National Union Fire Insurance v. Texaco Refining & Marketing, Inc.

803 F. Supp. 1247, 1992 U.S. Dist. LEXIS 20219, 1992 WL 288144
CourtDistrict Court, S.D. Texas
DecidedSeptember 22, 1992
DocketCiv. A. No. H-92-1052
StatusPublished

This text of 803 F. Supp. 1247 (National Union Fire Insurance v. Texaco Refining & Marketing, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Union Fire Insurance v. Texaco Refining & Marketing, Inc., 803 F. Supp. 1247, 1992 U.S. Dist. LEXIS 20219, 1992 WL 288144 (S.D. Tex. 1992).

Opinion

MEMORANDUM AND ORDER

WERLEIN, District Judge.

Pending before the Court is Defendants Texaco Refining & Marketing, Inc.’s (“Texaco”) and Star Enterprises, Inc.’s (“Star”) Motion to Dismiss, or in the Alternative, to Abate or Abstain (Docunient No. 40). After considering the motion, response, arguments, and authorities submitted by counsel, and for the reasons set forth below, the Court is of the opinion that the motion should be DENIED.

I. Background

On April 3, 1992, National Union Fire Insurance Company of Pittsburgh, Pennsylvania (“National Union”) filed this suit against Defendants Texaco, Star, and Riggers & Erectors, Inc. (“Riggers & Erectors”), seeking a Declaratory Judgment that National Union is not required under a policy of insurance issued to Riggers & Erectors to provide defenses to Defendants in four personal injury lawsuits all pending in that state district court of Jefferson County, Texas.

Texaco and Star subsequently filed suit in the 172nd Judicial District Court of Jefferson County, Texas on May 28, 1992, against National Union, seeking a declaration of coverage under the same insurance policy at issue in this case and seeking to impose upon National Union damages for breach of contract, bad faith denial' of insurance coverage, violations of the Texas Insurance Code, and violations of the Texas Deceptive Trade Practices Act.

On August 7, 1992, Defendants Texaco and Star then filed a motion to dismiss or stay National Union’s action in this Court pending the determination of their later filed action in the state court in Jefferson County. This motion is based, in large part, upon principles set forth in Colorado River Water Conserv. Disk v. United States, 424 U.S. 800, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976), reh’g. denied, 426 U.S. 912, 96 S.Ct. 2239, 48 L.Ed.2d 839 (1976) as applied by this Court in Granite State Ins. Co. v. Tandy Corp., 762 F.Supp. 156 (S.D.Tex.1991), aff'd. without op., 959 F.2d 968 (5th Cir.1992).

II. Discussion

“Generally, as between state and federal courts, the rule is that ‘the pendency of an action in the state court is no bar to proceedings concerning the same manner in the Federal court having jurisdiction....’” Colorado River, 424 U.S. at 817, 96 S.Ct. at 1246, citing McClellan v. Carland, 217 U.S. 268, 282, 30 S.Ct. 501, 505, 54 L.Ed. 762 (1910). Moreover, the United States Supreme Court has recognized “[t]he virtually unflagging obligation of the federal courts to exercise, the jurisdiction given them,” stating:

[ajbstention from the exercise of federal jurisdiction is the exception, not the rule. “The doctrine of abstention, under which a District Court may decline to exercise or postpone the exercise of its jurisdiction, is an extraordinary and narrow exception to the duty of a District Court to adjudicate a controversy properly before it. Abdication of the obligation to decide cases can be justified under this doctrine only in the exceptional circumstances where the order to the parties to repair to the state court would clearly serve an important countervailing interest.”

Id. 424 U.S. at 817, 813, 96 S.Ct. at 1246, 1244, quoting County of Allegheny v. [1249]*1249Frank Mashuda Co., 360 U.S. 185, 188, 79 S.Ct. 1060, 1063, 3 L.Ed.2d 1163 (1959), reh’g. denied, 361 U.S. 855, 80 S.Ct. 41, 4 L.Ed.2d 93 (1959). In determining such “exceptional circumstances,” the Supreme Court, guided by principles of “ ‘[w]ise judicial administration’ ” and “ ‘giving regard to conservation of judicial resources and comprehensive disposition of litigation,’ ” has articulated six factors to be considered by a federal court in determining whether to exercise concurrent jurisdiction where there also exists a pending, later-filed state court action. Id. 424 U.S. at 816, 96 S.Ct. at 1246, quoting Kerotest Mfg. Co. v. C-O-Two Fire Equip. Co., 342 U.S. 180, 182, 72 S.Ct. 219, 221, 96 L.Ed. 200 (1952). These factors include: (1) the avoidance of exercises of jurisdiction over particular property by more than one court; (2) the inconvenience of the federal forum; (3) the desirability of avoiding piecemeal litigation; (4) the order in which jurisdiction was obtained by the concurrent forums; (5) the applicability of federal or state law to the merits of the claims at issue; and (6) the adequacy of the state court proceedings to protect the rights of the party that invoked the federal courts’ jurisdiction. Granite State, 762 F.Supp. at 159, citing Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 13-15, 103 S.Ct. 927, 936-937, 74 L.Ed.2d 765 (1983); Colorado River, 424 U.S. at 816, 96 S.Ct. at 1246; Evanston Ins. Co. v. Jimco, Inc., 844 F.2d 1185, 1190 (5th Cir.1988); Goemer v. Barnes, 730 F.Supp. 767, 768 (S.D.Tex.1990).

In weighing the considerations listed above with regard to a particular case, “[n]o one factor is necessarily determinative; a carefully considered judgment taking into account both the obligation to exercise jurisdiction and the combination of factors counselling against that exercise is required. Only the clearest of justifications will warrant dismissal.” Colorado River, 424 U.S. at 818-19, 96 S.Ct. at 1247, citing Landis v. North American Co., 299 U.S. 248, 251-254, 57 S.Ct. 163, 165-166, 81 L.Ed. 153 (1936). With these principles in mind, the Court now turns to the circumstances of the case at bar.

In the present case, the first of the Colorado River factors, involving the exercise of jurisdiction over particular property by more than one court, is inapplicable, since the possession of property is not at issue.

The second factor, the inconvenience of the federal forum, “primarily involves the physical proximity of the federal forum to the evidence and witnesses.” Granite State, 762 F.Supp. at 159, quoting Evanston Ins. Co., 844 F.2d at 1191. In their motion to dismiss, Defendants Texaco and Star have alleged that “... Texaco, Star, and numerous documents and witnesses are all located in Jefferson County....” In contrast, Plaintiff National Union has stated that “all or most matters and witnesses associated with the coverage issue in dispute in this federal action are located in Houston, as all considerations made in connection with the decision to underwrite the risk were made in Houston; the decision to underwrite the risk was made in Houston; and the policy was issued from Houston.” (Document No. 32 at 13).

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Related

McClellan v. Carland
217 U.S. 268 (Supreme Court, 1910)
Landis v. North American Co.
299 U.S. 248 (Supreme Court, 1936)
County of Allegheny v. Frank Mashuda Co.
360 U.S. 185 (Supreme Court, 1959)
Evanston Insurance Company v. Jimco, Inc.
844 F.2d 1185 (Fifth Circuit, 1988)
Granite State Insurance v. Tandy Corp.
762 F. Supp. 156 (S.D. Texas, 1991)

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Bluebook (online)
803 F. Supp. 1247, 1992 U.S. Dist. LEXIS 20219, 1992 WL 288144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-union-fire-insurance-v-texaco-refining-marketing-inc-txsd-1992.