United National Insurance v. R&D Latex Corp.

These three appeals are the latest round in a seemingly never-ending bout of litigation between Mydrin, Inc., and Travelers Casualty and Surety Company (formerly, Aetna Casualty and Surety Company), one of Mydrin’s insurers. All three appeals stem from a dispute over Travelers’ coverage of Mydrin for losses resulting from state-court lawsuits filed against Mydrin by two of its customers.

*1106 Travelers brings two appeals. The first is from an order of the district court declining to exercise its discretionary jurisdiction under the Declaratory Judgment Act, 28 U.S.C. § 2201 (a), over a declaratory relief complaint filed by Travelers against Mydrin in federal district court (the “1994 action”). The second is from the district court’s order declining jurisdiction and remanding a separate declaratory relief action subsequently brought in state court by Mydrin against Travelers and removed to the district court by Travelers (the “removed action”). Finally, two of Travelers’ attorneys appeal the district court’s imposition of Rule 11 sanctions upon them for their conduct in removing Mydrin’s state-court action.

We dismiss the first appeal for lack of jurisdiction, reverse and remand…