FEDERAL COURT REMANDS INSURANCE DISPUTE TO STATE COURT BASED ON WAIVER
A New York federal court remanded a reinsurance dispute to state court, based on the defendant’s waiver of its right to remove. Plaintiff R&Q Reinsurance Company (“R&Q”) brought an action against Allianz Insurance Company (“Allianz”) regarding a dispute as to R&Q’s indemnity obligations to Allianz under two reinsurance contracts. Allianz timely removed the action, as it met all the requirements for federal diversity jurisdiction. However, R&Q moved to remand, based on the fact that Allianz had already answered and counterclaimed in state court, and had therefore waived its right to remove. The court agreed, granting the remand, finding that Allianz’s counterclaims, which sought affirmative relief, constituted a voluntary submission to the state court’s jurisdiction. The court denied R&Q’s bid for attorney’s fees, however, finding that Allianz had a reasonable basis on which to remove, particularly given that the action otherwise met the requirements for diversity jurisdiction. R&Q Reinsurance Co. v. Allianz Ins. Co., Case No. 15-00166 (USDC S.D.N.Y. March 20, 2015)
This post written by Catherine Acree.
