SER North River Insurance v. Hon. Robert F. Chafin, Special Judge

758 S.E.2d 109, 233 W. Va. 289, 2014 WL 1272852, 2014 W. Va. LEXIS 252
CourtWest Virginia Supreme Court
DecidedMarch 27, 2014
Docket13-0897
StatusPublished
Cited by12 cases

This text of 758 S.E.2d 109 (SER North River Insurance v. Hon. Robert F. Chafin, Special Judge) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SER North River Insurance v. Hon. Robert F. Chafin, Special Judge, 758 S.E.2d 109, 233 W. Va. 289, 2014 WL 1272852, 2014 W. Va. LEXIS 252 (W. Va. 2014).

Opinion

PER CURIAM:

Petitioner, The North River Insurance Company (hereinafter “North River”), invokes this Court’s original jurisdiction seeking a writ of prohibition and asks that we prevent the Circuit Court of Wyoming County; West Virginia, from enforcing its denial of a motion to dismiss, or in the alternative, motion to stay the underlying proceedings pending resolution of out-of-state litigation involving insurance coverage. For the reasons that follow, this Court denies the writ.

*291 I. FACTUAL AND PROCEDURAL HISTORY

A. West Virginia Proceedings

On April 19, 2010, Plaintiff Jill A. Lambert, individually, and as administrator of the estate of her husband, Carlos G. Lambert, deceased, filed a tort action against Mine Safety Appliances Company (hereinafter “MSA”), and others, in circuit court. She alleged that her husband developed coal workers’ pneumoconiosis and died because the respirator manufactured and sold by MSA leaked substantial amounts of harmful coal dust and failed to protect him. Mr. Lambert worked as a coal miner in this state from 1969 to 2002. He developed advanced lung disease and died at the age of fifty-nine following a double lung transplant.

On April 14, 2011, Plaintiffs Eddie D. Per-singer and Teresa Diane Persinger sued MSA, and others, in circuit court and raised similar tort claims. Mr. Persinger worked as a coal miner in this state from 1972 to 2007. He developed coal workers’ pneumoconiosis even though he wore respirators manufactured and sold by MSA. Mrs. Persinger filed an amended and supplemental complaint after Mr. Persinger died due to complications from his lung disease.

After years of litigation, and without admitting liability, MSA settled with Plaintiffs Lambert and Persinger. 1 Under the confidential settlements, MSA paid the plaintiffs a sum certain and assigned them the right to recover the remainder of the settlement amount under an insurance policy that North River sold to MSA, Policy No. JU 1319. 2

After settling with MSA, the plaintiffs amended their complaints in February of 2013 to add claims against North River. They seek declaratory judgment pursuant to West Virginia Code § 55-13-1 (2008) concerning North River’s obligation to provide insurance coverage for MSA’s liability to them and an order requiring North River to pay the remainder of the settlement amounts. After the plaintiffs amended their complaints, MSA filed cross-claims against North River. In its cross-claim, MSA seeks declaratory judgment regarding North River’s obligation to pay for the plaintiffs’ claims and damages for North River’s breach of the contract of insurance issued to MSA.

At the initial status conference held in June of 2013, all parties agreed to the consolidation of the cases for pre-trial purposes and to the creation of a case management order. The two cases are scheduled for back-to-back trials in April of 2014.

B. Out-of-State Litigation

To determine if North River is entitled to prohibitory relief, we must summarize the lengthy procedural history of the out-of-state litigation. North River and MSA dispute the applicability of at least thirteen excess insurance policies offering coverage between 1972 through 1986, including the policy at issue here, Policy No. JU 1319. North River and MSA have litigated these issues for several years. 3 Currently, North River and MSA are litigating insurance coverage claims in Pennsylvania state and federal courts and the Delaware Superior Court. 4

*292 In Pennsylvania federal court, MSA is litigating a breach of contract action against North River. 5 In March of 2009, MSA sued North River seeking judgment that, in accordance with another policy (Policy No. JU 1225), North River has a duty to both defend and indemnify MSA for the thousands of asbestosis, silicosis, and coal workers’ pneumoconiosis claims filed against MSA Thereafter, North River filed a counterclaim seeking declaratory relief regarding the parties’ rights and responsibilities under that policy.

In Pennsylvania state court, North River is litigating an action for declaratory relief against MSA and other insurers. In April of 2010, North River filed suit seeking a declaration of the parties’ rights and responsibilities in regard to three other policies (Policy Nos. JU 0830, JU 0988, and JU 1223), including whether the claims of MSA customers relate to injuries that were caused during the applicable effective dates of the policies. MSA filed an answer, counterclaim and cross claims asserting that North River failed to honor the contract and acted in bad faith.

In November of 2010, a federal judge authorized the use of a special discovery master to coordinate discovery in the Pennsylvania actions. North River and MSA conducted extensive discovery in the Pennsylvania actions and filed cross-motions for summary judgment. In March of 2013, oral argument was held on the parties’ motions for summary judgment. The parties addressed the appropriate “trigger” for coverage as to the claims.

While the Pennsylvania actions were pending, MSA sued its insurers, including North River, in Delaware Superior Court in June of 2010. MSA sought, in part, a declaration that North. River must defend and indemnify MSA in accordance with several insurance policies, including Policy No. JU 1319. One of the issues in this action is the appropriate coverage “trigger,” which is governed by Pennsylvania law. In January of 2011, the court granted North River’s motion to stay the proceedings in favor of the pending Pennsylvania actions. However, in March of 2012, the court granted a motion to lift the stay in order to allow discovery as to those policies that were not implicated by the Pennsylvania litigation, including Policy No. JU 1319. The court stated that it was “increasingly concerned that the other jurisdiction is not going to be rendering prompt and complete justice.” This stay will be automatically lifted in its entirety once the cross-motions for summary judgment in the Pennsylvania actions are resolved.

At oral argument before this Court, the parties stated the out-of-state litigations are still pending.

C. North River’s Motion to Dismiss and/or Stay Proceedings

In an attempt to block the trials, North River filed a motion to dismiss or, in the alternative, motion for a stay of the proceedings in Lambert v. Mine Safety Appliances Co., No. 11-C-69 (W.Va. Cir. Ct. filed April 19, 2010), and Persinger v. Mine Safety Appliances Co., No. 11-C-45 (W.Va. Cir. Ct. filed April 14, 2011). 6 North River argued West Virginia is an inconvenient forum and the proceedings should be dismissed. Alternatively, North River moved that the proceedings should be stayed until the insurance coverage actions in Pennsylvania and Delaware are resolved.

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758 S.E.2d 109, 233 W. Va. 289, 2014 WL 1272852, 2014 W. Va. LEXIS 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ser-north-river-insurance-v-hon-robert-f-chafin-special-judge-wva-2014.