Thomas Jones and Deborah Jones v. Mutual of Omaha Insurance Company and Jack Mills Insurance Agency Inc.

Summary

The court grants Plaintiffs Thomas and Deborah Jones’ motion to remand their insurance dispute to the District Court of Bryan County, Oklahoma. It concludes that Mutual of Omaha failed to establish fraudulent joinder of the nondiverse insurance agency, so complete diversity jurisdiction was absent, but denies Plaintiffs’ request for attorney’s fees.

Holdings

1. The removing defendant failed to establish fraudulent joinder because the plaintiffs had a possible and cognizable claim against the nondiverse insurance agency; therefore, complete diversity was absent and remand was required.
2. The plaintiffs sufficiently alleged a cognizable professional-negligence or negligent-procurement claim against the Agency under Oklahoma law.
3. The plaintiffs were not entitled to attorney fees and costs under 28 U.S.C. § 1447(c) because the removal arguments were not objectively unfounded in light of the complex and unsettled law concerning an insurance agent's duties.

Questions Presented

1. Whether the nondiverse insurance agency was fraudulently joined so that complete diversity existed for purposes of removal.
2. Whether the plaintiffs stated a cognizable professional-negligence or negligent-procurement claim against the insurance agency under Oklahoma law.
3. Whether plaintiffs were entitled to attorney fees and costs under 28 U.S.C. § 1447(c) after remand.

Disposition

remanded