Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ared-4_19-cv-00799/USCOURTS-ared-4_19-cv-00799-0/pdf.json

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

---

IN THE UNITED ST ATES DISTRICT COURT 

EASTERN DISTRICT OF ARKANSAS 

CENTRAL DIVISION 

NATHANIEL STILLWELL and 

MICHAEL HOWARD, individually and 

on behalf of all others similarly situated 

v. No. 4:19-cv-799-DPM 

BESTW A Y RENT AL, INC.; JOHN DOE; 

and LIBERTY MUTUAL FIRE 

INSURANCE COMP ANY 

ORDER 

PLAINTIFFS 

DEFENDANTS 

Howard, a Stillwell employee, was driving a truck and towing an 

excavator and trailer owned by Stillwell. Doe was driving a truck 

owned by Bestway and insured by Liberty Mutual. The trucks collided; 

Howard and Stillwell say they sustained damages. They claim 

negligence by Doe and Bestway, and they bring individual and class 

claims for bad faith against Liberty Mutual. 

The claims against Liberty Mutual are dismissed without 

prejudice. Arkansas law doesn't allow Howard and Stillwell, as injured 

third parties, to sue Bestway' s insurer for bad faith. The Court agrees 

with Chief Judge Waters's reasoning and conclusion in Bell v. Kansas 

City Fire & Marine Insurance Co., 616 F. Supp. 1305, 1309 

(W.D. Ark. 1985), which rested on Greer v. Mid-West National Fire & 

Casualty Insurance Co., 434 F.2d 215, 218 (8th Cir. 1970) and Aetna 

Case 4:19-cv-00799-DPM Document 19 Filed 01/21/20 Page 1 of 2
Casualty & Surety Co. v. Broadway Arms Corp., 281 Ark. 128, 133-34, 

664 S.W.2d 463,465 (1984). Also, Howard and Stillwell can't sue under 

Arkansas Code Annotated § 23-89-101 because there's no judgment; 

nor can they sue under§ 23-79-208 because they haven't pleaded any 

assignment from Bestway. 

Liberty Mutual' s motion to dismiss, NQ 11, is granted as modified. 

The dismissal is without prejudice because a bad-faith claim belonging 

to Doe and Bestway might accrue in the future, and it might end up in 

Stillwell's and Howard's pockets. 

The Court wonders whether there is enough overlap between this 

case and No. 4:18-cv-696-JM that they are better handled by one judge. 

The Court would appreciate the parties' thoughts. Please file notice, 

joint or separate, by 31 January 2020. 

So Ordered. 

tt D.P. Marshall Jr. 

United States District Judge 

-2-

Case 4:19-cv-00799-DPM Document 19 Filed 01/21/20 Page 2 of 2