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Brillhart Abstention: Will Your Declaratory Judgment Action Stay in Federal Court?
Experienced insurance coverage lawyers know that choice of forum frequently affects choice of law, and choice of law is frequently outcome determinative. Coverage disputes, therefore, often result in a rush to the courthouse by both policyholders and insurers as they select the forum. One way insurers initiate litigation is to file a declaratory judgment action, usually in federal court.
The Declaratory Judgment Act, 28 U.S.C. '2201(a) (“DJA”), gives federal courts the right to grant declaratory relief. The DJA only provides that a federal court may make a declaration, not that it shall do so. Thus, the “distinctive feature” that the Supreme Court has highlighted in this “enabling Act” is the “unique and substantial discretion,” which the DJA grants the federal courts. Wilton v. Seven Falls Co., 515 U.S. 277, 286 (1995). Because of this substantial discretion, federal courts have the option to stay or dismiss ' that is, to abstain from deciding ' a federal declaratory action when there is a pending state action involving the same dispute, even if the state action was filed after the federal declaratory judgment action. As a result, the “first filed” rule, generally applicable in federal courts, does not apply in the context of a declaratory judgment action. 12-57 Moore's Federal Practice-Civil '57.42.2.b.i.A & B. In fact, one of the special circumstances warranting exception to the first filed rule is when a party files a declaratory judgment action after receiving notice of a planned suit by another party. See e.g. Federal Ins. Co. v. May Dep't Stores Co., 808 F. Supp. 347, 350 (S.D.N.Y. 1992).
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?