Federal Judge Refuses to Abstain From Hearing Breach of Contract Action

CHICAGO, Ill. - An Illinois federal judge refused to dismiss a reinsurance contract suit filed by Guarantee Trust Life Insurance Co., ruling that there are no "exceptional circumstances" to warrant abstention from jurisdiction despite the existence of a parallel action pending in state court. Guarantee Trust Life Insurance Co. v. American Medical and Life Insurance Co., No. 10-2125 (N.D. Ill.).

Judge George M. Marovich of the U.S. District Court for the Northern District of Illinois ruled Sept. 15 that the parties would not be inconvenienced to litigate in the federal court as opposed to the state court, which is nearby, …