Ewell v. Centauri Specialty Insurance Company, 4:19-cv-01415

Plaintiff Robert Ewell owned a Fort Bend County, Texas home insured by Centauri Specialty Insurance Company and alleged storm damage from August 25, 2017.
Centauri assigned adjuster Steven Wiley to handle the claim and did not fully pay Ewell's claim.
On February 11, 2019, before suit was filed, Centauri sent written notice electing under Texas Insurance Code Chapter 542A to assume any liability Wiley might have.
Ewell sued Centauri and Wiley on March 15, 2019; Centauri was served March 20 and removed the case to federal court on April 18, 2019.
Wiley moved to dismiss under Tex. Ins. Code §542A.006(b); Ewell moved to remand. The court granted Wiley’s motion to dismiss and denied remand.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Wiley must be dismissed because Centauri elected to assume any agent liability under Tex. Ins. Code §542A.006	Ewell contended his pleaded facts against Wiley support recovery and cited pleading standards; also argued Chapter 542A does not make agent a nonparty at trial	Wiley (and Centauri) argued Centauri’s pre-suit Chapter 542A election eliminates any cause of action against the agent and requires dismissal with prejudice	Court: Grant dismissal — pre-suit Chapter 542A election meant no cause of action existed against Wiley when suit was filed; Wiley improperly joined and claims against him dismissed
Whether removal was proper and remand required (diversity jurisdiction)	Ewell argued the voluntary-involuntary rule prevents removal because dismissal of the non-diverse defendant occurred after filing (relying on Massey)	Centauri argued the pre-suit Chapter 542A election meant Wiley was improperly joined at the time of filing so removal based on complete diversity was proper	Court: Deny remand — because Wiley was improperly joined at filing, his citizenship is ignored and complete diversity exists with amount in controversy satisfied

Hornbuckle v. State Farm Lloyds, 385 F.3d 538 (5th Cir.) (improper joinder doctrine explained)
Smallwood v. Ill. Cent. R.R. Co., 385 F.3d 568 (5th Cir.) (standards for determining improper joinder)
Cumpian v. Alcoa World Alumina, L.L.C., 910 F.3d 216 (5th Cir.) (predictive inquiry for improper joinder)
Int’l Energy Ventures Mgmt., L.L.C. v. United Energy Group, Ltd., 818 F.3d 193 (5th Cir.) (federal pleading requirements apply in improper-joinder analysis)
Crockett v. R.J. Reynolds Tobacco Co., 436 F.3d 529 (5th Cir.) (voluntary-involuntary rule for post-filing removal)
Weems v. Louis Dreyfus Corp., 380 F.2d 545 (5th Cir.) (origination of voluntary-involuntary rule)