Tag Archives: Federal Jurisdiction

When Is My Flood Claim Preempted?

With Hurricane Dorian causing flooding on the east coast as we speak the question, I often get asked is: when can I sue my flood insurer for a violation of state law? Recently the Corpus Christi Division of the Southern District of Texas addressed the question.… Continue Reading

Remand From Federal Court After Passage of the “Hail Bill:” Section 542A.006 and the Election of Legal Responsibility

The infamous “Hail Bill” will be celebrating its second birthday this September 1, 2019. Whether there will be any celebrations is another question. The “Hail Bill” – the Chapter 542A amendment to the Texas Insurance Code—covers first-party claims arising from “forces of nature.”1 Within that chapter, one notably section is 542A.006, which allows an insurer … Continue Reading

It’s a Brand-New Ballgame. . .In Texas When it Comes to Filing Suit Against Your Property Adjuster

Texas Insurance Code Section 542A.006, effective December 1, 2017, allows insurers to accept liability for the acts of their adjusters either before suit is filed or after suit is filed. If the election of liability is made before suit is filed, the in-state defendant adjuster never becomes a party if suit is filed eventually. If … Continue Reading

Beware a Jurisdictional Pitfall: Federal Diversity Jurisdiction and Limited Liability Companies

Our Constitution vests federal district courts with limited subject matter jurisdiction to adjudicate cases and controversies.1 Unless the Constitution or federal statute authorizes the district court to proceed, the district court must dismiss the action or—in the case of removal— remand the matter to state court.2 In addition to other grants, federal statute provides district … Continue Reading

Reciprocal Insurance Companies

Federal courts are courts of limited jurisdiction, possessing only that power authorized by Article III of the United States Constitution and statutes enacted by Congress. Under 28 U.S.C. § 1332, federal district courts “have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000 … and is … Continue Reading

Insurance Reciprocal Exchanges and Federal Diversity Jurisdiction

Recently, a federal district court in Oregon clarified where one may sue an insurance reciprocal exchange. In the case of Staggs v. Farmers Insurance Exchange,1 the homeowners were Oregon citizens who brought suit under a homeowners’ policy issued by Farmers Insurance Exchange in a federal district court in Oregon. Farmers moves to dismiss, arguing that … Continue Reading

Litigating Where to Litigate an Insurance Dispute

Ahh the joys of litigation and the many issues that parties face. Sometimes in insurance cases (as well as other types of cases) the parties litigate where to litigate the dispute. This may involve the question of in what jurisdiction (in what state or in what federal district) they will litigate the case; or it … Continue Reading

Getting Insurance Coverage Cases Out Of Federal Court

Insurance disputes often are tried in federal court. The usual reason is that federal courts have jurisdiction over controversies where parties are from different states and there is a sufficient monetary amount in controversy. I have often questioned the logic of allowing insurance companies voluntarily licensed in a state to remove disputes from that state … Continue Reading