Rescission Lawsuit Is Not ‘Exceptional’ To Justify Abstention, 9th Circuit Rules

Mealey's (July 10, 2017, 1:35 PM EDT) -- SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on July 5 found that a lower court’s grant of an insured’s request for abstention under Colorado River Water Conservation District v. United States, 424 U.S. 800 (1979), was an abuse of its narrow discretion because the insurer’s rescission lawsuit is not "exceptional" to warrant disregarding a federal court’s obligation to exercise its jurisdiction (Seneca Insurance Co. Inc. v. Strange Land Inc., et al., No. 15-16011, 9th Cir., 2017 U.S. App. LEXIS 11946)....