Smith v. State Farm Mutual Automobile Insurance

900 A.2d 301, 169 Md. App. 286, 2006 Md. App. LEXIS 82
CourtCourt of Special Appeals of Maryland
DecidedJune 7, 2006
DocketNo. 1033
StatusPublished
Cited by6 cases

This text of 900 A.2d 301 (Smith v. State Farm Mutual Automobile Insurance) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. State Farm Mutual Automobile Insurance, 900 A.2d 301, 169 Md. App. 286, 2006 Md. App. LEXIS 82 (Md. Ct. App. 2006).

Opinion

MOYLAN, J.

The appellant, Terrence Smith, sued the appellee, State Farm Mutual Automobile Insurance Company, in the Circuit Court for Baltimore City for the breach of an insurance contract. On June 21, 2005, Judge Kaye Allison granted State Farm’s motion, pursuant to Maryland Rule 2-327(c), to transfer the case to the Circuit Court for Montgomery County. On this appeal, Smith contends

1. that Judge Allison abused her discretion in ordering the transfer of the case, and
2. that Judge Allison erroneously denied him a hearing on the transfer.

On March 30, 2002, Smith was a passenger in a car being driven by Ashley Anne Ray that was headed southbound on New Hampshire Avenue in Montgomery County. Ray lost control of the vehicle. The vehicle collided with a guardrail and then, after it crossed the center line, struck an oncoming vehicle driven by Adam Carl Krause. Smith sustained bodily injuries in the collision.

Ashley Ray was insured by the Maryland Automobile Insurance Fund (MAIF) for the liability insurance policy limits of $20,000/$40,000 in coverage. MAIF offered Smith the policy limits of $20,000, and he accepted the offer. State Farm enabled the settlement by waiving its potential right of subrogation against Ashley Ray. Smith then sued State Farm for underinsured motorist benefits predicated on the alleged liability of Ashley Ray. The suit was brought on an automobile insurance policy maintained by Smith’s father, also named Terrence Smith, with whom Smith resided in Montgomery County.

State Farm has denied liability and has raised the affirmative defenses of both contributory negligence and the assumption of risk. It has also denied Smith’s entitlement to unin[290]*290sured or underinsured motorist benefits under the facts of the case and under applicable law.

On May 19, 2005, State Farm filed a Motion to Transfer Action to the Circuit Court for Montgomery County. On June 21, Judge Allison, upon consideration of State Farm’s motion and Smith’s “opposition thereto,” ordered the case transferred “on the authority of Stidham v. Morris, 161 Md.App. 562, 870 A.2d 1285 (2005).” The transfer of the action was pursuant to Maryland Rule 2-327(c), which provides:

(c) Convenience of the parties and witnesses. On motion of any party, the court may transfer any action to any other circuit court where the action might have been brought if the transfer is for the convenience of the parties and witnesses and serves the interests of justice.

The Case For the Transfer

Those paragraphs of State Farm’s motion that help to make out a case for the transfer from Baltimore City to Montgomery County are as follows:

1. Neither Baltimore City nor its citizens has any connection to or interest in this dispute. The accident occurred in Montgomery County, Maryland; the parties and witnesses reside in Montgomery County (with one exception); the insured vehicle was garaged in Montgomery County and insurance was obtained in Montgomery County, Maryland. No events relevant to either the liability or damages issues occurred in Baltimore City where the case is pending.
2. The subject accident occurred on New Hampshire Avenue near its intersection -with Cliftonbrook Lane in Montgomery County.
3. According to the Complaint, as well as the Motor Vehicle Accident Report, the Plaintiff himself resides in Montgomery County, Maryland and was so residing there when the accident occurred. Plaintiff resided with his father, Terrence Smith, and this claim for underinsurance motorist benefits derives from the Plaintiffs status as a [291]*291“resident relative with his father who resided in Montgomery County.
4. Altogether, there were four people who were witnesses or potential witnesses to the subject accident: Plaintiff Terrence Smith (passenger in Ray vehicle); Ashley Ann Ray (driver of Ray vehicle); Adam Krause (driver of second vehicle); and Richard Reed (witness). According to the Motor Vehicle Accident Report (Exhibit 1 hereto), Ms. Ray lived on Washington Boulevard in Elkridge, Maryland, a town that is located in Howard County. Besides Ms. Ray, the other three witnesses to the collision all resided in Montgomery County. In addition to the Plaintiff, Adam Krause lived on Armand Lane in Silver Spring, and an eyewitness, Richard Reed, lived on Tamworth Lane in Silver Spring. Thus, all eyewitnesses, or potential eyewitnesses, reside in Montgomery County except Ms. Ray who resides in Howard County not Baltimore City.
5. After the incident, the Plaintiff was transported by ambulance to Suburban Hospital which is located in Bethesda, Montgomery County, Maryland. Plaintiff received all of his medical care in Montgomery County, to the best of undersigned’s knowledge. For example, attached hereto collectively as Exhibit 2 are copies of the first pages of the medical reports generated from each healthcare provider who treated the Plaintiff. It appears from these records that all medical care was administered in Montgomery County. That is, according to records produced to this Defendant in connection with the claim, Plaintiff received medical care from Suburban Hospital (Bethesda), Montgomery General Hospital (Olney), Phillips and Green, M.D. (Silver Spring), Don Fonatana, M.D. (Chevy Chase), and H. Ryan Kazemi, M.D. (Bethesda). All of these providers are in Montgomery County, Maryland.
6. In short, besides the fact that the accident itself occurred in Montgomery County, virtually all of the potential liability and damages witnesses are located in Montgomery County. And to the extent that there could be (although it is unlikely) contractual issues relevant to this [292]*292case, the Plaintiff is claiming underinsured motorist benefits under a policy issued to Plaintiffs’ parents, Terrence O. Smith and Janet Mr. Smith, who reside in Olney, Montgomery County, Maryland. The vehicle insured was a 1989 Toyota Camry which was presumably kept or garaged at the insureds’ residence in Montgomery County, Maryland.

(Emphasis supplied).

The Case Against the Transfer

Those paragraphs of Smith’s Opposition to the Motion to Transfer that set out reasons for not transferring the case to Montgomery County are as follows:

5. That pursuant to Ann.Code Cts. & Jud. Art. § 6-201, a Defendant may be sued in a county where “the defendant resides, carries on a regular business, is employed, or habitually engages in a vocation”. Without question, State Farm regularly carries on business in the City of Baltimore. Consequently, venue is proper in this Honorable Court.
8. As discussed in Leung, supra, the Plaintiff has made a tactical decision in his choice of venue and this choice should not be disturbed unless the moving party can strongly show reasons to support its position. See also Simmons v. Urquhart, 101 Md.App. 85, 643 A.2d 487 (1994).
9.

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Cite This Page — Counsel Stack

Bluebook (online)
900 A.2d 301, 169 Md. App. 286, 2006 Md. App. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-state-farm-mutual-automobile-insurance-mdctspecapp-2006.