Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Roberts v. Discover Home Loans, Inc.

United States District Court, D. South Carolina, Charleston Division

August 3, 2017

William A. Roberts, Plaintiff,
v.
Discover Home Loans, Inc; LenderLive Network, LLC; Lee S. Demarest; and Allstate Insurance Company, Defendant.

          ORDER AND OPINION

          Richard M. Gergel United States District Court Judge

         This matter is before the court on Plaintiff's motion to remand. (Dkt. No. 19). For the following reasons, Plaintiff's motion to remand is DENIED.

         I. FACTUAL BACKGROUND

         Plaintiff William Roberts owns a home at 794 Piccadilly Drive in Charleston, South Carolina. (Dkt. No. 1-1 at 5). Plaintiff maintained flood insurance for his home purchased through Allstate Insurance Company ("Allstate"). (Dkt. No. 1-1 at 6). On July 31, 2014, Plaintiff renewed his flood insurance policy (Dkt. No. 1-1 at 7). The policy period was set to expire on July 31, 2015. Id., LenderLive Network ("LenderLive"), the servicer of a mortgage Plaintiff took out on the home in late 2014, assumed responsibility for paying the renewal premium when it came due the following year. (Dkt. No. 1-1 at 8). This case arises from Allstate's termination of Plaintiff's flood insurance policy due to nonpayment of that premium.

         Allstate participates in the National Flood Insurance Program ("NFIP") pursuant to the National Flood Insurance Act ("NFIA") of 1968. 42 U.S.C. §§ 4001, et seq. FEMA administers the NFIP. See 42 U.S.C. § 4011(a). Congress established the NFIP to reduce losses caused by flood damage through a uniform national policy by which flood insurance would be made available on reasonable terms and conditions. Id. Premiums collected from policy holders are deposited in the U.S. Treasury. 42 U.S.C. § 4017(d).

         Within this framework, Allstate serves as a Write-Your-Own carrier ("WYO"), whereby it is allowed to issue flood insurance policies under the government program in its own name. 44 C.F.R. § 62.23. All flood insurance policies issued by WYO carriers under the WYO program must mirror the exact terms and conditions found in 44 C.F.R. Part 61, Appendix A. 44 C.F.R. §§ 61.4(b), 62.23 (c)-(d) (mandating exact terms). This policy is known as a Standard Flood Insurance Policy ("SFIP"). The SFIP provides:

This policy and all disputes arising from the handling of any claim under the policy are governed exclusively by the flood insurance regulations issued by FEMA, the National Flood Insurance Act of 1968, as amended (42 U.S.C. § 4001, et seq.), and Federal common law.

(Dkt. No. 1 at 5 (citing 44 C.F.R. Pt. 61, App. A(1), Article IX).)

         Standards and procedures governing the issuance and administration of SFIPs are published in FEMA's Flood Insurance Manual ("The Manual"). (Dkt. No. 32 at 13). The Manual regulates the renewal and termination of SFIPs as follows:

[1.] The National Flood Insurance Program (NFIP) must issue a notice of expiration not less than 45 days before the expiration of the flood insurance policy by first-class mail to the owner of the property, the servicer of any loan secured by the property, and (if known) the owner of the loan.
[2.] All parties listed on the policy declaration page (the agent/ producer, insured, and any mortgagee) are to be mailed an initial Renewal Notice no less than 45 days prior to the policy expiration date.
[3.] If the premium payment is not received by the insurer by the policy expiration date, a Final Notice is produced and must be sent to all parties listed on the declarations page (the agent/producer, insured, and any mortgagee). The final notice must indicate that coverage has expired and the the expired policy will be reissued with a new effective date if the premium payment is not received by the insurer within 30 days following the policy expiration date.
[4.] The Final Notice to the lender must indicate that coverage will terminate if premium is not received within this 30 day period.
[5.] Insurers must be able to reproduce copies of the Final Notice to the mortgagee and have processes in place to verify the date the Final Notice was mailed.

(Dkt. No. 32-2 at 2-3).

         The flood insurance policy in question is an SFIP. (Dkt. No. 19 at 4). In November 2014, Plaintiff received a mortgage through Discover Home Loans ("Discover"). (Dkt. No. 1-1 at 6). Discover required Plaintiff to provide $537.96, which it held in escrow, to cover the SFIP premium for the next policy period. (Dkt. No. 1-1 at 7-8). Before that premium was due, Discover transferred the servicing of ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.