Simpson v. State Farm Mutual Automobile Ins. Co.

CourtDistrict Court, E.D. California
DecidedJune 16, 2020
Docket2:19-cv-02389
StatusUnknown

This text of Simpson v. State Farm Mutual Automobile Ins. Co. (Simpson v. State Farm Mutual Automobile Ins. Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simpson v. State Farm Mutual Automobile Ins. Co., (E.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 KELLEY S. SIMPSON; No. 2:19-cv-02389-JAM-KJN CHRISTOPHER L. SITTENAUER; 12 CHRISTOPHER E. SITTENAUER; LKS; and BAS and ZES, minors 13 by and through their Guardian ORDER GRANTING DEFENDANT’S ad Litem, KELLEY S. SIMPSON, MOTION TO TRANSFER, DENYING 14 PLAINTIFFS’ MOTION TO EXERCISE Plaintiffs, COLORADO RIVER ABSTENTION, AND 15 DECLINING TO ADJUDICATE v. PLAINTIFFS’ MOTION FOR A 16 DISCRETIONARY STAY STATE FARM MUTUAL AUTOMOBILE 17 INSURANCE CO.; and DOES 1-10, 18 Defendants. 19 20 Plaintiffs filed a suit against their car insurance company 21 in Placer County Superior Court. They allege Defendant 22 unlawfully deprived them of personal insurance protection 23 benefits following a car accident in California. Ex. 1 to Notice 24 of Removal, ECF No. 1. Plaintiffs filed their complaint 25 alongside two personal injury suits stemming from the car 26 accident. Before Plaintiffs could consolidate the three cases, 27 Defendant removed this suit to federal court. It now seeks to 28 transfer the case to the Eastern District of Michigan. Mot. to 1 Transfer Venue, ECF No. 3. Plaintiffs opposed this motion, ECF 2 No. 10, and filed a motion to either stay the federal court 3 proceedings pending resolution of the action in state court or 4 abstain from exercising its jurisdiction. Mot. to Stay, ECF No. 5 8.1 State Farm opposed Plaintiffs’ motion. ECF No. 9. For the 6 reasons discussed below, the Court GRANTS Defendant’s motion to 7 transfer. Moreover, the Court DENIES Plaintiffs’ motion to 8 exercise Colorado River abstention and DECLINES TO ADJUDICATE 9 Plaintiffs’ motion for a discretionary stay. 10 11 I. BACKGROUND 12 Two years ago, Christopher E. Sittenauer (“Sittenauer”), his 13 mother, and his three younger siblings traveled from Michigan to 14 California. Ex. 1 to Notice of Removal ¶ 2 (“Compl.”), ECF No. 15 1. While in California, they were involved in a serious car 16 accident. Compl. ¶ 1. Plaintiffs allege this accident occurred 17 because another driver, Holly Van Doren, crossed over a double- 18 yellow line, veering into Sittenauer’s lane. Compl. ¶ 1. 19 Everyone in Sittenauer’s car suffered injuries in the collision. 20 Compl. ¶ 2. They, along with Sittenauer’s father—the primary 21 policyholder for Plaintiffs’ insurance policy—filed suit in 22 Placer County Superior Court. See Mot. to Stay at 2-3. 23 Initially, all of the plaintiffs in this case filed a 24 personal injury suit against Van Doren. Mauer Decl. ISO Mot. to 25 Stay (“Mauer Decl.”) ¶ 4, ECF No. 8-2. But shortly thereafter, 26

27 1 These motions were determined to be suitable for decision without oral argument. E.D. Cal. L.R. 230(g). The hearing was 28 scheduled for May 5, 2020. 1 Plaintiffs Kelley Simpson, Christopher L. Sittenauer, Brigitta 2 Sittenauer, and Zoe Sittenauer voluntarily dismissed their claims 3 without prejudice and refiled with new counsel. Id. The second 4 suit named both Van Doren and Sittenauer as defendants. Id. The 5 third suit arose between Plaintiffs and State Farm when the 6 insurance carrier denied them certain no-fault personal insurance 7 protection (“PIP”) benefits provided by Michigan’s No-Fault 8 Automobile Insurance Act (MCL 500.3101, et seq.). Compl. ¶¶ 11, 9 15-18. 10 11 II. OPINION 12 A. Abstention 13 Plaintiffs contend the Court should abstain from exercising 14 its jurisdiction over this suit under the Colorado River 15 abstention doctrine. Mot. to Stay at 8. Although Plaintiffs 16 argue for Colorado River abstention as an alternative to a 17 discretionary stay, the Court finds it proper to address 18 jurisdiction-related issues first. In doing so, the Court finds 19 Colorado River abstention is not proper here. 20 Federal courts “have a ‘virtually unflagging 21 obligation . . . to exercise the jurisdiction given them,’ 22 including in cases involving parallel state litigation.” Seneca 23 Ins. Co. v. Strange Land, Inc., 862 F.3d 835, 841 (9th Cir. 24 2017) (quoting Colo. River, 424 U.S. at 817). Even so, “[t]he 25 Colorado River doctrine allows a district court to stay or 26 dismiss a federal suit ‘due to the presence of a concurrent 27 state proceeding for reasons of wise judicial administration.’” 28 Minucci v. Agrama, 868 F.2d 1113, 1115 (9th Cir. 1989) (quoting 1 Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 2 1, 15, 103 S.Ct. 927, 936 (1983)). 3 Federal courts may only “[a]bdicat[e] . . . the obligation 4 to decide cases” under Colorado River “in [] exceptional 5 circumstances.” Seneca Ins. Co., 862 F.3d at 841. They must 6 balance eight factors to determine whether exceptional 7 circumstances exist: (1) which court first assumed jurisdiction 8 over any property at stake; (2) the inconvenience of the federal 9 forum; (3) the desire to avoid piecemeal litigation; (4) the 10 order in which the forums obtained jurisdiction; (5) whether 11 federal law or state law provides the rule of decision on the 12 merits; (6) whether the state court proceedings can adequately 13 protect the rights of the federal litigants; (7) the desire to 14 avoid forum shopping; and (8) whether the state court 15 proceedings will resolve all issues before the federal court. 16 Id. at 841-42. “Any doubt as to whether a factor exists should 17 be resolved against a stay [or dismissal].” Id. at 842 (quoting 18 Travelers Indem. Co. v. Madonna, 914 F.2d 1364, 1369 (9th Cir. 19 1990)). 20 As both parties agree, the first factor does not apply. 21 Mot. to Stay at 9; Opp’n to Stay at 6 n.3. The second, fourth, 22 and seventh factors, however, weigh in favor of abstaining. 23 Adjudicating a suit in federal court is not per se inconvenient 24 when a similar suit is pending in state court. But when two out 25 of three similar suits are pending in state court, awaiting 26 consolidation, it is undoubtedly inconvenient to have the third 27 component litigated in a separate city, before a different 28 judge, bound by a separate set of procedural rules. Defendant’s 1 conclusory statement to the contrary does not sway the Court. 2 See Opp’n to Stay at 6. 3 The fourth factor is undisputed—Placer County Superior 4 Court obtained jurisdiction over the state suits first. Mauer 5 Decl. ¶ 2. Moreover, the Court finds that exercising its 6 jurisdiction over this case would promote forum shopping. 7 Defendant argues that if any party has engaged in forum shopping 8 it was Plaintiffs: Michigan residents with a Michigan insurance 9 policy who opted to file their lawsuit in California. Opp’n to 10 Stay at 7. This argument ignores all relevant context. 11 California is likely the only state whose courts would have 12 personal jurisdiction over the defendants in all three cases. 13 Bearing this jurisdictional consideration in mind, Plaintiffs 14 filed in the forum that would allow them to adjudicate all three 15 components of their suit in the state where the accident 16 occurred. Even though Defendant has offices and attorneys in 17 California, it opted to disrupt Plaintiffs’ reasonable choice of 18 forum—first, removing the suit to federal court, then requesting 19 to transfer it halfway across the country. These forum-shopping 20 efforts weigh heavily in favor of abstention. 21 The fifth factor—whether federal or state law provides the 22 rule of decision on the merits—is neutral. The “presence of 23 federal-law issues must always be a major consideration weighing 24 against surrender” of jurisdiction. Moses H. Cone Memorial 25 Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 26 (1983). But as 26 Plaintiffs argue, the inverse is not always true. Mot.

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Bluebook (online)
Simpson v. State Farm Mutual Automobile Ins. Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-state-farm-mutual-automobile-ins-co-caed-2020.