Liberty Mutual Moves to Dismiss Declaratory Judgment Action, Cites Parallel Proceeding

PHILADELPHIA - Liberty Mutual Insurance Company has asked a federal judge to either dismiss or stay a declaratory judgment action filed against the insurer because it has filed a nearly identical action in state court seeking clarification of coverage obligations for silica claims asserted against Parmelee Industries. Penn-America Insurance Company v. Liberty Mutual Insurance Company, et al., No. 04-3581 (E.D. Pa.).

Liberty Mutual filed the motion Jan. 3 in U.S. District Court for the Eastern District of Pennsylvania, claiming that federal courts have consistently dismissed or stayed insurance coverage-related declaratory judgement actions where parallel proceedings involving the same parties are …