Travelers insurance company seeks to move credit union class action to federal court

By Amanda Thomas | May 13, 2018

Travelers Casualty and Surety Company has filed a notice to remove a lawsuit brought by BluCurrent Credit Union from Green County Circuit Court to the U.S. District Court for the Western District of Missouri.

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SPRINGFIELD – Travelers Casualty and Surety Company has filed a notice to remove a lawsuit brought by BluCurrent Credit Union from Green County Circuit Court to the U.S. District Court for the Western District of Missouri. 

The notice was filed May 8. 

Under 28 U.S.C. section 1332(a), the defendant states the diversity of citizenship between the BluCurrent Credit Union, a Missouri company with a principal place of business in Missouri, and Travelers Casualty and Surety Company of America, a Connecticut company with a principal place of business in Hartford gives the federal court jurisdiction. The defendant also notes that the matter in controversy exceeds $75,000, which also gives the court jurisdiction. 

The underlying lawsuit involves a class action petition filed in June. The plaintiffs seek to hold BluCurrent liable for several claims, which include fraud and violations of the Missouri Merchandising Practices Act and Missouri Motor Vehicle Time Sales Act. The plaintiffs seek damages representing the return of application fees, down payments, interest, late fees, principal payments, and trade-ins. They also seek attorneys’ fees, the cancellation of the full amount of unpaid debts, costs and punitive damages. 

BluCurrent reportedly submitted invoices representing the costs incurred while defending the lawsuit to Travelers for reimbursement. 

“Since the underlying lawsuit was commenced, BluCurrent has received settlement demands from the underlying plaintiffs,” the notice said. “Each of those demands has sought total damages exceeding $75,000.” 

BluCurrent accuses Travelers of acting to protect its own financial interests and alleges that the company “is liable to BluCurrent for attorneys’ fees in the underlying lawsuit in this case, other costs and additional damages.” 

Travelers is represented by Michael J. Patton of Turner, Reid, Duncan, Loomer & Patton PC in Springfield. BluCurrent is represented by Chandler E. Carr of Lathrop Gage LLP in Kansas City, Missouri. 

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