Settlement Breach Claim Not ‘Direct Action’

By Deborah Elkins
Published: November 30, 2011

Tags: Insurance, Judge T.S. Ellis III, U.S. District Court - Eastern District

A defendant insurance company sued for allegedly reneging on a settlement with plaintiffs, a married couple injured in an auto accident, may remove their suit to federal court on diversity grounds, says an Alexandria U.S. District Court; this lawsuit is not a “direct action” against an insurer under 28 U.S.C. § 1332(c)(1). Plaintiffs claim they accepted ...

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