Law Offices of Cory J. Hilton v. Dinkel
2:23-cv-01151
| D. Nev. | Feb 28, 2024Background
- Plaintiff, the Law Offices of Cory J. Hilton, represented Karl Dinkel in a workers’ compensation claim after Dinkel, a Henderson police officer, was injured in a car accident in 2011.
- Plaintiff and Dinkel negotiated a settlement with the City of Henderson for the workers' compensation claim.
- Dinkel also held a separate long-term disability (LTD) policy with Principal Life Insurance Company, unrelated to the workers’ compensation matter.
- Plaintiff asserted an attorney’s lien on 40% of recovery benefits, claiming it should include LTD proceeds, and then sued Dinkel and Principal Life for breach of contract and declaratory relief when fees were not paid from the LTD benefits.
- Principal Life successfully removed the case to federal court; Plaintiff sought remand, arguing removal was defective because Dinkel did not originally consent.
- Both defendants moved to dismiss; Dinkel also asserted a counterclaim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether removal to federal court was proper | Consent from all defendants (including Dinkel) was required for removal | Dinkel not served at time of removal—no consent required | Removal proper; motion to remand denied |
| Breach of contract claim against Principal Life | Principal Life was responsible for attorney’s fees from LTD benefits | Not a party to the retainer agreement; no contractual privity | Dismissed; no privity between plaintiff and Principal Life |
| Breach of contract claim against Dinkel | Retainer entitled plaintiff to 40% of all Dinkel’s recovery, including LTD | Retainer was only for workers' compensation claim, not LTD | Dismissed; contract language only covers workers’ comp |
| Declaratory relief claim | Plaintiff entitled to declaration regarding payment from LTD benefits | Declaratory relief is derivative of contract claim, not stand-alone | Dismissed; improperly pled and derivative |
Key Cases Cited
- Hunter v. Philip Morris USA, 582 F.3d 1039 (9th Cir. 2009) (strong presumption against removal jurisdiction).
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading standards for complaint sufficiency).
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (standard for facial plausibility in pleadings).
- Calloway v. City of Reno, 993 P.2d 1259 (Nev. 2001) (elements for breach of contract under Nevada law).
- Bernard v. Rockhill Dev. Co., 734 P.2d 1238 (Nev. 1987) (defines breach of contract in Nevada).
- Epstein v. Wash. Energy Co., 83 F.3d 1136 (9th Cir. 1996) (conclusory allegations insufficient to defeat motion to dismiss).