Federal Court Keeps Insurance Case Despite Underlying Action in State Court

LEXINGTON, Ky. - A federal judge concluded that the court's exercise of jurisdiction in an insurer's declaratory judgment action would help, rather than hinder, resolution of property damage issues in the underlying state court action. Owners Insurance Co. v. Hearn, et al., No. 5:05-513-JMH (E.D. Ky.).

Judge Joseph M. Hood of the U.S. District Court for the Eastern District of Kentucky on Oct. 5 denied a motion to dismiss by defendant homeowners who are suing Owners Insurance Co.'s insured heating and air conditioning contractor in Kentucky state court.

Leonard and Esther Roy contend that James T. Hearn and his company, …