An insured brought an action against its insurance company for bad faith. After spending a substantial amount of time litigating the matter in superior court, the parties stipulated to have their disputes resolved through binding arbitration. The arbitrator found in favor of the insured and awarded $3,696,414. The insurer filed a petition to vacate the award in the United States District Court. The insured filed a motion to confirm in superior court, wherein the insurer filed a motion to stay proceedings pending the federal court’s decision. The superior court denied the stay request and confirmed the award. The insured then filed a motion in federal court requesting it to abstain from hearing the matter. Based on the doctrine of abstention, the federal court closed its case. But that’s not all. The insurer then appealed in state court, contending the trial court abused its discretion. After noting the superior court maintained jurisdiction over the case and was kept itself informed on its progress, the appellate court concluded there was no abuse of discretion. (Mave Enterprises, Inc. v. The Travelers Indemnity Company of Connecticut (Cal. App. Second Dist., Div. 1; September 26, 2013) 219 Cal.App.4th 1408.)
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