D.R. v. CX Reinsurance Company Limited et al

Filing 42

MEMORANDUM. Signed by Judge J. Frederick Motz on 2/24/2015. (nd2s, Deputy Clerk)

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IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND

D.R.

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v.

Civil No. - JFM-14-3708

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CX REINSURANCE COMPANY LIMITED,

ET AL.

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MEMORANDUM.

Plaintiff obtained a judgment against Elliot Dackman, individually and as Trustee ofthe
Assets of the Dackman Company and Jacob Dackman & Sons, LLC, the Estate of Sandra
Dackman, and the Estate of Bernard Dackman, in the Circuit Court for Baltimore City,
Maryland. The judgment was in the amount of $2,088,550. Thereafter, the Circuit Court, on
post-trial motions, reduced the jury's award of non-economic damages from $818,330 to
$530,000, and the jury's award of economic damages from $1,270,000, to $1,000,000. The court
also granted a motion filed by the two estates, stating that it was "Ordered that the Plaintiffs
recovery from the Estate of Sandra Dackman and the Estate of Bernard Dackman is limited to
the available insurance coverage and proceeds."
After obtaining the jury verdict but before the post-trial motions were ruled upon,
plaintiff filed a complaint for declaratory judgment in the Circuit Court for Baltimore City
against the Dackman defendants and CX Reinsurance Company, Limited f/kla CNA Reinsurance
Company Limited ("CX Re") and Pennsylvania National Mutual Casualty Insurance Company,
("Pennsylvania National"). CX Re and Pennsylvania National removed that action to this court.

Presently pending are a motion to realign, dismiss or consider non-insurance defendants
as nominal filed by CX Re and Pennsylvania National and a motion to remand filed by plaintiff.
The motion to realign filed by CX Re and Pennsylvania National will be denied, and the motion
to remand filed by plaintiff will be granted.

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I am not persuaded, as argued by plaintiff, that this is a "direct action" against CX Re and
Pennsylvania National within the meaning of28 U.S.C. ~1332(c)(1), and that CX Re and
Pennsylvania National should thus be deemed to be citizens of Maryland for removal purpose. I
.am, however, persuaded that Elliot Dackrnan and Jacob Dackrnan & Sons have an interest in
preserving, to the extent possible, the insurance they obtained from CX Re and Pennsylvania
National since the latter are apparently defending them in other actions (with a reservation of
rights). This interest is adverse to plaintiffs interest in attempting to have the insurance provided
by CX Re and Pennsylvania National used to pay the judgment obtained by plaintiff.
. Accordingly, this action will be remanded to the Circuit Court for Baltimore City. In
light of the fact that the issues presented by this case are close ones, however, and in light of the
fact that I find that the primary argument made by plaintiff does not have merit, no costs are
awarded against CX Re, Limited and Pennsylvania National.
A separate order effecting the rulings made in this memorandum is being entered
herewith.

Date:

1.-/V;P/,

1 Also pending is a motion to dismiss. That motion has not yet been fully briefed. In any event,
it is appropriate for the Circuit Court for Baltimore City to decide the motion.

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