Capitol Indemnity Corp. v. Haverfield

HEANEY, Circuit Judge.

Michael and Valerie Hunt (the Hunts) appeal the district court’s denial of their motion to dismiss or stay this federal declaratory judgment action, based on a pending parallel state court proceeding. Alternatively, they appeal the district court’s denial of their summary judgment motion. Because the district court abused its discretion by maintaining jurisdiction in this case, we reverse and remand with instructions that the case be dismissed.

I. Background

Capitol Indemnity Corp. (Capitol Indemnity) insured Gerald and Patricia Hav-erfield (the Haverfields), doing…