VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This matter comes before the Court pursuant to Plaintiff Frank Jirau's Motion to Remand (Doc. # 7) filed on May 30, 2014. Jirau subsequently filed an Addendum (Doc. # 10) on June 10, 2014. Defendant Infinity Auto Insurance Company filed a Response in Opposition (Doc. # 13) on June 23, 2014. For the reasons stated at the hearing held on July 23, 2014, and for the reasons set forth below, the Court grants the Motion.
On April 11, 2013, Infinity issued an automobile insurance policy to Jirau. (Doc. # 2 at ¶ 11). The insurance policy provided for uninsured or underinsured motorist benefits to Jirau for up to $100,000. (
On July 17, 2013, Wathen's automobile collided with Jirau's automobile on Falkenburg Road in Hillsborough County, Florida, because of Wathen's purported negligence. (Doc. # 2 at ¶ 2-3). As a result of the accident, Jirau suffered:
(
Jirau alleges that Wathen qualifies as an underinsured motorist according to the policy with Infinity. (
On March 20, 2014, Jirau filed his Complaint in state court against both Wathen, for his role in the accident, and Infinity, for an underinsured motorist claim and alleged bad faith pursuant to Fla. Stat. §§ 624.155(1)(b)(1) and 627.727(10). (
Jirau alleges that Wathen "at the time of the accident herein was a resident of the State of Florida." (
Infinity was served with the Complaint on April 23, 2014. (Doc. # 1 at ¶ 2). On May 20, 2014, Infinity timely filed its Notice of Removal under 28 U.S.C. § 1332, and removed the action to this Court based on federal diversity jurisdiction. (
The various pleadings included multiple attachments. Attached to the Complaint as Exhibit A is a copy of the Personal Auto Declaration from the policy between Jirau and Infinity with Jirau's address in Tampa, Florida. (Doc. # 2 at Ex. A). In its Notice of Removal, Infinity includes its own Exhibit A with copies of the Complaint, Summons, and Notice of Service that were served on Infinity. (Doc. # 1 at Ex. A).
Jirau attached numerous exhibits regarding Wathen's residence in Florida to the Motion to Remand, including (1) the police report from the July 17, 2013, accident, which lists Wathen's address as 1417 Gulf Stream Circle, Apt. 101, in Brandon, Florida; (2) a public records search showing Wathen's automobiles registered at that address; and (3) a public records search showing the issuance of a duplicate Florida driver's license to Wathen at the same address.
Additionally, attached to his Addendum, Jirau includes, as Exhibit A, proof of service perfected on Defendant Wathen at 1417 Gulf Stream Circle Apt. 101, Brandon, Florida, 33511 on May 31, 2014. (Doc. # 10 at ¶¶ 3-4, Ex. A). In its Response, Infinity includes, as Exhibit A, a copy of a demand letter dated March 20, 2014, sent by Jirau to Infinity, demanding a settlement of $100,000. (Doc. # 13 at Ex. A).
Under 28 U.S.C. § 1441, the defendant can remove an action to U.S. District Court if that court has original jurisdiction over the action. 28 U.S.C. § 1441(a). United States District Courts have original jurisdiction over all civil actions between parties of diverse citizenship where the amount in controversy exceeds $75,000. 28 U.S.C. § 1332(a). "Diversity is determined when the suit is instituted, not when the cause of action arose."
Diversity jurisdiction requires complete diversity; every plaintiff must be diverse from every defendant.
"Where, as here, the plaintiff has not pled a specific amount of damages, the removing defendant must prove by a preponderance of the evidence that the amount in controversy exceeds the jurisdictional requirement."
"Federal courts are directed to construe removal statutes strictly . . . and employ a presumption in favor of remand to state courts."
Jirau and Infinity do not dispute that Plaintiff Jirau is a resident and citizen of Florida and Infinity is a citizen of Ohio. (Doc. # 1 at ¶ 3; Doc. # 7 at ¶ 1). However, Jirau claims that Wathen is a citizen and resident of Florida and therefore there is a lack of complete diversity. (Doc. # 7 at ¶¶ 1-2).
The Court agrees with Jirau that Infinity has not met its burden of showing there is complete diversity of citizenship between all parties. Infinity attempts to show a lack of complete diversity by quoting Jirau's alternative pleading, which suggests that Wathen is a non-resident of Florida or is concealing his whereabouts. (Doc. # 13 at ¶¶ 28-29). However, the Complaint states that Wathen was a Florida resident at the time of the accident before pleading in the alternative that Wathen is either a non-resident or resident concealing his location. (Doc. # 2 at ¶ 4). Thus, Jirau's alternative pleading does not prove that Wathen is a non-resident. Rather, the competing statements in the Complaint regarding Wathen's residence create an ambiguity regarding that fact.
Infinity also points out that Jirau does not allege Wathen is a citizen of Florida in the Complaint. (Doc. # 13 at ¶ 28). Indeed, Jirau alleges in the Complaint that Wathen is a Florida resident. (Doc. # 2 at ¶ 4). But Jirau's allegation that Wathen is a resident of Florida creates a presumption that Florida is Wathen's domicile. This presumption is strengthened by the Motion to Remand's attachments, which show that Wathen had a Florida driver's license and registered his vehicles at a Florida address. (Doc. # 7 at Ex. B-H). Additionally, Infinity has not provided evidence that Wathen is a citizen of another state. (Doc. # 7 at 6; Doc. # 13). Thus, Infinity has not met its burden of showing that Wathen is a diverse defendant.
Finally, the exhibit attached to Jirau's Addendum, concerning the process eventually served on Wathen's Florida residence, is helpful to the Court's analysis. The proof of process served on Wathen at 1417 Gulf Stream Circle Apt. 101 in Brandon, Florida, verifies Wathen's address as it was listed in the police report from the July 17, 2013, accident and on his Florida driver's license. Taken together, these documents persuasively establish Wathen's Florida citizenship.
At the hearing, Infinity admitted that it possesses no additional facts controverting Wathen's Florida citizenship but argued that the forum defendant rule, as articulated in 28 U.S.C. § 1441(b)(2), nevertheless precluded remand of the case. Infinity cited
Generally, plaintiffs invoke the forum defendant rule to prevent removal to federal court if the removing defendant is a citizen of the forum state and the demands of diversity jurisdiction are otherwise met.
In the instant case, the demands of diversity jurisdiction are not otherwise met because there is not complete diversity between the parties; therefore, this case is not subject to the forum defendant rule. Additionally, the case was removed to this Court by Infinity, an Ohio citizen, rather than by a Florida-citizen defendant. In short, the forum defendant rule, which serves as a plaintiff's tool to effect remand, cannot be used by Defendant Infinity to prevent remand to state court.
Because Infinity failed to show that Wathen was not a citizen of Florida at the time of the accident, Infinity has not met the requirement of complete diversity for removal. Therefore, the case is remanded to State Court.
Federal Rule of Civil Procedure 21 states:
Fed. R. Civ. P. 21.
The court may sever claims or dismiss a dispensable non-diverse party to retain jurisdiction.
Infinity requests that if the Court finds there is not complete diversity between the parties, Jirau's underinsured motorist and bad faith claims against Infinity be severed from Jirau's negligence claim against Wathen. (Doc. # 13 at 19). Infinity argues that Wathen, as the underinsured motorist involved in the accident, is neither a party to the bad faith claim against Infinity nor an "indispensable party" to the Underinsured Motorist claim against Infinity. (
The Court will not grant a severance to retain jurisdiction over Jirau's claims against Infinity. Severing the claims would prejudice Jirau because he would have to litigate claims against Wathen in state court and Infinity in this Court simultaneously, when both claims involve the same facts regarding the July 17, 2013, accident. Because the power to sever non-diverse defendants to maintain jurisdiction should be used sparingly and with careful consideration of any prejudice it could create, the Court denies Infinity's request for severance.
Accordingly, it is