Irby v. Jefferson Insurance Company
2:24-cv-00094
D.N.M.Jul 1, 2024Background
- In 2021, William and Angela Irby purchased a travel insurance policy from Jefferson Insurance/AGA Service Company (Allianz) for a trip to Turks and Caicos that included COVID-19 epidemic coverage and emergency medical evacuation.
- William, a heart transplant recipient, contracted COVID-19 while traveling. Local doctors advised immediate evacuation due to inadequate medical facilities.
- Angela Irby repeatedly contacted Defendants seeking emergency evacuation. Defendants delayed action for several days, ultimately arranging a flight to Miami only after William’s condition had drastically worsened.
- William died about a month later in Miami from complications of COVID-19. Defendants allegedly failed to reimburse medical expenses, pay for repatriation of remains, or provide other policy benefits.
- Plaintiffs (Angela, her daughters, LaZhante Anderson, and the Estate of William Irby) sued Defendants in New Mexico state court, alleging breach of contract, bad faith, violation of unfair insurance and trade practices acts, wrongful death, and loss of consortium; Defendants removed to federal court.
- Defendants filed a partial motion to dismiss (procedurally improper as made after the answer), which the court construed as a Rule 12(c) motion for judgment on the pleadings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Wrongful Death Act preclude claims | Wrongful Death Act is not the exclusive remedy; survival and | Wrongful Death Act provides sole remedy for decedent’s estate; other | Wrongful Death Act does not preclude |
| besides wrongful death? | consortium/living party claims are independent. | estate claims should be barred. | independent estate, contract, or loss of |
| consortium claims. | |||
| Bad faith insurance claim sufficiency | Policy was insurance, bad faith not limited to payment issues; | Duties only extend to indemnity/payment; emergency transport is not | Plaintiffs alleged sufficient facts for |
| pled plausible bad faith in handling evacuation. | insurance; no bad faith claim stated absent nonpayment. | bad faith handling under insurance law. | |
| Survival of contract and statutory claims | Contract and statutory (UIPA/UPA) claims survive death | Wrongful death is exclusive estate claim; other claims do not survive. | Estate's contract and statutory claims |
| under survival statute. | plausibly survive under N.M. law. | ||
| Sufficiency of Unfair Practices Act (UPA) claim | Advertisement tended to/deceived plaintiffs, | UPA claim fails; no plausible allegation misrepresentation would | Complaint plausibly alleges deceptive |
| misrepresentation alleged. | mislead anyone beyond Irbys. | representations under UPA. |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (Rule 12(b)(6) pleading standard)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility standard for pleadings)
- Romero v. Byers, 872 P.2d 840 (wrongful death act as exclusive remedy in N.M.; interpreted by the court)
- Chavez v. Regents of Univ. of N.M., 711 P.2d 883 (personal injury claims survive under wrongful death statutes)
- O’Neel v. USAA Ins. Co., 41 P.3d 356 (bad faith in insurance extends beyond payment decisions)
- Stevenson v. Louis Dreyfus Corp., 811 P.2d 1308 (UPA elements in New Mexico)
- Fitzjerrell v. City of Gallup ex rel. Gallup Police Dep’t, 79 P.3d 836 (loss of consortium claims under N.M. law)