Civil Procedure Keyed to Marcus
Quackenbush v. Allstate Insurance Company
Respondent removed the action to federal court on diversity grounds. Petitioner sought remand to state court. The Petitioner indicated that Respondent would be asserting its right to set-off its own contract claims against the Petitioner’s recovery under the contract and that the viability of these set-off claims was a disputed questions of state law. The district court determined that the case should be resolved in state court and concluded that it was an appropriate case for abstention. The United States Court of Appeals for the Ninth Circuit reversed, finding the case inappropriate for abstention.
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