KB Home Can't Boot Atty Insurance Row To State Court

Law360, New York (February 8, 2012, 1:39 PM EST) -- A federal judge on Monday refused to remand KB Home Colorado Inc.'s suit seeking insurance coverage for allegedly shoddy legal representation, ruling the case belongs in federal court even though both KB Home and the insured lawyers both do business in Colorado.

In refusing to remand the case to state court, Judge Christine M. Arguello ruled the residential construction company's suit did not qualify as a so-called direct action in which the insurer, State National Insurance Co., was merely a proxy for the insured party —...
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