U.S. Court of Appeals for the Ninth Circuit, Infanzon v. Allstate Insurance Company, Docket No. 22-56070

Insurance Law

Insurance Agent’s Liability

Joinder

Diversity

California Law

 

 

Appeal from the United States District Court for the Central District of California.

 

The district court correctly found that Leticia Pomes, the Allstate Insurance Sales Agent who was named as a codefendant in Infanzon’s state court complaint, was fraudulently joined. See Morris v. Princess Cruises, Inc., 236 F.3d 1061, 1067 (9th Cir. 2001). “Joinder of a non-diverse defendant is deemed fraudulent, and the defendant’s presence in the lawsuit is ignored for purposes of determining diversity, ‘if the plaintiff fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state.’” Id. (quoting McCabe v. General Foods Corp., 811 F.2d 1336, 1339 (9th Cir. 1987)). Under California law, an insurance agent acting in the name of a disclosed principal is not personally liable for acts committed within the scope of his or her employment, Lippert v. Bailey, 241 Cal. App. 2d 376, 382 (1966), “unless an agent or employee acts as a dual agent.” Mercado v. Allstate Ins. Co., 340 F.3d 824, 826 (9th Cir. 2003). Here, there is no dispute that Pomes acted on behalf of Allstate, her disclosed principal; that she always held herself out as Allstate’s agent to Infanzon and to others; and that she acted within the scope of her employment. Therefore, because Pomes acted as Allstate’s exclusive agent, Infanzon has no cognizable claim against her under California law, and complete diversity exists.

 

 

(U.S. Court of Appeals for the Ninth Circuit, Aug. 2, 2024, Infanzon v. Allstate Insurance Company, Docket No. 22-56070, Not for Publication)