In Re Agway, Inc.
Reliance Insurance Company (in liquidation) filed a motion on March 23, 2006, requesting that the U.S. Bankruptcy Court for the Northern District of New York declare it lacked jurisdiction over Reliance's claim against Agway, Inc. (the Debtors) or, alternatively, abstain from hearing the Liquidating Trustee's motion to expunge Reliance's claim #4179. Reliance argued that the McCarran-Ferguson Act reverse-preempted federal jurisdiction and that the Pennsylvania Commonwealth Court had primary jurisdiction under the 'first assuming jurisdiction' doctrine, or that Burford abstention was appropriate. The Liquidating Trustee opposed the motion, challenging Reliance's interpretation of the McCarran-Ferguson Act and the applicability of the abstention doctrines. The court denied Reliance's motion, affirming its core jurisdiction over the claim and finding Reliance's arguments for reverse-preemption, abstention, and first assuming jurisdiction to be without merit.