AUGUST 2015 BAD FAITH CASES: BAD FAITH ACTION REMANDED WHERE RELIEF SOUGHT WAS LESS THAN $75,000 AND PLAINTIFF STIPULATED TO LIMITING DAMAGES (Philadelphia Federal)

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In Jacobs v. Globe Life & Accident Insurance Company, the insured brought breach of contract and bad faith claims in the Court of Common Pleas of Philadelphia.  Defendant insurer removed the case and the insured moved to remand.

The relevant complaint demanded judgment “in an amount in excess of $50,000.00, but not in excess of $75,000.00.” The insurer did not even attempt to argue that the “actual monetary demands in the aggregate exceed $75,000.” Moreover, the insurer asserted that “given Plaintiff’s stipulation limiting damages in this case, [it] does not oppose the remand of this case back to state court.” The court ruled that: “In light of this concession, the Court must find that the amount in controversy does not meet the statutory threshold, diversity jurisdiction does not exist, and remand to state court is warranted.”

The insurer attempted to argue that the remand should not be to Philadelphia County, because neither party, nor the claim, had any connection to Philadelphia.  However, the court ruled that this was a matter to be brought up in the Court of Common Pleas on remand.

Date of Decision: August 11, 2015

Jacobs v. Globe Life & Accident Ins. Co., CIVIL ACTION NO. 15-3590, 2015 U.S. Dist. LEXIS 105725 (E.D. Pa. August 11, 2015) (Buckwalter, J.)

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