Cannon v. Wells Fargo Bank, N.A., Civil Action No. 12-465 (CKK)
Decision Date | 01 March 2013 |
Docket Number | Civil Action No. 12-465 (CKK) |
Parties | ANDREA CANNON, on behalf of herself and all other similarly situated Plaintiff, v. WELLS FARGO BANK, N.A., et al., Defendants. |
Court | U.S. District Court — District of Columbia |
Plaintiff Andrea Cannon filed a proposed class action suit against Defendants Wells Fargo Bank, N.A. and Wells Fargo Insurance, Inc., (collectively the "Wells Fargo Defendants"), as well as QBE Specialty Insurance Co. and Sterling National Insurance Agency, Inc., now known as QBE First Insurance Agency, Inc., (collectively the "QBE Defendants") in the Superior Court for the District of Columbia. The Defendants removed the action to this Court, and the Court subsequently denied the Plaintiff's motion to remand. Presently before the Court are the Defendants' motions to dismiss.1 Upon consideration of the pleadings, the relevant legal authorities, and the record for purposes of a motion to dismiss, the Court finds that it lacks personal jurisdiction over QBE Specialty, and the Plaintiff fails to state a claim with respect to either QBE Defendant. The Court further finds that the Plaintiff has adequately pled a breach of the covenant of good faith and fair dealing, but otherwise fails to state a claim against the WellsFargo Defendants. Accordingly, for the reasons stated below, the QBE Defendants' Amended Motion to Dismiss is GRANTED and the Wells Fargo Defendants' Motion to Dismiss is GRANTED IN PART and DENIED IN PART.
For purposes of the Defendants' motions to dismiss for failure to state a claim, the Court presumes the following facts pled in the Complaint are true. The Plaintiff obtained a mortgage from Wachovia Bank, predecessor in interest to Defendant Wells Fargo Bank, on property located at 1235 Queen Street, Northeast, Washington, D.C., 20002, in December 2007. Pl.'s Ex. 10 (Deed of Trust) at 1. The Deed of Trust indicates that if the borrower fails to maintain sufficient insurance coverage on the mortgaged property, the lender "may obtain insurance coverage, at Lender's option and Borrower's expense," and "the cost of the insurance coverage so obtained might significantly exceed the cost of insurance" that the borrower might have obtained. Id. at 4. Between July 16, 2005, and July 16, 2008, the Plaintiff maintained property and liability insurance on the Queen Street property through Scottsdale Insurance Company. Pl.'s Ex. 1 (2/16/12 Ltr. Old Dominion Ins. Agency to Pl.). From July 16, 2008 through at least February 16, 2012, Great American Insurance Company provided commercial property and liability insurance coverage for the Queen Street property. Id.; see also Pl.'s Ex. 9-A (Great Am. Ins. Co. Policy Decl.) (reflecting coverage of Queen Street Property from July 16, 2011 until July 16, 2012).
According to the Exhibits attached to her Complaint, on August 1, 2011, August 31, 2011, January 10, 2012, and February 9, 2012, the Plaintiff received letters from DefendantWells Fargo Insurance indicating that the Plaintiff "may qualify for a unique homeowners insurance program offered through Wells Fargo Insurance." Pl.'s Exs. 2-5. The letters provided a toll-free number for the Plaintiff to call to see if she qualified, and indicated that if she did qualify, she would receive "a no-obligation quote within minutes that may even save you money." Id. The letters further indicated that she might be eligible for "[q]uotes from multiple insurance companies," "[i]mproved coverage compared to your current homeowners or property insurance," and "[d]iscounts for smoke alarms, security systems and recently constructed homes." Id. The Plaintiff does not allege that she responded to any of the letters or otherwise sought insurance from Wells Fargo Insurance. In fact, elsewhere in her Complaint, the Plaintiff indicates that she did not respond to the solicitations from Wells Fargo Insurance. Id. at ¶ 75, p. 35.
On August 31, 2011, the Plaintiff received a separate letter from Wells Fargo Bank, which stated in relevant part:
Pl.'s Ex. 6 (8/31/11 Ltr. Wells Fargo Bank to Pl.) at 1. The letter indicated that the Plaintiff had the right to purchase insurance from the company of her choice, and that if she already had coverage on the property, she could submit that information to Wells Fargo Bank. Id. Moreover, Id. With respect to the temporaryinsurance coverage Wells Fargo had obtained on the property, the letter stated that Id. The Plaintiff implies but does not explicitly state that a copy of the binder was not attached to the August 31, 2011 letter. Compl. ¶ 21. The Plaintiff alleges that, in light of the letter from Wells Fargo Insurance stating the Plaintiff may be eligible for "[i]mproved coverage compared to your current homeowners or property insurance," Wells Fargo Bank had actual knowledge that the Plaintiff's insurance coverage on the Queen Street property had not lapsed. Id. at ¶ 36.
The letter went on to indicate that "[i]n nearly all instances, the insurance coverage we obtain may be more expensive than a policy you could obtain from an agent or insurance company of your choice." Pl.'s Ex. 6 at 2. The letter further disclosed that Id. The Plaintiff's Complaint does not indicate how she responded to the August 31, 2011 letter, if at all.
Id. The Plaintiff notes that the premium for the 90-day binder from QBE Insurance Corp., if applied to a 12-month policy, exceeded the premium charged by Great American Insurance by $6,487.28. Compl. ¶ 23; cf. Pl.'s Ex. 8 with Pl.'s Ex. 9-A. The Defendants contend that despite the "90-day" moniker, $3,064.32 represented the yearly premium for the policy. Wells Fargo Defs.' Reply at 3, n.2; QBE Defs.' Reply at 5-6. The parties (and the Court) generally refer to the policy reflected in the 90-day binder as the "force-placed," "lender-placed," or "LPI" policy.
Compl. ¶ 41 (emphasis added). The Plaintiff does not allege which approach Wells Fargo Bank took with respect to her account for the Queen Street property.
Apart from describing QBE Specialty as a "surplus line insurance provider doingbusiness through Wells Fargo and independently in the District of Columbia," the Complaint does not contain any specific factual allegations against QBE Specialty. Compl. ¶ 5. The Plaintiff alleges that Wells Fargo Insurance is a "captive insurance agent for Wells Fargo [Bank]," and "does nothing to assist in obtaining the force-place insurance policy and exists only so that Wells Fargo [Bank] can collect kickbacks or commissions related to the force-placed insurance policies." Id. at ¶ 4.
To continue reading
Request your trial