KANSAS CITY - A defendant on the hook for a $44.6 million judgment over a man's injuries in a "bubble ball," has been granted a request to remand a lawsuit to state court, following an order handed down earlier this month by the U.S. District Court for Missouri's Western District.
In a suit filed by Derek Hart against Knockerball Midmo LLC, Hart claimed severe and permanent injuries. And although Knockerball was insured by Atlantic Specialty Insurance Co., Atlantic did not defend Knockerball in state court, and therefore, Knockerball was found in default for a final judgment of $44,631,268.99.
Hart's garnishment suit in Cole County Circuit Court named Knockerball and Atlantic as defendants. The litigation that ensued included Knockerball's cross claim against Atlantic, which provided the basis for Atlantic to remove the case to federal court based on diversity of citizenship. Atlantic argued that Knockerball should be realigned with Hart for purposes of determining jurisdiction.
Knockerball and Atlantic filed third-party petitions against McGowan and Company, a broker for Atlantic, and SportsInsurance, the managing general agent for Atlantic, the ruling states. In addition, SportsUnderwriters, a company related to SportsInsurance, was also named as a third-party defendant.
Knockerball argued that the entire case should be remanded because "1) McGowan is not a “defendant” for purposes of Section 1441, 2) third-party petitions cannot establish 'arising under' jurisdiction, 3) the RICO claim is not separate and independent, and 4) McGowan failed to secure consent to removal from all the defendants," the district court's order said.
"Alternatively, Knockerball argues the state law claims should be severed and remanded. Atlantic opposes the motion to remand to the extent it results in severance of Atlantic’s state law claims and argues that its state law claims are within this Court’s supplemental jurisdiction."
Concluding that Eighth Circuit precedent did not allow for realignment, District Judge Nanette K. Laughrey remanded the case to state court on Oct 15.
While Laughrey granted Knockerball's motion to remand, she denied the third party defendants' motions to dismiss for lack of subject matter jurisdiction.