Northbrook National Insurance v. Brewer

This case presents the question whether the “direct action” proviso of 28 U. S. C. § 1332(c) (1982 ed.) — which provides that in a direct action against a liability insurer, the insurer shall be deemed a citizen of the same State as the insured for purposes of diversity jurisdiction — applies to a workers’ compensation action brought in federal court by an insurer. The Fifth Circuit held that the proviso applied so as to bar a diversity action brought by an Illinois insurer of a Texas corporation against a Texas employee. 854 F. 2d 742 (1988). Accordingly, it affirmed the District Court’s…