SEPTEMBER 2012 BAD FAITH CASES: COURT GRANTS CARRIER LEAVE TO AMEND DEFECTIVE NOTICE OF REMOVAL TO PROPERLY PLEAD PLACE OF DOMICILE (Middle District)

In White v. Combined Ins. Co., the insured parties filed claims against their insurance carrier for breach of contract and bad faith. The insureds originally filed their suit in the Court of Common Pleas for Schuylkill County, but the carrier moved to remove the action to federal court.

However, the carrier failed to properly allege that the federal court possessed diversity jurisdiction over the suit. Specifically, the carrier alleged that the insureds are “residents” of Pennsylvania. However, residence is not the same as domicile, the quality that establishes citizenship for diversity jurisdiction purposes.

As such, the federal court granted the carrier twenty-one days leave to file an amended notice of removal.

Date of Decision: Sept. 13, 2012

White v. Combined Ins. Co., No. 3:CV-12-1787, 2012 U.S. Dist. LEXIS 130776, U.S. District Court for the Middle District of Pennsylvania (M.D. Pa. Sept. 13, 2012) (Caputo, J.)