A federal judge has ruled that U.S. district court lacks jurisdiction over an insurance company’s suit seeking to disclaim liability coverage of law firm Schibell & Mennie.

U.S. District Judge Brian Martinotti of the District of New Jersey agreed with the argument by Schibell & Mennie, of Oakhurst, New Jersey, that the case belongs in state court because a related matter is already being heard there and because the dispute revolves around state law. Rejecting the insurance company’s forum-shopping accusation against the firm, the ruling says the dispute in the case can be resolved in a breach of contract suit filed by Schibell & Mennie against the insurance company, Allied World, last April in Monmouth County Superior Court.

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