Federal Court Remands Insurance Coverage Construction Issues For Disposition In Pending State Court Action
In a recent decision in Kane Builders, Inc. v. Continental Casualty Company, the United States District Court in New Jersey remanded back to state court the determination of whether Continental owed the builder defense and indemnity in connection with an underlying construction defect case which had been playing out in state court.
As is typical in these matters, the insurance carrier filed a declaratory judgment action in federal court notwithstanding the pendency of a then…