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Why insurers prefer federal court

Author: Tom Baker Date: 02.26.21

Why insurers prefer federal court

Last fall, before the onslaught of rulings in motions to dismiss in the Covid 19 BI cases, Chris French asked why policyholders were filing so many of these cases in federal court.  He provided a variety of answers, but the prediction that plaintiff/policyholders would do better in federal court than state court was not among them.  Indeed, his prediction was just the opposite:  “a plaintiff’s chances of winning are generally much higher in state court than in federal court.”

It’s still early days in the litigation, but the early results suggest that Chris was right.  Our new judicial ruling box score separates state and federal court decisions, and the difference is really dramatic.  Check it out here.