In re: Lodholtz

Dist. Ct. erred in granting plaintiff-insurance company’s request for declaration that it had no duty to indemnify defendant-insured in underlying state court personal injury action, where Dist. Ct. found that state court lacked jurisdiction to entertain underlying tort action, where plaintiff in underlying action was employee of insured, and where said employee’s only remedy was administrative action under state’s workers compensation act. Record showed that plaintiff had previously litigated workers compensation jurisdiction issue in Indiana state court system, which awarded employee $4 million judgment, and plaintiff could not file instant federal action on ground that state court had misconceived its jurisdiction over case.