Removing Insurance Cases to Federal Court: Strategic Considerations and Recurring Challenges

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Insurance
- event Date
Tuesday, April 18, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will discuss why federal court may or may not be a better forum for insurers and review recurring challenges with effecting removal, such as citizenship of limited liability companies, inactive or dissolved entities, improper joinder, and resisting remand.
Faculty

Ms. Martin focuses her practice primarily on first-party property and casualty insurance litigation and related appellate work. She advises insurance carriers regarding a broad range of matters, including complex coverage questions, claims handling issues, and allegations of statutory violations and bad faith. Ms. Martin has significant experience litigating and negotiating commercial and personal lines insurance coverage and bad faith disputes. A great deal of this work has centered on the large volume of claims stemming from the violent weather events throughout Texas. Her clients comprise a number of major national carriers. Ms. Martin leverages Wilson Elser’s experience in this tightly regulated, cost-conscious industry to deliver demonstrable value to clients. She has successfully litigated numerous cases in state and federal courts throughout Texas and surrounding areas.

Mr. Koch is a member of Flaster Greenberg’s Insurance Counseling and Recovery, Litigation and Environmental Practice Groups. He helps business clients recover from their insurance companies or other responsible parties when facing a loss or potential liability. Mr. Koch's clients come to him for cost-effective, objective-driven representation. He does not represent insurance companies.

Mr. Mann represents and advises some of the nation’s leading insurers on a broad range of coverage matters – from historic manufactured gas plant operations and compliance with coal ash regulations, to emerging issues such as global climate change. Most recently, he has concentrated on complex environmental claims arising from compliance with state and federal regulations regarding closure of historic coal ash basins. Mr. Mann's recent cases have also involved environmental contamination and toxic exposure arising from pipeline leaks, well blowouts, and coal ash storage.
Description
Plaintiffs will often file coverage and bad faith matters in state court, and insurers typically seek to remove them to federal court. Federal court, however, may or may not be a better forum for an insurance case. Defendants have to consider many factors, taking into account the specific case, the specific jurisdiction, and the specific experience and track record of the judges.
Removal is most often based on diversity jurisdiction which presents its own challenges. In smaller cases, it may be difficult to establish the amount in controversy using the evidence that can be introduced. In other cases, the cost and difficulty of establishing diverse citizenship of limited liability companies or complex organizations may be cost prohibitive, if not impossible to ascertain.
If removal is the better course, then counsel for the defendant must be able to spot and address fraudulent joinder, deal with problems related to the citizenship of various types of entities, and be intimately knowledgeable about local rules.
Listen as this experienced panel of insurance litigators shares how to analyze the removal question and provides best strategies for accomplishing removal and avoiding remand.
Outline
- Introduction
- Factors affecting remand
- Overcoming removal stumbling blocks
- Opposing remand
Benefits
The panel will review these and other key issues:
- When does the deadline to remove begin to run? Are there second chances?
- Does it matter if the litigation raises novel state law coverage issues?
- What is required to fully allege complete diversity of citizenship as required by 28 U.S.C. Section 1332(a)?
- Does the Rooker-Feldman doctrine apply to a properly removed case?
- May a federal appeals court review state court orders entered before removal?
- Which Defendants must consent to removal?
- What is the forum defendant rule? Does “snap removal” provide a way around it?
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