NEW ORLEANS – A Houston trial lawyers firm wants a lawsuit filed against it over unpaid settlement proceeds heard by a Louisiana federal court.
Defendant Daly & Black PC filed its removal notice August 4 to the U.S. District Court for the Eastern District of Louisiana.
The firm argues the lawsuit filed against it by plaintiff David Kim and Mosaic Claims Management of Louisiana LLC doesn’t belong in the 17th Judicial District Court for the Parish of Lafourche.
According to Kim’s petition, filed in July, Daly & Black and attorney London Crounse allegedly agreed to pay a percentage of any settlement proceeds recovered for Kim to act as a consultant. Kim alleges they refused to compensate him when the case settled in March 2023.
This dispute arose from a Hurricane Ida insurance claim involving JC Beauty Depot LLC, who originally hired Kim as a public adjuster.
In his lawsuit against Daly & Black, Kim contends after he completed a business loss assessment for JC Beauty and prepared an estimate, Crounse proposed that Kim permit Daly & Black to prosecute JC Beauty’s business loss insurance claim.
In exchange, Kim alleges that Daly & Black agreed he would serve as a consultant on the claim and would be compensated.
“Despite receiving and using Mr. Kim’s estimate and expertise to advance the claim to resolution, Defendants failed and refused to compensate Mr. Kim for his service, never paying the promised consideration, and subsequently denied the existence of a contract with him,” Kim’s filing states.
Daly & Black claim Crounse is no longer employed with the firm.
It also notes that in earlier litigation in the 17th Judicial District Court for the Parish of Lafourche, filed by Kim against JC Beauty, the court found Kim’s public adjusting contract null, void, and against public policy.
Daly & Black argues a federal judge should hear Kim’s case against it, pointing to diversity jurisdiction.
Complete diversity “requires that all persons on one side of the controversy be citizens of different states than all persons on the other side.”
In federal court, the “amount in controversy” refers to the monetary value of a plaintiff’s claim. This must exceed $75,000, exclusive of interest and costs, for diversity jurisdiction.
Daly & Black contends Kim, according to his own petition, does business in Louisiana, and Mosaic Claims also is based in Louisiana.
Meanwhile, Daly & Black is located in Houston, Texas.
The firm notes that at the time of its removal request, Crounse was or is a resident of Colorado.
As to the amount in controversy, Daly & Black argues Kim has alleged in related litigation that he is due payment equal to exactly 10 percent of the settlement proceeds, or $93,775.13.
In addition, the firm claims Kim also seeks damages for lost income, consequential economic losses, mental anguish, and emotional distress.
Carla R. Delpit, an attorney for Daly & Black, is representing the firm.
