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Sending damages suits to state court

Quackenbush v. Allstate Ins.

Updated Oct 19, 2026

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.

Illustration for Quackenbush v. Allstate Ins. Co.
Conceptual illustration · AI-generated

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
  1. Rehnquist
  2. Stevens
  3. O'Connorwrote the opinion
  4. Scaliaalso wrote separately
  5. Kennedyalso wrote separately
  6. Souter
  7. Thomas
  8. Ginsburg
  9. Breyer
9 justices joined the judgment.

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

1

Docket activity

8
  • Case data updated: summary, question_presented, generation_metadata

    Oct 19, 2026 · Court records

  • New analysis added

    Oct 19, 2026 · Court records

  • AI analysis generated: Case Briefing

    Oct 19, 2026 · Generated

  • New analysis added

    Oct 19, 2026 · Court records

  • AI analysis generated: Impact Analysis

    Oct 19, 2026 · Generated

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  • AI analysis generated: Opinion Summary

    Oct 19, 2026 · Generated

  • AI analysis generated: Decision Record

    Oct 19, 2026 · Generated

  • Opinion added: Quackenbush

    Jun 10, 1996 · Court records

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.

Checked Oct 19, 2026Methodology

Court records and filings

Reporting and analysis