BENTON – State Farm successfully challenged Madison County jurisdiction in a suit over storm damage at a Missouri home but failed to move the suit to Missouri.
Homeowners Stephanie Wilson and Kevin Hammond, wife and husband, took it to U.S. district court for Southern Illinois in June.
Their lawyer, Gregory Fenlon of Frontenac, Mo., claimed damages for breach of contract and emotional distress.
He repeated allegations that Madison County Circuit Judge Dennis Ruth dismissed in May, for filing in a more convenient forum.
State Farm counsel Lee Karge of Clayton, Mo., answered with motions to impose sanctions and dismiss the suit for filing in a Missouri court.
Karge wrote that Madison County and the Southern District are inappropriate and that Ruth found Madison County inappropriate.
“Instead of testing the propriety of that ruling by taking an appeal, plaintiffs and their counsel decided to continue their forum shopping ploy in this district,” Karge wrote.
Fenlon filed the Madison County suit on Feb. 8, identifying Wilson and Hammond as retired police officers.
He wrote that on July 22, 2017, a storm caused a tree to snap and fall into their home in Louisiana, Mo.
The tree extensively damaged the home and personal property, and State Farm allegedly refused the full covered payment on the home.
With State Farm’s consent, Wilson and Hammond assumed residency in Illinois while their claims were adjusted, but on Jan. 31, State Farm is alleged to have abruptly discontinued the housing benefit.
Fenlon wrote that State Farm notified Wilson and Hammond that they would be charged $250 a day for rented furniture that was part of the benefit.
Wilson and Hammond jointly alleged breach of contract and improper practices.
Wilson alleged intentional and negligent infliction of distress.
On March 4, State Farm moved to dismiss for filing in a more convenient forum.
For State Farm, attorney Jeffrey Brinker of Clayton wrote that Wilson and Hammond were inside with their two young children at the time of the loss.
They purchased their policy through an agent in Louisiana and retained counsel primarily practicing in Missouri.
Brinker wrote that State Farm paid substantial amounts for damage and expenses.
He wrote that there were substantial differences in the laws of Missouri and Illinois with respect to causes of action in this case.
“Upon information and belief, plaintiffs have not stayed in Illinois for other than short and temporary periods of time,” he wrote.
He wrote that State Farm paid for their rent in O’Fallon, Mo., for more than 14 months, and paid for storage of their belongings.
He wrote that the city of Louisiana had an interest in whether the dwelling is repaired or demolished, and that the city was entitled to a 25 percent lien on the total payment.
He wrote that State Farm paid the city a substantial amount to protect the lien.
Fenlon opposed the motion on April 2, writing that State Farm didn’t identify any witness unwilling to testify at trial in Madison County.
He wrote that Wilson and Hammond resided in Illinois during State Farm’s initial tortious conduct.
Ruth held a hearing on April 5, and asked State Farm for affidavits.
State Farm provided them, and Ruth dismissed the complaint without prejudice at a hearing on May 10.
His order cited a Supreme Court rule setting conditions on forum orders.
It requires State Farm to accept service of process from another forum within six months and to waive any statute of limitations that ran in the other forum.
His order didn’t mention Missouri.
Wilson and Hammond headed in the opposite direction.
Fenlon sued for them in district court on June 26, barely changing the complaint.
The clerk assigned District Judge Staci Yandle, who holds court in Benton.
That means the distance from the scene of the storm to the court has doubled.
For State Farm, Karge moved to dismiss the suit on July 11.
Karge wrote that the plaintiffs’ only allegation with any connection to the district was that they stayed in Madison County for a short while after the loss occurred.
He asked Yandle to “consider entering an order of sanctions which the court in its complete discretion, believes is appropriate under the circumstances of this case.”
He moved for leave to file the affidavits that Ruth relied on.