Valoe v. Allstate Insurance Company

CourtDistrict Court, E.D. Wisconsin
DecidedNovember 14, 2023
Docket2:22-cv-00182
StatusUnknown

This text of Valoe v. Allstate Insurance Company (Valoe v. Allstate Insurance Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valoe v. Allstate Insurance Company, (E.D. Wis. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

DANIELLE M. VALOE,

Plaintiff, Case No. 22-cv-182-pp v.

ALLSTATE INSURANCE COMPANY, JOHNATHAN PAUL, KRISTINA MALLEK and THOMAS WILSON,

Defendants.

ORDER GRANTING PLAINTIFF’S MOTIONS TO PROCEED WITHOUT PREPAYING FILING FEE (DKT. NOS. 2, 9), SCREENING COMPLAINT AND REQUIRING PLAINTIFF TO FILE AN AMENDED COMPLAINT

On February 14, 2022, the plaintiff—who is representing herself—filed a complaint, alleging that Allstate Insurance Company did not act in good faith in resolving an insurance claim that involved a third-party lienholder. Dkt. No. 1.1 The same day, the plaintiff filed a motion for leave to proceed without prepaying the filing fee. Dkt. No. 2. A little over two weeks later, on March 3, 2022, the court received a letter from the plaintiff. Dkt. No. 5. The letter stated in pertinent part: On February 22nd I made an attempt to come to gain the clerk of courts signatures for the summons for the Plaintiffs2 involved and

1 The plaintiff has advised the court that the nature of her lawsuit is “contract . . . insurance.” Dkt. No. 4.

2 The court suspects that the plaintiff meant to use the word “defendants” here and in the rest of the letter—the plaintiff is the party who files the lawsuit, and the defendants are the parties that the plaintiff sues. to update the civil docket sheet. Valoe was reading the enclosed pro se instructions given by the courts in order to properly serve the plaintiff a copy of the complaint. I was informed at that time by the clerk that I had to have a hearing to decide my indigence and inability to pay and that updating the civil docket sheet was unnecessary for individuals filing pro-se. Once an indigent hearing is commenced I would either have to pay the courts to file and come back for the signatures and serve the summons on my own or that if found indigent the courts would assist the plaintiff in the above case served.

Id. The plaintiff then asked the court to update the address for defendant Allstate, “so that if the courts do find me indigent they will have the correct address on file for the plaintiff.” Id. On July 19, 2022, the court received a change-of-address letter from the plaintiff, updating her address to a post office box in Milwaukee. Dkt. No. 6. On the same day, the court received from the plaintiff a letter which appears to state that she tried to serve “all 3 defendants” with a “request for a waiver notification form,” but that Allstate was refusing to answer or reply; she asked the court for help serving “all 3 defendants.” Id. at 1. On December 19, 2022, the court received a letter from the plaintiff, advising the court that her income had changed. Dkt. No. 8. She noted that she had not yet received an “indigent hearing” and reiterated that she needed help getting Allstate properly served. Id. The plaintiff attached to this letter a notice from Wisconsin’s W-2 program, notifying her that she would receive a payment of $60 on December 10, 2022, a payment of $304 on January 1, 2023 and a payment of $608 on January 30, 2023. Dkt. No. 8-1 at 1. Finally, on October 23, 2023—presumably because the court had not yet ruled on her first motion to proceed without prepaying the filing fee—the plaintiff filed a second motion seeking the same relief. Dkt. No. 9. To allow a plaintiff to proceed without prepaying the civil case filing fee,

the court first must decide whether the plaintiff can pay the fee; if not, it must screen the complaint to determine whether the lawsuit is frivolous, malicious or fails to state a claim upon which relief can be granted. 28 U.S.C. §§1915(a) and 1915(e)(2)(B)(i). I. Motions to Proceed Without Prepaying the Filing Fee (Dkt. Nos. 2, 9) A. Legal Standard An indigent federal plaintiff “may commence a civil action without prepaying fees or paying certain expenses.” Coleman v. Tollefson, 575 U.S. 532,

534 (2015). To qualify to proceed without prepaying the filing fee, a plaintiff must fully disclose her financial condition, and must do so truthfully under penalty of perjury. See 28 U.S.C. §1915(a)(1) (requiring the person seeking to proceed without prepayment to submit “an affidavit that includes a statement of all assets [they] possess[]”). As the Seventh Circuit Court of Appeals has explained, “[p]roceeding [without prepaying the filing fee] is a privilege, and courts depend on the plaintiff’s honesty in assessing her ability to pay.” Lofton

v. SP Plus Corp., 578 F. App’x 603, 604 (7th Cir. 2014); see also Chung v. Dushane, No. 03 C 5955, 2003 WL 22902561, at *2 (N.D. Ill. Dec. 9, 2003) (“The opportunity to proceed [without prepaying the filing fee] is a privilege provided for the benefit of indigent persons and the court system depends upon the honesty and forthrightness of applicants to ensure that the privilege is not abused.”). B. The Plaintiffs’ Financial Status The plaintiff’s first motion to proceed without prepaying the filing fee,

which the court received on February 14, 2022, listed $1,679 as her monthly income. Dkt. No. 2 at 1. The plaintiff reported that this income came from long- term disability. Id. The plaintiff stated that she had $38.97 in cash or in a checking/savings account. Id. at 2. She listed approximately $2,379 in monthly expenses, which included her rent, utilities, insurance and car payments. Id. The plaintiff’s second motion to proceed without prepaying the filing fee, which the court received on October 23, 2023, listed only $608 as her monthly

income. Dkt. No. 9 at 1. This matches the amount of the W-2 payment reflected in Dkt. No. 8-1. The plaintiff represented that this income came from government assistance and that she also receives $1,115 per month in Foodshare benefits. Id. The plaintiff stated that she had $3.13 in cash or in a checking/savings account. Id. at 2. Under expenses, the plaintiff wrote, “$1375 rent but we have been evicted since October,” “Geico Ins but this is now lapsed $415” and “car note $3850 back pay due/$450 monthly but up for repo.” Id.

C. Analysis The court regrets that it took far too long in analyzing the plaintiff’s motion to proceed without prepaying the filing fee. The plaintiff has been waiting a long time for the court to make a decision, and for the court to provide her with the help she has requested in serving the summons and complaint. The court apologizes to the plaintiff for this unwarranted delay. There is no requirement that the court hold a hearing to determine whether the plaintiff is indigent. The court can make that determination from

looking at the documents the plaintiff has filed. Even if the court had ruled on the plaintiff’s first motion promptly, it would have concluded that she did not have the ability to pre-pay the $402 civil filing fee. Certainly now that her circumstances have changed, the plaintiff does not have the ability to pay that fee. The court will grant the plaintiff’s motions to proceed without prepaying the filing fee. Dkt. Nos. 2, 9. The court advises the plaintiff, however that she is still responsible for paying the filing fee over time. Robbins v. Switzer, 104 F.3d 895, 898 (7th Cir.

1997); see also Rosas v. Roman Catholic Archdiocese of Chi., 748 F. App’x 64, 65 (7th Cir. 2019) (“Under 28 U.S.C. § 1915

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Bluebook (online)
Valoe v. Allstate Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valoe-v-allstate-insurance-company-wied-2023.