Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ared-5_15-cv-00314/USCOURTS-ared-5_15-cv-00314-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1441 Petition for Removal- Insurance Contract

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IN THE UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF ARKANSAS 

PINE BLUFF DIVISION 

DONNIE RINGO 

v. No. 5:15-cv-314-DPM 

PLAINTIFF 

STATE FARM FIRE AND CASUALTY COMPANY DEFENDANT 

ORDER 

1. Donnie Ringo bought an insurance policy from State Farm. The 

parties disagree about exactly what property was insured. Ringo paid 

premiums for many years. In 2013, a structure on the Tennessee Street 

property burned, and Ringo tried to file a claim. His State Farm agent said the 

Tennessee Street property wasn't insured and kicked Ringo out of his office. 

Ng 2 at 2. Ringo has sued alleging breach of contract and bad faith. Ng 2 at 2-3. 

State Farm moves to dismiss for insufficient service of process and failure to 

state a bad faith claim. Ng 4. FED. R. Crv. P. 12(b)(6). 

2. State Farm's motion is granted on service-with leave for Ringo to reserve the company correctly by 3 February 2016. That is Ringo's original 120-

day service deadline, which hasn't run yet. 

3. State Farm's motion is also granted on bad faith. Taking all the factual 

allegations in the complaint as true, Ringo hasn't stated a claim. Ashcroft v. 

Case 5:15-cv-00314-DPM Document 12 Filed 11/05/15 Page 1 of 3
Iqbal, 556 U.S. 662, 678 (2009). An insurer acts in bad faith if it's "dishonest, 

malicious, or oppressive in an attempt to avoid its liability under an insurance 

policy." Aetna Casualty and Surety Company v. Broadway Arms Corporation, 281 

Ark. 128, 133, 664 S.W.2d 463, 465 (1984). Maliciousness is characterized by 

hatred, ill will, or a revengeful spirit. Aetna, 281 Ark. at 134, 664, S.W.2d at 

465. Negligence or bad judgment doesn't suffice. Watkins v. Southern Farm 

Bureau Casualty Insurance Company, 2009 Ark. App. 693, at 13, 370 S.W.3d 848, 

856 (Ark. App. 2009). Accepting Ringo's allegations as truth, his State Farm 

agent acted rudely and unprofessionally. All this, though, isn't enough. Bad 

faith requires more. Compare, e.g., Southern Farm Bureau Casualty Insurance 

Company v. Allen, 326 Ark. 1023, 1028, 934 S.W.2d 527, 530 (1996) (lying about 

coverage and actively concealing coverage); Employers Equitable Life Insurance 

Company v. Williams, 282 Ark. 29, 30-31, 665 S.W.2d 873, 873-74 (1984) (policy 

of delaying payment and altering claims records); Aetna, 281 Ark. at 134-135, 

664 S.W.2d at 465-66 (threatening to report transaction to the IRS to pressure 

insured to settle). 

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Case 5:15-cv-00314-DPM Document 12 Filed 11/05/15 Page 2 of 3
* * * 

Motion to dismiss, NQ 4, granted; but Ringo may re-serve his complaint 

by 3 February 2016 to proceed on his breach-of-contract claim. The Court 

grants Ringo leave to amend to omit his bad-faith claim, and related punitives 

claim, which are dismissed without prejudice. 

So Ordered. 

(/ D.P. Marshall Jr. 

United States District Judge 

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Case 5:15-cv-00314-DPM Document 12 Filed 11/05/15 Page 3 of 3