American Bankers Insurance Company of Florida, a Florida Corporation v. First State Insurance Company, a Foreign Corporation

This appeal arises from the district court’s dismissal of an action in favor of a pending state proceeding. Because the district court misapplied the applicable law governing dismissal in such cases, we reverse and remand.

I. BACKGROUND:

A. Facts

American Bankers Insurance Company of Florida (American) and First State Insurance Company (First State) issued separate liability insurance policies to the same company — Arlen Realty and Development Corporation (Arlen). 1 American issued a general liability policy to Arlen covering certain claims up to specified limits of liability. First State issued…