New England Insurance v. Barnett

Plaintiff-Appellant New England Insurance Co. (New England) appeals the district court’s order staying New England’s declaratory judgment action. For the foregoing reasons, we vacate the district court’s stay and remand for reconsideration under the appropriate standard.

I. Facts and Proceedings

Defendant-Appellee Richard Barnett (Barnett) entered into a transaction with his business partner and attorney Ernest Parker (Parker), whereby Barnett would transfer certain shares and partnership interests to Parker, and upon Barnett’s request, Parker would transfer them back at a later date. At some…