Welch v. Occidental Fire & Casualty Company of North Carolina

CourtDistrict Court, E.D. Louisiana
DecidedNovember 30, 2023
Docket2:23-cv-05836
StatusUnknown

This text of Welch v. Occidental Fire & Casualty Company of North Carolina (Welch v. Occidental Fire & Casualty Company of North Carolina) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welch v. Occidental Fire & Casualty Company of North Carolina, (E.D. La. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

TINA WELCH CIVIL ACTION

VERSUS NO. 23-5836

OCCIDENTAL FIRE & CASUALTY SECTION: D (1) COMPANY OF NORTH CAROLINA

ORDER and REASONS

For the reasons stated below, the Court finds that it lacks subject matter jurisdiction over this case pursuant to 28 U.S.C. § 1332, and the matter is therefore REMANDED to the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana. I. FACTUAL AND PROCEDURAL HISTORY On October 5, 2023, Occidental Fire & Casualty Company of North Carolina (“Occidental”) filed a Notice of Removal, asserting that the Court has subject matter jurisdiction over Tina Welch’s (“Plaintiff’s”) Hurricane Ida claims based upon 28 U.S.C. § 1332, diversity jurisdiction.1 While the Notice of Removal adequately alleged the citizenship of the parties,2 it failed to provide sufficient information to show that the amount in controversy was likely to exceed $75,000 in this case. Occidental asserted that the amount in controversy was facially apparent from the state court Petition3 based on Plaintiff’s allegations that her property sustained “significant damages” as a result of Hurricane Ida,4 that Occidental’s inspection of

1 R. Doc. 1 at Introductory Paragraph. 2 Id. at ¶¶ 4 & 5. 3 Id. at p. 3, n.1. 4 Id. at ¶ 9 (quoting R. Doc. 1-1 at ¶ 5). the property failed to accurately account for the full extent of the damage to the property,5 that Plaintiff was unable to make meaningful repairs due to Occidental’s insufficient estimates,6 that Plaintiff hired a building damage consultant who

inspected the property and created an estimate that documented significantly more damages to the dwelling than the original estimate prepared by Occidental,7 and that Plaintiff had incurred and will continue to incur additional loss of use expenses as a result of her damages.8 Those allegations, however, did not provide the Court with any information regarding the value of the damages sought by Plaintiff. Even though Plaintiff also

seeks statutory damages and penalties under Louisiana law, it was unclear to the Court from the face of the Petition and the Notice of Removal whether the amount in controversy exceeded the jurisdictional threshold for diversity jurisdiction. As such, the Court issued an Order on October 10, 2023, giving Occidental seven days to file a comprehensive amended notice of removal, without further leave of Court, that properly set forth the citizenship particulars of the parties and alleged sufficient facts to show the amount in controversy was satisfied at the time of removal.9

On October 17, 2023, Occidental filed an Amended Notice of Removal pursuant to the Court’s October 10, 2023 Order.10 While the Amended Notice of Removal adequately alleged the citizenship of the parties,11 it contained the same allegations

5 R. Doc. 1 at ¶ 9 (citing R. Doc. 1-1 at ¶ 10). 6 R. Doc. 1 at ¶ 9 (citing R. Doc. 1-1 at ¶ 11). 7 R. Doc. 1 at ¶ 9 (citing R. Doc. 1-1 at ¶ 12). 8 R. Doc. 1 at ¶ 9 (citing R. Doc. 1-1 at ¶ 24). 9 R. Doc. 5. 10 R. Doc. 8. 11 Id. at ¶¶ 4-6. regarding the amount in controversy that were in the original Notice of Removal and which the Court had already determined were insufficient.12 Specifically, Occidental maintained that the amount in controversy was met “from the face of the Petition.”13

By not providing any additional information regarding Plaintiff’s alleged damages, Occidental failed to comply with the Court’s October 19, 2023 Order. Occidental argued in its Amended Notice of Removal that the Court should focus on “the categories or alleged injuries and damages as well as the tortious nature of the Plaintiff’s claim” in determining whether the amount in controversy was facially apparent from the state court pleading.14 The case cited by

Occidental to support this argument, however, is factually distinguishable from the facts of this case, as that case involved a plaintiff who sued an airline that had lost her heart medication, which allegedly caused her to experience heart failure.15 The Fifth Circuit concluded that the district court in that case did not err in finding that the plaintiff’s claims exceeded $75,000 based upon the face of the complaint, as the plaintiff had sought damages “for property, travel expenses, an emergency ambulance trip, a six-day stay in the hospital, pain and suffering, humiliation, and her

temporary inability to do housework after the hospitalization.”16 In contrast, the instant matter concerns unspecified property damages that resulted from Hurricane Ida.17

12 Compare R. Doc. 8 at ¶¶ 7-12 and R. Doc. 1 at ¶¶ 7-12. 13 R. Doc. 8 at p. 3, n.1. 14 Id. at pp. 3-4 (citing Luckett v. Delta Airlines, Inc., 171 F.3d 295, 298 (5th Cir. 1999)) (emphasis in original). 15 Luckett, 171 F.3d at 297. 16 Id. at 298. 17 See, R. Doc. 1-1 at ¶¶ 5-19 & 24-25. Additionally, while Plaintiff has alleged that Hurricane Ida caused “significant damages” to her property18 and she seeks several categories of damages, her allegations fail to show the amount in controversy in this case. Occidental noted in

its Amended Notice of Removal that the Plaintiff’s coverage limit for the property was $187,000, and Occidental seemed to recognize that it is the value of a claim, not the insurance policy limit, that determines the amount in controversy.19 Nonetheless, Occidental further asserted that, “while it remains unknown the alleged value that plaintiff is seeking in this case, based upon the damages sought (further discussed in detail in the removal herein), and given the applicable policy

limit of Coverage A, the threshold for diversity jurisdiction is met.”20 As such, the Court issued another Order on October 19, 2023, striking the Amended Notice of Removal and giving Occidental seven days from the date of the Order to file a comprehensive amended notice of removal, without further leave of Court, that alleged sufficient facts to show the amount in controversy was satisfied at the time of removal, as required to establish that the Court has diversity jurisdiction over this case.21 In doing so, the Court directed Occidental to additional

jurisprudence from this Court indicating that the mere fact that the plaintiff’s policy limits exceed the jurisdictional amount, without a claim that the plaintiff is entitled to the policy limits or that the plaintiff’s property was totally destroyed, is not

18 R. Doc. 1-1 at ¶¶ 5 & 19. 19 R. Doc. 8 at p. 5, n.5 (citing authority). 20 Id. (emphasis added). 21 R. Doc. 10. sufficient to satisfy a removing defendant’s burden to set forth facts in controversy to support a finding by this Court that the plaintiff’s claim exceeds $75,000.22 Pursuant to the Court’s October 19th Order, Occidental filed a Second Amended

Notice of Removal on October 26, 2023.23 While the second Amended Notice of Removal adequately alleged the citizenship of the parties,24 it contained the same allegations regarding the amount in controversy that were in the original Notice of Removal and the Amended Notice of Removal, which the Court previously determined were insufficient.25 Occidental also again asserted that, “while it remains unknown the alleged value that plaintiff is seeking in this case, based on the damages

sought (further discussed in detail in the removal herein), and given the applicable policy limit of Coverage A, the threshold for diversity jurisdiction is met.”26 By not providing any additional information regarding the value of Plaintiff’s alleged damages, Occidental failed to comply with the Court’s October 19, 2023 Order.

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Bluebook (online)
Welch v. Occidental Fire & Casualty Company of North Carolina, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welch-v-occidental-fire-casualty-company-of-north-carolina-laed-2023.