Reifer v. Westport Insurance
943 F. Supp. 2d 506
M.D. Penn.2013Background
- Reifer, as assignee of Russo, filed a declaratory judgment action in Lackawanna County against Westport over insurance coverage rights.
- Russo admitted liability in a legal malpractice suit against him; damages were awarded and Russo assigned any policy rights to Reifer.
- Westport removed the case to the federal district court in the Middle District of Pennsylvania.
- Magistrate Judge Blewitt recommended denying Reifer’s amendment to removal and granting Westport’s dismissal.
- The district judge declined to adopt the recommendation, concluding the case should be remanded to state court and dismissing without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court should exercise jurisdiction over a purely state-law declaratory judgment action. | Reifer seeks federal declaratory relief; removal is proper. | Discretionary decline is appropriate where no federal issue exists and state law is settled. | Court declined jurisdiction and remanded to state court. |
| Whether the Summy tripartite test supports declining jurisdiction. | Lacks parallel state proceedings and federal interest may exist. | Factors favor decline; state-law issues settled; avoid duplicative litigation. | Summy factors weighed in favor of decline; court followed Western/Middle District approach. |
Key Cases Cited
- State Auto Ins. Cos. v. Summy, 234 F.3d 131 (3d Cir. 2000) (tripartite test for discretionary declaratory judgments in state-law matters)
- Wilton v. Seven Falls Co., 515 U.S. 277 (Supreme Court, 1995) (declaratory judgments are discretionary; parallel state proceedings weigh in)
- Brillhart v. Excess Ins. Co. of America, 316 U.S. 491 (Supreme Court, 1942) (foundational discretion principle for federal declaratory judgments)