Bowman v. Rural Mutual Insurance

191 N.W.2d 881, 53 Wis. 2d 260, 1971 Wisc. LEXIS 956
CourtWisconsin Supreme Court
DecidedNovember 30, 1971
Docket250
StatusPublished
Cited by3 cases

This text of 191 N.W.2d 881 (Bowman v. Rural Mutual Insurance) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowman v. Rural Mutual Insurance, 191 N.W.2d 881, 53 Wis. 2d 260, 1971 Wisc. LEXIS 956 (Wis. 1971).

Opinion

Robert W. Hansen, J.

On the issues raised as to jurisdiction and venue, the facts stated in the complaint are, at the demurrer stage, assumed to be true. 1 Facts, thus alleged and thus accepted, are:

(1) Plaintiffs are residents of the state of Missouri.

(2) Defendant Rural Mutual is a Wisconsin corporation with its principal place of business in Dane county, Wisconsin.

(3) Defendant Guth was a resident of Marinette county, Wisconsin, but his present whereabouts are unknown.

(4) Defendant Rural Mutual is the liability insurer of defendant Guth under a policy issued in Wisconsin and delivered in Marinette county, Wisconsin.

(5) Defendant Guth negligently caused the injuries sustained in the automobile accident which occurred in the state of Missouri.

Two questions are asked on this appeal, and both must be answered in this opinion.

I. Can this action be brought in this state against this insurer under these circumstances?

By statute in this state, an insurer is a proper party defendant in an action brought in Wisconsin on account of any claim against the insured in an action for damages caused by negligence. 2 Under a prior holding of this *264 court, an action can be maintained against the insurer alone, even if the insured is not served and does not appear in the action. 3 Where the accident occurred in Wisconsin, an action against the insurer can be brought in this state regardless of where the policy is issued. Where the policy was issued and delivered in Wisconsin, an action against the insurer can be brought in this state regardless of where the accident occurred. It is only where the policy was issued or delivered outside of this state and the accident occurred outside of this state that the right to an action against the insurer is by statute denied. 4 Since the policy in the case now before us was issued and delivered in the state of Wisconsin, the action against the insurer can be brought in this state regardless of whether or not the defendant insured is or no longer is a resident of this state.

II. In what county in this state can this action against this insurer properly be brought?

By Wisconsin statute, the proper place of trial for an action where the insurer is sued in a negligence action is designated as either the county in which the cause of action arose or the county where the insured resides. 5 As to where the action may be tried, if the accident *265 occurred outside this state and if the defendant insured is not a resident of this state, the statute is silent. So defendant Rural Mutual argues that the legislature’s failure to designate a place of trial in such event denies to any county in this state the right to entertain or try such action. The argument is that a venue statute can have jurisdictional effect. It is true that this court has held that the venue statute requiring in rem actions dealing with real estate to be brought in the county where the property is located denies to any other county jurisdiction over such actions. 6 However, enforcing a statute designating a single county as proper forum for trial is something different than holding that a failure to designate any cohnty as proper forum for trial leaves no forum, depriving the courts of Wisconsin the jurisdiction to try a statutorily authorized action.

This court has held that the failure of the legislature to provide for venue does not deprive all Wisconsin courts of jurisdiction to try an action which can, by statute, be brought in this state. 7 In IsaJcsen, the court considered a statute which provided a remedy for stockholders dissenting to a corporate merger and required that their petition be filed in the circuit court for the county of the principal place of business or registered office of the new corporation. The legislature, however, failed to provide for the possibility that the surviving corporation might be a foreign corporation with no registered office or principal place of business in Wisconsin. For that contingency, no venue was prescribed. On the jurisdictional impact of failure to provide venue, this court said:

*266 “. . . Chesapeake’s contention appears to be that the failure to provide for such situation means that no remedy in Wisconsin courts existed under those circumstances.
“If [the statute regulating where the petition may be filed] be so construed, there is an inconsistency between [that statute] and [the statute providing a right of action against foreign corporations] and an absurdity results. We conclude that the omission of the designation of a particular court was inadvertent, and that in the situation for which the legislature failed to make a specific designation, the petition could be filed in any circuit court in this state.” 8

We follow and apply here the Isaksen ruling that a failure to prescribe venue does not negative a statutory grant of jurisdiction, but stop short of holding that the action here could or can be brought in any county in the state. The reason for limiting venue to less than 72 counties is in the legislative history of sec. 261.01 (5), Stats. When this court allowed an action against an insurer, brought under sec. 260.11 (1), to be brought in the county where the insurer had its principal place of business, 9 the legislature amended sec. 261.01 (5), to limit the proper place of trial to the county where the cause of action arose or where the insured defendant lives. While the limitation does not reach to a situation where the accident occurred in another state and the defendant is not a resident of Wisconsin, it clearly expresses a legislative policy of limiting the number of counties in which an action against an insurer may be brought. With no statutory designation of the proper place of trial under the circumstances here, we return to the reasoning of Boyd to find the county in which the defendant insurer has its principal place of business *267 as an entirely logical place of venue where no statutory provision designating venue is available.

An alternative forum, for which equally strong arguments might be made, would here be Marinette county, the county in which the policy of insurance was delivered to the defendant Guth, and his last known place of residence. In fact, if this action had been commenced by publication, pursuant to sec. 262.06 (1) (c), Stats., against defendant Guth, in Marinette county, the solo character of the action being against the insurer only, and, by inability to serve, not against the insured, would have been avoided. Sec.

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Cite This Page — Counsel Stack

Bluebook (online)
191 N.W.2d 881, 53 Wis. 2d 260, 1971 Wisc. LEXIS 956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowman-v-rural-mutual-insurance-wis-1971.