What is the approriate form cause of action against an insurance company that won't indemnify a defendant?

A defendant is being sued in federal court and contends that his insurance company should be paying for the litigation as well as any potential award. What is the approriate action against the insurance company? Do you file an interpleader action to join the insurance company to the existing case, do you seek a declaratory judgment against the insurer in a separate action, or is there a third option I'm not considering?

It depends - are you the plaintiff or the defendant? I assume you are the defendant.

You cannot file an interpleader - that would only be the option for a third person/entity who is not currently a party to the lawsuit and wants to be a party to the lawsuit.

You have two options:
1. File a complaint for breach of contract and declaratory relief (and ask for the two actions to be consolidated); OR
2. File a cross-complaint for breach of contract (you have a contract with the insurance company) and declaratory relief.

In either option, you have to determine whether there is diversity of citizenship between the parties (everyone is a citizen of a different state and for the insurance company - its place of incorporation or principal place of business is in a different state) and if $75,000 or more is at stake OR whether there is a federal question (which is unlikely). If you choose option 2, you definitely need to make sure there is diversity of citizenship between the current parties to the litigation and this new party you want to add. If adding this new party destroys the diversity of citizenship (assuming that's how this case was originally brought to federal court), then the case can be sent to state court.

WHAT STATE R U INVOLVED IN THIS INTERPLEADER?? Report It