Diaz v. First American Home Buyers Protection Corp.

Emily Diaz, the owner of a home warranty plan from First American Home Buyers Protection Corporation, filed a class action complaint alleging that First American refused to make timely repairs, used substandard contractors and wrongfully denied claims. She asserted state law claims for unfair competition, misrepresentation, concealment, breach of contract and breach of the implied covenant of good faith and fair dealing. The district court dismissed Diaz’s unfair competition and concealment claims under Federal Rule of Civil Procedure 12(b)(6). Following denial of class certification, First American made an offer of judgment on Diaz’s remaining individual claims pursuant to Federal Rule of Civil Procedure 68. When Diaz did not accept the offer, First American moved to dismiss these claims for lack of subject matter jurisdiction. Agreeing that First American’s unaccepted Rule 68 offer rendered Diaz’s remaining claims moot, the district court dismissed the claims under Federal Rule of Civil Procedure 12(b)(1), entering judgment in favor of neither party. Diaz appealed.

We vacate the district court’s dismissal of Diaz’s remaining individual claims. We hold that an…