2:22-cv-00273
D.N.M.Mar 25, 2025Background
- This dispute involves life insurance proceeds following the death of Luis Rojero in New Mexico, for which Shawnette Lynn Sherbino (Plaintiff) caused the death and was charged with involuntary manslaughter.
- Sherbino first filed for administration of Decedent’s estate in Texas Probate Court; Decedent’s mother, Laura Rojero, filed her own application and a cross-petition to enjoin Sherbino from accessing insurance proceeds.
- In parallel, Sherbino sued Allstate Assurance in New Mexico seeking recovery of the life insurance as named beneficiary; Allstate interpleaded the proceeds due to investigation under New Mexico’s slayer statute.
- After criminal proceedings concluded with no bar under the slayer statute, Allstate and Sherbino settled, but Decedent’s parents (the Rojeros) intervened, seeking to litigate entitlement issues and favoring Texas state jurisdiction.
- The Texas probate case remains pending, involving overlapping claims and parties but litigating them under Texas law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Court’s Subject Matter Jurisdiction | Court retains diversity/supplemental jurisdiction | Diversity lost when Allstate (diverse party) dismissed | Court retained supplemental jurisdiction |
| Appropriate Forum / Abstention | Sought resolution in federal court (NM) | Dispute should be adjudicated in Texas Probate Court | Abstention appropriate; proceedings stayed for Texas case |
| Choice of Law (TX or NM) | Sought to apply New Mexico law to insurance entitlement | Sought Texas law application, or at least Texas court resolution | Did not reach; abstained from the merits |
| Default Judgment on Counterclaim | Claimed right due to lack of timely response by intervenors | Filed answer one day late; otherwise participating | Denied as moot due to abstention/stay |
Key Cases Cited
- Price v. Wolford, 608 F.3d 698 (10th Cir. 2010) (explains timing of jurisdiction determination and supplemental jurisdiction for intervenors)
- Brillhart v. Excess Ins. Co. of America, 316 U.S. 491 (1942) (sets standard for federal court abstention in declaratory actions where parallel state proceedings exist)
- City of Indianapolis v. Chase Nat. Bank, 314 U.S. 63 (1941) (court must align parties by real interests, not formal designations)
- Wilton v. Seven Falls Co., 515 U.S. 277 (1995) (discretion to abstain from hearing declaratory relief cases with pending state proceedings)
- State Farm Fire & Casualty Co. v. Mhoon, 31 F.3d 979 (10th Cir. 1994) (factors to weigh in deciding declaratory judgment abstention)