Originally published by David Coale.
McGowan successfully sued his employer, Tractor Supply Co., for over $8 million in damages after a severe workplace injury. In the meantime, TSC’s umbrella carrier sued TSC and another carrier for a declaration about coverage obligations. The district court dismissed for lack of standing, and pursuant to its discretion under the Declaratory Judgment Act. The Fifth Circuit reversed; its principal holdings were: (1) under Texas insurance law, this sort of suit is justiciable after a liability determination at trial, and does not require exhaustion of appellate remedies; (2) the issues and parties were different in the two actions; and (3) the declaratory judgment suit was filed after the state case and otherwise showed “no indication of procedural fencing.” Ironshore Specialty Ins. Co. v. Tractor Supply Co. 14-51164 (Aug. 25, 2015, unpublished)
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