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ST. LOUIS RECORD

Friday, April 26, 2024

Insurer removes $800K hail damage claim lawsuit to federal court

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ST. LOUIS – An insurance company based in Rhode Island recently removed a lawsuit claiming it unreasonably denied an $800,000 hail damage claim to U.S. District Court for the Eastern District of Missouri, Eastern Division. 

According to the May 30 removal notice, plaintiffs Jones Real Estate Inc. and Jones Realty of St. Albans claim property owned in Arnold suffered hail damage on Oct. 9 and Nov. 5, 2017 and that defendant Affiliated FM Insurance Co. (AFM) "vexatiously" refused to pay for the damage.

Jones Real Estate initially filed suit in 22nd Judicial Circuit Court in St. Louis on April 30.

AFM has not yet answered the complaint, but it argues that the U.S. District Court for the Eastern District of Missouri has jurisdiction because the amount in controversy exceeds $75,000 and because the action is between parties of different states.

"While AFM denies that plaintiff is entitled to any of the relief it seeks, if plaintiff were to receive the requested relief, i.e., the cost to remove and replace the roof and the additional damages it seeks in its petition, AFM would suffer damages in excess of $75,000.00, exclusive of interest and court costs," the notice said.

"Because both of the requirements for diversity jurisdiction are satisfied, this court has original subject matter jurisdiction over this action pursuant to 28 U.S.C. § 1332(a), and the action is removable by AFM pursuant to 28 U.S.C. § 1441(a)," the filing said.

AFM is represented by Kristine M. Mack of Donovan Rose Nester PC of Belleville.

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