Hartford Steam Boiler Inspection and Insurance Co. v. Quantum Chemical Corp.
United States District Court for the Northern District of Illinois
1994 WL 494776 (1994)
A heat exchanger failure at Quantum Chemical Corporation's (defendant) plant caused property damage potentially covered by three different insurance policies with overlapping and conflicting exclusions. Hartford Steam Boiler (plaintiff) filed a declaratory judgment action in federal court under diversity jurisdiction to establish it owed no coverage. Quantum counterclaimed against Hartford and joined two other insurers, the Property Insurers, as third-party defendants, even though Quantum and the Property Insurers were not diverse.
Whether a federal court has supplemental jurisdiction over a defendant's claim against a nondiverse third party when that claim arises from a compulsory counterclaim against the original plaintiff.