Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Federal Courts Are Policing Their Borders In Declaratory Actions

BY Jessica F. Pardi
November 02, 2014

When instituting a declaratory action for insurance coverage, many litigants prefer federal courts over state courts. The reasons include faster-moving dockets, and the experience of federal judges. Preferences aside, federal courts must have subject matter jurisdiction to decide a declaratory action, and are tasked with policing their own jurisdiction if such issue is not raised by a party. The Federal Declaratory Judgment Act creates only a remedy, not a basis for jurisdiction. Either diversity jurisdiction or federal question jurisdiction must still exist to pursue a declaratory judgment action in federal court, and courts increasingly are questioning jurisdiction and dismissing declaratory actions on their own initiative.

CE Design

In June of this year, the First Circuit Court of Appeals dismissed CE Design Ltd.'s (“CE Design's”) declaratory action against American Economy Insurance Company (“American Economy”). CE Design, Ltd. v. Am. Economy Ins. Co., 1st Circ. Ct. App. Case No. 13 1080 (June 29, 2014). CE Design attempted to force American Economy to cover Ernida, LLC (“Ernida”) for a junk fax class action filed under the Telephone Consumer Protection Act (“TCPA” and the “TCPA Action”). CE Design filed the TCPA Action against Ernida in Illinois State Court in 2008. Thereafter, CE Design filed a complaint in federal district court demanding that American Economy indemnify Ernida for any judgment obtained in the TCPA Action.

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.