Insurance lawyers learn quickly that when suing an insurance agent who sold a policy that the allegations against the agent must be specific. Being too general with allegations can result in a battle being fought in Federal Court when usually the lawyer would want the fight to be in State Court. This is illustrated ina 2020, opinion from the Eastern District of Texas, Sherman Division. The opinion is styled, Oscar Bermudez and SA Polo, Inc. v. Indemnity Insurance Company of North America and Tin Top Insurance Agency, LLC.
Plaintiffs, Bermudez and SA Polo are residents of Texas. Plaintiffs engaged Tin Top, a Texas citizen, to help them get insurance to cover property owned by Plaintiffs. Indemnity, a resident of Indiana, issued and sold a policy to Plaintiffs. After a storm that caused damage to their property, Plaintiffs submitted a claim to Indemnity. The claim was denied.
A lawsuit was filed in State Court and Indemnity removed the case to Federal Court, citing lack of diversity in that the agent, Tin Top, was not properly joined. In so doing, Indemnity filed a Rule 12(b)(6) motion to dismiss Tin Top. Plaintiffs filed a Motion to Remand.