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How should federal district courts determine the amount in controversy in declaratory judgment actions brought by insurance companies? Should they rely on the face value of the policy at issue, or the amount of the claim against the insurer? A recent decision by a federal district court in Alabama analyzed the issue.

The Case

In 2016, a security guard at the Calhoun Hunting Club and Lounge in Letohatchee, Alabama, allegedly fired five to six shots into a car occupied by Nakia Rivers and Tiffany Miller. Ms. Rivers was killed in the incident and her estate brought claims against, among others, the club and its owner, Terry Baity.

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Steven A. Meyerowitz

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. Mr. Meyerowitz is the Director of the Insurance Coverage Law Center and editor-in-chief of journals on insurance law, banking law, bankruptcy law, energy law, government contracting law, and privacy and cybersecurity law, among other subjects. He may be contacted at smeyerowitz@meyerowitzcommunications.com.

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