Ho v. Integon Nat'l Ins. Co.

Ho v. Integon Nat'l Ins. Co.

Opinion

MEMORANDUM

Presently before the Court is a motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6) brought by Defendant Integon National Insurance Company ("Integon") in the instant insurance coverage case. (Doc. 13). Plaintiff Allan Ho ("Ho") filed the complaint against Integon on March 19, 2021, and the amended complaint on May 4, 2021. (Doc. 1-1, at 4; Doc. 7). For the following reasons, the motion shall be GRANTED and Ho shall be granted leave to file a second amended complaint. (Doc. 13).

I. Background and Procedural History

Effective from May 15, 2020, until May 15, 2021, Integon, in its regular course of business, issued to Ho and Bank of America a policy of insurance (the "Policy") to cover the property Ho owns at 1389 Middle Road, Stroudsburg, Pennsylvania (the "Property"). ((Doc. 7, at 2; Doc. 7-1, at 1-26). On or about July 20, 2020, while the Policy was in full force and effect, Ho allegedly suffered [*2]  direct physical loss and damage to the insured Property. (Doc. 11, at 4-5). When the Property loss occurred, Ho allegedly notified Integon of the claim for water damage and began mitigation and restoration efforts. (Doc. 14, at 2). On July 16, 2020, Ho entered into a contract with CPR Restoration and Cleaning Services, LLC, to preserve, protect, and secure the Property from further damage, and obtained restoration estimates from Highline Construction, LLC. (Doc. 18, at 2). On March 19, 2021, Ho commenced the instant civil action by filing the complaint in the Court of Common Pleas of Philadelphia, alleging breach of the insurance contract in Count 1 and insurer bad faith in Count II. (Doc. 1, at 1). Ho sought damages in excess of $50,000 for each count and property damage to a total sum in excess of $500,000. (Doc. 1, at 1).

Integon removed the action to the United States District Court for the Eastern District of Pennsylvania on March 31, 2021, pursuant to 28 U.S.C. § 1446(b), based upon the diversity of citizenship of the parties. (Doc. 8, at 1). On April 20, 2021, Integon filed a motion to dismiss for failure to state a claim, which was rendered "moot" by Ho's filing of his amended complaint on May [*3]  4, 2021. (Doc. 5; Doc. 7). Integon filed a motion to transfer venue and, with the consent of the parties, the case was transferred to the United States for the Middle District of Pennsylvania on May 7, 2021. (Doc. 6; Doc. 8; Doc. 9). The parties consented to the undersigned's jurisdiction pursuant to 28 U.S.C. § 636(c)(1) and Fed. R. Civ. P. 73(b). (Doc. 15).

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