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Stonewall Insurance Company, v. Lopez

United States Court of Appeals, Fifth Circuit
Jan 13, 1977
544 F.2d 198 (5th Cir. 1977)

Summary

holding that amount in controversy exceeded the requisite $10,000, as the plaintiff insurer would be required to provide a defense to its insured in a pending state court action if the court found that the policy provided coverage

Summary of this case from St. Paul Reinsurance Co., Ltd. v. Greenberg

Opinion

No. 76-2955. Summary Calendar.

Rule 18, 5 Cir., see Isbell Enterprises, Inc. v. Citizens Casualty Company of New York et al., 5 Cir., 1970, 431 F.2d 409, Part I.

December 16, 1976. Rehearing and Rehearing En Banc Denied January 13, 1977.

Warren N. Weir, John F. Scarzafava, San Antonio, Tex., John Petry, H. C. Petry, Jr., Carrizo Springs, Tex., for defendants-appellants.

Stanley M. Kaufman, Herbert Garon, Jr., Dallas, Tex., for plaintiff-appellee.

Appeal from the United States District Court for the Western District of Texas.

Before COLEMAN, GOLDBERG and GEE, Circuit Judges.



This case arises from an August 23, 1974 automobile accident in which Richard R. Lopez was killed. The deceased's parents, Salome D. Lopez and Basilaesa Lopez, filed a state-court action against Jesse Reyes Moreno, claiming his negligence caused the accident. When Moreno claimed that he was insured by Stonewall Insurance Company, Stonewall brought this declaratory action in federal court, naming the Lopezes and Moreno as defendants. Stonewall claimed that the accident occurred before Moreno obtained the insurance. The district court reached the merits, accepted Stonewall's contention, and rendered judgment accordingly. On appeal, appellants do not challenge the district court's resolution of the merits but assert solely that the amount in controversy does not exceed the jurisdictional minimum of $10,000. See 28 U.S.C. § 1332. We affirm.

The district court acted properly when it resolved the claim on the basis of the facts presented without attributing any significance to the insurance company's name, "Stonewall". That an insurance company would take as its name a verb meaning "to engage in obstructive parliamentary debate or delaying tactics," see Webster's Seventh New Collegiate Dictionary 864 (1970), may demonstrate remarkable candor but does not help guide the decision of a particular case.

Stonewall's liability for bodily injury under the insurance contract at issue is limited to $10,000 per person. Because this suit involved injuries to only one person, Stonewall's maximum bodily injury liability is $10,000. As appellants correctly note, when the amount in controversy is exactly $10,000, it does not exceed $10,000, and § 1332 does not establish jurisdiction. The controversy here, however, involves not only Stonewall's potential liability for the $10,000, but also Stonewall's obligation to defend the state-court action against Moreno, its insured. If the insurance contract covers the accident in question, Stonewall is obligated, by the contract's terms, to defend Moreno. If, on the other hand, the insurance contract does not apply to the accident in question, Stonewall has no obligation to provide a defense. The pecuniary value of the obligation to defend the separate lawsuit is properly considered in determining the existence of the jurisdictional amount, and the amount in controversy here therefore exceeds $10,000. See Allstate Ins. Co. v. Dillard, 190 F. Supp. 111 (E.D.Pa. 1960); Criterion Ins. Co. v. Quillen, 212 F. Supp. 924 (D.Md. 1963); cf. Motorists Mutual Ins. Co. v. Simpson, 404 F.2d 511 (7th Cir. 1968), cert. denied, 394 U.S. 988, 89 S.Ct. 1470, 22 L.Ed.2d 763 (1969) (dictum).

Appellants vigorously assert that the jurisdictional amount issue is governed by the "plaintiff's viewpoint" rule, under which we should purportedly assess the existence of the jurisdictional amount solely from the viewpoint of the plaintiff, ignoring the lawsuit's pecuniary impact upon the defendant. Here we have no occasion to assess the import or applicability of that rule, however, because the amount in controversy exceeds $10,000 when viewed from either the plaintiff's or the defendants' viewpoint. The difference between winning and losing this lawsuit, either to appellants or to Stonewall, will be $10,000 plus the cost of defending the state-court action.

We affirm.


Summaries of

Stonewall Insurance Company, v. Lopez

United States Court of Appeals, Fifth Circuit
Jan 13, 1977
544 F.2d 198 (5th Cir. 1977)

holding that amount in controversy exceeded the requisite $10,000, as the plaintiff insurer would be required to provide a defense to its insured in a pending state court action if the court found that the policy provided coverage

Summary of this case from St. Paul Reinsurance Co., Ltd. v. Greenberg

holding that the value of the obligation to defend an insured in a separate lawsuit is properly considered in determining if the jurisdictional minimum is met

Summary of this case from Lathem v. State Farm Mut. Auto. Ins. Co.

finding the amount in controversy to include the “pecuniary value of the obligation to defend a separate lawsuit”

Summary of this case from Allstate Ins. Co. v. Michael Maurice Renou, Michael Philip Renou, Sonia Elias, & Samoan Enters., Ltd.

finding the amount in controversy to include the "pecuniary value of the obligation to defend a separate lawsuit"

Summary of this case from Grange Mut. Cas. Co. v. Safeco Ins. Co. of America

concluding that the amount in controversy includes both the insurance company's potential liability and the costs associated with defending the underlying action against the insured

Summary of this case from Fastcase, Inc. v. Lawriter, LLC

concluding the amount in controversy included both the insurance company's potential liability and attendant costs associated with defending an underlying action against the insured

Summary of this case from First Mercury Ins. Co. v. Excellent Computing Distribs., Inc.

concluding that the amount in controversy in an action for declaratory relief included the "pecuniary value of the obligation to defend a separate lawsuit"

Summary of this case from State Farm Fire & Cas. Co. v. Podoll

In Lopez, the underlying litigation involved a suit against the insured by the parents of a man who had been killed in a car accident.

Summary of this case from Allstate Vehicle & Prop. Ins. Co. v. Jawanda

stating in dicta that a federal court lacks jurisdiction under § 1332 when the amount in controversy exactly equals the jurisdictional amount

Summary of this case from REGENCY PLASTICS — EL PASO, INC. v. NATIONAL PROD.

In Stonewall Ins. Co. v. Lopez, 544 F.2d 198 (5th Cir. 1976), an insurer brought suit for declaratory judgment against the insured regarding the coverage of a particular incident.

Summary of this case from Trapasso v. Prudential Property and Cas. Ins. Co.

In Lopez, the court held that the pecuniary value of the obligation to defend a lawsuit against the alleged insured in state court could be properly considered in determining the existence of the jurisdictional amount.

Summary of this case from Progressive Cas. Ins. Co. v. Estate of Crone

In Stonewall Ins. Co. v. Lopez, 544 F.2d 198, (5th Cir.1976), the Fifth Circuit, applying federal jurisdiction statutes, noted that in a declaratory coverage action, the amount in controversy is determined from the insurer's perspective.

Summary of this case from Elisias v. Geico Gen. Ins. Co.
Case details for

Stonewall Insurance Company, v. Lopez

Case Details

Full title:STONEWALL INSURANCE COMPANY, PLAINTIFF-APPELLEE, v. SALOME D. LOPEZ…

Court:United States Court of Appeals, Fifth Circuit

Date published: Jan 13, 1977

Citations

544 F.2d 198 (5th Cir. 1977)

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