In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.

[EX Q]: citizens of Alabama for purposes of the diversity jurisdiction analysis. This narrow and specialized statute provides in pertinent part: In any direct action against the insurer of a policy or contract of liability insurance, whether incorporated or unincorporated, to which action the insured is not joined as a party-defendant, such insurer shall be deemed a citizen of the State of which the insured is a citizen. Andalusia and Hughes, who are insureds but not parties defendant, contend that a realignment of Lane will make the case into a direct action by Lane against the insurers, and because it is one in which the insureds are not joined as parties defendant, diversity would be destroyed by § 1332(a)(1). This contentio d.2d 73 (1974). But where the s 13 F.Supp. 367, 371 (D.Conn.1970) (<HOLDING>), rev’d on other grounds, 456 F.2d 282 (2d 
 Holding statements: (A) holding action by insured against his own insurer under uninsured motorist provisions of policy not a direct action within section 1332c proviso (B) holding that insured cannot bring an action against its insurer for bad faith failure to settle a claim in the absence of an excess verdict (C) holding action by judgment creditor of insured against insurer for bad faith failure to settle claim against insured not a direct action within section 1332c proviso (D) holding that insured may recover attorneys fees from insurer where insurer acts in bad faith (E) holding that a negligence claim against an insured and a bad faith claim against the insurer are not separate as the first must be proved to prevail on the second
[EX A]: holding action by insured against his own insurer under uninsured motorist provisions of policy not a direct action within section 1332c proviso

[EX Q]: v. Libbey-Owens-Ford Glass Co., 376 F.2d 711 (7th Cir. 1967), stated that section 2(d) shows that the legislature contemplated multiplicity of actions and provides a court with two options: stay the entire proceeding pending arbitration, or, if the issue is severable, the stay may be granted with respect to that issue only. 710 ILCS 5/2(d) (West 1994). The Galt court explained: “In enacting the Uniform Arbitration Act, the [Illinois] Legislature has not eradicated a chancellor’s inherent powers, but the legislature has determined in Section 2 that it is no longer equitable to enjoin arbitration to prevent multiplicity of actions.” Galt, 376 F.2d at 716. See Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 20, 74 L. Ed. 2d 765, 782, 103 S. Ct. 927, 939 (1983) (<HOLDING>). Accord Dean Witter Reynolds Inc. v. Byrd, 470 
 Holding statements: (A) holding that where an arbitration agreement between an employer and employee does not specifically provide for the handling of arbitration costs california courts should interpret the arbitration agreement  as providing  that the employer must bear the arbitration forum costs (B) holding that once the party seeking to compel arbitration establishes the existence of an arbitration agreement and that the claims raised fall within the scope of that agreement the trial court must compel arbitration (C) holding that the federal arbitration act requires piecemeal resolution when necessary to give effect to an arbitration agreement and mandates enforcement of an arbitration agreement notwithstanding the presence of other persons who are parties to the underlying dispute but not to the arbitration agreement emphasis added (D) holding that an arbitration agreement is separable from the underlying agreement (E) holding that the faa mandates courts to direct parties to arbitration on issues to which a valid arbitration agreement has been signed
[EX A]: holding that where an arbitration agreement between an employer and employee does not specifically provide for the handling of arbitration costs california courts should interpret the arbitration agreement  as providing  that the employer must bear the arbitration forum costs

[EX Q]: between Liberty Mutual and Frankenmuth. See Rodgers Builders, 76 N.C. App. at 29, 331 S.E.2d at 734 (“Although James McQueen was not named as a party to the arbitration, it is clear that he had a strong financial interest in the determination of the issues there because of his ownership interests in McQueen Properties and Parkhill Associates, and that he was an active and controlling participant in the arbitration. He thus is bound by the judgment entered on the arbitration award just as if he were a named party to the proceeding.”); see also Levin-Townsend Computer Corp. v. Holland, 29 A.D.2d 925, 92 lled, participated in, or even had notice of the arbitration proceedings in this case. See Baldwin v. Brooks, 83 A.D.2d 85, 85-90, 443 N.Y.S.2d 906, 907-10 (N.Y. App. Div. 1981) (<HOLDING>). The trial court, therefore, erred in granting 
 Holding statements: (A) holding arbitration decision disallowing insurers coverage defense binding in subsequent personal injury action where the issue was actually litigated and decided in prior action (B) holding that an aaa arbitration was a private proceeding and therefore that a decision by the arbitrator pursuant to the federal arbitration act did not constitute state action (C) holding trial court must decide whether to compel arbitration of personal injury claim of party who was not signatory to arbitration agreement (D) holding that driver was not bound in subsequent personal injury case by prior arbitration decision that plaintiffs injuries were related to auto accident because driver was not in privity with his insurance carrier and did not participate in arbitration (E) holding that plaintiffs personal injury action against other driver in auto accident was not precluded by arbitration award between insurance carriers regarding damage to plaintiffs car because plaintiff did not participate in or control arbitration was not a party to arbitration agreement did not adopt agreement or attempt to benefit from agreement
[EX A]:
holding arbitration decision disallowing insurers coverage defense binding in subsequent personal injury action where the issue was actually litigated and decided in prior action