Great decision in connection with an insurance bad faith claim

On behalf of Smith Jadin Johnson, PLLC posted on Friday, October 5, 2018.

SJJ attorney Chris Drake recently received a great decision from the Colorado Federal Court in connection with an insurance bad faith claim where the insurance company was trying to move the case from State to Federal court.  The case was originally filed in state court and later removed by the insurance carrier to federal court.  Following the removal, Chris amended the complaint to assert negligence claims against the insurance agent that procured the insurance policy for our client.  This amendment ultimately defeated diversity jurisdiction and Chris moved the federal court to put it back in state court where the case belongs.  The insurance carrier argued that the amendment was fraudulent and done only for the purpose of defeating diversity jurisdiction.  The Court disagreed and determined that the negligence claim against the insurance agent can move forward in light of the relationship between the agent and our client and remanded the case back to state court for disposition.