Southwind Risk Retention Group v. Sod of Central Florida, Inc., Robert Adams, and Dmytro Hryhorash

Summary

The United States Magistrate Judge recommends denying Southwind Risk Retention Group’s motion for default judgment and dismissing its declaratory-judgment complaint without prejudice for lack of subject-matter jurisdiction. The recommendation concludes that Southwind failed to establish that the amount in controversy exceeds $75,000 because the underlying demand was not persuasive, the potential defense costs were not shown, and the indemnity issue was unripe while the underlying state-court action remained pending. The recommendation also advises terminating other pending motions and closing the case.

Holdings

1. Southwind failed to establish that the value of the declaratory action exceeded $75,000, exclusive of interest and costs; the policy limit and conclusory allegations were insufficient.
2. The pre-suit demand letter did not establish the amount in controversy because its non-economic damages demand lacked a factual basis and was merely puffery.
3. Southwind's claim for a declaration concerning its duty to indemnify was unripe because the insured had not been held liable in the underlying state-court action.

Questions Presented

1. Whether Southwind established that the amount in controversy exceeded $75,000 for diversity jurisdiction.
2. Whether the pre-suit settlement demand and insurance policy limit adequately established the value of the declaratory action.
3. Whether Southwind's claim concerning the duty to indemnify was ripe while the underlying state-court action remained pending.
4. Whether default judgment was appropriate when the complaint failed to establish subject matter jurisdiction.

Disposition

dismissed