McCray v. State Farm Fire and Casualty Company (CONSENT)

IN THE UNITED STATES DISTRICT COURT

FOR THE MIDDLE DISTRICT OF ALABAMA

SOUTHERN DIVISION

LASHUNDA MCCRAY, )

)

Plaintiff, )

)

v. ) CASE NO. 1:24-CV-773-KFP

) [WO]

STATE FARM FIRE AND CASUALTY )

COMPANY, )

)

Defendant. )

MEMORANDUM OPINION AND ORDER

Before the Court is Plaintiff Lashunda McCray’s Motion to Remand. Doc. 6.

Defendant State Farm Fire and Casualty Company removed this case to federal court on

the basis of diversity jurisdiction, asserting that the parties are completely diverse and it

has demonstrated by a preponderance of the evidence that the amount in controversy

exceeds the jurisdictional threshold. Doc. 1. Plaintiff seeks to remand the case, arguing that

Defendant “failed to provide any concrete evidence . . . that the amount in controversy

exceeds the required jurisdictional minimum value[,]” and therefore the Court does not

have subject matter jurisdiction. Doc. 6 at 1. Defendant opposes the Motion to Remand.

Doc. 10. The parties consented to jurisdiction by a magistrate judge.

For the reasons below, the Court finds that the Motion to Remand is due to be

GRANTED.

I. LEGAL STANDARD

Federal courts have limited jurisdiction and possess only the power authorized by a

statute or the Constitution. Kokkonen v. Guardian Life Ins. of Am., 511 U.S. 375, 377

(1994). Courts should presume that a case lies outside this limited jurisdiction, and the

burden of establishing the contrary is on the party asserting jurisdiction. Id. Although a

defendant has the statutory right to remove in certain situations, the plaintiff is still the

master of his claim. Burns v. Windsor Ins., 31 F.3d 1092, 1095 (11th Cir. 1994). For that

reason, a defendant’s right to remove and a plaintiff’s right to choose his forum are “not

on equal footing.” Id. Moreover, “[b]ecause removal jurisdiction raises significant

federalism concerns, federal courts are directed to construe removal statutes strictly.

Indeed, all doubts about jurisdiction should be resolved in favor of remand to state court.”

City of Vestavia Hills v. Gen. Fid. Ins., 676 F.3d 1310, 1313 (11th Cir. 2012) (quoting

Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405, 411 (11th Cir. 1999)). Accordingly, a

defendant’s removal burden is a heavy one. Burns, 31 F.3d at 1095.

Federal courts have diversity jurisdiction over all civil actions where the amount in

controversy exceeds $75,000 and the action is between citizens of different states. 28

U.S.C. § 1332(a). When a plaintiff has not pleaded a specific amount in damages, “the

removing defendant must prove by a preponderance of the evidence that the amount in

controversy exceeds the jurisdictional requirement.” Pretka v. Kolter City Plaza II, Inc.,

608 F.3d 744, 752 (11th Cir. 2010) (citations omitted) (quoting Williams v. Best Buy Co.,

269 F.3d 1316, 1319 (11th Cir. 2001)). In some cases, “it may be ‘facially apparent’ from

the [complaint] itself that the amount in controversy exceeds the jurisdictional

minimum[.]” Roe v. Michelin N. Am., Inc., 613 F.3d 1058, 1061 (11th Cir. 2010); see also

Pretka, 608 F.3d at 754. “If a defendant alleges that removability is apparent from the face

of the complaint, the district court must evaluate whether the complaint itself satisfies the

defendant’s jurisdictional burden.” Roe, 613 F.3d at 1061. “[T]he ultimate question the

court addresses is whether a defendant has established by a preponderance of the evidence

that should the plaintiff prevail on a particular claim, the plaintiff, more likely than not,

will recover in excess of the federal jurisdictional prerequisite.” Lowe’s OK’d Used Cars,

Inc. v. Acceptance Ins., 995 F. Supp. 1388, 1393 (M.D. Ala. 1998) (citing Tapscott v. MS

Dealer Serv. Corp., 77 F.3d 1353, 1357 (11th Cir. 1996)).

II. BACKGROUND AND PROCEDURAL HISTORY1

On or about June 14, 2023, a storm damaged Plaintiff’s residence. Doc. 1-2 ¶¶ 6, 7,

9. To fix the damage, Plaintiff contracted with ALABAMA PREMIER ROOFING

CONSTRUCTION COMPANY, who provided her with two estimates for repairs:

$32,810.75 and $26,812.64. Doc. 1-3 ¶ 6; Doc. 1-2 ¶ 9.

At all material times, Plaintiff and Defendant had an insurance policy on the

residence that provided for covered losses to the home in the amount of $261,700.00, loss

of use in the amount of $78,510.00, and for personal property in the amount of $196,275.

Doc. 1 at 5; Doc. 1-2 ¶ 5; Doc. 1-3 ¶ 5. Plaintiff submitted a claim under the policy for the

storm damage she sustained, but Defendant allegedly “has refused and continues to refuse

to pay either part of or all of [] Plaintiff’s claims.” Doc. 1-2 ¶ 10; see also Doc. 1-3 ¶ 4.

1 The Court recites only the facts pertinent to resolving the Motion to Remand.

Plaintiff brought a civil case against Defendant on November 8, 2024, in the Circuit

Court of Coffee County, Alabama. Doc. 1-2. She alleged damages in excess of $30,000

exclusive of interest, costs, and attorney’s fees. Id. ¶ 8. In Count I, breach of contract,

Plaintiff alleged she is entitled to “an award of attorney fees, court costs, and reasonable

expenses pursuant to Alabama Code Section 8-29-6[.]” Id. ¶ 16. In Count II, bad faith,

Plaintiff alleged that Defendant “engaged in an act of bad faith in denying full payment of

the Plaintiff’s claims without any legitimate or debatable reason[,]” and Defendant’s

actions “constitute an act of bad faith which they engaged in to oppressively, maliciously,

and intentionally, in an effort to deny [] Plaintiff full insurance benefits to which [she is]

entitled.” Id. ¶¶ 21, 22. In recompense, Plaintiff demanded “damages including but not

limited to damage to the building, contents, loss of use, interest allowed by law, and

reasonable attorney’s fees[.]” Id. at 10.

On December 3, 2025, Defendant removed the case to federal court under federal

diversity jurisdiction. Doc. 1. On December 17, 2024, Plaintiff filed a Motion to Remand,

arguing the Court lacks subject matter jurisdiction because Defendant has not met its

burden of proof to establish diversity jurisdiction. Doc. 6. With her response brief, Plaintiff

attached an affidavit stating that the amount in controversy does not exceed $75,000.00,

that she agrees not to accept any judgment in excess of $75,000.00, and “[i]n the event that

the finder of fact awards more than $75,000.00, [she] agree[s] to a remitter[.]” Doc. 6-1 at

2. Plaintiff also attached a pre-suit demand letter for $31,348.89 in repair costs and $10,000

in attorney’s fees to her motion to remand. Doc. 6-2 at 2.

III. DISCUSSION

Defendant removed the case pursuant to federal diversity jurisdiction. There is no

dispute that the action is between completely diverse parties: Plaintiff is a citizen of

Alabama and Defendant is a citizen of Illinois.2 Doc. 1 ¶¶ 8,9. The dispute centers on the

amount in controversy because no specific amount was alleged in the Complaint.

Defendant argues that federal jurisdiction exists because “Plaintiff’s insurance policy with

[Defendant] provides for benefits well in excess of $75,000[,]” (Id. ¶ 15), Plaintiff

submitted two contracts estimates, the higher of which totaled $32,810.75 (Id. ¶ 16),

Plaintiff sought damages “’including but not limited to’ property damage, loss of use,

personal property damage, interest, attorney’s fees and other costs[,]” Id. ¶ 17), and

punitive damages are available (Id. ¶¶ 18–20). Plaintiff averred in her Motion to Remand

that Defendant’s assertions were “conclusory” and provided an affidavit and pre-suit

demand packet as evidence that the case is not worth more than $75,000.

The Court finds Murphy v. State Farm Fire Casualty Company, 2025 WL 20416

(M.D. Ala. Jan. 2, 2025) is the quintessential on-all-fours case.3 In Murphy, “the sole issue

was whether State Farm ha[d] met its burden of showing by a preponderance of the

2 Defendant’s allegation of its citizenship in its Notice of Removal is incomplete because it only provided

the corporation’s principal place of business. Doc. 1 ¶ 9; 28 U.S.C. § 1332(c)(1). However, Defendant filed

a disclosure statement which provided that Defendant is incorporated in Illinois and has its principal place

of business in Illinois. Doc. 2. Thus, the Court is satisfied that Defendant is a citizen of Illinois for purposes

of diversity jurisdiction.

3 The Court acknowledges that the January 2, 2025, Murphy opinion was entered after Plaintiff filed her

Motion to Remand on December 17, 2024, but considering the nearly identical facts and argument, and that

counsel appearing in Murphy and before the Court in this matter is the same, no perspicacious inquirer is

needed to suss out that the parties should have addressed Murphy in their later response and reply briefs. It

is troubling that the parties did not discuss this extremely relevant opinion from this district court which

was released during their briefing period in this case.

evidence that the amount in controversy exceeds $75,000.” Murphy, 2025 WL 20416, at

*1. The plaintiff sued State Farm, the same defendant here, “for claims of breach of contract

and bad faith after she made an insurance claim for roof damage to her home[,]” which are

the same claims brought here. Id. State Farm removed, arguing that the amount in

controversy was met because the plaintiff’s “insurance policy coverage exceed[ed]

$75,000, [the plaintiff’s] contractor’s estimate for her roof repairs totaled $26,093.70, . . .

and that punitive damages are available for bad faith claims under Alabama law.” Id.

Defendant made the same arguments in the instant case. The plaintiff in Murphy then filed

an affidavit in response stating: (1) the amount in controversy did not exceed $75,000; (2)

she would not accept any judgment in excess of $75,000; and (3) “that she would agree to

a remittitur of any judgment in excess of that amount.” Id. Plaintiff in the instant case made

the same stipulations in her affidavit. Murphy also had a pre-suit settlement demand of

approximately $36,093.70 in the record, and there is a pre-suit settlement demand in the

record here. Id. at *1 n.1.4

The Court found that “State Farm ha[d] not shown by a preponderance of the

evidence that the amount in controversy exceed[ed] $75,000.” Id. at *3. The Court

4 One factual difference between the instant case and Murphy is that the Court in Murphy held a hearing on

jurisdiction, where the plaintiff, “through her counsel, confirmed that the amount in controversy is less than

$75,000 and made binding stipulations and representations to the Court consistent with the affirmative

statements contained in [her] affidavit.” Murphy v. State Farm Fire Casualty Company, 2025 WL 20416,

at *1 (M.D. Ala. Jan. 2, 2025). While counsel did not participate in a telephone hearing in this case, counsel

has confirmed the amount in controversy by filing the affidavit and presented argument based upon the

stipulations contained in it, and counsel is bound by those assertions. See Fed. R. Civ. P. 11. Thus, this

distinction in procedural history does not alter the Court’s finding of Murphy’s persuasiveness in the instant

case. Like Murphy, “the Court provides notice that any violation of these stipulations and representations

by [the plaintiff] and/or legal counsel will result in swift and forthcoming sanctions.” Murphy, 2025 WL

20416, at *4.

explained that the plaintiff’s “post-removal affidavit” “simply serve[d] as clarification[] of

the amount in controversy at the time of removal.” Id. (citing Sierminksi v. Transouth Fin.

Corp., 216 F.3d 945, 949 (11th Cir. 2000)). The Court then addressed why each of State

Farm’s arguments for federal jurisdiction were inadequate.

“First, that [the plaintiff’s] insurance policy coverage limits exceed the jurisdictional

threshold [was] not persuasive nor [was] it representative of the actual amount in

controversy in th[e] case.” Id. There was nothing in the Complaint or pre-suit settlement

demand which suggested that the plaintiff had demanded the limits of her insurance policy.

Id.

“Second,” the contractor’s estimate of $26,093.70 was far below the jurisdictional

threshold of $75,000 and using the language “including but not limited to” in her Complaint

did “not make the lawsuit something more than just a case over roof damage.” Id. “At best,

that language suggest[ed] an uncertainty, but that uncertainty must be ‘resolved in favor of

remand.’” Id. (citing Burns, 31 F.3d at 1095).

“Third,” the Court acknowledged that “the Complaint does seek unspecified sums

for damage to building contents, loss of use, and interest allowed by law, which would be

damages in addition to the $26,093.70 repair figure. And while it does not specifically seek

punitive damages, punitive damages are available for claims of bad faith under Alabama

law.” Id. (citing Acceptance Ins. v. Brown, 832 So. 2d 1, 19 (Ala. 2001)). However, the

plaintiff “provided no specific monetary amount, nor any measure of computing it.” Id.

Thus, “the only firm figure [was] the $26,093.70 repair estimate, with general, unspecified

requests for damages to contents, loss of use, interest allowed by law, and the possibility

of punitive damages. [The plaintiff’s] affidavit . . . clarif[ied] that the total amount of these

damages—including the repair estimate and any other damages—[was] less than $75,000.”

Id. Additionally, the “pre-suit settlement demand of $36,093.70 confirm[ed] this

clarification.” Id. Accordingly, “State Farm’s attempt to use the alleged bad faith claim and

availability of punitive damages [did] not tip the scales in favor of jurisdiction in light of

such facts, and where doubt remains, remand is due.” Id. (citing Univ. of S. Ala., 168 F.3d

at 411).

Moreover, although State Farm in Murphy cited two cases from a sister court

concerning the availability of punitive damages for bad faith claims against large

corporations, the Court stated that “[t]hose decisions provide[d] little insight here.” Id.

Thus, based on the foregoing, the Court found that “State Farm ha[d] not met its burden of

showing that the amount in controversy [was] sufficient to invoke the jurisdiction of this

Court. Remand [was] therefore proper for lack of subject matter jurisdiction.” Id.

Here, Defendant proffered the same arguments as those in Murphy for federal

jurisdiction, and for the same reasons provided in Murphy, they are unavailing. Plaintiff’s

affidavit and pre-suit demand letter clarify the amount in controversy at the time of

removal. There is no indication or evidence that Plaintiff demanded the limits of her

insurance policy, so there is nothing suggesting that Plaintiff will more likely than not

recover those amounts. Indeed, the evidence of the contractor’s estimates and the pre-suit

demand letter speak to the contrary. Further, as eloquently stated in Murphy, the “including

but not limited to” language in the Complaint “does not make the lawsuit something more

than just a case over roof damage.” Id. The only firm figures offered here fall well below

the $75,000 jurisdictional threshold, and the affidavit and pre-suit settlement demand

confirm that range. Defendant’s attempt to use unspecified damages “does not tip the scales

in favor of jurisdiction in light of such facts, and where doubt remains, remand is due.” Id.

(citing Univ. of S. Ala., 168 F.3d at 411). The citations to the same two Northern District

of Alabama cases that Defendant cited in Murphy as support for its argument that punitive

damages push the amount in controversy over the jurisdictional threshold again “provide

little insight[.]”5 Id. However, here the Court will elaborate further on why.

Defendant cited those cases as support that the amount in controversy is satisfied

because the Northern District found in both cases that “punitive damages against a large

corporation like [Defendant] would alone exceed $75,000[.]” Allred v. State Farm Fire &

Cas. Co., 5:22-cv-00289-LCB (N.D. Ala. June 21, 2022), ECF No. 22 at 12; Bonds v. State

Farm Fire & Cas. Co., 5:22-cv-00618-LCB (N.D. Ala. June 21, 2022), ECF No. 13 at 12);

see also Doc. 1 ¶ 20. But this Court is not bound by findings of the Northern District, nor

does the Court find the cases persuasive without relevant analysis or factually similar

supporting caselaw for its general statement. See Stone v. First Union Corp., 371 F.3d

1305, 1310 (11th Cir. 2004) (“Although a district court would not be bound to follow any

other district court’s determination, the decision would have significant persuasive

effects.”). And while this Court has previously stated that punitive damage awards against

a large company would need to be substantial, the Court caveated that a defendant would

5 A note of clarity regarding consideration of punitive damages: while Defendant is correct that punitive

damages are available for bad faith claims, courts are not mandated to universally consider their value when

determining the amount in controversy. Doc. 1 ¶ 18. Rather, “punitive damages must be considered, . . .

unless it is apparent to a legal certainty that such cannot be recovered.” Holley Equip. Co. v. Credit All.

Corp., 821 F.2d 1531, 1535 (11th Cir. 1987) (emphasis added) (citation omitted).

still need to show that a jury would make such an award. See Roe v. Michelin N. Am. Inc.,

637 F.Supp. 2d 995, 998 (M.D. Ala. 2009), (explaining that a punitive damages award that

is “soundly and honestly calculated to punish and deter [the defendant’s] wanton behavior,

which placed human lives at risk, would have to be substantial.”) aff’d, 613 F.3d 1058

(11th Cir. 2013); Pullum v. Ford Motor Co., 2019 WL 2578948, at *3 (M.D. Ala. June 21,

2019). Here, Defendant has not shown why, other than its status as a large corporation, a

jury would award substantial punitive damages under the facts alleged. The allegations of

bad faith do not appear egregious, and Defendant has not provided any alternative

narrative. See State Farm Mut. Auto. Ins. v. Campbell, 538 U.S. 408, 419 (2003) (“[T]he

most important indicium of the reasonableness of a punitive damages award is the degree

of reprehensibility of the defendant’s conduct.” (quoting BMW of N. Am., Inc. v. Gore, 517

U.S. 559, 575 (1996))). Additionally, Defendant’s assertion that “Alabama juries have

returned numerous punitive damage awards on bath faith claims against defendant

insurance companies” in its response brief does not salvage its punitive damages argument.

Doc. 10 at 5. The cases it cites are all from the 1980’s and do not show why this case would

merit a large punitive damages award. See Lowery v. Ala. Power Co., 483 F.3d 1184, 1221

(11th Cir. 2007) (“[T]he facts regarding other cases tell us nothing about the value of the

claims in this lawsuit.”); Federated Mut. Ins. v. McKinnon Motors, LLC, 329 F.3d 805, 809

(11th Cir.2003) (“[M]ere citation of what has happened in the past does nothing to

overcome the indeterminate and speculative nature of [the] assertions[.]”); Nimrod v. Am.

Merchants Life Ins., 190 F. Supp. 2d 1282, 1283 (M.D. Ala. 2002) (“Some general

assertion that fraud and bad-faith claims in other cases have resulted in awards greater than

$75,000 does not help the court in determining whether or not the specific facts in the

instant case would result in such an award.”). “This [C]ourt’s task is not to merely decide

whether the punitive damages at issue in this case could conceivably satisfy the minimum

jurisdictional requirement, but whether it is more likely than not that they do.” Arrington

v. State Farm Ins., 2014 WL 2961104, at *7 (M.D. Ala. July 1, 2014) (citing Roe, 613 F.3d

at 1061). Thus, because Defendant has not set forth any facts or analysis for why the facts

of this case would merit punitive damages that bring the amount in controversy over the

jurisdictional threshold, Defendant has not met its removal burden.

“In short, [Defendant] has not shown by a preponderance of the evidence that the

amount in controversy exceeds $75,000.” Murphy, 2025 WL 20416, at *3. Murphy still

stands: all of Defendant’s arguments are insufficient to meet its heavy removal burden.

Plaintiff and her counsel are reminded that the affidavit testimony of Plaintiff is

binding and that counsel has made arguments based upon it to this Court; thus, they are

cautioned that should they not honor her testimony and their representations, this Court

will not hesitate to impose swift sanctions. See Federated Mut. Inc., 329 F.3d at 808

(explaining that Federal Rule of Civil Procedure 11 sanctions are available when lawyers

make representations “to the court for an improper purpose, such as merely to defeat

diversity jurisdiction.”); Id. at 808 n.6 (explaining that a motion for sanctions “can be

initiated and decided [even] after the case on which it is based is finally resolved and no

longer pending.”).

IV. CONCLUSION

For the reasons stated above, the Court finds that Defendant has not established by

a preponderance of the evidence that the amount in controversy exceeds $75,000; thus, the

Court is without subject matter jurisdiction. Therefore, the undersigned ORDERS that

Plaintiff’s Motion to Remand (Doc. 6) is GRANTED.

The Clerk of the Court is DIRECTED to take the necessary steps to remand this

case back to the Circuit Court of Coffee County, Alabama.

This case is CLOSED.

DONE this 12th day of March, 2025.

/s/ Kelly Fitzgerald Pate

KELLY FITZGERALD PATE

UNITED STATES MAGISTRATE JUDGE