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Morgan v. Chubb Lloyds Insurance Co. of Texas

Court: ND Tx  05/25/2021  Northern District Purports to Follow "Majority Rule" in Holding 542A Election Untimely

A court of the Northern District of Texas found that improper joinder "at the time of removal" is a rule created by dicta and that recent Fifth Circuit authority was not binding, rejected more recent district court cases finding an insurer's Chapter 542A election post-suit but pre-removal established improper joinder of adjuster, and held that adjuster in case at hand was properly joined at the time suit was filed because the Chapter 542A election had not yet been made; thus, diversity was not established and remand was required.

homeowners insurance policy, removal, motion to remand, motion to dismiss, improper joinder, claims against adjuster, claims against broker, Tex. Ins. Code Ch. 542A.006, election of liability, federalism

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