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ESPINOZA v. ALLSTATE TEXAS LLOYD'S

United States District Court, W.D. Texas, El Paso Division (2016) | 222 F.Supp.3d 529

4 min read

TL;DR: A plaintiff attempted to avoid federal court by pleading damages "less than $75,000." The court found this was a bad-faith violation of state pleading rules, looked to a pre-suit demand letter to establish the true amount in controversy, and retained jurisdiction.

Legal Significance: A plaintiff's attempt to plead damages below the federal jurisdictional amount is ineffective if it violates state pleading rules and is contradicted by other evidence, such as a pre-suit demand letter demonstrating a higher claim value.