Xome Settlement Servs., LLC v. Certain Underwriters at Lloyd's, London

384 F. Supp. 3d 697
CourtDistrict Court, E.D. Texas
DecidedApril 17, 2019
DocketCivil Action No. 4:18-CV-00837
StatusPublished
Cited by7 cases

This text of 384 F. Supp. 3d 697 (Xome Settlement Servs., LLC v. Certain Underwriters at Lloyd's, London) 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
Xome Settlement Servs., LLC v. Certain Underwriters at Lloyd's, London, 384 F. Supp. 3d 697 (E.D. Tex. 2019).

Opinion

AMOS L. MAZZANT, UNITED STATES DISTRICT JUDGE

Pending before the Court is Plaintiffs Xome Settlement Services, LLC ("Xome") and Quantarium, LLC's ("Quantarium") Motion to Remand (Dkt. #5). Having considered the motion and the relevant pleadings, the Court finds that the motion should be denied.

BACKGROUND

Plaintiffs filed this insurance coverage action in the 367th Judicial District Court of Denton County, Texas seeking a declaration of their rights under an insurance policy issued by Defendants Certain Underwriters at Lloyd's, London subscribing to Policy No. B0621PXOME000116 ("the Policy") (Dkt. #1; Dkt. #5 at p. 1). The Certain Underwriters subscribing to the Policy are Canopius Syndicate, Barbican Syndicate, and Antares Syndicate (collectively, "Defendants") (Dkt. #1 ¶ 8).

On November 29, 2018, Defendants removed the case to this Court (Dkt. #1). On December 20, 2018, Plaintiffs filed their Motion to Remand (Dkt. #5). Defendants filed a response to the motion on January 18, 2019 (Dkt. #9). Plaintiffs filed a reply in support of the motion on January 22, 2019 (Dkt. #10). The parties dispute whether Defendants waived their removal rights in the Policy.

LEGAL STANDARD

"Federal courts are courts of limited jurisdiction, possessing only that power authorized by Constitution and statute." Gunn v. Minton , 568 U.S. 251, 256, 133 S.Ct. 1059, 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) ). "Only state court actions that originally could have been filed in federal court may be removed to federal court by the defendant." Caterpillar Inc. v. Williams , 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987) (citing 28 U.S.C. § 1441(a) ). "In an action that has been removed to federal court, a district court is required to remand the case to state court if, at any time before *699final judgment, it determines that it lacks subject matter jurisdiction." Humphrey v. Tex. Gas Serv. , No. 1:14-CV-485, 2014 WL 12687831, at *2 (E.D. Tex. Dec. 11, 2014) (citations omitted). The Court "must presume that a suit lies outside [its] limited jurisdiction," Howery v. Allstate Ins. Co. , 243 F.3d 912, 916 (5th Cir. 2001), and "[a]ny ambiguities are construed against removal and in favor of remand to state court." Mumfrey v. CVS Pharmacy, Inc. , 719 F.3d 392, 397 (5th Cir. 2013) (citing Manguno v. Prudential Prop. & Cas. Ins. Co. , 276 F.3d 720, 723 (5th Cir. 2002) ). "When considering a motion to remand, the removing party bears the burden of showing that federal jurisdiction exists and that removal was proper." Humphrey , 2014 WL 12687831, at *2 (quoting Manguno , 276 F.3d at 723 ).

ANALYSIS

I. Subject Matter Jurisdiction

Before addressing whether Defendants waived their right to remove the case from state court, the Court must determine whether it may exercise subject matter jurisdiction in this case. See Sangha v. Navig8 ShipManagement Private Ltd. , 882 F.3d 96, 100 (5th Cir. 2018) (citations omitted) (It is the "general expectation that federal courts address subject-matter jurisdiction at the outset in the 'mine run of cases' ...."). Defendants allege the Court may exercise subject matter jurisdiction pursuant to 28 U.S.C. § 1332.

Section 1332(a) provides that federal district courts may exercise subject matter jurisdiction over "all civil actions where the matter in controversy exceeds the sum or value of $ 75,000, exclusive of interest and costs, and is between ... citizens of a State and citizens or subjects of a foreign state...." Subject matter jurisdiction established by § 1332 is referred to as "diversity jurisdiction" or "diversity of citizenship jurisdiction." " 'The diversity statute requires 'complete diversity' of citizenship.' " Stiftung v. Plains Mktg., L.P. , 603 F.3d 295, 297 (5th Cir. 2010) (quoting Whalen v. Carter , 954 F.2d 1087, 1094 (5th Cir. 1992) ). "Complete diversity 'requires that all persons on one side of the controversy be citizens of different states than all persons on the other side.' " Harvey v. Grey Wolf Drilling Co. ,

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384 F. Supp. 3d 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xome-settlement-servs-llc-v-certain-underwriters-at-lloyds-london-txed-2019.