Film Financing Litigation Stayed on Federal Abstention Grounds

The U.S. District Court for the Southern District of New York ruled that declaratory judgment litigation seeking to void certain insurance-backed film financing policies brought by insurers against the defendant lender in federal court must be stayed on federal abstention grounds in favor of the pending parallel New York state court proceedings.

General Star International Indemnity Ltd v. Chase Manhattan Bank, 01 Civ. 11379/11380 (AGS), 01 Civ. 11520/11521 (AGS), 2002 U.S. Dist. LEXIS 7980 (S.D.N.Y. May 2, 2002).