Opinion
Civil Action No. 03-2826.
March 29, 2004
MEMORANDUM/ORDER
State Farm Fire Casualty Company ("State Farm") seeks a declaratory judgment regarding its obligation to defend and indemnify William J. Corry pursuant to the terms of a homeowner's insurance policy. Corry is a third-party defendant in a tort action pending in the Philadelphia Court of Common Pleas. State Farm has now moved for summary judgment in the instant declaratory judgment action.
A federal court's exercise of its power to grant declaratory relief pursuant to the Declaratory Judgment Act, 28 U.S.C. § 2201, is discretionary. See Brillhart v. Excess Ins. Co. of America, 316 U.S. 491, 494 (1942). When considering whether to exercise jurisdiction in light of a pending state proceeding, "the central question is whether the controversy may `better be settled' in the state court and this may entail consideration fo whether the claims of all parties in interest can satisfactorily be adjudicated in the state court proceeding." United States v. Pa. Dep't of Envtl. Resources, 923 F.2d 1071, 1075 (3d Cir. 1991) (construing Brillhart). It appears that common issues arise in the state court proceeding and this federal declaratory judgment action; therefore, it seems appropriate to consider whether or not it would be proper for this court to exercise its jurisdiction under the Declaratory Judgment Act.
Accordingly, the parties are hereby ORDERED to submit briefing within 20 days of the date of this order regarding the question of whether this court should exercise jurisdiction over the instant action.