Zell v. Amica Mutual Insurance Company

CourtDistrict Court, N.D. Texas
DecidedMarch 22, 2024
Docket3:23-cv-01455
StatusUnknown

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

Bluebook
Zell v. Amica Mutual Insurance Company, (N.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

JAMES ZELL, § § Plaintiff, § § v. § Civil Action No. 3:23-CV-01455-E § AMICA MUTUAL INSURANCE § COMPANY et al., § § Defendants. § §

MEMORANDUM OPINION AND ORDER Before the Court is Plaintiff Zell’s Motion to Remand, which seeks to remand this proceeding to the 160th Judicial District Court of Dallas County, Texas. (ECF Nos. 5-6). Defendants have responded, and Plaintiff has not replied. After review of the pleadings, Zell’s Motion to Remand, Defendants’ response, and the corresponding law, the Court DENIES Zell’s Motion to Remand. I. BACKGROUND Zell initiated this litigation on May 19, 2023, in the 160th Judicial District Court of Dallas County, Texas—listing AMICA Mutual Insurance Company and Emily S. Nelson as defendants. (ECF No. 1-5 at 2). Zell’s state court petition (Petition) states: “Defendant AMICA has failed to extend a just and reasonable offer of settlement for the Plaintiff’s injuries and damages arising out of Defendant CHARLES WAYNE RICHARDSON and PETTY TURNER’s negligence on the date of the incident made the basis of this lawsuit.”1 (ECF No. 1-5 at 9) (emphasis added). As to Nelson, the only specific factual allegation(s) in the Petition are:

1 As pleaded, Zell asserts no claims against Richardson or Turner; neither Richardson nor Turner are named parties in this proceeding. (See ECF No. 1-5 at 2-23). On or about December 4, 2019, Plaintiff received a letter from Defendant AMICA acknowledging receipt of the notice letter and assigning Emily Nelson as the adjuster, attached as Exhibit B and incorporated herein by reference. (ECF No. 1-5 at 8). The Petition attaches this referenced “Exhibit B” letter from AMICA:

Kasil Law PC December 4, 2019 4144 N, Central Expwy Suite 300 Dallas, TX 75204

Our File Number: 60002969400 Our Insured: James A. Zell Jr. Your Client(s): James A. Zell Jr, Date of Loss: October (3, 2017 To Whom it May Concern: We acknowledge your letter of representation, This injury case has been reassigned to an Amica ciaims adj | 5 adjuster for igati and to handle your cli ent’s claim. You will soon be contacted by Brvily Nelson. ‘Any anes correspondence pertain-ing to your client’s injury claim should be forwarded to Emily Nelson, The undersigned wilt continue to handle the pro t notify us to directly correspond to your office. Propeny cGimage portion oF the fle unless me Thank you for your cooperation.

Sincerely, Kelly Go Exaatl Kelly J. Small. CPCU Claims Department 800-962-6422 x20901 KSMALL@AMICA.COM

(ECF No. 1-5 at 18). The Petition further attaches a demand from Zell to AMICA demanding—at minimum—$94,046.40. (ECF No. 1-5 at 22-23). Zell asserts claims for (i) declaratory relief; (11) violation of the Texas Deceptive Trade Practices Act (DTPA); (iii) breach of contract; (iv) promissory estoppel; and (v) specific performance. (ECF No. 1-5 at 9-13).

MEMORANDUM OPINION AND □□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□ aS 2 OF 13,

On June 30, 2023, Defendants removed the case to this Court. (ECF No. 1). Defendants asserted in the notice of removal that, inter alia, Nelson was improperly joined to defeat diversity jurisdiction. (ECF No. 1 at 1-2, 5-8). On July 26, 2023, Zell moved to remand this case back to the 160th Judicial District Court of Dallas County, Texas. (ECF No. 5). Defendants responded. (ECF No. 8).2 Zell filed no reply. Having been fully briefed, Zell’s Motion to Remand is ripe for

consideration. II. LEGAL STANDARD A. Removal Generally 28 U.S.C. § 1441(a) permits the removal of “any civil action brought in a [s]tate court of which the district courts of the United States have original jurisdiction.” 28 U.S.C. § 1441(a). The statute allows a defendant to “remove a state court action to federal court only if the action could have originally been filed in federal court.” Anderson v. American Airlines, Inc., 2 F.3d 590, 593 (5th Cir. 1993). However, the removal statute must be strictly construed because “removal jurisdiction raises significant federalism concerns.” Willy v. Coastal Corporation, 855 F.2d 1160,

1164 (5th Cir. 1988); see also Gutierrez v. Flores, 543 F.3d 248, 251 (5th Cir. 2008). The district court must evaluate all of the factual allegations in the light most favorable to the plaintiff. Burden v. General Dynamics Corp., 60 F.3d 213, 216 (5th Cir. 1995). Any contested issues of fact and any ambiguities of state law must be resolved in favor of remand. African Methodist Episcopal Church v. Lucien, 756 F.3d 788, 793 (5th Cir. 2014). In reviewing a motion to remand, the party who sought removal has the burden of proving removal was proper. Texas Brine Co. v. American

2 Defendants use the term “fraudulent[] joinder” and “improper joinder” interchangeably. (See ECF Nos. 1,8). As briefed in the notice of removal and the response on the Motion to Remand, it is evident that Defendants argue Nelson was improperly joined. (See ECF Nos. 1; 8). Arbitration Assoc., 955 F.3d 482, 485 (5th Cir. 2020); see also Willy, 855 F.2d at 1164 (discussing the same). There are two principal bases upon which a district court may exercise removal jurisdiction: (i) the existence of a federal question, see 28 U.S.C. § 1331, and (ii) complete diversity

of citizenship among the parties, see 28 U.S.C. § 1332. Here, the removing Defendants have alleged only diversity of citizenship as a basis for this court’s jurisdiction. See ECF No. 1 at 4-5. The court can properly exercise jurisdiction on the basis of diversity of citizenship after removal only if three requirements are met: (i) the parties are of completely diverse citizenship, see 28 U.S.C. § 1332(a);3 (ii) none of the properly joined defendants is a citizen of the state in which the case is brought, see 28 U.S.C. § 1441(b); and (iii) the case involves an amount in controversy of more than $75,000, see 28 U.S.C. § 1332(a). B. Improper Joinder The doctrine of improper joinder is a narrow exception to the rule of complete diversity, and it “entitle[s] a defendant to remove to a federal forum unless an in-state defendant has been

‘properly joined.’” Smallwood v. Ill. Cent. R.R. Co., 385 F.3d 568, 573 (5th Cir. 2004) (en banc). This doctrine allows federal courts to defend against attempts to manipulate their jurisdiction, such as by joining nondiverse parties solely to deprive federal courts of diversity jurisdiction. See Smallwood, 385 F.3d at 576.

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Zell v. Amica Mutual Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zell-v-amica-mutual-insurance-company-txnd-2024.