Rowan v. State Farm Fire & Casualty Company

CourtDistrict Court, W.D. Oklahoma
DecidedSeptember 3, 2019
Docket5:19-cv-00205
StatusUnknown

This text of Rowan v. State Farm Fire & Casualty Company (Rowan v. State Farm Fire & Casualty Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rowan v. State Farm Fire & Casualty Company, (W.D. Okla. 2019).

Opinion

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

JEREMY ROWAN and MELISSA ) ROWAN, ) ) Plaintiffs, ) ) v. ) Case No. CIV-19-00205-PRW ) STATE FARM FIRE AND CASUALTY ) COMPANY and BRODOC LLC d/b/a ) SERVPRO OF EDMOND, ) ) Defendants. )

ORDER The Plaintiffs have filed a Motion to Remand and Brief in Support (Dkt. 6), asking the Court to remand this case to state court because Defendant State Farm Fire and Casualty Company failed to remove this diversity-jurisdiction case before the expiration of the 1- year deadline set forth in 28 U.S.C. § 1446(c)(1). State Farm has filed a Response in Opposition to Plaintiffs’ Motion to Remand (Dkt. 8) that also incorporates the arguments set forth in its Notice of Removal (Dkt. 1). Finally, the Plaintiffs have filed a Reply in Support of Motion for Remand (Dkt. 9). Upon due consideration of the parties’ submissions, the Court finds that the case should be remanded. Background On December 28, 2017, the Plaintiffs filed a lawsuit in state court against Defendants State Farm Fire and Casualty Company (hereinafter “State Farm”) and BroDoc LLC d/b/a ServPro of Edmond (hereinafter “ServPro”).1 In their Petition, the Plaintiffs alleged that their home in Kingfisher County, Oklahoma, suffered damage as the result of a storm that occurred April 29, 2017.2 At the time of the storm, the Plaintiffs’ residence

was insured by State Farm.3 Also, the Plaintiffs had hired ServPro to remediate some of the interior damage to the home and its contents, including a sectional sofa.4 In their lawsuit, the Plaintiffs asserted a breach of contract claim and a bad faith claim against State Farm due to its alleged failure to pay the full amount of benefits owed under the insurance policy.5 The Plaintiffs also asserted a breach of contract claim against ServPro for its

alleged failure to remove fiberglass insulation from the textiles damaged in the storm— including the sectional sofa—as well as a fraud claim due to ServPro’s alleged misrepresentations that it would conduct a fair and objective inspection of the damaged textiles and that it had the ability to safely remove fiberglass insulation from the damaged textiles.6 Plaintiffs alleged damages in excess of $75,000.00.7

1 See generally Rowan v. State Farm Fire & Cas. Co., No. CJ-2017-7301 (Okla. Cty. Dist. Ct. filed Dec. 28, 2017). To the extent state court records have been filed of record in this case, the Court cites them herein only with reference to their docket entry number in this case. Documents that are not of record in this case—e.g., state court records and records from the previous removal to federal court—include a reference to the case in which they have been filed of record. 2 Pls.’ Pet. (Dkt. 1-3) ¶ 7, at 2. 3 Id. ¶¶ 5–6, at 2. 4 See id. ¶ 12, at 2. 5 Id. ¶¶ 14–29, at 3–5. 6 Id. ¶¶ 30–43, at 6–7. 7 Id. at 8. State Farm previously removed the case to this Court in February of 2018 on the basis of diversity jurisdiction.8 Although ServPro was deemed to be a citizen of the

Oklahoma, like the Plaintiffs, State Farm alleged that ServPro was fraudulently misjoined because the claims alleged against ServPro were wholly distinct from the claims against State Farm, such that joinder of the two Defendants should not be permitted under Rule 20 of the Federal Rules of Civil Procedure.9 Plaintiffs filed a motion to remand, arguing that the two Defendants were not fraudulently misjoined because the claims against the two Defendants were interrelated.

The Plaintiffs alleged there was an existing business relationship between ServPro and State Farm whereby ServPro “gets paid to ‘clean’ textiles, which saves State Farm money as it does not have to pay out money to replace the personal property.”10 Upon review of the briefing, the Court granted the motion on March 22, 2018.11 The Court concluded that there were questions of law or fact common to both Defendants, that application of the

fraudulent misjoinder doctrine was therefore inappropriate, that diversity jurisdiction did not exist, and that subject matter jurisdiction was lacking.12 Further proceedings occurred in state court after the March 2018 remand. Plaintiffs

8 See Def. State Farm’s 1st Notice of Removal (Dkt. 1) ¶ 6, at 2, Rowan v. State Farm Fire & Cas. Co., No. 5:18-cv-00109-C (W.D. Okla. filed Feb. 2, 2018). 9 Id. at 3. 10 Pls.’ Reply in Support of 1st Mot. to Remand (Dkt. 13) at 4, Rowan, No. 5:18-cv-00109- C (W.D. Okla. filed Mar. 9, 2018). 11 Mem. Op. & Order (Dkt. 18) at 4, Rowan, No. 5:18-cv-00109-C (W.D. Okla. Mar. 22, 2018). 12 Id. served discovery requests upon State Farm on April 25, 2018,13 including requests for production seeking documents concerning the relationship between State Farm and ServPro.14 State Farm provided discovery responses on June 12, 2018, and amended

discovery responses on June 29th.15 The Plaintiffs believed many of State Farm’s discovery responses were deficient and sought supplementation. Following an August 3, 2018 meeting to resolve the discovery dispute, State Farm made a supplemental production of documents on August 30th.16 Believing the supplemental responses were still deficient, the Plaintiffs filed a motion to compel discovery on September 13, 2018.17 That motion wasn’t

resolved until a hearing was held on October 26, 2018.18 In November of 2018, State Farm filed a motion for protective order,19 and ServPro filed an offer to confess judgment in the amount of $4,000.00.20 The Plaintiffs also issued discovery requests to ServPro on November 27, 2018.21 The Plaintiffs never accepted ServPro’s offer to confess judgment

13 Pls.’ Mot. to Compel Docs. from Def. State Farm (Dkt. 1-20) ¶ 3, at 8. 14 Id. at 37 (Exhibit 1 to the Plaintiffs’ Motion to Compel is Plaintiffs’ First Set of Discovery Requests to Defendant State Farm Fire & Casualty Company, and Requests for Production Nos. 18, 19, and 20 sought documentation related to ServPro). 15 Id. ¶ 4, at 8. 16 Id. ¶¶4–5, at 8. 17 Id. at 1. 18 Okla. Cty. Dist. Ct.’s Appearance Dkt. (Dkt. 1-2) at 6 (showing a “CTFREE” entered on 10-26-2018 with a description of retired Judge Patricia Parrish’s ruling from the bench). 19 Def. State Farm’s Mot. for Prot. Order (Dkt. 1-23) at 1. 20 Def. ServPro’s Offer to Confess J. (Dkt. 1-24) at 1. 21 Pls.’ 2d Mot. to Remand (Dkt. 6) at 3. within the 10-day deadline and contested State Farm’s motion for protective order.22 In December of 2018, the hearing on State Farm’s motion for protective order was continued for a month,23 and the Plaintiffs and State Farm got into a dispute over the journal entry

memorializing the state court’s October 26th ruling on Plaintiffs’ motion to compel.24 In January of 2019, a new judge took over in the case and conducted a hearing on State Farm’s motion for protective order. ServPro provided its discovery responses to the Plaintiffs on January 11, 2019.25 Seventeen days later, Plaintiffs and ServPro reached a compromised settlement for an undisclosed amount of money, leading the Plaintiffs to file a Dismissal

With Prejudice (Dkt. 1-1) of all claims against ServPro on January 30, 2019. In the meantime, the 1-year removal deadline imposed by 28 U.S.C. § 1446(c)(1) had expired on December 28, 2018. State Farm nonetheless removed this case to federal court a second time on March 1, 2019. State Farm now argues that the one-year time limit on removal did not apply due to the applicability of the “bad faith” exception found in

§ 1446(c)(1).

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Bluebook (online)
Rowan v. State Farm Fire & Casualty Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rowan-v-state-farm-fire-casualty-company-okwd-2019.