In Taylor v. Admiral Insurance Co., 2012 WL 3113909 (S.D. Fla. July 31, 2012), Coverage and Bad Faith denial were alleged by an assignee of Miami-Dade County against an Excess and Surplus Lines Insurer. The basis of the claim is Miami-Dade's reliance on a Certificate of Insurance. The Carrier contended that Brown & Brown, a Florida corporation which issued the Certificate, was not authorized to issue a Certificate for Coverage with the Carrier. Taylor v. Admiral Ins. Co., 2012 WL 3113909 *1 (S.D. Fla. July 31, 2012).
The lawsuit was originally filed in Florida State Court in Miami. The Carrier, Admiral, was the sole Defendant. Admiral had previously issued a General Liability Insurance Policy to the host of an "event" in Miami-Dade County. Admiral was sued for alleged breach of contract, common law bad faith, and statutory bad faith for its denial of Miami-Dade County's request to Admiral "to defend and indemnify it". Miami-Dade County asserted that it was Admiral's Additional Insured. After the assignee was severely injured from a fall at the "event," she sued both Miami-Dade County and the host (Admiral's Policyholder) for damages. Taylor v. Admiral Ins. Co., 2012 WL 3113909 *1 (S.D. Fla. July 31, 2012).
Admiral removed the case to Federal Court. There, the Plaintiff successfully requested leave to amend the complaint and in it added a Defendant and two claims. The added Defendant is Brown & Brown. Adding Brown & Brown, a Florida corporation and a Florida resident for purposes of Diversity Jurisdiction, had the effect of destroying Federal Diversity Jurisdiction since both the Plaintiff and Brown are Florida residents.
Brown & Brown filed a Motion to Remand accordingly. Admiral opposed the motion essentially on the ground of fraudulent joinder, without arguing fraud. Instead, Admiral argued that Brown should be dropped as a party. Taylor v. Admiral Ins. Co., 2012 WL 3113909 *2 (S.D. Fla. July 31, 2012).
The District Court granted the Motion to Remand. In so ruling, the Court expressly declined to grant a rehearing on its prior ruling giving the Plaintiff leave to amend the Complaint to add Brown (and also to add one claim of "ratification" against Admiral while also alleging one claim of fraud against Brown & Brown). The District Judge politely wrote: "I decline Admiral's offer to reconsider my initial decision permitting the joinder of Brown & Brown, and drop Brown & Brown as a party." Taylor v. Admiral Ins. Co., 2012 WL 3113909 *2 (S.D. Fla. July 31, 2012).
There being no diversity upon which to any longer base Diversity Jurisdiction in this case, the case was accordingly remanded to the Florida State Court.
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