Non-Party Insurer Who Wrote the Policy in Suit Cannot Answer or Remove Case to Federal Court

Perfecto Valencia sued Allstate Texas Lloyd’s, Inc for breach of contract and violations of various Texas business codes in 2017. Valencia alleged Allstate Texas Lloyd’s, Inc., issued him a homeowner’s policy for property in Houston, Texas that sustained damage in 2015, but his claims were never paid. A separate insurance company with a similar name, Allstate Texas Lloyds (without the Inc.) requested to remove the case to federal court. Allstate Texas Lloyds is located in Illinois, while Allstate Texas Lloyds, Inc., is located in Texas. The district court denied Valencia’s motion to remand the case to state court and reconsideration but granted a motion for an interlocutory appeal. The Fifth Circuit Court of Appeals reversed the district court’s decision because Allstate Texas Lloyds was never a defendant in the case and could not answer and remove it to federal court. Read the full case including the differences between a misnomer and misidentification, neither of which applied to this case.