Thrasher v. Hartford Life and Accident Insurance Company
Filing
13
MEMORANDUM OPINION AND ORDER signed by Judge John G. Heyburn, II on 5/23/2011. For the reasons set forth, 5 Motion to Remand is SUSTAINED and this case is REMANDED to Jefferson Circuit Court. cc: Counsel, Jefferson Circuit Court (cert. copy) (AEP)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF KENTUCKY
AT LOUISVILLE
CIVIL ACTION NO. 3:11-CV-104-H
ROBERT G. THRASHER
PLAINTIFF
V.
HARTFORD LIFE AND ACCIDENT
INSURANCE COMPANY
DEFENDANTS
MEMORANDUM OPINION AND ORDER
Robert G. Thrasher (“Plaintiff”) seeks to remand his claim against Hartford Life and
Accident Insurance Company (“Defendant”) to Jefferson Circuit Court. Plaintiff brought this
action in Jefferson Circuit Court in response to Defendant’s actions denying benefits payable
pursuant to the terms of an insurance policy under which Plaintiff was insured. Defendant
removed to federal district court pursuant to 28 U.S.C. §§ 1332(a) and 1441(a). Plaintiff contends
that the required amount in controversy has not been met.
In its removal notice, Defendant alleges that if Plaintiff is disabled for the maximum
duration of policy coverage, Plaintiff would receive benefits at the rate of $2,350/month until
November 2018 – an amount that would easily satisfy the amount in controversy requirement.
Plaintiff cites Massachusetts Cas. Ins. Co. v. Harmon, 88 F.3d 415 (6th Cir. 1996), which held:
…future potential benefits may not be taken into consideration in
the computation of the amount in controversy in diversity actions in
Federal District Courts involving disability insurance where the
controversy concerns merely the extent of the insurer’s obligation
with respect to disability benefits and not the validity of the policy.
Id. at 416-417.
Defendant argues that the Sixth Circuit’s holding should not apply because the facts here
are different from those in Harmon, when the Sixth Circuit held that rescission of a contract
required a court to consider future benefits as part of the amount in controversy. It did so to
contrast with the general rule that future benefits should generally not be taken into account for
diversity purposes. Indeed, Harmon has repeatedly been held to affirm this principle. See Spawr
v. Encompass Ins. Co., 2008 WL 4534411, *3 (W.D.Mich. 2008); Brogan v. U.S. Specialty Ins.
Co., 607 F.Supp.2d 833, 835 (W.D.Ky. 2009); Francis v. Madison Nat. Life Ins. Co., 2009 WL
2390579, *5 (E.D.Mich. 2009); Jones v. Life Ins. Co. of North America, 746 F.Supp.2d 850, 853
(W.D.Ky. 2010). Here, Plaintiff is not seeking rescission of his contract with Defendant – he is
seeking relief for breach of contract by Defendant. As such, under Harmon analysis, this Court
should not consider future potential benefits toward satisfying the amount in controversy
requirement.
Regardless, Defendant still argues that the amount is satisfied due to Plaintiff’s demands
for punitive damages and attorney’s fees. Where damages are unspecified in a plaintiff’s
complaint, the defendant seeking removal has the burden of showing by a preponderance of
evidence that its allegations as to amount are justified. See McNutt v. General Motors
Acceptance Corp., 298 U.S. 178, 189 (1936); Gafford v. General Elec. Co., 997 F.2d 150, 158
(6th Cir. 1993); Jones, 746 F.Supp.2d at 852. This burden includes providing “competent proof”
and “specific facts” that the amount in controversy is greater than the jurisdictional minimum. Id.
Defendant offers no evidence for its claims other than its own averments. This showing is
insufficient. See McNutt, 298 U.S. at 189; Gafford, 997 F.2d at 160.
The Court concludes, therefore, that Defendant has not met its burden of establishing its
claims as to amount in controversy to justify removal to this Court, and that Plaintiff’s request
2
for remand to state circuit court should be granted.
Being otherwise sufficiently advised,
IT IS HEREBY ORDERED that Plaintiff’s motion to remand is SUSTAINED and this
case is REMANDED to Jefferson Circuit Court.
May 23, 2011
cc: Counsel of Record & Jefferson Circuit Court
3
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?