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Cleanup Coverage Spat Booted Back To State Court

Law360 (March 12, 2009, 12:00 AM EDT) -- Concluding that Federal Insurance Co. can argue its case in state court, a federal district judge has refused to hear the insurer's action seeking declaratory judgment that its policies don't cover pollution cleanup costs incurred by policyholder Mazer Corp., an educational publisher.

On Wednesday, Judge Thomas Rose granted Mazer's motion to dismiss a case brought by Federal Insurance Co. in the U.S. District Court for the Southern District of Ohio.

Judge Rose used his authority under the Declaratory Judgment Act to dismiss the case in favor...
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