Federal Judge Denies Insurer's Dismissal Request in Coverage Dispute

PHILADELPHIA - A federal judge has denied an insurer's motion to dismiss in a declaratory judgment coverage action, finding that dismissal would not advance the interest either of judicial economy, or of federal-state relations. Allstate Insurance Co. v. Century Indemnity Co., et al., No. 06-4373 (E.D. Pa.).

On May 30, Judge Cynthia M. Rufe of the U.S. District Court for the Eastern District of Pennsylvania also said that no parties to the action contend that Pennsylvania law is unsettled on the issue of an insurer seeking contribution from any other insurance triggered by relevant claims.

Allstate Insurance Co. is seeking …