Accident Insurance Company v. Greg Kennedy Builder, Inc. et al

Filing 32

Order re: 30 Second Amended Complaint & 31 Brief. The Court concludes that damages would exceed $75,000 and that subject matter jurisdiction exists. Should the defendants wish to dispute the Court's conclusion, a motion to remand is due by 10/30/2015. Signed by Chief Judge William H. Steele on 10/19/2015. (tgw)

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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION ACCIDENT INSURANCE COMPANY, ) ) Plaintiff, ) ) v. ) CIVIL ACTION 15-0306-WS-B ) GREG KENNEDY BUILDER, INC., ) et al., ) ) Defendants. ) ORDER In response to the Court’s sua sponte questioning of its subject matter jurisdiction, (Doc. 27), the plaintiff has filed a second amended complaint specifying that the individual defendant has at all relevant times been a citizen (and not merely a resident) of Alabama. (Doc. 30). The plaintiff has also filed a demand letter from counsel for the underlying plaintiff, which communicates an offer to settle for $1 million. (Doc. 31-1). While the superficiality of the letter makes it difficult to accept that figure as the amount in controversy, the letter details over $100,000 in medical bills and attaches a hospital bill (dated prior to the filing of this action) for over $80,000. (Id. at 5-6). The Court concludes that the monetary value of the benefit that would flow to the plaintiff from a declaration that it owes its insured no duty to indemnify against the underlying plaintiff’s damages would thus exceed $75,000 and that subject matter jurisdiction therefore exists. Should the defendants wish to dispute the Court’s conclusion, they are ordered to file and serve a fully briefed motion to remand on or before October 30, 2015, failing which the case will remain in this forum. DONE and ORDERED this 19th day of October, 2015. s/ WILLIAM H. STEELE CHIEF UNITED STATES DISTRICT JUDGE

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