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.
March 2, 2020