Scott Cole v. Allstate Vehicle and Property Insurance Company et al.

Summary

The United States District Court for the Western District of Oklahoma grants Scott Cole’s motion to remand an insurance-coverage action removed from Oklahoma state court. The Court concludes that complete diversity is lacking because Plaintiff and the insurance agency defendant are Oklahoma citizens, and it rejects Allstate’s fraudulent-joinder argument because Plaintiff’s negligent procurement claim against the agency is possibly viable under Oklahoma law. The case is remanded to the District Court of Oklahoma County, Oklahoma.

Holdings

1. Allstate did not meet its heavy burden to establish with complete certainty that Cole could not state a negligent procurement claim against Siebert in state court.
2. Complete diversity did not exist because Cole and Siebert were Oklahoma citizens, and remand to state court was required.

Questions Presented

1. Whether Allstate established fraudulent joinder by showing with complete certainty that Cole could not state a viable negligent procurement or misrepresentation claim against the nondiverse insurance agent.
2. Whether the absence of complete diversity required remand under 28 U.S.C. §§ 1332(a) and 1447(c).

Disposition

remanded