Kerr v. USAA Casualty Insurance Company

Background

Bernard Kerr purchased an automobile insurance policy through USAA Casualty Insurance Company in 2010 while living in San Francisco. The policy included underinsured-motorist coverage. After Kerr was involved in a July 18, 2010 automobile accident in San Francisco, he claimed severe and disabling injuries, medical and incidental expenses, and lost earnings. He settled with the responsible third party for that driver’s $15,000 policy limit.

Kerr made an underinsured-motorist claim to USAA in June 2016. USAA offered $1,200 to settle medical charges in August 2016, and the opinion states that no further offers were made until September 2018. Kerr filed the action in Sacramento County Superior Court. His amended complaint alleged that USAA breached the implied duty of good faith and fair dealing by failing to make a reasonable offer to investigate or settle his claim. USAA removed the case to the Eastern District of California and filed motions to change venue and dismiss.

Venue-transfer standard

Under 28 U.S.C. § 1404(a), a federal court may transfer a civil action for the convenience of the parties and witnesses and in the interest of justice when the action could have been brought in the proposed district. Courts consider factors including the plaintiff’s choice of forum, the convenience of the parties and witnesses, access to evidence, each forum’s familiarity with the applicable law, the possibility of consolidating related claims, local interest, and relative court congestion.

Court’s analysis

The court found that venue was proper in both the Eastern and Northern Districts. It gave Kerr’s choice of the Eastern District only minimal weight because he lived in Marin County within the Northern District, the insurance policy was entered into in San Francisco, the accident occurred there, and most of his medical treatment occurred in the San Francisco Bay Area. The court also found that the only connection to the Eastern District identified in the opinion was Kerr’s counsel’s location, which received little weight.

The court determined that the Northern District was more convenient for most anticipated witnesses located in the San Francisco Bay Area. Those witnesses could testify about Kerr’s injuries, pre-existing medical conditions, treatment, and medical expenses. The remaining factors were neutral or favored transfer, and the court found that the Northern District had the stronger local interest because the events underlying Kerr’s claims occurred there.

Disposition

The court’s conclusion states that it granted in part and denied in part USAA’s motions as follows: it granted USAA’s motion to change venue and transferred the action to the United States District Court for the Northern District of California. The court did not rule on USAA’s motion to dismiss and denied that motion, without prejudice, as moot. The clerk was directed to transfer the case.

The opinion is signed by United States District Judge Troy L. Nunley.