This is the case of Simmons Little Bluestone LP v. Nationwide Insurance Co. of Florida d/b/a Nationwide Insurance, in the U.S. District Court for the Western District of Tennessee.

Here, a Memphis, Tennessee, strip mall owner filed a $2 million dollar lawsuit against Nationwide Insurance Company for breach of contract, bad faith refusal to pay a claim, fraud/misrepresentation, and reckless or negligent actions or omissions.

In addition, Simmons is seeking compensatory and punitive damages, including attorney’s fees and costs.

On Friday, Nationwide filed a notice of removal to federal court, a notice which must be filed within 30 days after the defendant was served with the initial pleading.

Case Background:

Simmons has accused the insurer of acting in bad faith by refusing to cover its repair costs relating to sewage backup issues at the mall, and that Nationwide and its representatives engaged in fraudulent activities.

In the state court complaint filed in Tennessee in September, Simmons accused the insurer of refusing to cover the tab on its repair costs, and according to Simmons, it did so in bad faith.

The Tennessee strip mall owner said the insurer initially offered it only $5,000 after it had promised full coverage for the reported sewer backup.

According to the complaint, the sewage damage affected all four units in the company's Memphis building, causing a "tremendous amount of damage." The insurer "repeatedly assured" Simmons that the damage was covered, under its existing policy, but in March Nationwide said that the coverage limit for a water backup claim was $5,000.

The mall owner wrote in the complaint, "To date, the plaintiff's claim remains nearly entirely or otherwise substantially unpaid and not fully completed despite the plaintiff's repeated, continuous, and unyielding efforts to cooperate with the defendant."

Simmons, who is represented by Kevin A. Snider of Snider & Horner PLLC, argues that his client is still incurring damages from Nationwide's refusal to pay, and its failure to mitigate damages.

"The defendant's actions were intentional, willful, malicious, and/or reckless and entitle the plaintiff to punitive damages," Simmons wrote. "The defendant knew of the foregoing falsehoods and made them recklessly with the intent to deceive the plaintiff and to induce them into entering into an insurance policy with the defendant."

Relief Requested:

According to the complaint, Simmons is seeking a minimum of $1.5 million in punitive damages, and $500,000 in compensatory damages, including any discretionary costs the court deems appropriate.