Fireman's Fund Insurance v. PaineWebber Real Estate Securities, Inc.

Good Law
690 F. Supp. 879·1988 WL 81038·1988 U.S. Dist. LEXIS 8655
United States District Court, Northern District of CaliforniaMay 11, 1988C-88-790 RFPCalifornia1,693 words

Opinion

Opinion

Peckham, J.

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

I. INTRODUCTION

Fireman’s Fund has been sued in state court by its insureds, PaineWebber and some affiliated entities (“PaineWebber”), for refusing to pay a claim. Fireman’s Fund has now filed this diversity action for declaratory relief as between the same parties, based on the same claim.

PaineWebber makes a motion to dismiss, or alternatively to stay this litigation, on the basis that this federal action is a “defensive” declaratory judgment action under Transamerica Occidental Life Ins. Co. v. DiGregorio, 811 F.2d 1249 (9th Cir.1987), and that we should defer to the earlier-filed state action.

II. DECISION

The Court grants defendant’s motion to dismiss this complaint without prejudice.

III. FACTS

In 1987, PaineWebber paid an amount in settlement of two lawsuits, Homestead Savings v. PaineWebber Real Estate Securities, Inc., C-85-5694 RFP ("Homestead I”) and Homestead Savings v. PaineWebber Group, Inc., et al., C-87-1407 WWS (“Homestead II”) (collectively, “the Homestead litigation”). Trial of Homestead I commenced in this court on February 25, 1987, and was settled on June 30, 1987, before Homestead had rested.

PaineWebber…

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