Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-alsd-1_19-cv-00848/USCOURTS-alsd-1_19-cv-00848-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:2201 Declaratory Judgement (Insurance)

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IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF ALABAMA

SOUTHERN DIVISION

GRANITE STATE INSURANCE )

COMPANY, )

 )

Plaintiff, )

 )

v. ) CIVIL ACTION 19-0848-WS-M

 )

NEW WAY OUT, CORPORATION, )

et al., )

 )

Defendants. )

 ORDER

This matter is before the Court on the plaintiff’s motion to dismiss Counts 

Two and Three of the defendants’ counterclaim. (Doc. 20). The parties have filed 

briefs and other materials in support of their respective positions, (Docs. 19-20, 

29-30), and the motion is ripe for resolution.

Counts Two and Three attempt, in skeletal fashion, to allege causes of 

action for normal and abnormal bad faith under Alabama law. (Doc. 11 at 4-5). 

The plaintiff correctly points out that the counterclaim fails even to allege all the 

elements of these causes of action; as such, it necessarily fails to allege these 

claims with the plausibility required by Rule 8(a) as construed by Bell Atlantic 

Corp. v. Twombly, 550 U.S. 544 (2007), and other cases. The defendants attempt 

no defense of their pleading but instead offer almost 200 pages of exhibits to 

support an unpleaded claim of bad faith failure to settle. 

For the reasons set forth above, the motion to dismiss is granted. Counts 

Two and Three of the counterclaim are dismissed. The defendants may file and 

serve, on or before April 6, 2020, an amended counterclaim that corrects the 

deficiencies in Counts Two and Three, failing which this dismissal will be with 

prejudice and without further leave to amend as to the dismissed claims. Before 

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repleading Counts Two and Three, the defendants should satisfy themselves that 

they can satisfactorily meet the plaintiff’s objection that their bad faith claims 

must fail as a matter of law for lack of damages.

DONE and ORDERED this 23rd day of March, 2020.

 

s/ WILLIAM H. STEELE 

UNITED STATES DISTRICT JUDGE

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