Lee Lifeng Hsu and Jane Yuchen Hsu v. State Farm Fire & Casualty Company and Neumann & Co, LLC d/b/a ServiceMaster of Bel Air

Summary

The United States District Court for the District of Delaware denied Neumann & Co., LLC d/b/a ServiceMaster of Bel Air’s motion to dismiss claims arising from water mitigation work performed at the plaintiffs’ home. The court held that the alleged damages satisfied the amount-in-controversy requirement, that the plaintiffs’ declaration adequately addressed service, and that ServiceMaster’s conclusory Rule 12(b)(6) argument did not warrant dismissal.

Holdings

1. The court denied dismissal under Rule 12(b)(1) because the complaint alleged $774,910 in compensatory damages and punitive damages totaling three times that amount, and ServiceMaster did not show that the claim was made in bad faith or that it was legally certain to be worth less than $75,000.
2. The court denied ServiceMaster's Rule 12(b)(5) motion and declined to order the plaintiffs to perfect service because the plaintiffs' declaration under 28 U.S.C. § 1746 addressed the alleged service defect and ServiceMaster did not dispute the plaintiffs' response.
3. The court denied ServiceMaster's Rule 12(b)(6) motion because ServiceMaster offered only a conclusory assertion that the complaint failed to state a claim and did not identify the claims, their elements, or why the allegations were insufficient.

Questions Presented

1. Whether the plaintiffs adequately alleged an amount in controversy exceeding $75,000 for diversity jurisdiction under 28 U.S.C. § 1332(a).
2. Whether the plaintiffs' service of the summons and complaint on ServiceMaster was insufficient under Rule 12(b)(5).
3. Whether the complaint failed to state a claim for relief against ServiceMaster under Rule 12(b)(6).

Disposition

other