Welsh v. New Hampshire Insurance

843 F. Supp. 2d 1006, 2012 WL 385423, 2012 U.S. Dist. LEXIS 14272
CourtDistrict Court, D. Arizona
DecidedFebruary 7, 2012
DocketNo. CV 11-2039-PHX-JAT
StatusPublished
Cited by8 cases

This text of 843 F. Supp. 2d 1006 (Welsh v. New Hampshire Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welsh v. New Hampshire Insurance, 843 F. Supp. 2d 1006, 2012 WL 385423, 2012 U.S. Dist. LEXIS 14272 (D. Ariz. 2012).

Opinion

ORDER

JAMES A. TEILBORG, District Judge.

Pending before the Court is Plaintiffs Motion to Remand (Doc. 7). The Court now rules on the motion.

I. BACKGROUND

Plaintiff was an employee of Lowe’s Home Improvement Warehouse, Inc. (Doc. 1, Ex. 1 at 2). While fixing a cabinet door at work, Plaintiff stood up and felt a sharp pain in his back. (Id. at 3). Defendants denied Plaintiffs workers’ compensation claim, prompting Plaintiff to request a hearing with the Industrial Commission. (Id. at 4). The Industrial Commission hearings resulted in an Administrative Law Judge ordering Defendants to compensate the claim.

Plaintiff commenced this action in Maricopa County Superior Court against Defendants, alleging two state causes of action for breach of the implied covenant of good faith and fair dealing and aiding and abetting. (Id. at 6-7). Plaintiff seeks compensatory damages, financial damages, punitive damages and attorneys’ fees, as well as costs. (Id. at 9). Defendants filed their Notice of Removal of this action pursuant to 28 U.S.C. § 1441(b), claiming diversity jurisdiction pursuant to 28 U.S.C. § 1332. (Doc. 1 at 2). In their Notice of Removal, Defendants allege that “[t]his action ... is a civil action between citizens of different states and the matter in controversy exceeds the sum of $75,000.” (Id.) Both parties agree that the action is between citizens of different states. (Doc. 8 at 2). Accordingly, the Court must determine whether Defendants have established the requisite amount in controversy for this Court to have subject matter jurisdiction.

II. LEGAL STANDARD

Pursuant to 28 U.S.C. § 1332, “district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interests and costs, and is between ... citizens of different States[.]” 28 U.S.C. § 1332(a)(1).

The removal statute, 28 U.S.C. § 1441, provides, in pertinent part: “[A]ny civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant ... to the district court of the United States for the district and division embracing the place where such action is pending.” 28 U.S.C. § 1441(a). Courts strictly construe the removal statute against removal jurisdiction. See Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09, 61 S.Ct. 868, 85 L.Ed. 1214 (1941); Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir.1992). “The ‘strong presumption’ against removal jurisdiction means that the defendant always has the burden of establishing that removal is proper.” Gaus, 980 F.2d at 566 (citing Libhart v. Santa Monica Dairy Co., 592 F.2d 1062, 1064 (9th Cir.1979).)

[1009]*1009“In a. removed case, ... the plaintiff chose a state rather than federal forum. Because the plaintiff instituted the case in state court, ‘there is a strong presumption that the plaintiff has not claimed a large amount in order to confer jurisdiction on a federal court[.]’ ” Singer v. State Farm Mut. Auto. Ins. Co., 116 F.3d 373, 375 (9th Cir.1997) (quoting St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 290, 58 S.Ct. 586, 82 L.Ed. 845 (1938)). “Where the complaint does not demand a dollar amount, the removing defendant bears the burden of proving by a preponderance of the evidence that the amount in controversy exceeds [$75,000].” Id. at 376. “Under this burden, the defendant must provide evidence establishing that it is ‘more likely than not’ that the amount in controversy exceeds [$75,000].” Sanchez v. Monumental Life Insurance Co., 102 F.3d 398, 404 (9th Cir.1996). “[R]emoval ‘cannot be based simply upon conclusory allegations’ where the [complaint] is silent” as to the dollar amount of damages the plaintiff seeks. Singer, 116 F.3d at 377 (citing Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th Cir.1995)). However, the inquiry into the amount in controversy is not confined to the face of the complaint. Valdez v. Allstate Ins. Co., 372 F.3d 1115, 1117 (9th Cir.2004).

III. ANALYSIS

Plaintiff has not demanded a dollar amount in his complaint. Accordingly, it is Defendants’ burden to prove by a preponderance of the evidence that the amount in controversy exceeds $75,000. Singer, 116 F.3d at 376. Defendant may not rely upon conclusory allegations, but may submit summary-judgment-type evidence. Valdez, 372 F.3d at 1117.

Defendants submitted four pieces of evidence to support their assertion that the amount in controversy is greater than $75,000. (Doc. 8 at 3-5). First, Defendants requested that the parties agree to limit damages to no more than $75,000 in exchange for Defendants’ stipulation to remand this case. (Id.) Plaintiff did not agree. (Id.) Second, Plaintiff certified that the claim is not subject to compulsory arbitration because the amount in controversy exceeded $50,000. (Id. at 3). Third, Defendants claim that punitive damages could be “a significant amount easily satisfying the jurisdictional requirements.” (Id. at 4). Finally, Plaintiff has requested attorneys’ fees, which Defendants claim will likely exceed $25,000. (Id.) In sum, Defendants argue that Plaintiffs certification that the amount in controversy exceeds $50,000, in addition to the potential punitive damages and attorneys’ fees establish that the jurisdictional requirement is met. (Id.)

Defendants have not satisfied their burden in demonstrating that the amount in controversy meets the $75,000 requirement. Although Plaintiffs certificate regarding compulsory arbitration is undisputed, it estimates that the amount in controversy is at least $50,000. Defendants’ statements that attorneys’ fees and punitive damages make up the remaining $25,000 are unsupported by further evidence. Also, a lack of agreement between the parties to limit damages to $75,000 is not conclusive.

A. Arbitration Certificate

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Bluebook (online)
843 F. Supp. 2d 1006, 2012 WL 385423, 2012 U.S. Dist. LEXIS 14272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welsh-v-new-hampshire-insurance-azd-2012.