Starr Indemnity and Liability Company v. 60-206, LLC

District Court, D. Nevada·Decided December 1, 2022·No. 3:22-cv-00179·Unknown

Opinion

] 2 3 4 UNITED STATES DISTRICT COURT 5 DISTRICT OF NEVADA 6 oR 7 STARR INDEMNITY AND LIABILITY Case No. 3:22-cv-00179-LRH-CLB COMPANY, dba STARR INSURANCE 8 COMPANIES as Subrogee of GLF AIR, ORDER 9 LLC., and 60-206, LLC, 10 Plaintiffs, 1 “ SIGNATURE FLIGHT SUPPORT 12 CORPORATION, a Nevada corporation; SIGNATURE FLIGHT SUPPORT, LLC, a 13 Nevada limited liability company; SIGNATURE FLIGHT SUPPORT OF 14 NEVADA, INC., a Nevada corporation; DOES 1 — X, inclusive, and ROW 15 || CORPORATIONS 1 — X, inclusive, 16 Defendants 17 18 Before the Court is Plaintiff Starr Indemnity and Liability Company’s (“Starr”) Motion to 19 || Remand to State Court. ECF No, 18. Signature Flight Support, LLC (“Signature”) opposed the 20 || motion (ECF No. 21) and Starr replied to the opposition (ECF No. 26). Also before the Court is 21 || Signature’s Motion for Intradistrict Transfer of Venue to the Southern Division. ECF No. 33. Starr 22 || opposed the motion (ECF No. 34) and Signature replied to the opposition (ECF No. 38). For the 23 |} reasons articulated herein, the Court denies Starr’s Motion to Remand and grants Signature’s 24 || Motion for Transfer, Although Signature’s Motion for Transfer to the Southern Division is granted, 25 || this action shall remain before the current presiding District Court and Magistrate Court judges, as 26 || explained below. 27 || H/ 28 | iv

BACKGROUND 2 In May of 2019, a 2000 Bombardier 60 Lear Jet (“Lear Jet”) parked at the Las Vegas airport 3 |} was hit and damaged by another plane being towed by Signature employees. ECF No. 18 at 3. 4 | Starr insured the Lear Jet and paid the following post-accident costs to the policy holder: $61, 5 || 277.31 in repair damages, and $279,413.23 in rental aircraft expense and use costs, Jd. In 6 | December of 2019, Starr demanded Signature pay for the post-accident costs it incurred. Jd, The 7 | demand included sworn proof of loss statements which named “Starr Indemnity & Liability 8 || Company” as the insurer. ECF No. 18-10 at 7. Signature rejected the demand. ECF No. 18 at 3. 9 On January 31, 2022, Starr filed its original complaint in State court alleging that Signature 10 | negligently cared for and maintained the Lear Jet and seeking declaratory relief regarding a parking 11 | waiver card (“Landing Card”) the parties executed in Las Vegas that effectively absolved 12 | Signature of tort liability should the Lear Jet be damaged. See generally, ECF No. 18-1. The 13 } complaint named “Starr Insurance Companies” as plaintiff, included a broad description of Starr 14 || Insurance Companies’ business, and named five defendants: (1) Signature Flight Support 15 || Corporation; (2) Signature Flight Support, LLC; (3) Signature Flight Support of Nevada, Inc.; (4) 16 |} DOES I-X, inclusive; and (5) ROE Corporations I-X, inclusive, Jd. at 1. Signature was served 17 || with the original complaint on March 8, 2022. ECF No. 18-6 at 7, 11. 18 On March 21, 2022, Signature’s counsel emailed Starr’s counsel and asked for clarification 19 || on who the proper plaintiff was because Signature could not find business registration information 20 || for “Starr Insurance Companies” in Nevada or elsewhere. ECF No. 18-8 at 2. Signature’s counsel 21 || also conveyed its belief that “Starr Indemnity & Liability Company” was the proper plaintiff 22 || because that entity was listed on the sworn proof of loss statements it received as part of the 23 || December 2019 demand. /d. at 2-3. Finally, Signature’s counsel informed Starr’s counsel that 24 || “Signature Flight Support, LLC” was the only proper defendant in the matter because “Signature 25 || Flight Support Corporation” had been converted into “Signature Flight Support, LLC,” and 26 || “Signature Flight Support of Nevada, Inc.,” had been merged into “Signature Flight Support, 27 || LLC,” long before Starr filed the original complaint. Id. at 2. On March 22, 2022, Starr’s counsel 28 || replied to the email and agreed to file an amended complaint. Jd.

1 Starr’s counsel emailed an amended complaint to Signature’s counsel on March 28, 2022. 2 || See generally, ECF No.18-9. The amended complaint named “Starr Indemnity & Liability 3 || Company” as the plaintiff, but all three Signature defendant entities remained. /d. at 6. Starr’s 4 || counsel refused to dismiss any defendants because counsel checked the Nevada Secretary of State 5 || website which listed the Signature Flight Support of Nevada, Inc.-Signature Flight Support, LLC, 6 || merger as “never completed.” Id. at 2. 7 On April 20, 2022, Signature filed a notice of removal from the Second Judictal District 8 || Court for the State of Nevada based on diversity jurisdiction. See generally, ECF No. 1. The case 9 || was randomly assigned to the Honorable James C. Mahan of Nevada’s unofficial Southern 10 |} Division until it was ordered “administratively closed and transferred to the unofficial northern 11 || division in Reno for further action per LR IA 1-8(c)[.J” ECF No, 5; See LR JA 1-8(c) (requiring 12 || filings and proceedings to be held in the division of the court in which the original case was filed); 13 || see also 28 U.S.C. § 1441 (a) (requiring civil actions brought in state court be removed to the 14 || District Court embracing the state court where the action is pending). The Honorable Larry R. 15 || Hicks and Magistrate Judge Carla L. Baldwin of the unofficial Northern Division were randomly 16 || reassigned the matter for all further proceedings. ECF No. 17. 17 Starr filed its Motion to Remand on May 9, 2022, (ECF No. 18), and Signature filed its 18 || Motion for Intradistrict Transfer on August 29, 2022 (ECF No. 33). The Court addresses these 19 || motions in turn below. 20 || II. LEGAL STANDARD 21 A. Motion to Remand 22 Under 28 U.S.C. § 1441, “any civil action brought in a State court of which the district 23 || courts of the United States have original jurisdiction, may be removed by the defendant or the 24 || defendants, to the district court of the United States for the district and division embracing the 25 || place where such action is pending.” 28 U.S.C. § 1441(a). A district court has original jurisdiction 26 || over civil actions where the suit is between citizens of different states and the amount in 27 || controversy, exclusive of interests and costs, exceeds $75,000.00. 28 U.S.C. § 1332(a). 28

1 “T]he removing defendant bears the burden of establishing, by a preponderance of the 2 |} evidence, that the amount in controversy exceeds $[75],000.00.” Sanchez v, Monumental Life Ins. 3 || Co., 102 F.3d 398, 404 (9th Cir. 1996). In determining whether the defendant has established that 4 || diversity jurisdiction exists, the district court must first consider whether it is “facially apparent” 5 || from the complaint that the jurisdictional amount in controversy requirement is met. Singer v. State 6 || Farm Mut. Auto. Ins. Co., 116 F.3d 373, 377 (9th Cir.1997), Generally, courts apply a mechanical 7 || test to determine whether the amount in controversy requirement has been met: “[t]he district court 8 || simply reads the ad damnum clause of the complaint to determine whether the matter in 9 || controversy exceeds” $75,000.00. Jd. at 375.

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