Bad Faith Case Remanded to State Court for Failure To Meet Threshold Requirements of $75,000

By: Sheila M. Burke, Esquire

The Honorable Judge Nora Barry Fischer of the Western District of Pennsylvania remanded the matter of Brewer vs GEICO (No. 13-1809 (W.D.Pa Jan. 22, 2014 Fischer, J.) (mem.), back to state court due to the Defendant’s failure to establish that the amount in controversy was greater than $75,000. The Defendant removed the case on the basis that the Plaintiff’s bad faith claim could exceed $75,000. However, the Plaintiff offered to stipulate the all the claims would not exceed $75,000, but Defendant refused to accept Plaintiff’s proposed stipulation.

Ultimately, the Court decided that the Defendant’s averment that the amount in controversy exceeded $75,000 was not enough. The Judge decided that the Defendant failed to establish that the case was worth $60,000, let alone $75,000. Therefore, removal was ruled improper and the case remanded. For a link to the opinion, click here.

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