Singleton v. Freymann

CourtDistrict Court, S.D. Texas
DecidedJuly 17, 2025
Docket2:25-cv-00030
StatusUnknown

This text of Singleton v. Freymann (Singleton v. Freymann) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Singleton v. Freymann, (S.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT July 17, 2025 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk CORPUS CHRISTI DIVISION

HOWARD SINGLETON, § § Plaintiff, § § VS. § CIVIL ACTION NO. 2:25-CV-00030 § RICK FREYMANN, et al., § § Defendants. §

MEMORANDUM AND RECOMMENDATION TO REMAND

Pending is Plaintiff’s Memorandum and Motion to Remand. (D.E. 7). Defendant State Farm Lloyds has filed a Response (D.E. 8) to which Plaintiff has filed a Reply (D.E. 11). Plaintiff’s Motion to Remand has been referred to the undersigned Magistrate Judge. (D.E. 12). For the reasons set forth below, the undersigned RECOMMENDS Plaintiff’s Motion to Remand be GRANTED. (D.E. 7). I. BACKGROUND Plaintiff alleges this case arises out of a severe winter storm which occurred in February 2021. Plaintiff’s residence in Corpus Christi, Texas lost electricity and as a result, a water pipe in his attic froze and cracked. The damaged pipe leaked and caused damage to the residence that was not immediately apparent. Plaintiff’s residence was covered by a State Farm Insurance Policy. Plaintiff made an initial claim on his policy in June of 2021. On August 2, 2021, after an inspection Plaintiff’s claim was denied because State Farm believed the damage was due to a leaky roof, not a damaged pipe. In March of 2024, 1 / 17 Plaintiff received a report from a Plumber who opined the damage was in fact due to a frozen pipe. Plaintiff submitted this information to his insurer who again denied the claim on June 4, 2024.

On February 8, 2024, Plaintiff filed his Original Complaint in state district court in Nueces County, Texas, raising claims for breach of contract and warranty, deceptive trade practices and insurance code violations, breach of good faith and fair dealing, negligent hiring and supervision and other claims. (D.E. 1-2). See Estate of Howard Singleton v. State Farm Lloyds, et al., No. 2024DCV-0536-E, 148th Judicial District Court, Nueces

Co., Tex. (Feb. 8, 2024) (Complaint). Plaintiff’s Original Complaint included a demand for damages, including economic damages and attorney’s fees. Plaintiff named as defendants several State Farm entities, including: (1) State Farm Insurance; (2) State Farm Insurance Lloyds of Texas; and (3) State Farm Lloyds, Inc. He further alleged State Farm Lloyds, Inc. is a Texas Corporation. Plaintiff also alleged damages over $250,000 but not

more than $1,000,000.00. (D.E. 1-2). On March 25, 2024, Defendants filed Answers in State Court specifically stating Plaintiff had sued the incorrect party. (D.E. 1-2, pp. 27-41). Defendant State Farm Lloyds, Inc.’s Original Answer and Verified Denial states that: “State Farm Lloyds, Inc. did not issue the policy of insurance that is the basis of Plaintiff’s suit. State Farm Lloyds issued

the policy of insurance that underlies Plaintiff’s claims.” (D.E. 1-2, p. 27).

2 / 17 On March 28, 2024,1 State Farm Lloyds removed the state action to this Court. (D.E. 1-2, p. 43). (D.E. 1-2, p. 43). The first notice of Notice of Removal can be found in the instant case at Docket Entry 8-1, p. 2, however, it was assigned a different case number

than the instant case. See Estate of Howard Singleton v. State Farm Lloyds, et al., No. 2:24-cv-00071 (S.D. Tex. removed Mar. 28, 2024) (“Singleton I”). In Singleton I, Plaintiff moved to remand based on lack of complete diversity among the defendants. On July 25, 2025, United States District Judge David Morales granted the Motion to Remand because the removing Party, State Farms Lloyds, was not a named defendant and did not have the

authority to remove the case. Singleton I, No. 2:24-cv-00071, D.E. 13. On July 30, 2024, after remand to the state court, Plaintiff filed his Amended Petition. (D.E. 1-2, p. 49). In the Amended Petition, Plaintiff added as defendants Proximity Fire Claims and a number of State Farm entities using a/k/a or d/b/a identifiers including State Farm Lloyds. Plaintiff also named the following individuals as defendants

who are alleged to reside in Texas: Leslie Koontz, Robert “Bobby” Lee Hyatt III, Erica Williams, and Ricky Freyman. (D.E. 1-2). Ms. Koontz, Mr. Hyatt and Mr. Freeman filed Answers in the state court. (D.E. 1-2, pp. 72-77; 88-89). On October 1, 2024, in the state court, State Farm Lloyds filed a Plea in Intervention stating it has an interest in the suit, is the correct party defendant, and the other State Farm entities either do not exist or are

1 The Notice of Removal contains a typographical error stating that the case was removed on March 28, 2023, but the certificate of service indicates the correct year was 2024. (D.E. 1-2, pp. 43-44). 3 / 17 improper defendants.2 (D.E. 1-2, p. 80). State Farm Lloyds maintained, and still maintains, it is the only proper defendant in this action. On January 30, 2025, State Farm Lloyds, as Defendant and Intervenor, filed its

second Notice of Removal. (D.E. 1). State Farm Lloyds argues removal is appropriate because there is complete diversity of the parties and the amount in controversy exceeds $75,000.00. State Farm Lloyds also argues the individual defendants have been improperly joined for purposes of defeating diversity jurisdiction. State Farm Lloyds further argues State Farms Lloyds, Inc. exists but is not the appropriate State Farms entity to serve as the

defendant in this case. State Farm Lloyds further argues the other named State Farm entities and Proximity Fire Claims do not exist. (D.E. 1). On February 28, 2025, Plaintiff filed the instant Opposed Motion to Remand. (D.E. 7). Plaintiff argues the removal was untimely and there is no diversity jurisdiction in this case because there is not complete diversity, and he “believes” the amount in controversy

will be less than $40,000.00. (D.E. 7). State Farm Lloyds has filed a Response to which Plaintiff filed a Reply. (D.E. 8; D.E. 11). II. LAW United States District Courts are courts of limited jurisdiction and may only hear a case if it involves a question of federal law or where diversity of citizenship exists between

2 Defendant State Farm Lloyds notes it is listed in the opening paragraph of the Amended Complaint but not in the “Parties and Service” section and Plaintiff did not request a citation be issued or served. Thus, State Farm Lloyds filed the Motion to Intervene. Defendant also notes Plaintiff argued to the District Court in Singleton I that he had not and did not intend to sue State Farm Lloyds. (D.E. 1). 4 / 17 the parties. 28 U.S.C. §§ 1331, 1332. Under 28 U.S.C. § 1332(a), “The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum of $75,000, exclusive of interest and costs, and is between – (a) citizens of different

states.” “It is well-established that the diversity statute requires ‘complete diversity’ of citizenship: A district court cannot exercise diversity jurisdiction if one of the plaintiffs shares the same state citizenship as any one of the defendants.” Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 857 (5th Cir. 2003). When an action is filed in state court, a defendant may remove the case to federal

court on the basis of diversity jurisdiction, if the case could have been filed by the plaintiff in federal court. 28 U.S.C. § 1441. A plaintiff may move to remand a case from federal court back to state court if federal jurisdiction is lacking. 28 U.S.C. § 1447.

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