Insurance – Fire Damage; Vexatious Refusal; Fraudulent Joinder

Where an insured challenged the dismissal of her claim for vexatious refusal after fire damaged a property that she owned and leased to tenants, the insured’s joinder of the tenants was fraudulent because there was no basis in fact and law to support a claim against them, so the district court properly applied res judicata and denied remand. Judgment is affirmed.

Hubbard v. Federated Mutual Insurance Company (MLW No. 68232/Case No. 14-3210 – 6 pages) (U.S. Court of Appeals, 8^th Circuit, Benton, J.)