Analysis

3rd Circ. Ruling Bolsters Insurers In Federal Forum Fights

Law360, Los Angeles (August 25, 2017, 5:41 PM EDT) -- The Third Circuit chipped away at an argument that policyholders have often wielded to keep coverage disputes out of federal courts, by ruling recently that district judges cannot refuse to hear insurance cases merely because the coverage issues may eventually arise in a tort action against the insured.

U.S. District Judge Joel Slomsky of Pennsylvania had abstained from exercising jurisdiction over a lawsuit concerning whether professional liability insurer Maxum Specialty Insurance Group must defend insurance broker Carman Corp. in an underlying negligence action pending in state court. The district judge's ruling was largely based on his conclusion that the two cases...

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