Cite as: 515 U. S. 277 (1995)
Opinion of the Court
Werner A. Powers argued the cause for respondents. With him on the brief was Charles C. Keeble, Jr.*
Justice O'Connor delivered the opinion of the Court.
This case asks whether the discretionary standard set forth in Brillhart v. Excess Ins. Co. of America, 316 U. S. 491 (1942), or the "exceptional circumstances" test developed in Colorado River Water Conservation Dist. v. United States, 424 U. S. 800 (1976), and Moses H. Cone Memorial Hospital v. Mercury Constr. Corp., 460 U. S. 1 (1983), governs a district court's decision to stay a declaratory judgment action during the pendency of parallel state court proceedings, and under what standard of review a court of appeals should evaluate the district court's decision to do so.
I
In early 1992, a dispute between respondents (the Hill Group) and other parties over the ownership and operation of oil and gas properties in Winkler County, Texas, appeared likely to culminate in litigation. The Hill Group asked petitioners (London Underwriters) 1 to provide them with coverage under several commercial liability insurance policies. London Underwriters refused to defend or indemnify the Hill Group in a letter dated July 31, 1992. In September 1992, after a 3-week trial, a Winkler County jury entered a verdict in excess of $100 million against the Hill Group on various state law claims.
The Hill Group gave London Underwriters notice of the verdict in late November 1992. On December 9, 1992, Lon-*Laura A. Foggan, Daniel E. Troy, and Thomas W. Brunner filed a brief for the Insurance Environmental Litigation Association as amicus curiae urging reversal.
Edward F. LeBreton III filed a brief for the Maritime Law Association as amicus curiae.
1 For the sake of clarity, we adopt the Court of Appeals' manner of referencing the parties.
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