ST. LOUIS — A district judge has denied Allstate Insurance Co.'s motion to dismiss a claim brought by an auto insurance agent because it failed to remove the case from state court within a 30-day window.
On Oct. 5, Judge Stephen Limbaugh Jr. of the Eastern District of Missouri also granted plaintiff Pinnacle Rock Financial Service's motion to remand the case -- which involves a dispute over the number of customer accounts Pinnacle would service as an agent for Allstate -- to state court.
According to background information in the ruling, Pinnacle filed suit June 13 and the next day served Allstate through the director of the Missouri Department of Insurance. On June 14, Pinnacle sent a file-stamped copy of the suit by email to an Allstate attorney and "mistakenly" indicated it would hold service, the ruling states.
On June 15, Pinnacle told the Allstate attorney that it had already served the company through the Department of Insurance, and on June 19 Allstate's designated Missouri agent received service by mail.
The ruling states that Allstate on June 28 asked for a list of target agency accounts, described as "Exhibit 1" in the suit, but which Pinnacle failed to attach in its correspondence. On July 18, 34 days after the director was served and 29 days after Allstate's agent received service, Allstate removed the case to federal court based on diversity jurisdiction.
Pinnacle countered, stating that removal was untimely.
Allstate, however, argued that removal was timely based on when its agent received service, not when Pinnacle served the Missouri Department of Insurance; it further argued that it wasn't properly served until Pinnacle sent the exhibit.
In finding for Pinnacle, Limbaugh wrote, "The thirty-day window is triggered when the defendant is officially served, and state law determines when a defendant is properly served."
He also disagreed with Allstate regarding its receipt of the exhibit, writing that the insurer could have appreciated the nature of Pinnacle's complaint based on the petition.
"Allstate claims that it was unable to appreciate the full scope of Pinnacle’s complaint without the exhibit, but Allstate does not cite any authority to support its proposition," he wrote.