Karussos

Employers Reinsurance Corp. v. Karussos

Caution
65 F.3d 796·95 Daily Journal DAR 12330·1995 WL 539801·1995 U.S. App. LEXIS 25824·95 Cal. Daily Op. Serv. 7232
United States Court of Appeals for the Ninth CircuitSeptember 13, 1995No. 93-35950California2,555 words

Opinion

Lead Opinion

Reinhardt, J.

This appeal arises from a grant of summary judgment denying declaratory relief in a coverage dispute between two insurance companies. We vacate pursuant to Continental Cas. Co. v. Robsac Indus., 947 F.2d 1367, 1374 (9th Cir.1991), and American National Fire Insurance Co. v. Hungerford, 53 F.3d 1012, 1019 (9th Cir.1995), and remand with instructions to decline jurisdiction and dismiss.

I.

On January 28,1991, Michael Karussos, an Oregon insurance agent, provided written notice to both the Employers Reinsurance Corporation (ERC) and the Transamerica Insurance Company regarding claims that had been made against him by the estate of Fred McNally, Fred McNally Enterprises, Inc., and Fred McNally’s RV Super Stores. In February and March of 1992, creditors of the McNally claimants filed suit against Karus-sos in Oregon state court. ERC defended Karussos in the state court actions, but Transamerica refused to do so, claiming that its policy no longer covered him.

On June 15, 1992, ERC filed this diversity action in federal district court naming both Transamerica and Karussos as defendants. ERC seeks a declaratory judgment that (1) Karussos knew of the McNally claims before its policy…

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