TONI HOLLINGER; BERTHA JOHNSON; FERNANDO DELUNA; NORMA HOLDER; SANDRA DUPLANT; PATRICIA RANDOLPH; PLAINTIFF CLASS; ALL PLAINTIFFS, Plaintiffs - Appellants v. HOME STATE MUTUAL INSURANCE COMPANY; OLD AMERICAN COUNTY MUTUAL FIRE INSURANCE COMPANY; CONSUMERS COUNTY MUTUAL INSURANCE COMPANY; SOUTHERN COUNTY MUTUAL INSURANCE COMPANY; AFFIRMATIVE INSURANCE COMPANY; AMERICAN CENTURY CASUALTY COMPANY; AMERICAN HALLMARK INSURANCE COMPANY OF TEXAS; AMERICAN INTERNATIONAL INSURANCE COMPANY; DIRECT GENERAL INSURANCE COMPANY; DORINCO RE-INSURANCE COMPANY; FIRST ACCEPTANCE INSURANCE COMPANY; GENERAL INSURANCE COMPANY OF AMERICA; IMPERIAL FIRE AND CASUALTY INSURANCE COMPANY; INTEGON NATIONAL INSURANCE COMPANY; MENDOTA INSURANCE COMPANY; MIDDLE STATES INSURANCE COMPANY; NATIONAL GENERAL INSURANCE COMPANY; REPUBLIC UNDERWRITERS INSURANCE COMPANY; TITAN INDEMNITY COMPANY; TRANSATLANTIC RE-INSURANCE COMPANY; UNITED AUTOMOBILE INSURANCE COMPANY; YOUNG AMERICA INSURANCE COMPANY, Defendants - Appellees, ODYSSEY AMERICA REINSURANCE CORPORATION, Defendant - Appellee, 654 F.3d 564
Summary
The insureds alleged that various county mutual insurance companies violated the antidiscrimination provisions of Tex. Ins. Code Ann. § 544.052 by charging certain consumers higher policy fees on their automobile insurance than they charged other consumers, when those consumers were of the same class and hazard. The insureds asserted diversity subject matter jurisdiction pursuant to 28 U.S.C.S. § 1332(d)(2) of CAFA. The appellate court determined that the district court properly applied the "local controversy" and "home state" mandatory abstention provisions to CAFA diversity jurisdiction. The district court correctly concluded that two-thirds or more of the insureds' proposed class of insurance policy holders were citizens of Texas with both residency and the intention to remain in Texas, by a preponderance of the evidence, at the time the insureds filed their complaint because the insurance companies produced evidence of insurance of personal property located in Texas and authority ...