United States District Court, D. Maine
JENNIE M. COOK, Plaintiff
v.
USAA CASUALTY INSURANCE COMPANY, Defendant
ORDER ON MOTIONS TO AMEND, TO JOIN A REAL PARTY, AND
TO REMAND TO STATE COURT
John
C. Nivison U.S. Magistrate Judge
In this
action, Plaintiff alleges that Defendant USAA Casualty
Insurance Company (USAA CIC) did not properly adjust her
insurance claim following a fire at property she owned in Old
Town, Maine. (First Amended Complaint, ECF No. 8.) The matter
is before the Court on three related motions: Plaintiff seeks
to amend her complaint (ECF No. 127) to join the United
Services Automobile Association (USAA), as a defendant, which
party she maintains is a necessary or real party (ECF No.
126), and, upon joinder of USAA, asks the Court to remand the
case to state court (ECF No. 125) because the joinder of USAA
would divest the Court of jurisdiction.
Following
a review of the record, and after consideration of the
parties' arguments, the Court denies Plaintiff's
motions.
Factual
and Procedural Background [1]
A.
The Plaintiff, the Property, and the Fire
On
November 16, 2012, USAA CIC issued Policy No. 00278416380A to
Plaintiff, insuring the real property located at 188 Veazie
Street, Old Town, Maine (the property). (Defendant USAA
CIC's Statement of Facts ¶¶ 1, 3, ECF No. 101,
hereinafter DSMF.) Plaintiff paid all premiums and met all
requirements of the policy. (Proposed Second Amended
Complaint ¶ 8, ECF No. 127-1.) The property was occupied
by tenants from July 2012 through July 2013 and was vacant
after July 2013. (DSMF ¶ 6.) At that time, Plaintiff
lived in Virginia. (Id. ¶ 11.)
In
early September 2013, Plaintiff returned to Maine to make
repairs to the property. (Id. ¶ 12.) On the
morning of September 24, 2013, at approximately 7:00 a.m., a
fire ignited and caused damage to the property. (Id.
¶¶ 16 - 18.)
B.
Legal Proceedings
On
March 25, 2016, Plaintiff filed a complaint in Maine Superior
Court (Kennebec County) against USAA CIC, in which complaint
she asserted claims for breach of contract and unfair claims
settlement practices. (ECF Nos. 1-2, 1-3.) USAA CIC removed
the case to federal court, citing the Court's diversity
jurisdiction over the matter. (ECF No. 1.) Plaintiff
subsequently filed a motion to amend her complaint, which the
Court granted. (ECF Nos. 6 - 7.)
After
completion of discovery, USAA CIC moved for summary judgment.
(ECF No. 100.) At oral argument on the motion, Plaintiff
raised a possible jurisdictional issue based on
Plaintiff's contention that a necessary party, USAA, had
not been joined in the matter. Plaintiff subsequently filed
the pending motions - the motion to amend the complaint, the
motion to join a real party, and the motion to remand the
matter to state court.[2] (ECF Nos. 125 - 127.)
C.
The Relationship between USAA and USAA CIC
USAA is
a reciprocal inter-insurance exchange formed pursuant to
Texas Insurance Code § 942.002(a). (Proposed Second
Amended Complaint ¶ 12.) “Reciprocal insurance
means insurance resulting from the mutual exchange of
insurance contracts among persons in an unincorporated
association under a common name through an attorney-in-fact
having authority to obligate each person both as insured and
insurer.” Haney v. USAA Cas. Ins. Co., 331
Fed.Appx. 223, 229 (4th Cir. 2009) (quoting North Carolina
law, internal quotation marks omitted). Under Texas law:
The statute provides that “subscribers . . . may
exchange reciprocal or interinsurance contracts with other
subscribers . . . to provide indemnity among those
subscribers for a loss for which insurance coverage may be
obtained under other law.” Tex. Ins. Code Ann. §
942.002(a).
A “subscriber” is defined as “an
individual, partnership, or corporation who, through an
attorney in fact, enters into a reciprocal or interinsurance
contract.” Id. § 942.001(4). A
“reciprocal or interinsurance contract” is
defined as “an insurance policy or other contract that
provides indemnity among a group of subscribers for certain
losses, ” id. § 942.001(3), and the
statute provides that such a contract may be executed by an
attorney in fact appointed by the subscribers of an exchange,
id. § 942.051.
True v. Robles, 571 F.3d 412, 415 (5th Cir. 2009).
USAA has subscribers in all states. (Proposed Amended
Complaint ΒΆ 5.) Plaintiff originally became a member of
USAA when she subscribed to a USAA ...