Waste Management, Inc. v. AIG Specialty Insurance Co., No. 19-20674 (5th Cir. 2020)
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After ASIC denied Waste coverage for all costs associated with a criminal proceeding, Waste filed suit in Texas state court against ASIC and AIG Claims. After ASIC removed to federal court, the district court denied Waste's motion to remand and determined that ASIC had no duty to defend Waste.
The Fifth Circuit affirmed the district court's denial of Waste's motion to remand. The court held that, even assuming that an adjuster can be held liable under Texas Insurance Code sections 541.060(a)(2), (a)(4), and (a)(7), Waste did not allege facts that, taken as true, demonstrate a violation of these provisions. In this case, Waste's threadbare factual allegations, along with its conclusory recitation of the elements of a claim under the Texas Insurance Code, are insufficient to state a plausible claim for relief. Therefore, the district court did not err in finding that there was no reasonable probability that Waste would recover against AIG Claims, and the district court did not err in disregarding AIG Claims' citizenship and determining that there was complete diversity.
The court also affirmed the district court's summary judgment determination that ASIC had no duty to defend Waste against the criminal allegations. In this case, the district court did not err in finding that there was no claim that triggered ASIC's duty to defend against the criminal allegations. Finally, the district court also did not err in granting summary judgment in favor of ASIC on all remaining claims.
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