Blake Ex Rel. Blake v. National Casualty Co.

MEMORANDUM DECISION

Plaintiff Linda Blake, a minor, by and through her guardian ad litem William Blake, brought this action for breach of the duty of good faith and fair dealing and breach of statutory duties against defendants National Casualty Co. and National Bonding & Accident Ins. Co. The suit was filed in California state court and removed to the federal court Oct. 31, 1983, on the basis of diversity jurisdiction.

Plaintiff now moves to remand the case to state court as improvidently removed, based upon the interpretation of 28 U.S.C. 1332(c)’s definition of citizenship of insurance companies in “direct actions” that was given in a Western District of Michigan opinion. Defendants, contending that plaintiff’s argument is foreclosed by Ninth Circuit law and that plaintiff refused to withdraw the motion even after being so informed, moves for sanctions under Federal Rule of Civil Procedure 11. After consideration of the papers submitted, as well as the oral argument by the parties, this Court denies plaintiff’s motion for remand and grants defendants’ motion for sanctions under Rule 11.

DISCUSSION

Motion for Remand

Plaintiff relies upon 28 U.S.C. § 1332 (c) which states,…