Shipman v. Mountain Lake Risk Retention Group, Inc.

CourtDistrict Court, E.D. Louisiana
DecidedApril 26, 2023
Docket2:22-cv-04545
StatusUnknown

This text of Shipman v. Mountain Lake Risk Retention Group, Inc. (Shipman v. Mountain Lake Risk Retention Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shipman v. Mountain Lake Risk Retention Group, Inc., (E.D. La. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

AARON SHIPMAN CIVIL ACTION

VERSUS No. 22-4545

MOUNTAIN LAKE RISK RETENTION GROUP, INC. ET AL. SECTION I

ORDER & REASONS Before the Court is plaintiff Aaron Shipman’s (“Shipman”) motion to remand1 the above-captioned action to the Civil District Court for the Parish of Orleans which motion alleges a lack of diversity jurisdiction.2 Defendants U.S. Xpress, Inc., U.S. Xpress Leasing, Inc. and Mountain Lake Risk Retention Group, Inc. (collectively, “opposing defendants”) jointly oppose3 the motion. Defendants Hartford Fire Insurance Company, Gary Strong (“Strong”), and State Farm Mutual Automobile Insurance Company did not file oppositions to Shipman’s motion. For the following reasons, the Court grants Shipman’s motion to remand. I. BACKGROUND This action arises out of an accident that occurred on December 14, 2021 in St. Tammany Parish, in which the street sweeping vehicle Shipman was operating was

1 R. Doc. Nos. 29 (motion to remand) and 39 (reply memorandum in support of motion to remand). 2 Shipman is a citizen of Louisiana; U.S. Xpress, Inc. is incorporated in Nevada with its principal place of business (“PPB”) in Tennessee; U.S. Xpress Leasing, Inc. is incorporated in Tennessee with its PPB in Tennessee; Mountain Lake Risk Retention Group, Inc. is incorporated in Vermont with its PPB in Vermont; Strong is a citizen of Texas; Hartford Fire Insurance Company is incorporated in Connecticut with its PPB in Connecticut; and State Farm Mutual Automobile Insurance Company is incorporated in Illinois with its PPB in Illinois. R. Doc. No. 1, at ¶¶ IV–XI. 3 R. Doc. No. 32. struck by an 18-wheeler truck operated by Strong, who was allegedly intoxicated at the time.4 Shipman filed this lawsuit in the Civil District Court for the Parish of Orleans, alleging a number of state law causes of action against Strong as well as

against Strong’s employers, U.S. Xpress, Inc., U.S. Xpress Leasing, Inc, and U.S. Xpress Enterprises, Inc.5 Shipman also named as defendants U.S. Xpress, Inc.’s insurer Mountain Lake Risk Retention Group, Inc.6 and Shipman’s employer’s uninsured/underinsured motorist (“UM”) insurers, Hartford Fire Insurance Company (“Hartford UM”) and State Farm Mutual Automobile Insurance Company.7 Shipman’s complaint alleges he sustained, or will sustain, the following

damages: “past, present, and future physical pain and suffering,” “past, present, and future mental pain and suffering,” mental anguish, “past and future physical impairment and disability,” “past and future medical expenses and rehabilitation expenses,” “past and future loss of income,” “past and future loss of earning capacity,” “past and future loss of enjoyment of life,” “loss of services,” loss of consortium, loss of society, as well as punitive and exemplary damages.8 Defendants removed this action to federal court on November 16, 2022.9 On

January 30, 2023, Hartford Fire Insurance Company’s (“Hartford WC”) workers’

4 R. Doc. No. 1-1, ¶¶ III–IV. 5 Id. ¶ VI. U.S. Xpress Enterprises, Inc. was dismissed from this action upon oral motion by Shipman on February 28, 2023 at a call docket hearing before this Court. R. Doc. No. 25, at 1. 6 R. Doc. No. 1-1, ¶ IX. 7 Id. ¶ X. 8 Id. ¶ II. 9 R. Doc. No. 1. compensation division filed an unopposed motion to intervene as of right pursuant to Federal Rule of Civil Procedure 24(a).10 Hartford WC’s complaint-in-intervention named Shipman, U.S. Xpress, Inc., U.S. Xpress Leasing, Inc., U.S. Xpress

Enterprises, Inc., Mountain Lake Risk Retention Group, Inc., Strong (“Strong”), and State Farm Mutual Automobile Insurance as defendants-in-intervention.11 The complaint asserts that Hartford WC was Shipman’s employer’s workers’ compensation insurer and, in that capacity, “has paid medical and indemnity benefits to and/or on behalf of Aaron Shipman totaling FIFTY-THREE THOUSAND ONE HUNDRED NINETY AND 70/100 DOLLARS ($53,190.70) . . . .”12 Accordingly,

Hartford WC asserts, “[p]ursuant to conventional and legal subrogation, Intervenor [Hartford WC] is entitled to collect from defendants[-in-intervention] the full and true sum of [$53,190.70], plus any additional amounts that may be paid to and/or on behalf of Aaron Shipman as a result of the Workers’ Compensation payments that Intervenor has made and/or continue to make[.]”13 This Court granted Hartford WC’s motion to intervene on January 31, 2023.14 Shipman filed the instant motion for remand on March 20, 2023, on the ground

that Hartford WC, as the intervening workers’ compensation insurer, is not diverse from Hartford UM, the defendant UM insurer.15

10 R. Doc. No. 20. 11 Id. ¶ 2. 12 Id. ¶ 7. 13 Id. ¶ 11. 14 R. Doc. No. 21. 15 R. Doc. No. 29-1, at 2. II. STANDARD OF LAW District courts “have original jurisdiction over all civil actions where the matter in controversy exceeds $75,000[, exclusive of interest and costs,] and is

between citizens of a state and citizens or subjects of a foreign state.” Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 857 (5th Cir. 2003) (citing 28 U.S.C. § 1332(a)(2)). Pursuant to 28 U.S.C. § 1441(a), “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending,” unless

Congress provides otherwise. “The removing party bears the burden of establishing that federal jurisdiction exists.” De Aguilar v. Boeing Co., 47 F.3d 1404, 1408 (5th Cir. 1995) (citing Gaitor v. Peninsular & Occidental S.S. Co., 287 F.2d 252, 253–54 (5th Cir. 1961)). “[A]ny ambiguities are construed against removal because the removal statute should be strictly construed in favor of remand.” Smith v. Bank of Am. Corp., 605 F. App’x 311, 314 (5th Cir. 2015) (quoting Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d

720, 723 (5th Cir. 2002)). Jurisdictional facts supporting removal are assessed at the time of removal. Louisiana v. Am. Nat’l Prop. Cas. Co., 746 F.3d 633, 636–37 (5th Cir. 2014). However, “[i]f a [court] lacks subject matter jurisdiction, remand is permitted at any time before final judgment.” Falgout v. Mid State Land & Timber Co., No. 08-5088, 2009 WL 2163162, at *2 (E.D. La. July 16, 2009) (Lemelle, J.) (citing 28 U.S.C. § 1447(c) and Doddy v. Oxy USA, 101 F.3d 448, 456 (5th Cir. 1996)). Fifth Circuit “jurisprudence dictates that when a non-diverse party is brought into the action, complete diversity is destroyed and the case should be remanded.” Id. at *3 (citing Doleac ex rel. Doleac

v. Michalson, 264 F.3d 470 (5th Cir. 2001)). III.

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Shipman v. Mountain Lake Risk Retention Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/shipman-v-mountain-lake-risk-retention-group-inc-laed-2023.