Gordon Rees Scully Mansukhani Hartford insurance coverage senior counsel Joseph Blyskal and associate Kelcie Reid shed light on the implications of the lack of original federal jurisdiction over direct actions against risk retention groups which are state-chartered, member-owned insurance companies regulated primarily by their domiciliary state, in their November 2018 article published in DRI's Insurance law monthly newsletter, For The Defense.
Their article titled "Original Federal Jurisdiction Over Direct Actions Against Risk Retention Groups" explains why forced litigation of direct action claims in state courts is contrary to the goals of protecting risk retention groups from having to comply with varying regulationsin multiple states and the Congressional intent behind federal preemption of ensuring the uniform application of federal law and uniform outcomes. The authors propose that federal courts should have original jurisdiction over direct actions, and that only domiciliary state direct action statutes should apply to risk retention groups to avoid risk retention groups facing divergent and unpredictable state court decisions and multi-state regulation that is impermissible under federal law.
To read the article in full, please click here.
Joseph Blyskal is a member of the insurance and bad faith, employment law, commercial litigation, and tort and product liability practice groups. His primary practice includes representation of insurance companies involved in disputes over their policies and extra-contractual litigation.
Kelcie Reid is a member of the firm's insurance practice group. Her primary practice includes representation of businesses in product liability and general tort law claims, as well as relating to insurance coverage litigation.
Gordon & Rees is a national litigation and business transactions firm with more than 850 lawyers in 52 offices across the United States. Our lawyers provide full service representation to public and private companies ranging from the Fortune 500 to start-ups. Founded in 1974, Gordon & Rees is recognized among the fastest growing and largest law firms in the country. Additionally, in 2018 Law360 ranked the firm among the top 40 largest U.S. firms and The American Lawyer ranked the firm among the top 45 on its Diversity Scorecard.