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Larson v. American Family Mutual Ins. Co.

United States District Court for the District of Colorado
2007 U.S. Dist. LEXUS 41864 (D. Colo. 2007)


Facts

Larson (plaintiff) retained attorney Ross-Shannon to sue his insurance company American Family Mutual Insurance Co. (American) (defendant) for failure to pay a house fire claim. After learning that Ross-Shannon did not pursue the claim due to the attorney’s desire to represent American in other matters, Larson retained other counsel who sued in state court. American was granted removal to federal court on the basis of diversity jurisdiction. Larson soon after amended his complaint to include Ross-Shannon (defendant), claiming breach of duty, conspiracy and legal malpractice, thereby destroying diversity of the parties and forcing a remand to state court. American argued that, under Rule 20(a) of the Federal Rules of Civil Procedure, the new claims did not arise out of the same transactions or occurrences as the other claims, and the new claims should have been disallowed on that basis.

Rule of Law

Issue

Holding and Reasoning (Figa, J.)

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