Hinderliter v. State Farms Ins.

, Civil No. 07-272 2007 U.S. Dist. LEXIS 91011 (W.D. Pa. Dec. 11, 2007).

Many of you may wonder why PIP cases are not bought in federal court when diversity of the parties exist, i.e. the plaintiff is a Pennsylvania provider and the defendant insurance carrier is located in another state. In the Hinderliter case, the case was removed from state court to federal court by State Farm because of diversity of the parties. The federal court ruled that the second element necessary in removal to federal court, i.e. the amount in controversy was in excess of $75,000.00, was present in the case because the combination of attorneys’ fees and the amount in controversy could be in excess of $75,000.00. Therefore, the case stayed in federal court despite plaintiff’s attempt to remand the case back to state court.