Cisneros v. State Farm Fire and Casualty Company et al

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF OKLAHOMA
BEATRIZ and RODRIGO CISNEROS, 	)
)
Plaintiffs, 	)
)
v. 	) 	Case No. CIV-25-42-R
)
STATE FARM FIRE AND CASUALTY 	)
COMPANY, et al., 	)
)
Defendants. 	)
ORDER
Before the Court is Plaintiffs’ Motion for Reconsideration requesting the Court
reconsider its Order [Doc. No. 24] denying remand. The motion is fully briefed [Doc. Nos.
26, 29] and at issue.
“Grounds warranting a motion to reconsider include (1) an intervening change in
the controlling law, (2) new evidence previously unavailable, and (3) the need to correct
clear error or prevent manifest injustice.” Servants of Paraclete v. Does, 204 F.3d 1005,
1012 (10th Cir. 2000) (citations omitted); see also Ankeney v. Zavaras, 524 F. App'x 454,
458 (10th Cir. 2013) (applying same standard to reconsideration of interlocutory order).
Reconsideration “is appropriate where the court has misapprehended the facts, a party’s
position, or the controlling law,” but “is not appropriate to revisit issues already addressed
or advance arguments that could have been raised in prior briefing.” Id. (citations omitted).
Stated another way, a motion for reconsideration “is not a second chance for the losing
party to make its strongest case or to dress up arguments that previously failed.” Voelkel v.
General Motors Corp., 846 F.Supp. 1482, 1483 (D. Kan. 1994) (citation omitted).
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In its prior order, the Court found that Plaintiffs had not stated a possibly viable
claim for negligent procurement of insurance or constructive fraud/negligent
misrepresentation against their insurance agent and the agent was therefore a fraudulently
joined defendant whose citizenship could be disregarded for the purposes of establishing
diversity jurisdiction. Plaintiffs contend that the Court made multiple errors in reaching
this conclusion.
First, Plaintiffs argue that the Court erroneously found that Plaintiffs were primarily
relying on implied representations that insurance agents make when they bind or sell a
policy when, in fact, the Petition pleaded specific misrepresentations by the insurance
agent. The Court is not persuaded that it misconstrued Plaintiffs’ allegations. The Petition
alleges that “Defendants’ representations and/or material omissions” are “inherent to the
act of procuring, binding, and renewing coverage” and that the agent “inherently
conveyed” information about the coverage limits and property condition “by virtue of the
act of procuring the Policy.” See Doc. No. 1-5 ¶¶ 19, 25, 36. Plaintiffs point to allegations
stating that “Defendants misrepresented” the property’s condition, the coverage, or the
satisfaction of underwriting guidelines. Pet. ¶ 73. However, as noted in the Court’s prior
order, Plaintiffs have not identified any specific statements by the agent concerning the
property’s condition or State Farm’s claims handling. Moreover, State Farm’s Notice of
Removal and Response to Plaintiffs’ Motion to Remand both relied on the absence of
affirmative statements by the agent to support their fraudulent joinder argument. See Doc.
No. 1 ¶ 28, 30, 32; Doc. No. 29 at 1, 5-7. Plaintiffs did not dispute this characterization in
their Motion to Remand or Reply brief and instead repeatedly described the agent as
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making “inherent” or “implied” representations. Plaintiffs’ belated attempt to
recharacterize their allegations or bolster their argument does not support reconsideration.
But regardless, the alleged misrepresentations have no causal connection to
Plaintiffs’ damages and therefore cannot support a claim against the agent. State Farm
issued Plaintiffs a replacement cost value policy that provided coverage for wind and hail
damage. Thus, any alleged representations about the property’s eligibility for replacement
cost coverage, satisfaction of the underwriting guidelines, or coverage values were either
true or not the cause of Plaintiffs’ damage
Second, Plaintiffs argue that the Court overlooked allegations regarding State
Farm’s pre-existing damage denial and erroneously concluded that a pre-existing condition
did not negate or limit coverage for the roof. The Court did not overlook this argument, it
simply disagreed with Plaintiff’s position. Plaintiffs’ requested a replacement cost value
policy that provided coverage for wind and hail damage and that is what they received.
Plaintiffs have not alleged or identified any pre-existing condition or defect that limited the
coverage for wind and hail damage to the property. State Farm’s allegedly incorrect
determination that some of the claimed damage is attributable to a non-covered peril or
was not caused by storm damage does not mean the coverage is negated. The dispute here
concerns State Farm’s interpretation of the policy and its claims handling practices, not the
agent’s actions during the procurement stage.
Plaintiffs’ final argument is that the Court erred in its analysis because Plaintiffs
made a specific request for a full replacement cost policy. This argument misses the point
entirely. The Court acknowledged that Plaintiffs made a specific request for a replacement
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cost policy and, in fact, received a replacement cost policy. Although a specific request for
a replacement cost policy might support a claim for negligent procurement if an agent fails
to actually procure a replacement cost policy, Plaintiffs indisputably received a
replacement cost policy that covers weather related damage. Plaintiffs have not identified
any clear error or explained how the agent’s procurement of the policy was negligent or
fraudulent.
The Court is not persuaded that it misapprehended Plaintiffs’ position or that there
is any clear error in need of correction. Accordingly, Plaintiffs’ Motion for Reconsideration
is DENIED.
There is, however, one additional item that needs to be addressed. Plaintiffs’ Motion
for Reconsideration includes a request to conduct jurisdictional discovery, without any
citation to authority or argument in support of their request. This perfunctory request is not
sufficient to warrant jurisdictional discovery and is therefore denied. After filing their
motion, Plaintiffs’ counsel submitted an email to the Court which included a letter
requesting the opportunity to conduct jurisdictional discovery and a set of proposed
discovery requests. The letter was also sent to the Court via certified mail. The Court does
not typically accept letters as pleadings (particularly in counseled cases) and any future
requests for relief must be formatted as a motion consistent with Local Civil Rule 7.1.
IT IS SO ORDERED this 2nd day of July, 2025.
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