Federal Courts Erred in Remanding COVID-19 Coverage Actions, 3rd Cir. Rules

PHILADELPHIA — Federal judges in Pennsylvania and New Jersey erred in remanding three COVID-19 coverage actions to state court, a federal appellate court has ruled, because they erred in weighing factors relevant to the exercise of discretion under the Declaratory Judgment Act.

In an Aug. 17 opinion, a 3rd Circuit U.S. Court of Appeals panel majority sent the cases back to the federal district courts for proper consideration of the factors in Reifer v. Westport Ins. Corp., 751 F.3d 129, 134–35 (3d Cir. 2014).

Three restaurant owners, Dianoia’s Eatery LLC, Umami Pittsburgh LLC d/b/a Umami, and Mark Daniel Hospitality LLC …