FEBRUARY 2013 BAD FAITH CASES: FEDERAL COURT DENIES REMOVAL OF BAD FAITH ACTION BECAUSE STATE COURT WRIT WITH ATTACHED LETTER IS INSUFFICIENT FOR JURISDICTION (Middle District)

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In Reed v. Allstate Ins. Co., the court addressed a carrier’s notice of removal filed in response to an insured’s state court writ of summons. The district court rejected the carrier’s notice of removal because the insured had not yet filed an initial pleading to establish an Article III case or controversy.

The court reasoned that the insured’s letter to its insurance carrier identifying the nature of her claim was insufficient to establish jurisdiction over this action. The only indication of an action against the carrier was the insured’s Praecipe of Summons accompanied by a letter from the insured’s counsel.

Date of Decision: December 27, 2012

Reed v. Allstate Ins. Co., NO. 3:CV-12-2515, 2012 U.S. Dist. LEXIS 182074, U.S. District Court for the Middle District of Pennsylvania (M.D. Pa. Dec. 27, 2012) (Caputo, J.)

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