Lewis v. American Family Mutual Insurance, 2:20-cv-00257

Plaintiff Marsha Lewis sued American Family in Utah state court (filed Apr 17, 2019) alleging breach of PIP no‑fault benefits, breach of the covenant of good faith and fair dealing, and emotional distress; the complaint identified the case as "Tier 3" (claiming $300,000 or more).
After Defendant denied underinsured motorist (UIM) coverage, Lewis was permitted to file an amended complaint (Mar 23, 2020) adding a UIM claim for up to $25,000; otherwise the amended complaint mirrored the original and retained the Tier 3 ($300,000+) allegation.
Defendant removed to federal court (filed Apr 17, 2020), asserting diversity jurisdiction and arguing removal was timely under 28 U.S.C. § 1446(b)(3) because the amended complaint made the case removable.
Plaintiff moved to remand (filed May 5, 2020), contending removal was untimely because the initial complaint was already removable.
The court analyzed § 1446(b)(3) (which permits removal within 30 days after receiving an amended pleading that first makes the case removable) and § 1446(b)(1) (general 30‑day rule for removable initial pleadings), concluded the initial complaint was removable (it alleged >$300,000), found § 1446(b)(3) inapplicable, held the notice of removal was untimely under § 1446(b)(1), and remanded the case (order dated June 9, 2020).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Timeliness of removal under 28 U.S.C. § 1446	Removal untimely; defendant could not rely on § 1446(b)(3) because the initial complaint was removable	Removal timely under § 1446(b)(3), filed within 30 days after the amended complaint made the case removable	Court: Initial complaint was removable; § 1446(b)(3) does not apply; removal was untimely under § 1446(b)(1); remand granted
Whether the initial pleading was removable (amount in controversy)	Initial complaint already alleged Tier 3 ($300,000+), so removable from the start	Amended complaint increased/clarified damages and thus created removability	Court: Initial complaint alleged $300,000+; therefore it was removable at filing
Applicability of § 1446(b)(3)	§ 1446(b)(3) inapplicable because removal could have been effected earlier	§ 1446(b)(3) governs and was satisfied when amended complaint was filed/served	Court: § 1446(b)(3) applies only when the initial pleading is not removable; here it was removable, so (b)(3) does not apply