California Specialty Insulation, Inc. v. Allied World Surplus Lines Insurance Company

I. INTRODUCTION AND BACKGROUND

On February 22, 2021, plaintiff California Specialty Insulation, Inc. (“CSI”) filed suit in the Los Angeles County Superior Court against defendant Allied World Surplus Lines Insurance Company (“Allied World”) and Does | through 10. Dkt. 4 (“Compl.”). The complaint seeks a judicial declaration that Allied World has a duty to defend and indemnify CSI under the terms of an insurance policy CSI purchased from Allied World (“Policy”). Id. at 3. Specifically, CSI is seeking to enforce Allied World’s duty to defend in a personal injury suit proceeding in the Superior Court. See Jason Standiford v. California Specialty Insulation, Inc., et al., No. 19STCV36103 (“Underlying Action”). On March 22, 2021, Allied World removed the case to this Court on the basis of diversity jurisdiction, 28 U.S.C. § 1332(a). Dkt. 1. CSI, on April 21, 2021, filed a motion to remand. Dkt. 12 (“Mot.”). CSI argued that the Court should exercise its discretion, afforded by the Federal Declaratory Judgment Act, 28 U.S.C. § 2122(a), to decline jurisdiction over this case. The Court applied the factors set out in Brillhart v. Excess…