This is an insurance dispute about whether Defendants owed coverage to Plaintiff for an underlying toxic tort action. Defendant transacts the business of insurance in the Commonwealth of.Pennsylvania and within Allegheny County. An injured party may assert a counterclaim for declaratory judgment directly against the tortfeasor's insurer while an underlying tort claim is pending. Application for insurance policy (containing insured's representations). An action for declaratory judgment is procedural in nature and purpose. Federal courts are reluctant to consider novel insurance coverage issues. Expense, Civil Authority Coverages as well as other coverages under the Erie Policy. Novel Insurance Coverage Issue? File a Declaratory Judgment Action in Federal Court, Right?