Here is a case where an insurance law lawyer sued an agent and was able to prevent the case from being held in Federal Court. The case is from the Southern District of Texas, Houston Division, and is styled, Mary’z Mediterranean Cuisine, Inc. v. Blackboard Insurance Company f/k/a Hamilton Insurance Company, Texas General Insurance, and Mir Khan.
This lawsuit was filed in State District Court and the defendants removed it to Federal Court based on their assertion that Texas General and Khan were improperly joined in an effort to defeat diversity jurisdiction. Mary’z filed a motion to remand to State Court which the Court granted. Here is why:
Mary’z alleges that Khan and Texas General sold a commercial policy to Mary’z with full knowledge of Mary’z business operations, building design, and Mary’z lack of an internal fire alarm by falsely representing to Mary’z that damages caused by a fire would be covered by the policy. A fire occurred and Blackboard denied the claim based on Mary’z not having an internal fire alarm.