ECF No. 1 at 76). The First Amended Law Division Complaint re-alleges many of the same facts as the complaint underlying the Initial State Court Action and contains three counts, one for declaratory judgment, one for insurance bad faith, and one for third-party beneficiary breach of contract. (Id. at 79-81). The First Amended Law Division Complaint does not allege the citizenship of any party. IV. Proceedings In This Court

On June 3, 2019, Defendant removed the First Amended Law Division Complaint to this Court. (ECF No. 1). On June 18, 2019, this Court issued an Order to Show Cause as to why the matter should not be remanded after finding that Defendant failed to properly allege the citizenship of any Plaintiff. (ECF No. 6). That same day, Plaintiffs filed the present Motion. (ECF No. 7). On June 24, 2019, Defendant filed an amended notice of removal properly alleging the citizenship of the parties. (ECF No. 9). DISCUSSION Proper removal of an action from state court to federal

court on diversity of citizenship grounds requires (1) that complete diversity of citizenship exist and (2) timely removal of the diverse action. 28 U.S.C. § 1441 (requiring diversity); 28 U.S.C. § 1446 (explaining rules for timely removal). In this matter, the parties place the proverbial cart before the horse, focusing exclusively upon whether removal of the state court action was timely, without first addressing whether diversity of citizenship exists. Plaintiffs contend that the Transfer Order rendered the Law Division portion of the case ripe for removal because it severed the various state court defendants and resulted in the creation of distinct legal actions, one of which was removable based upon diversity.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Crockett v. R.J. Reynolds Tobacco Co.
436 F.3d 529 (Fifth Circuit, 2006)
Olds v. Donnelly
696 A.2d 633 (Supreme Court of New Jersey, 1997)
Caldwell v. Alfa Ins. Corp.
806 F. Supp. 623 (S.D. Mississippi, 1992)
Baureis v. Summit Trust Co.
654 A.2d 1017 (New Jersey Superior Court App Division, 1995)
Vogel v. Merck & Co., Inc.
476 F. Supp. 2d 996 (S.D. Illinois, 2007)
Concerned Citizens of Caro v. Michigan Ethanol, L.L.C.
396 F. Supp. 2d 814 (E.D. Michigan, 2005)
Miller v. Fulton
113 F. Supp. 2d 1035 (S.D. Mississippi, 2000)
Brown v. Tax Ease Lien Investments, LLC
77 F. Supp. 3d 598 (W.D. Kentucky, 2015)
Wittstadt v. Reyes
113 F. Supp. 3d 804 (D. Maryland, 2015)
Nolan ex rel. Estate of Johnson v. Boeing Co.
919 F.2d 1058 (Fifth Circuit, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
ROSARIO v. HARTFORD FIRE INSURANCE COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosario-v-hartford-fire-insurance-company-njd-2020.