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Summary: Russell v. Liberty Ins. Underwriters, Inc.

In Russell v. Liberty Ins. Underwriters, Inc., the Eighth Circuit Court of Appeals ruled an equitable garnishment cause of action under RSMo.  379.200 was not a “direct action” pursuant to 28 USC 1332(c)(1) so as to destroy diversity for purposes of removal to federal court.  The court further determined the contractually-based lawsuit against the insureds was excluded from coverage under the Director & Officer Liability coverage section of the insurance policy.

Citation: Russell v. Liberty Ins. Underwriters, Inc.

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