Susan J. Friedman v. New York Life Ins. Co.

410 F.3d 1350, 2005 U.S. App. LEXIS 10356, 2005 WL 1324593
CourtCourt of Appeals for the Eleventh Circuit
DecidedJune 6, 2005
Docket04-11401
StatusPublished
Cited by60 cases

This text of 410 F.3d 1350 (Susan J. Friedman v. New York Life Ins. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Susan J. Friedman v. New York Life Ins. Co., 410 F.3d 1350, 2005 U.S. App. LEXIS 10356, 2005 WL 1324593 (11th Cir. 2005).

Opinion

ANDERSON, Circuit Judge:

Plaintiff, Susan Friedman, appeals the district court’s denial of her motion to remand to state court for lack of jurisdiction. This appeal stems from Friedman’s suit on behalf of herself and all those similarly situated against her insurer, New York Life Insurance Co. Friedman claims that her premiums were raised in violation of certain statutory provisions of Florida law that were, she asserts, incorporated into her contract with New York Life. 1 *1352 She seeks reimbursement of the allegedly-overpaid. premiums, declaratory relief, and. an injunction against continuing violation of Florida law. The.case was brought in state court and removed by New York Life on diversity grounds. 28 U.S.C. § 1332. Because we conclude that New York Life failed to satisfy the $75,000 amount in controversy requirement, we conclude that the district court was without diversity jurisdiction. 2

I. FACTS AND PROCEDURAL HISTORY

Friedman is a member of the American Veterinary Medical Association (AVMA), and her health plan is a group plan offered to AVMA members. At the time of her enrollment, there were three premium rating classes used by the AVMA: Standard, Standard Plus and Standard Plus 20, Due to her health history, Friedman was placed in the Standard Plus 20 rating class at enrollment, and her premium was 20% higher than the Standard premium rating class. At the time she enrolled, Standard Plus rates were 10% higher than the Standard premium rating class. Several years after she enrolled, New York Life raised the rates for the Standard Plus group to 15% higher than Standard, and for Standard Plus 20 to 50% higher than Standard. Friedman’s' proposed class is “all AVMA insureds in Florida rated Standard Plus and/or Standard Plus 20.”

. The suit was originally brought in the 15th Judicial Circuit Court in and for- Palm Beach County. New York Life removed on diversity grounds. Friedman moved for remand to state court, claiming that the amount in controversy requirement had not been met. The district court; denied the motion, as well as a motion for reconsideration. -

The district court judge did not provide any reasoning for its denial of Friedman’s motion for remand to state court or her motion for reconsideration. On appeal, New York Life offers three possible bases for a finding that the amount in controversy exceeds $75,000; 1) the aggregate total of the premium increases for which class members seek reimbursement exceeds $75,000; 2) the amount in controversy is equal to the face value of Friedman’s policy, which exceeds $75,000; and 3) the value of injunctive relief to the plaintiffs exceeds $75,000.

II. DISCUSSION

Diversity is the only potential basis for jurisdiction in the instant case. As this Court explained in Morrison v. Allstate Indem. Co., 228 F.3d 1255 (11th Cir.2000): “lower federal courts are empowered to hear only cases for which there has been a congressional grant of jurisdiction, and once a court determines that there has been no grant that covers a particular *1353 case, the court’s sole remaining act is to dismiss the case for lack of jurisdiction.” Id. at 1261 (citations omitted). As this Court noted in Kirkland v. Midland Mortgage Co., 243 F.3d 1277 (11th Cir.2001), “[i]n removal cases, the burden is on the party who sought removal to demonstrate that federal jurisdiction exists. Where the plaintiff has not plead a specific amount of damages ... the defendant is required to show ... by a preponderance of the evidence that the amount in controversy” can be satisfied. Id. at 1281 n. 5 (citations omitted).

A. Aggregation

In Morrison, this Court outlined the relevant framework with regard to the aggregation issue that is the crux of this case:

Generally, if no single plaintiffs claim satisfies the requisite amount in controversy, there can be no diversity jurisdiction. However, there are situations in which multiple plaintiffs have a unified, indivisible interest in some common fund that is the object of litigation, permitting them to add together, or “aggregate,” their individual stakes to reach the amount in controversy threshold. As explained by the Supreme Court in Zahn v. International Paper Co.:
When two or more plaintiffs, having separate and distinct demands, unite for convenience and economy in a single suit, it is essential that the demand of each be of the requisite jurisdictional amount; but when several plaintiffs unite to enforce a single title or right, in which they have a common and undivided interest, it is enough if their interests collectively equal the jurisdictional amount.
Zahn, 414 U.S. 291 at 295, 94 S.Ct. 505 at 508 (quoting Troy Bank of Troy, Indiana v. G.A. Whitehead & Co., 222 U.S. 39, 40-41, 32 S.Ct. 9, 56 L.Ed. 81 (1911)).
Despite pervasive criticism of the “separate and distinct” versus “common and undivided” distinction as arcane and confusing, there appears to be a common thread in the relevant case law-the presence of a “common and undivided interest” is rather uncommon, existing only when the defendant owes an obligation to the group of plaintiffs as a group and not to the individuals severally. See Eagle v. American Tel. and Tel. Co., 769 F.2d 541, 546 (9th Cir.1985) (“[T]he character of the interest asserted depends on the source of plaintiffs’ claims. If the claims are derived from rights that they hold in group status, then the claims are common and undivided. If not, the claims are separate and distinct.”); National Org. for Women v. Mutual of Omaha Ins. Co., 612 F.Supp. 100, 107 (D.D.C.1985) (“[T]he cases that allow aggregation often speak of the presence of some fund to which a plaintiff class is seeking access[, and] ... they often involve an attempt to enforce a right that belongs to a group.”).
Our predecessor court elucidated this point further in Eagle Star Ins. Co. v. Maltes, 313 F.2d 778

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410 F.3d 1350, 2005 U.S. App. LEXIS 10356, 2005 WL 1324593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/susan-j-friedman-v-new-york-life-ins-co-ca11-2005.