Lexington removed the case to federal district court on July 25, 2018, asserting that the parties were diverse and that the amount in controversy exceeded $75,000.

Bellair contended that remand was required because Lexington had missed the 30-day deadline for removal established by 28 U.S.C. § 1446(b). According to Bellair, Lexington knew before Bellair filed its lawsuit that the amount in controversy exceeded $75,000 and, therefore, the removal deadline began to run on June 11, 2018, when it was served with Bellair's complaint. Accordingly, Bellair asserted, the removal deadline passed two weeks before Lexington actually removed the case.

Lexington responded that it could not be sure when it was served with the complaint that the amount in controversy exceeded $75,000 because the complaint did not specify the amount of damage or the building or buildings allegedly suffering damage.

Lexington knew that the CRN filed by Bellair claimed that Bellair had suffered $410,440 in damage to its property, but argued that the CRN did not specify whether the property damage had been suffered at both of Bellair's buildings, or only one of them. The two buildings had separate deductibles: $311,185.54 for one building and $15,584.78 for the other. Based on its own assessment of the damage, Lexington already had paid $13,836.94 to Bellair. Thus, if the alleged damage was limited to one of the buildings, the amount in controversy exceeded the $75,000 jurisdictional minimum. But if Bellair was alleging that both buildings had been damaged, then both deductibles could apply. Subtracting the combined deductible of $326,770.32 and the $13,836.94 already paid from the $410,440 repair estimate would result in an amount in controversy of only $69,823.74.

Lexington added that, on July 16, 2018, Bellair sent Lexington a settlement demand that, among other things, specified that the $410,440 of damage had been suffered at the second building. Lexington contended that this was the first time it could be sure the amount in controversy exceeded $75,000 and, therefore, that the case was one that could be removed.

The District Court's Decision

The district court denied Bellair's motion to remand.

In its decision, the district court explained that, under 28 U.S.C. §1446(b)(3), where a case as stated by the initial pleading is not removable, the defendant must file a notice of removal within 30 days after receipt of “an amended pleading, motion, order or other paper” from which it may first be ascertained that the case is one that “is or has become removable.”

The district court then ruled that the CRN did not provide enough information, on its own or in conjunction with Bellair's complaint, for Lexington to be sure that the amount in controversy exceeded $75,000.

Instead, the district court decided that the removal deadline began to run when Lexington received the settlement demand on July 16, establishing that the damages had all been suffered at the second building.

Accordingly, the district court concluded, Lexington's removal on July 25 was timely.

The case is Bellair Condominium Ass'n, Inc. v. Lexington Ins. Co., No: 6:18-cv-1200-Orl-31TBS (M.D. Fla. Nov. 13, 2018). Attorneys involved include: For Bellair Condominium Association, Inc., Plaintiff: Morgan & Morgan, PA, LEAD ATTORNEY, Orlando, FL. For Lexington Insurance Company, Defendant: Austin Jay North, Melissa McMillan Sims, LEAD ATTORNEYS, Berk, Merchant & Sims, PLC, Coral Gables, FL.