Dozier v. USAA Casualty Insurance
4:17-cv-02889
E.D. Mo.Jun 20, 2019Background
- Plaintiff Ross Dozier sued USAA Casualty Insurance alleging breach of contract and a vexatious-refusal claim under Mo. Rev. Stat. § 375.420 for denial of underinsured motorist benefits.
- Dozier moved to amend his complaint to add a claim under Mo. Rev. Stat. § 375.296 for an insurer’s failure or refusal to pay a claim for 30 days, and to add a specific demand for interest to his § 375.420 claim.
- USAA opposed adding the § 375.296 claim, arguing that the statute applies only to insurers not authorized to transact business in Missouri; USAA is authorized in Missouri.
- The Court evaluated the motion under Fed. R. Civ. P. 15(a) (leave to amend freely given absent futility or other compelling reasons).
- The Court found amendment to add a § 375.296 claim would be futile because that statute applies only to insurers not authorized to do business in Missouri; thus Dozier could not recover under it against USAA.
- The Court granted Dozier leave to amend to add a demand for interest and denied leave to add the § 375.296 claim; Dozier was ordered to file an amended complaint consistent with the order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Dozier may amend to add a § 375.296 claim | § 375.296 allows additional damages for delay; Dozier seeks recovery for USAA's delay | § 375.296 applies only to insurers not authorized in Missouri; USAA is authorized | Denied — amendment futile because § 375.296 does not apply to authorized insurers |
| Whether Dozier may amend to add a demand for interest | Seeks to add specific interest demand to vexatious-refusal claim | USAA did not oppose the interest demand | Granted — Court allowed amendment to add demand for interest |
Key Cases Cited
- Sherman v. Winco Fireworks, Inc., 532 F.3d 709 (8th Cir. 2008) (standard for denying leave to amend includes futility)
- Roberson v. Hayti Police Dept., 241 F.3d 992 (8th Cir. 2001) (party opposing amendment bears burden to show unfair prejudice)
- Popoalii v. Correctional Med. Servs., 512 F.3d 488 (8th Cir. 2008) (district court has discretion to grant or deny leave to amend)