Homestead Insurance v. Casden Co.

MEMORANDUM **

Homestead Insurance Co., Inc. appeals the district court’s order abstaining from exercising jurisdiction over its action for declaratory relief against The Casden Company and dismissing it. We reverse the order dismissing the action, and remand for the court to reconsider its decision and to record its reasoning.

On Homestead’s prior appeal from orders of abstention in Casden’s damages action as well as Homestead’s declaratory relief action, we held: “If the district court again decides to abstain, it must ‘record its reasoning in a manner sufficient to permit the proper application of the abuse of discretion standard on appellate review.’ ” Homestead Ins. Co., Inc. v. Casden Co., 60 Fed.Appx. 25 , No. 0255618, slip op. at 3-4 (9th Cir. Feb. 24, 2003) (citing Gov’t Employees Ins. Co. v. Dizol, 133 F.3d 1220, 1225 (9th Cir.1998) (en banc)). The district court did decide to abstain on remand, but its order simply recites the factors recognized in Brillhart v. Excess Insurance Co. of America, 316 U.S. 491 , 62 S.Ct. 1173 , 86 L.Ed. 1620 (1942), and finds that applying them weighs in favor of abstention. This is a statement of the applicable legal principles, but not…