Stillwell v. Allstate Ins. Co., et al., No. 11-10422 (11th Cir. 2011)Annotate this Case
This appeal involved an insurance dispute related to plaintiff's purchase of an Allstate landlord insurance policy from Edwards, a Georgia corporation, for a property plaintiff owned in Georgia. Plaintiff, a Georgia resident, sued Allstate, an Illinois corporation, in Georgia state court alleging that Allstate breached its insurance contract with plaintiff and acted in bad faith when it denied plaintiff's claim for water damage. Plaintiff then filed a second state court suit against Allstate and Edwards alleging that Allstate again breached its insurance contract with plaintiff and acted in bad faith when it denied plaintiff's claim for fire damage, and that Edwards breached its fiduciary duty to plaintiff when it failed to procure appropriate insurance coverage for plaintiff. Allstate removed both cases to federal court based on diversity jurisdiction. The district court denied plaintiff's motion to remand the second case to Georgia state court and the two cases were subsequently consolidated. Plaintiff appealed the denial of his motion to remand the second case against Allstate and Edwards, and the adverse summary judgment in both cases. The court held that the district court erred in concluding that Edwards was fraudulently joined and the fire damage case was remanded to state court. The court affirmed summary judgment in favor of Allstate in the water damage case where the district court properly concluded that plaintiff's property was not covered under the policy.