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Keywords

plaintiffdefendantjurisdictionliabilitymotioncitizenship

plaintiffdefendantjurisdiction

Related Cases

Trivic, Inc. v. United States Fidelity and Guaranty Co., Not Reported in F.Supp.2d, 2007 WL 2670284

Facts

Trivic, a restaurant supply business, suffered damage from Hurricane Katrina and subsequently sued its insurance providers, United States Fidelity and Guaranty Co. and St. Paul Travelers Companies, as well as its insurance agents, Jay Oppenheim and Eagan Insurance Agency, Inc. The insurance agents were accused of failing to procure adequate business interruption insurance. The policy in question was effective from September 12, 2004, to September 12, 2005, and Trivic claimed it was misled about the coverage provided.

Plaintiff sued United States Fidelity and Guaranty Co. and St. Paul Travelers Companies, its commercial property insurers, and Jay Oppenheim and Eagan Insurance Agency, Inc., its insurance agents, after plaintiff's restaurant supply business suffered damage as a result of Hurricane Katrina.

Issue

The main legal issue was whether the insurance agents were improperly joined as defendants, which would affect the federal court's jurisdiction based on diversity of citizenship.

Defendants assert that Trivic has failed to establish a cause of action against the insurance agents and that even if plaintiff has a cause of action, it is perempted by the terms of La.Rev.Stat. § 9:5606.

Rule

The court applied the rule that a defendant may remove a civil action from state court to federal court only if there is complete diversity of citizenship among the parties. If a nondiverse party is properly joined, the case must remain in state court unless the removing party can demonstrate that the nondiverse party was improperly joined.

A defendant may generally remove a civil action filed in state court if the federal court has original jurisdiction over the action.

Analysis

The court analyzed whether there was a reasonable basis for predicting that Louisiana law might impose liability on the nondiverse insurance agents. It found that Trivic had sufficiently alleged causes of action for failure to procure requested insurance coverage and negligent misrepresentation, which could potentially hold the agents liable under Louisiana law. The court concluded that the defendants failed to demonstrate that the joinder of the insurance agents was improper.

Broadly construing plaintiff's petition in its favor, the Court concludes that there is a reasonable probability that plaintiff can satisfy each of these three elements.

Conclusion

The court granted Trivic's motion to remand the case back to state court, concluding that it lacked jurisdiction due to the improper removal based on diversity.

The Court thus does not have jurisdiction on the basis of the diversity of the parties.

Who won?

The plaintiff, Trivic, prevailed in the case because the court found that the insurance agents were not improperly joined, thus maintaining the state court's jurisdiction.

The Court finds that plaintiff's claims against Oppenheim and Eagan Insurance Agency are not perempted.

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