Burlington's COVID-19 Coverage Suit To Stay In Federal Court

By Ganesh Setty (June 29, 2022, 3:56 PM EDT) -- Clothing retailer Burlington must have its COVID-19 business interruption suit against Zurich American Insurance Co. continue in New Jersey federal district court, a federal judge ruled, finding that New Jersey's state courts have sufficiently paved the way for determining how New Jersey law applies to Burlington's property policies.

In an order denying Burlington's motion to remand Tuesday, U.S. District Judge Joseph H. Rodriguez said none of the eight factors the Third Circuit has outlined for federal district courts to consider when determining jurisdiction in declaratory judgment actions went in Burlington's favor.

"Early on, some federal courts were reluctant to retain jurisdiction...

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