M & B Oil Co. (“M&B”) is a Texas corporation with headquarters in St. Louis, MO. Federated Mutual Ins. Co. (“Federated”) is a Minnesota corporation with its headquarters in St. Paul, MN. Officers of both companies operate out of their headquarters. The City of St. Louis is a municipal corporation created under the laws of Missouri, with city hall in St. Louis.
M&B suffered a water leak in its building, resulting in $ 400,000 in property damage. M&B believes the Ciry of St. Louis caused and exacerbated the water damage by unreasonably using and maintaining the building's water-piping system. And the City failed to shut-off the water to the building, as it promised to do, when M&B discovered and reported the leak. M&B submitted a claim for coverage to Federated, its property insurer; Federated denied coverage.
On February 17, 2024, M&B files suit in the Circuit Court of Missouri for the City and County of St. Louis. It asserts a state-law claim for Breach of Contract against Federated, based on its vexatious failure to pay. It asserts two state-law claims against the City of St. Louis—1) Detrimental Reliance based on the City’s failure to shut the water and 2) Inverse Condemnation based on the City’s unreasonable maintenance of the building’s water-piping system. On February 26, M&B serves Federated. On February 29, Federated removes the case to federal court by filing a Notice of Removal. Although the City has not been served, it consents to removal.
M&B moves to remand on April 10. In opposing the motion, Federated argues that the motion is untimely and that the court should deny remand because the City of St. Louis had not been served at the time of removal.
For the court, decide the motion.
