Justia West Virginia Supreme Court of Appeals Opinion Summaries

Articles Posted in Insurance Law
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The Supreme Court affirmed the order of the circuit court enforcing a settlement agreement between Petitioner and his insurer, Respondent Allstate Company, and denying Petitioner's request to amend his complaint or allow the filing of a new complaint, holding that there was no error.The settlement agreement at issue related to water damages occurring at Petitioner's real property. Petitioner failed to execute and return the agreement, after which Respondent filed a motion to enforce settlement. Petitioner then filed a motion to amend the complaint or, in the alternative, allow the filing of a new complaint. The circuit court granted Respondent's motion to enforce the settlement and denied Petitioner's motion to amend. The Supreme Court affirmed, holding that the circuit court did not err as to any of its challenged rulings. View "Donahue v. Mammoth Restoration & Cleaning" on Justia Law

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The Supreme Court granted a writ of prohibition sought by West Virginia Mutual Insurance Company (Mutual) from the order of the circuit court denying Mutual's motion for summary judgment on common law bad faith claims brought by Michael Covelli, M.D., holding that Mutual demonstrated that the writ of prohibition was appropriate.A jury awarded Dominique Adkins almost $5.8 million on her medical malpractice claim against Dr. Covelli, which was above the limits of his medical malpractice insurance. However, Mutual, Covelli's insurer, settled Adkins's suit within policy limits before the circuit court reduced the verdict to judgment. When a second patient of Dr. Covelli learned of Adkins's large jury award, that patient too sued Dr. Covelli for malpractice. Mutual also settled that claim within policy limits. Thereafter, Dr. Covellie sued Mutual for common law bad faith. At issue was the order of the circuit court denying Mutual's motion for summary judgment on Dr. Covelli's claims. The Supreme Court granted the writ, holding that the circuit court clearly erred by denying Mutual's motion for summary judgment. View "State ex rel. W. Va. Mutual Insurance Co. v. Honorable Salango" on Justia Law

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The Supreme Court held in this case that the circuit court had the power to enter an order precluding a party to a West Virginia lawsuit from instituting or prosecuting collateral litigation in a sister state.This lawsuit was brought by a pharmaceutical distributor against the insurance companies that provided it with liability insurance. At issue on appeal was the West Virginia circuit court's "anti-suit injunction" prohibiting the insurance companies from pursuing parallel litigation against the distributor in California. The Supreme Court affirmed in part and reversed in part, holding (1) the circuit court clearly had the authority to enter an anti-suit injunction; but (2) an anti-suit injunction was not narrowly tailored to protect the court's authority while respecting the sister state court, necessitating remand. View "St. Paul Fire & Marine Insurance Co. v. AmerisourceBergen Drug Corp." on Justia Law

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The Supreme Court reversed the decision of the circuit court granting judgment as a matter of law in favor of Mutual Benefit Group and against Eric Parks in this action brought by Mutual Benefit as a result of an automobile accident, holding that the circuit court erred.Mutual Benefit brought this action to recover monies it paid in another action stemming from an automobile accident involving Parks. The magistrate court found in favor of Mutual Benefit. After a trial de novo, the circuit court granted judgment as a matter of law to Mutual Benefit on the grounds that Parks had failed to respond to requests for admissions that Mutual Benefit had served upon him in the magistrate court. The Supreme Court reversed and remanded the case for further proceedings, holding that the West Virginia Rules of Civil Procedure for Magistrate Courts provide the exclusive means of discovery in magistrate courts and do not provide for parties to serve requests for admission. View "Parks v. Mutual Benefit Group" on Justia Law

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In these appeals arising from adverse jury verdicts rendered in separate trials following an automobile accident involving Joseph Jenkins and Tessa Jordan, the Supreme Court affirmed in part and reversed in part, holding that the circuit court erred in part.The first trial resulted in the jury's calculation of damages sustained by Jenkins and his wife as a result of the accident, which the parties stipulated was caused through the fault of Jordan. The Jenkins also sued Safeco Insurance Company of America and liberty Mutual Insurance Company (collectively, Safeco) for conversion. After a second trial on the Jenkins' claims for compensatory and punitive damages Safeco appealed the jury's determination that the Jenkins were entitled to punitive damages. The Supreme Court (1) reversed the circuit court's order denying the Jordans' motion to set aside the verdict and for a new trial and remanded that case for a new trial, holding that the jury should have been instructed on Jenkins' duty to mitigate the loss of his vehicle; and (2) reversed the court's order denying Safeco's motion to reduce the punitive damages award, holding that remand was necessary to review the punitive damages award for excessiveness. View "Jordan v. Jenkins" on Justia Law

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In this original jurisdiction proceeding, the Supreme Court granted a writ of prohibition sought by Petitioners, out-of-state Blue Cross Blue Shield Plans, to prevent the enforcement of the circuit court's order concluding that it had jurisdiction over Petitioners in this action, holding that jurisdiction over Petitioners was clearly not appropriate in this case.Respondent alleged that the circuit court had jurisdiction over Petitioners for several reasons. Petitioners filed a motion to dismiss for lack of jurisdiction, asserting that they had no relevant jurisdictional contacts with West Virginia. The circuit court denied the motion, concluding that Petitioners purposefully availed themselves of the privilege of conducting business in West Virginia. Petitioners then filed the instant writ, arguing that any attempt to exercise specific jurisdiction over them violated due process because there was no allegation or evidence showing that they developed or maintained a substantial relationship with West Virginia or purposefully engaged in forum-related conduct that gave rise to Respondent's claims. The Supreme Court granted the writ, holding that Petitioners were entitled to the writ of prohibition. View "State ex rel. Blue Cross & Blue Shield of Kansas, Inc. v. Honorable Shawn D. Nines" on Justia Law

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The Supreme Court reversed the circuit court's order granting summary judgment for Respondents on their declaratory judgment action against Petitioner, their insurer, to determine the rights and responsibilities of the parties under the insurance policy, holding that an exclusion in the policy was applicable so that the policy did not cover Respondents' loss.The building housing Respondents' business was inundated with sewage, causing damage. Respondents were insured by Petitioner under a general commercial liability policy. Petitioner denied coverage for the loss as falling under an exclusion for "water that backs up or overflows from a sewer, drain or sump." Respondents brought a declaratory judgment action to determine the rights of the parties under the insurance contract. The trial court found that the policy exclusion was inapplicable. The Supreme Court reversed, holding that the circuit court erred when it found the exclusion to be inapplicable. View "Motorists Mutual Insurance Co. v. Zukoff" on Justia Law

Posted in: Insurance Law
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The Supreme Court affirmed the circuit court's dismissal of West Virginia Counties Group Self-Insurance Risk Pool, Inc.'s (WVCoRP) claims against Great Cacapon Volunteer Fire Department, Inc. (VFD), holding that the circuit court did not err.When a fire destroyed the building where VFD was housed, the owner of the building, the Morgan County Commission, was reimbursed for the loss by WVCoRP. Seeking to recover the funds it expended, WVCoRP sued the VFD and other parties for negligence. In the process, WVCoRP invoked a contractual right to subrogation. The circuit court determined that the claims against VFD were barred by W. Va. Code 29-12A-13(c), which prohibits claims against political subdivisions made under a right of subrogation. The Supreme Court affirmed, holding (1) WVCoRP's claims spring from its coverage contract with the Commission and fall within any plain meaning of subrogation; and (2) section 29-12A-13(c) is not an insurance law of the State from which WVCoRP is exempt. View "West Virginia Counties Group v. Great Cacapon Volunteer Fire Department, Inc." on Justia Law

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The Supreme Court granted a writ of prohibition prohibiting the circuit court from enforcing its sua sponte order dismissing count three of Respondents' complaint and finding that West Virginia law applied to all of Respondents' bad faith claims but declined to extend the writ to find that Georgia law applies to the entire dispute, holding that a writ of prohibition was not the proper avenue for such relief.After Petitioners denied insurance coverage for certain damages Petitioners filed a declaratory judgment action in the State of Delaware to determine their rights and responsibilities under the relevant insurance policies. Respondents subsequently filed the underlying complaint asserting five separate counts, including breach of contract and bad faith under Georgia law (count three). Petitioners sought to dismiss the West Virginia proceeding. The circuit court denied the motion but, sua sponte, dismissed count three. Petitioners then filed the instant petition. The Supreme Court granted the writ as moulded, holding (1) the circuit court exceeded its lawful authority when it sua sponte dismissed count three of the complaint and held that West Virginia law applied to Respondents' bad faith claims; and (2) this Court declines Petitioners' invitation to find that the Georgia choice-of-law provisions in the policies govern this action. View "State ex rel. National Union Fire Insurance Co. of Pittsburg, Pennsylvania v. Hummel" on Justia Law

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The Supreme Court granted this petition for a writ of prohibition brought by insurers (collectively, Petitioners) seeking to have the Court prohibit enforcement of a ruling by the circuit court that denied Petitioners’ motion for summary judgment against Respondent, holding that the circuit court erred as a matter of law in denying Petitioners’ motion for summary judgment.David Ralph Allen died from injuries he sustained in a motorcycle collision with a car. The car was owned by an auto dealership, and Petitioners provided an insurance policy for the dealership. The garage operations and auto hazard provision of the policy provided a limit of $300,000 in liability coverage. The commercial umbrella provision provided up to $5 million in liability coverage. Respondent, administratrix of Allen’s estate, asserted a declaratory judgment action against Petitioners to determine the amount of insurance coverage available. Petitioners asserted that the umbrella coverage part of the policy did not cover Respondent’s claims against the driver. The circuit court denied Petitioners’ motion for summary judgment on the coverage issue. The Supreme Court disagreed, holding that the circuit court erred in denying summary judgment for Petitioners on the umbrella coverage issue. View "State ex rel. Universal Underwriters Insurance Co. v. Honorable Patrick Wilson" on Justia Law