Section 2.35 Federal Court vs. State Court for Declaratory Judgment Actions Involving Interpretation of Assault and Battery Exclusions

• Library: Tort Law 2016

E. (§2.35) Federal Court vs. State Court for Declaratory Judgment Actions Involving Interpretation of Assault and Battery Exclusions

In the context of an assault and battery exclusion clause within an insurance contract, insurance carriers will often initiate a declaratory judgment action against an insured seeking a judicial determination that coverage is not afforded. Many times, insurance carriers initiate these actions in federal court. But insurance carriers do not have an absolute right to pursue a declaratory judgment action in federal court. A district court "may declare the rights and other legal relations of any interested party." 28 U.S.C. § 2201(a) (emphasis added). A federal court may decline to entertain this action. Wilton v. Seven Falls Co., 515 U.S. 277, 286 (1995). When a related case is pending in state court...