Peters v. USAA Casualty Insurance Company

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

EDUIN PETERS CIVIL ACTION

VERSUS NO. 23-5300

USAA CASUALTY INSURANCE SECTION “R” (5)

COMPANY

ORDER AND REASONS

Before the Court is plaintiff’s unopposed 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 9, 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 does

not state whether the amount in dispute exceeds $75,000 and does not

include a specific demand. Defendant removed the matter to this Court on

September 14, 2023, on the basis of diversity jurisdiction.4 In the notice of

1 R. Doc. 8.

2 R. Doc. 1-1.

3 Id.

4 R. Doc. 1.

removal, defendant contends that plaintiff’s petition references at least

$62,576.69 in compensatory damages, which defendant alleges shows that

the amount in controversy is met after taking into account penalties,

attorney’s fees, court costs, and damages for mental anguish.5

On September 22, 2023, plaintiff filed the motion to remand, asserting

that defendant failed to adequately plead its citizenship, and that the amount

in controversy is less than $75,000, as evidenced by a demand letter sent to

defendant and because of payments defendant has already issued to

plaintiff.6 On October 18, 2023, plaintiff filed a stipulation limiting the total

damages recoverable by plaintiff to $75,000.7

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

5 Id. at 2.

6 R. Doc. 8.

7 R. Doc. 12.

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

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

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).

Additionally, “post-removal [stipulations or ]affidavits may be

considered in determining the amount in controversy at the time of removal

. . . if the basis for jurisdiction is ambiguous at the time of removal.” Gebbia

v. Wal-Mart Stores, Inc., 233 F.3d 880, 883 (5th Cir. 2000). But “if it is

facially apparent from the [state court complaint] that the amount in

controversy exceeds $75,000 at the time of removal, post-removal affidavits,

stipulations, and amendments reducing the amount do not deprive the

district court of jurisdiction.” Id. (citations omitted).

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 references figures

which add up to $62,576.69, but does not assert that plaintiff seeks to recover

all of that sum.8 Plaintiff states that the amount in controversy in this action

is lower because of “prior payments made.”9 See Nelsen v. Garrison Prop.

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

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

Plaintiff also states that he issued a demand letter to defendant on June 23,

2023, for $68,847.94, which included penalties and attorneys’ fees, before

defendant made payments on the claim for coverage at issue in this suit.10

Further, plaintiff has stipulated that he will not seek or accept more than

$75,000 in damages.11 Defendant does not contest the stipulation, nor does

it offer evidence that the amount in controversy in this matter exceeds

$75,000. See De Aguilar, 47 F.3d at 1406 (“Post-removal [stipulations or

]affidavits sometimes can be relevant where the jurisdictional amount

question is unresolved.”); Guillory v. Chevron Stations, Inc., No. 03-2385,

2004 WL 1661201, at *2 (E.D. La. July 22, 2004) (“Given that the amount in

8 R. Doc. 1-1 ¶ 42.

9 R. Doc. 8-1 at 4.

10 Id.

11 R. Doc. 12.

controversy is not facially apparent from the complaint and [defendant’s]

inability to show by a preponderance of the evidence that more than $75,000

is in controversy, the Court credits [plaintiffs stipulation].”).

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 plaintiffs allegations, 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 plaintiffs motion to

remand.

New Orleans, Louisiana, this _13th _day of November, 2023.

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE