State Farm Fire maintains that there is a suggestion of bad faith in Plaintiffs’ attempt to add State Farm Mutual, and that allowing Plaintiffs to amend their Complaint to add this Defendant would result in undue delay and would be futile…The Fifth Circuit has interpreted “futility” in the amended pleading context to mean that an amended complaint fails to state a claim upon which relief can be granted…
Clearly Judge Ozerden sees a distinction between State Farm Fire and State Farm Mutual. However, his collegue Judge Starrett has declared it a distinction without a difference:
General Hood made some effort to distinguish State Farm Mutual Automobile Company, a mutual insurance company, from State Farm Fire and Casualty Company, a stock insurance company. The Court believes this to be a distinction without a difference, since all of the stock in the stock company is in fact owned by the mutual company.
Judge Starrett’s opinion on the relationship between State Farm Mutual and State Farm Fire is found in his Order of recusal, entered in State Farm v Hood (October 10, 2007).
Hood’s position is understandable with a look at the settlement agreement at issue in the injunction State Farm obtained in Starrett’s court prior to his recusal.
Note the Settlement Agreement is specific to Hood’s case against defendant State Farm Fire! Continue reading “Judge Starrett on State Farm Fire and State Farm Mutual – a distinction without a difference”