5th Cir. Upholds Dismissal of Discovery Coverage Action for Lack of Jurisdiction

NEW ORLEANS — The 5th Circuit U.S. Court of Appeals has upheld dismissal of a lawsuit filed against an insurer by a company seeking to recoup $1.7 million it spent responding to a subpoena issued in connection with the aqueous film-forming foams MDL, ruling that neither party had sufficient contacts with Texas.

In a Jan. 18 opinion, the appellate panel explained that Steadfast Insurance Co.’s “attenuated connections to Texas do not give rise to specific personal jurisdiction in the state.

Between 2018 and 2020, Steadfast Insurance Co., an Illinois corporation, issued two liability policies to EMCOR Group Inc., a Connecticut-based …