Sending damages suits to state court
Quackenbush v. Allstate Ins.
In brief
The federal court could not send Allstate's damages case to state court under Burford.
- Where it stands
- Decided
Decided 9-0 · June 3, 1996 · Opinion by Justice O'Connor
- What it’s about
- The California insurance commissioner sued Allstate for damages over alleged breaches of reinsurance agreements, and a federal judge sent the case to state court to avoid disrupting state insurance proceedings.
- Who it affects
- Allstate's damages suit could not be sent back to state court under Burford; the Court did not decide whether Allstate was owed money.
Summary: written with AI from the case record.

What it's about
The Supreme Court agreed the remand could be appealed and upheld the Ninth Circuit’s ruling that abstention (a federal court stepping aside for state proceedings) did not justify sending this damages case back.
Allstate's damages dispute grew out of Mission Insurance's insolvency; related California-law questions were also before state courts.
California's detailed insurance rules and related state-court proceedings formed the backdrop to Allstate's federal damages case.
Question presented
1. Is an abstention-based remand order appealable as a final order? 2. Can the abstention doctrine recognized in Burford v. Sun Oil Co. be applied in a suit for damages?
What the Court decided
Holding
1. An abstention-based remand order is appealable under 28 U. S. C. § 1291. Section 1447(d)-which provides that "[a]n order remanding a case to the State court from which it was removed is not reviewable on appeal or otherwise"--interposes no bar to appellate review of the order at issue. Only remands based on grounds specified in § 1447(c) are immune from review under § 1447(d), and the District Court's order in this case does not fall into either category of remand order described in § 1447(c): It is not based on lack of subject matter jurisdiction or defects in removal procedure. 2. Federal courts have the power to dismiss or remand cases based on abstention principles only where the relief sought is equitable or otherwise discretionary. Because this was a damages action, the District Court's remand order was an unwarranted application of the Burford doctrine. 47 F. 3d 350, affirmed.
- Result
- Affirmed
The Court's reasoning
The Court said federal law blocks review only when a case is sent back because the federal court lacks power to hear it or removal rules were broken; neither applied here. It also said federal judges may step aside under Burford only when a case seeks a fairness-based remedy or other relief the judge may choose to grant, not money damages.
The vote
- Joined the judgment
- Wrote an opinion
- Majority · 9joined the Court's opinion
- Rehnquist
- Stevens
- O'Connorwrote the opinion
- Scaliaalso wrote separately
- Kennedyalso wrote separately
- Souter
- Thomas
- Ginsburg
- Breyer
What's next
The federal district court can continue with the damages case, but the Supreme Court did not decide whether Allstate is entitled to damages.
Documents
Opinions
Docket activity
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Sources
News reporting and legal analysis. Best-effort analysis: this explainer relies on trusted secondary sources and may be updated as primary materials become available. Official filings and opinions remain authoritative.