VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This matter comes before the Court on Plaintiff Lisa N. Bostick's Motion for Remand filed on June 29, 2016. (Doc. # 11). Defendant State Farm Mutual Automobile Insurance Company filed its response on July 8, 2016. (Doc. # 14). For the following reasons, the Court denies the Motion to Remand.
On or about November 13, 2013, Bostick was driving an automobile in Hillsborough County, Florida and was struck by a motor vehicle operated by Blair S. Alsup, a non-party to this action. (Doc. # 1 at ¶ 4). As a consequence of the collision, Bostick allegedly suffered "bodily injury, . . . pain and suffering, disability, mental anguish and loss of capacity for the enjoyment of life." (
Bostick filed a civil action in Florida state court against State Farm on February 9, 2016. (Doc. # 2). On June 2, 2016, State Farm removed the action to this Court predicating subject matter jurisdiction on complete diversity of citizenship. (Doc. # 1 at ¶ 4). In the Notice of Removal, State Farm indicates it is a citizen of Illinois, as its principal place of business is in Illinois, and its state of incorporation is also Illinois. (
On June 29, 2016, Bostic filed a Motion to Remand, to which State Farm responded on July 8, 2016. (Doc. ## 11, 14). In addition, on July 20, 2016, the Court directed Bostic to provide information regarding her citizenship, because neither party addressed that matter in the Motion to Remand and Response thereto. (Doc. # 18). The Court explained that residency and citizenship are distinct concepts. (
"A defendant may remove a case filed in state court to federal court `if the district courts of the United States have original jurisdiction.'"
"Diversity is not judged `by simply looking at which parties fall on which side of the `v.'' More is required."
Complete diversity "means that no plaintiff may be a citizen of the same state as any defendant."
28 U.S.C § 1332(c) governs citizenship for corporate entities. In particular,
28 U.S.C. § 1332(c)(1)(emphasis added).
"Thus, a corporation is generally deemed to be a citizen of every state it has been incorporated and where it has its principal place of business."
Bostick contends this action should be remanded to state court for lack of diversity jurisdiction given that Bostick (the insured) is a citizen of Florida, thereby making State Farm (the insurer) a Florida citizen. (Doc. # 11 at 4).
State Farm disagrees, and argues the instant action is not a "direct action" within the meaning of 28 U.S.C §1332(c)(1). Therefore, according to State Farm, the exception should not apply and State Farm's citizenship should be based solely on its principal place of business (Illinois) and state of incorporation (Illinois). (Doc. # 1 at ¶ 7).
The direct-action exception was designed to "eliminate the basis for diversity jurisdiction in states that allow an injured third-party claimant to sue an insurance company for payment of a claim without joining the company's insured as a party, where the insured would be a nondiverse party, even though the insurance company would otherwise be diverse."
Furthermore,
In the present matter, Bostick alleges State Farm breached the terms of the insurance agreement by failing to tender compensation for "the full value of Plaintiff's claim for personal injuries" caused by Alsup. (Doc. # 2 at ¶ 12). Therefore, Bostick brings this cause of action against her own insurer, not the insurer of a liable third party. As such, this case falls outside the governing definition of a direct action. Moreover, claims for an insurer's failure to honor the terms of an insurance policy do not trigger the direct action exception in 28 U.S.C. § 1332(c)(1).
Therefore, the Court determines that the requirements for maintaining diversity jurisdiction are satisfied. The amount in controversy exceeds $75,000.00, Bostic is a citizen of Florida, and State Farm is a citizen of Illinois. Bostick's Motion for Remand is accordingly denied.
Accordingly, it is
Plaintiff Lisa N. Bostick's Motion for Remand (Doc. # 11) is