Opinion
Case No. C13-1162RSL
02-25-2014
DANIEL HAZZARD and WHITNEY HAZZARD, husband and wife and the marital community therein, Plaintiffs, v. UNION BANKERS INSURANCE COMPANY, Defendant.
ORDER GRANTING PLAINTIFFS'
MOTION TO REMAND TO STATE
COURT
I. INTRODUCTION
This matter comes before the Court on plaintiffs' "Motion to Remand Case to State Court" (Dkt. #17) pursuant to 28 U.S.C. § 1447(c). Plaintiffs allege a variety of causes of action arising from defendant's denial of a disability claim. See Notice of Removal (Dkt. #1) at 10-14. Defendant removed the matter asserting that this Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332(a). Id. at 3. Plaintiffs move to remand alleging the amount-in-controversy requirement necessary for diversity jurisdiction is not satisfied. Motion (Dkt. #17) at 3.
The Court has reviewed the parties' submissions. For the reasons discussed below, the Court GRANTS plaintiffs' "Motion to Remand Case to State Court."
II. DISCUSSION
A. Background
In October 2010 plaintiff Daniel Hazzard filed a disability insurance claim with defendant. Notice of Removal (Dkt. #1) at 9. When defendant denied the claim, plaintiffs filed suit in King County Superior Court. Opposition (Dkt. #19) at 2. Defendant then removed to this Court. Notice of Removal (Dkt. #1).
B. Diversity Jurisdiction
Removal is proper where the district court would have original jurisdiction over the state court action. See 28 U.S.C. § 1441(a). Diversity jurisdiction under § 1332(a) grants original jurisdiction to a district court when there is both diversity of citizenship and an amount-in-controversy exceeding $75,000. 28 U.S.C § 1332(a). As there is complete diversity between the parties, plaintiffs seek remand on the basis that the amount-in-controversy requirement is not satisfied.
Plaintiffs are citizens of Washington while defendant is a citizen of Florida. Notice of Removal (Dkt. #1) at 3.
Defendant has asserted that plaintiffs are seeking at least $76,590 in damages. This calculation includes the contract benefits ($10,400), treble damages under the Insurance Fair Conduct Act (IFCA) ($31,200), damages under the Washington Consumer Protection Act (CPA) ($25,000), and attorney's fees ($9,990). Notice of Removal (Dkt. #1) at 3-4.
Attorney's fees and treble damages may be included in the amount-in-controversy. See Galt G/S v. JSS Scandinavia, 142 F.3d 1150, 1156 (9th Cir. 1998); Chabner v. United of Omaha Life Ins. Co., 225 F.3d 1042, 1046 n.3 (9th Cir. 2000).
IFCA allows this Court to "increase the total award of damages to an amount not to exceed three times the actual damages." RCW 48.30.015(2). Defendant has calculated the treble damages award in addition to the claimed benefits for a total of $41,600, or what would amount to quadruple damages under IFCA. This is plainly not how the statute operates. See Burke Family Living Trust v. Metro. Life Ins. Co., No. C09-5388 FDB, 2009 WL 2947196, at *3 (W.D. Wash. Sept. 11, 2009) (calculating treble damages under IFCA by multiplying the contract value by three). Plaintiffs may also be able to recover a maximum of $25,000 under the CPA. As this Court's maximum calculation of the amount-in-controversy is $66,190, defendant has failed to meet the minimum threshold of 28 U.S.C § 1332(a).
The CPA caps a treble damages award at $25,000. RCW 19.86.090. Plaintiffs may be able to claim damages under both the IFCA and the CPA. See Burke, 2009 WL 2947196, at *3.
The Court reaches this figure by compiling the following damage calculations: $31,200 (IFCA), $25,000 (CPA), and $9,990 (attorney's fees).
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III. CONCLUSION
For all the foregoing reasons, this Court GRANTS plaintiffs' motion to remand to state court (Dkt. #17). The Clerk of the Court is directed to remand this case to King County Superior Court and to close this case.
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Robert S. Lasnik
United States District Judge