ROY B. DALTON, Jr., District Judge.
This matter is before the Court on the following: (1) Maxum Casualty Insurance Company's Motion to Dismiss Hallmark's Amended Complaint, Alternatively Motion to Strike, and Incorporated Memorandum of Law (Doc. 15), filed November 22, 2016; (2) Hallmark Insurance Company's Response to Maxum Casualty Insurance Company's Motion to Dismiss Hallmark's Amended Complaint, Alternatively Motion to Strike (Doc. 26), filed December 9, 2016; and (3) Maxum's Reply in Support of Its Motion to Dismiss (Doc. 36), filed December 30, 2016. For the reasons set forth below, the Court finds that the motion filed by Defendant Maxum Casualty Insurance Company is due to be denied.
The parties to this diversity action are two insurance companies who shared a common insured—Southern Pride Transport, Inc. ("
On
Following the Accident, the Injured Party sought compensation from the Insured and the Driver for her injuries ("
After the Pre-Suit Demand expired, the Injured Party filed a personal injury action against the Insured and the Driver ("
Maxum did not notify Hallmark of the Claim until
Neither the Release nor the Agreement included an assignment of any bad faith claim from the Insured to Hallmark. (See Docs. 15-1, 15-2.)
In this action, Hallmark asserts a single "Common Law Bad Faith — Equitable Subrogation" claim against Maxum under Florida law to recover the Hallmark Payment ("
Complaints filed in this Court must comply with the minimum pleading requirements set forth in Rule 8 by including "short and plain" statements of a claim showing that the plaintiff "is entitled to relief" and "the grounds for the court's jurisdiction." Fed. R. Civ. P. 8(a). Failure to comply with these pleading requirements provides grounds for dismissal under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). The failure to join an "indispensable party" under Rule 19 is another ground for dismissal under Rule 12(b)(7). Pursuant to Rule 12(f), courts may strike a matter from a pleading if such matter is "redundant, immaterial, impertinent, or scandalous."
Maxum argues that the Court should dismiss the Amended Complaint pursuant to Rules 12(b)(1) and 12(b)(6) because: (1) Hallmark failed to obtain an assignment of rights from the Insured before the Release "extinguished" the Claim and terminated the PI Action (Doc. 15, pp. 1-20 ("
In identifying controlling Florida law, the Court must first adhere to "case precedent from the Florida Supreme Court." See Composite Structures, Inc. v. Cont'l Ins. Co., 560 F. App'x 861, 864 (11th Cir. 2014). Absent such precedent, the Court must apply decisions of Florida's "intermediate appellate courts" unless a persuasive indication exists that the Florida Supreme Court "would decide the issue otherwise." Id.
Vigilant was decided by the Fourth District Court of Appeal of Florida, and the Florida Supreme Court relied on Vigilant in part when answering questions certified by the U.S. Circuit Court of Appeals for the Eleventh Circuit in Perera v. United States Fidelity and Guaranty Company, 35 So.3d 893, 900-01 (Fla. 2010). Perera summarized the circumstances "in which an insured or the third-party claimant, either on its own behalf or as the insured's assignee, may bring a common law third-party bad-faith claim against an insurer for damages sustained as a result of the insurer's bad faith." Id. at 899 (emphasis added). One such circumstance "involves a claim not of the insured or the third-party claimant, but of the excess carrier, which may bring a bad-faith claim against a primary insurer by virtue of equitable subrogation." Id. at 900 (emphasis added). Noting that the position of an excess insurer "is analogous to that of the insured when only one insurer is involved," Perera recognized an excess insurer's "right to `maintain a cause of action . . . for damages resulting from the primary [insurer's] bad faith refusal to settle [a] claim against their common insured.'" See id. (quoting U.S. Fire Ins. Co. v. Morrison Assurance Co., 600 So.2d 1147, 1151 (Fla. 1st DCA 1992); see also Ranger Ins. Co. v. Travelers Indem. Co., 389 So.2d 272, 275 (Fla. 1st DCA 1980) (noting that the insured "in effect substitutes an excess insurer for himself").
Despite Perera and Vigilant, Maxum vehemently argues that Florida law precluding bad faith claims by excess insurers has been settled for "over three decades" (see Doc. 15, p.7), and the Court should simply disregard Vigilant as "an outlier decision that is irreconcilable" with Fidelity & Casualty Insurance Company of New York v. Cope, 462 So.2d 459 (Fla. 1985) and two decisions from the Eleventh Circuit—Federal Insurance Company v. National Union Fire, 298 F. App'x 845 (11th Cir. 2008) and Auto-Owners Insurance Company v. American Yachts, Limited, 271 F. App'x 888 (11th Cir. 2008)). (See Doc. 15, pp. 9-10; Doc. 36, pp. 2-4.) The Court disagrees.
Far from an outlier, Vigilant is consistent with other decisions from Florida's intermediate appellate courts. See Morrison, 600 So. 2d at 1151; Ranger Ins., 389 So. 2d at 275; Gen. Acc. Fire & Life Assurance Corp. v. Am. Cas. Co. of Reading, Pa., 390 So.2d 761, 765 (Fla. 3d DCA 1980) (affirming judgment for excess insurer against primary insurer in claim for bad faith refusal to negotiate and settle a claim asserted against a mutual insured).
Because Maxum has not persuaded the Court that the Florida Supreme Court would reject Vigilant based on Cope or any other bad faith case brought by a third party other than an excess insurer, the Court must adhere to the Vigilant holding and the Perera dicta, both of which plainly support Hallmark's BFES Claim.
The Court also rejects Maxum's remaining argument that the Amended Complaint should be dismissed pursuant to Rule 12(b)(7) because Hallmark failed join the Insured and the Insured's Attorney ("
Under Rule 19, dismissal is permitted for non-joinder only when "a person who is required to be joined if feasible cannot be joined," and "in equity and good conscience, the action should [not] proceed among the existing parties." Fed. R. Civ. P. 19(b). Here, Maxum has not argued that the Third Parties cannot be joined and it has not addressed the equitable factors which must be considered by the Court under Rule 19(b). As such, its argument under Rules 12(b)(7) and 19 fail, and the Motion to Dismiss is due to be denied.
The proper grounds to strike matter from a Complaint is identified in Rule 12(f)— redundancy, immateriality, impertinence, or scandal. Without mentioning any of these grounds, and in just three paragraphs of its 25-page Motion to Dismiss, Maxum contends that the Court must strike: (1) the Fees Demand because "Hallmark is not an assignee of" the Insured (Doc. 15, p. 24 (citing Cont'l Cas. v. Ryan Inc. Eastern, 974 So.2d 368, 377 (Fla. 2008)); and (2) the Jury Demand because the BFES Claim is an equitable claim (see id. at 24-25). In a similarly abbreviated fashion, Hallmark counters that: (1) Florida recognizes an "implied assignment" of attorneys' fees claims (Doc. 26, p. 15); and (2) it is entitled to a jury trial because it seeks a legal remedy in this action (id. at 16). Because the parties' briefing is insufficient and ignores the requirements of Rule 12(f), the Court finds that the Motion to Strike is due to be denied.
Accordingly, it is