CORRECTED:Insurance Co. Can't Sever Texas Brine Sinkhole Claims

By Emily Field (June 5, 2015, 3:35 PM EDT) -- A Louisiana federal judge on Thursday denied Liberty Insurance Underwriters, Inc.'s request to transfer third-party claims by Texas Brine Co. LLC regarding coverage for class allegations in a suit over a sinkhole to a Texas court, as he wasn't convinced the first-to-file rule applied.

U.S. District Judge Jay C. Zainey said that he wasn't persuaded that the rule was implicated in the case, or that it would be appropriate to sever Texas Brine's coverage claims and transfer them to a federal court in Texas, where the insurer has filed a declaratory judgment action over its coverage obligations.

"In light of the...

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