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Quackenbush v. Allstate Insurance Company

United States Supreme Court
517 U.S. 706 (1996)


Facts

In an attempt to collect the assets of the liquidated Mission Insurance Company (Mission), the Insurance Commissioner for the State of California (Commissioner) (plaintiff), as trustee for Mission, filed suit against Allstate Insurance Company (Allstate) (defendant) in state court, claiming contract and tort damages for Allstate’s breach of reinsurance agreements. Allstate removed the suit to federal court based on diversity of citizenship. The Commissioner sought to remand the case to state court, claiming that the federal district court should abstain from hearing the case because its order may interfere with California’s regulation of Mission’s liquidation. The district court agreed with the Commissioner and remanded the case to state court. On appeal, the United States Court of Appeals for the Ninth Circuit determined as an initial matter that the remand order was appealable under 28 U.S.C. § 1291, or the final judgment rule.

Rule of Law

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Issue

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Holding and Reasoning (O’Connor, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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