Century Surety Co. v. Blevins

EDITH BROWN CLEMENT, Circuit Judge:

This is an insurance coverage dispute, which is before us on appeal from the district court’s dismissal of both plaintiff-appellant’s declaratory judgment action and defendants-cross-appellants’ counterclaims. For the reasons that follow, we reverse the district court’s dismissal of the counterclaims in part, remand them for reconsideration, and vacate and remand the district court’s application of the abstention doctrine to the declaratory judgment action.

FACTS AND PROCEEDINGS

A. The Injury Occurs and the State Court Litigation Commences

On May 20, 2012,…