Costle v. Fremont Indemnity Co.

OPINION AND ORDER

PARKER, Chief Judge.

This is a commercial collection action instituted by the liquidator of a domestic insolvent insurance company against its out-of-state reinsurer for proceeds allegedly due under . several reinsurance contracts. The lawsuit was originally brought in state, court, but was removed by the defendants on the basis of diversity jurisdiction. Shortly after removal, defendants moved to stay the action in favor of arbitration. Plaintiff, however, seeks to have the case remanded to state court under the Burford abstention doctrine. In the alternative, plaintiff…