Opinion

Gnawlins, LLC v. Great American Insurance Company

Court
District Court, E.D. Louisiana
Filed
Oct 20, 2023
Cited by
0 cases
Authority
More cited than 22.4%

“The intent of Congress drastically to restrict federal jurisdiction in controversies between citizens of different states has always been rigorously enforced by the courts.”

How later courts described this case

  • “The intent of Congress drastically to restrict federal jurisdiction in controversies between citizens of different states has always been rigorously enforced by the courts.”

Written by the judges who cited it.

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

GNAWLINS, LLC CIVIL ACTION

VERSUS NO. 23-5666

GREAT AMERICAN INSURANCE SECTION “R” (4)

COMPANY

ORDER AND REASONS

Before the Court is plaintiff and defendant’s joint motion to remand.1

For the following reasons, the Court grants the motion.

I. BACKGROUND

Plaintiff filed this action in Louisiana state court on August 28, 2023.2

The state court petition alleges that defendant is liable on an insurance policy

for property damage caused by Hurricane Ida.3 In the petition, plaintiff

“stipulates its cause of action does not exceed $75,000, exclusive of interest

and costs.”4 Defendant removed the matter to this Court on September 29,

1 R. Doc. 9.

2 R. Doc. 1-1.

3 Id.

4 Id. ¶ 42.

2023, on the basis of diversity jurisdiction.5 In the notice of removal,

defendant asserts that on February 1, 2023, “[p]laintiff supplied [defendant]

with a Statement of Loss for this claim in the amount of $131,463.42.”6

On October 2, 2023, plaintiff filed its first motion to remand, asserting

that the amount in controversy is less than $75,000, as evidenced by the

stipulation in the state court petition.7 On October 18, 2023, plaintiff and

defendant jointly filed another motion to remand on the same basis.8

The Court considers the motion below.

II. LEGAL STANDARD

A defendant may generally remove a civil action filed in state court if

the federal court has original jurisdiction over the action. See 28 U.S.C.

§ 1441(a). The removing party bears the burden of showing that federal

jurisdiction exists. See Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th

Cir. 1995). In assessing whether removal was appropriate, the Court is

guided by the principle, grounded in notions of comity and the recognition

that federal courts are courts of limited jurisdiction, that removal statutes

5 R. Doc. 1.

6 Id. ¶ 10.

7 R. Doc. 3.

8 R. Doc. 9.

should be strictly construed. See, e.g., Manguno v. Prudential Prop. & Cas.

Ins., 276 F.3d 720, 723 (5th Cir. 2002); see also St. Paul Mercury Indem. Co.

v. Red Cab Co., 303 U.S. 283, 288 (1938) (“The intent of Congress drastically

to restrict federal jurisdiction in controversies between citizens of different

states has always been rigorously enforced by the courts.”). Though the

Court must remand the case to state court if at any time before the final

judgment it appears that it lacks subject matter jurisdiction, the Court’s

jurisdiction is fixed as of the time of removal. 28 U.S.C. § 1447(c); Doddy v.

Oxy USA, Inc., 101 F.3d 448, 456 (5th Cir. 1996).

For diversity jurisdiction to exist, the amount in controversy must

exceed $75,000, and there must be complete diversity between plaintiffs and

defendants. See 28 U.S.C. § 1332(a); Owen Equip. & Erection Co. v. Kroger,

437 U.S. 365, 373 (1978). Under Fifth Circuit law, if a plaintiff pleads

damages less than the jurisdictional amount, this figure will generally control

and bar removal. See Allen, 63 F.3d at 1335. If a defendant can show by a

preponderance of the evidence that the amount in controversy exceeds

$75,000, then removal is proper. See Simon v. Wal-Mart Stores, Inc., 193

F.3d 848, 850 (5th Cir. 1999); Allen, 63 F.3d at 1335. But if the plaintiffs

establish with legal certainty that the claims are for less than $75,000, then

they can defeat removal. See De Aguilar v. Boeing Co., 47 F.3d 1404, 1411-

12 (5th Cir. 1995); see also Allstate Fire & Cas. Ins. Co. v. Love, 71 F.4th 348,

355 n.4 (5th Cir. 2023) (affirming same).

III. DISCUSSION

As a threshold matter, defendant’s decision not to oppose plaintiff’s

remand motion “alone provides sufficient grounds to remand.” Brown v.

Heintz, No. 16-13697, 2017 WL 604034, at *2 (E.D. La. Feb. 15, 2017)

(collecting cases); see also Jackson v. City of New Orleans, No. 95-1340,

1995 WL 599046, at *1 (E.D. La. Oct. 10, 1995) (holding that plaintiff’s

remand motion “could be granted as unopposed”).

Further, it is not facially apparent from the original petition that the

jurisdictional amount is satisfied. The original petition includes a stipulation

that the “cause of action does not exceed $75,000.”9 Defendants originally

presented a Statement of Loss filed with defendants on February 1, 2023, in

which plaintiff asserts the total value of the claim on the insurance policy is

$131,463.42.10 Plaintiff states that the amount in controversy in this action

is lower because of “prior payments made.”11 See Nelsen v. Garrison Prop.

and Cas. Ins. Co., No. 2023 WL 5844754, at *4 (E.D. La. Sep. 11, 2023)

9 R. Doc. 1-1 ¶ 42.

10 R. Doc. 1 ¶ 10; R. Doc. 1-3.

11 R. Doc. 3-1.

(holding that tendered payments may reduce amount in controversy).

Because it is defendant’s burden “to establish by a preponderance of the

evidence that the amount in controversy exceeds $75,000,” Manguno v.

Prudential Prop. And Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir. 2002), and

defendant does not challenge plaintiff's allegations but joins in the motion to

remand, the Court finds that the jurisdictional amount is not satisfied, and

the case must be remanded.

IV. CONCLUSION

For the foregoing reasons, the Court GRANTS plaintiff and defendant’s

joint motion to remand.” Plaintiffs original motion to remand3 is DENIED

as moot.

New Orleans, Louisiana, this _20th _ day of October, 2023.

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE

12 R. Doc. 9.

13 R. Doc. 3.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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