City of Vestavia Hills v. General Fidelity Ins. Co., No. 11-13091 (11th Cir. 2012)
Annotate this CaseThis action arose when Vestavia Hills won a judgment in state court against Cameron and based on that judgment, Vestavia Hills was entitled to collect from Cameron. Cameron submitted a claim for coverage on the judgment to its insurer, General Fidelity, and General Fidelity denied Cameron's claim, whereupon Vestavia Hills filed a one-count complaint in state court, suing Cameron and General Fidelity pursuant to Alabama Code 27-23-2. General Fidelity removed the case to the Northern District of Alabama. On appeal, Vestavia Hills challenged the district court's motion to remand the matter back to state court. In denying Vestavia Hill's motion to remand, the district court realigned Cameron as a plaintiff because Vestavia Hill's and Cameron's interests converged against General Fidelity in that both Vestavia Hills and Cameron wanted to force General Fidelity to provide coverage. The court concluded that realignment of the parties did not result in converting the case into a direct action under 28 U.S.C. 1332(c). Accordingly, the court affirmed the judgment of the district court.
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