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Royal and Sun Alliance Ins. Co. of Canada v. Century International Arms, Inc.

U.S. Court of Appeals for the Second Circuit
466 F.3d 88 (2006)


Royal Sun Alliance Insurance Company of Canada (RSA) (plaintiff) provided liability insurance to Century America and its affiliate, Century Canada, both of which are part of Century International Arms, Inc. (defendant). All three entities were in the firearms business. RSA and Century Canada are both Canadian corporations. RSA defended and settled lawsuits against Century America for injuries allegedly caused by defects in Century America’s products. RSA then sought reimbursement under the policies for expenses and deductibles, but was not paid. RSA sued Century Canada in the Superior Court, Province of Quebec, District of Montreal, Canada. Century Canada responded that the claim arose in the United States and involved another insured. RSA then sued Century America in the Southern District of New York. Century America moved to dismiss based on the pendency of the related claim in a foreign jurisdiction and its consent to jurisdiction in Canada. The district court recognized that its discretion in such instances was limited by its obligation to exercise jurisdiction, but nevertheless exercised its discretion and dismissed the action. RSA appealed.

Rule of Law


Holding and Reasoning (Lynch, J.)

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