Morris v. Nuzzo

In action originally filed in Ohio state court, alleging that defendants-insurance company and insurance agent tortiously and in bad faith refused to settle wrongful death claim against insured, that was ultimately removed to Ohio Dist. Ct. and then transferred to Indiana Dist. Ct., Dist. Ct. erred in denying plaintiff’s motion for remand back to Ohio state court. Forum defendant rule applied so as to preclude removal to federal court where insurance agent was citizen of Ohio, and where Ct. of Appeals rejected Dist. Ct.’s belief that insurance agent had been fraudulently joined as device to preclude instant removal where record showed that agent’s conduct, in allegedly failing to investigate, adjust and settle wrongful death claim, occurred in Ohio. As such, there was reasonable probability that Ohio state court would have applied Ohio law to instant bad-faith claim, that under Ohio law plaintiff stated plausible cause of action against agent, and that agent’s proper presence in lawsuit prevented removal under 28 USC section 1441(b)(2).