Theriot v. Transamerica Life Ins. Co.

354 F. Supp. 3d 713
CourtDistrict Court, E.D. Texas
DecidedMay 12, 2017
DocketCIVIL ACTION NO. 1:17-CV-71
StatusPublished
Cited by13 cases

This text of 354 F. Supp. 3d 713 (Theriot v. Transamerica Life Ins. Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Theriot v. Transamerica Life Ins. Co., 354 F. Supp. 3d 713 (E.D. Tex. 2017).

Opinion

MARCIA A. CRONE, UNITED STATES DISTRICT JUDGE

*716Pending before the court is Plaintiff Robert P. Theriot's ("Theriot") Motion to Abstain and to Remand (# 5), wherein Theriot requests the court remand this action back to state court. Having considered the pending motion, the submissions of the parties, the pleadings, and the applicable law, the court is of the opinion that remand is unwarranted.

I. Background

At some point prior to January 31, 2016, Theriot underwent surgery on his foot. Due to this surgery, he required the use of a wheelchair. On January 31, 2016, Theriot fell out of his wheelchair, injuring his wound from the previous surgery. Thus, on February 1, 2016, he underwent a second surgery to repair and reattach a skin flap from the first surgery. A few days later, Theriot's home-health nurse noticed that the site had started to dehisce. Eventually, on February 12, 2016, Theriot required an above-the-knee amputation due to the infection of the wound.

At the time of his amputation, Theriot owned a group accident insurance policy issued by Defendant Transamerica Life Insurance Company ("Transamerica"), which provided benefits for accidental death and dismemberment. After his amputation, Theriot contacted Transamerica and made a claim under this policy for the loss of his leg. Transamerica denied the claim.

On January 18, 2017, Theriot filed suit in the 163rd Judicial District Court of Orange County, Texas, asserting claims arising out of Transamerica's denial of coverage. Specifically, Theriot contends that Transamerica knowingly engaged in false, misleading, deceptive, and unconscionable acts, practices, or omissions actionable under the Texas Deceptive Trade Practices Act ("DTPA") and Chapter 541 of the Texas Insurance Code (the "Insurance Code") as well as unfair claim settlement practices and misrepresentation of an insurance policy as prohibited by the Insurance Code. Additionally, Theriot asserts claims for common law fraud, negligence, negligent hiring, negligent supervision, negligent management, and breach of contract. As relief, Theriot requests actual damages in the form of payment of insurance proceeds of $40,000.00, along with statutory damages for violation of the Insurance Code, damages for mental anguish, exemplary damages, and all costs and attorney's fees.

Transamerica removed the action to this court on February 22, 2017, on the basis of diversity of citizenship. Subsequently, on March 28, 2017, Theriot filed a motion to remand, contending that Transamerica's removal was improper. Significantly, Theriot does not dispute that diversity of citizenship exists among the parties. Rather, the salient issue is whether the amount in controversy requirement has been met. Additionally, Theriot requests the court to order sanctions against Transamerica, including the reasonable costs and attorney's fees associated with Transamerica's removal and Theriot's motion to remand.

II. Analysis

A. Removal Jurisdiction

"Federal courts are courts of limited jurisdiction." Gunn v. Minton , 568 U.S. 251, 133 S.Ct. 1059, 1064, 185 L.Ed.2d 72 (2013) (quoting Kokkonen v. Guardian Life Ins. Co. of Am. , 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994) ); accord *717Hotze v. Burwell , 784 F.3d 984, 999 (5th Cir. 2015), cert. denied , --- U.S. ----, 136 S.Ct. 1165, 194 L.Ed.2d 240 (2016) ; Scarlott v. Nissan N. Am., Inc. , 771 F.3d 883, 887 (5th Cir. 2014). "They possess only that power authorized by Constitution and statute, which is not to be expanded by judicial decree." Kokkonen , 511 U.S. at 377, 114 S.Ct. 1673 (citations omitted). The court "must presume that a suit lies outside this limited jurisdiction, and the burden of establishing federal jurisdiction rests on the party seeking the federal forum." Howery v. Allstate Ins. Co. , 243 F.3d 912, 916 (5th Cir.), cert. denied , 534 U.S. 993, 122 S.Ct. 459, 151 L.Ed.2d 377 (2001) (citing Kokkonen , 511 U.S. at 377, 114 S.Ct. 1673 ); accord Hertz Corp. v. Friend , 559 U.S. 77, 96, 130 S.Ct. 1181, 175 L.Ed.2d 1029 (2010) ; Clayton v. ConocoPhillips Co. , 722 F.3d 279, 290 (5th Cir. 2013), cert. denied , 571 U.S. 1156, 134 S.Ct.

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354 F. Supp. 3d 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theriot-v-transamerica-life-ins-co-txed-2017.