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Federal Court Remand Diversity Action Sua SponteOn October 31, 2007 the District Court in the Middle District of Pennsylvania (Munley, J.) in Kuckla v. Farmers Insurance Group of Companies declined, sua sponte, to exercise jurisdiction of a Declaratory Judgment Action which was originally filed in Luzerne County and then removed by Farmers to federal court on diversity grounds on October 26, 2007. The case arises out of a motor vehicle accident where the insured sustained significant physical and mental injuries. Farmers insured 5 vehicles in the insured household but separated them into 5 different policies. The insured paid for stacking and then Farmers would not pay the underinsured motorist coverage on all 5 cars (only 1) citing the household/family car exclusion. Kuckla filed a Declaratory Judgment Action in Luzerne County and Farmers removed the case. Before we could file a Motion to Remand the Court issued the ruling. The Middle District opinion observes that under the federal Declaratory Judgment Act a district court has discretion to entertain the case even if the jurisdictional prerequisites are met. The Court writes that, "The matter before this court is one of contract interpretation under Pennsylvania law. In addition, we would be asked to determine the procedure required to secure a waiver or reduction of underinsured motorist coverage under the Pennsylvania Motor Vehicle Financial Responsibility Law. All of these are questions of state law..." Thus, the court finds that the state court can address the claims and remands the case to Luzerne County. Also, the court writes in an opinion that other cases cited by Farmers which held in favor of Farmers are not binding but only persuasive but do not weigh against the decision that the state forum is better suited to address the issues in the case.
Scott B. Cooper
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