Case Citation
Legal Case Name

Quackenbush v. Allstate Insurance Case Brief

Supreme Court of the United States1996Docket #955
135 L. Ed. 2d 1 116 S. Ct. 1712 517 U.S. 706 1996 U.S. LEXIS 3609 Federal Courts Civil Procedure Administrative Law

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: A federal court remanded a damages lawsuit to state court based on the Burford abstention doctrine. The Supreme Court held that the remand order was appealable and that federal courts cannot use abstention to dismiss or remand common-law damages actions, only cases seeking equitable or discretionary relief.

Legal Significance: This case clarifies that abstention-based remand orders are immediately appealable final decisions. It also establishes a crucial limit on federal abstention doctrines, holding they do not authorize the dismissal or remand of actions at law for damages, which federal courts have a “virtually unflagging obligation” to hear.

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Case Facts & Court Holding

Key Facts & Case Background

California’s Insurance Commissioner, acting as trustee for an insolvent insurance company, sued Allstate Insurance in state court for breach of reinsurance contracts, seeking damages. Allstate removed the case to federal court based on diversity jurisdiction and moved to compel arbitration. The Commissioner moved to remand, arguing the federal court should abstain under Burford v. Sun Oil Co. to avoid interfering with California’s complex state-law scheme for regulating insurance insolvencies. A key issue was whether Allstate could assert setoff claims, a question of state law pending in other state court proceedings related to the same insolvency. The District Court, citing California’s overriding interest in uniform regulation of insurance insolvencies, agreed that Burford abstention was appropriate and remanded the entire case to state court without ruling on the arbitration motion. The Ninth Circuit Court of Appeals vacated the remand order, holding that Burford abstention applies only to cases seeking equitable relief, not legal damages. The Supreme Court granted certiorari to resolve circuit splits on the appealability of such orders and the scope of Burford abstention.

Court Holding & Legal Precedent

Issue: Do federal courts have the authority under the Burford abstention doctrine to dismiss or remand a common-law action for damages, and is such a remand order an appealable final decision under 28 U.S.C. § 1291?

Yes, an abstention-based remand order is appealable, but no, federal courts lack Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitati

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Legal Issue

Do federal courts have the authority under the Burford abstention doctrine to dismiss or remand a common-law action for damages, and is such a remand order an appealable final decision under 28 U.S.C. § 1291?

Conclusion

This decision firmly limits the power of federal courts to decline jurisdiction, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure d

Legal Rule

An abstention-based remand order is an appealable "final decision" under 28 U.S.C. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt

Legal Analysis

Justice O'Connor, writing for the Court, first addressed the jurisdictional question of Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irur

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Flash Summary

  • An abstention-based remand order is an appealable “final decision” under 28
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