Opinion ID: 1343045
Heading Depth: 1
Heading Rank: 8

Heading: Interest in Deciding Local Controversies

Text: The third public interest is  `the local interest in having localized controversies decided at home[.]' Tsapis, 184 W.Va. at 234, 400 S.E.2d at 242. (Citations omitted). The circuit court stated in its final order that the interest in having this matter decided in West Virginia is minimal, at best, while the interest in having this matter decided in Michigan is substantial. The circuit court found, inter alia, the property in Michigan does not have any direct relationship with Cannelton's primary business, coal mining. Moreover, the litigation does not have the direct impact on West Virginia citizens [as] it has on those citizens who live near the tannery site in Michigan. Therefore, the circuit court concluded that the interest in having local controversies decided at home, favors Michigan. Cannelton argues that the primary issue to be resolved by this litigation is not the clean-up of the property but, instead, is whether the defendants will be required to defend and/or indemnify it if a suit is brought by the USEPA and the MDNR. Thus, Cannelton asserts there are actually two separate and distinct actions. Cannelton maintains that the residents of West Virginia have a substantial interest in resolving insurance disputes for policies issued to West Virginia consumers, and, therefore, the circuit court erred in concluding that the interest in the local controversy favors Michigan. We agree with Cannelton that West Virginia residents have more than a minimal interest in resolving questions involving insurance policies issued to West Virginia consumers. See generally Liberty Mut. Ins. Co. v. Triangle Indus., Inc., 182 W.Va. 580, 585 n. 8, 390 S.E.2d 562, 567 n. 8 (1990). However, we find that it is clear that not all the policies were issued in West Virginia, or, for that matter, were issued to Cannelton. Some of the policies in controversy were issued to Algoma in Canada. In addition, we are not so naive as to evaluate Cannelton's declaratory judgment action as entirely independent of the underlying action to have the property reclaimed. Certainly, the residents of Michigan have a direct and substantial interest in ensuring that hazardous material is removed from the property, and they have an interest in the outcome of this litigation because the alleged insured risk is in Michigan. Thus, we find both West Virginia and Michigan residents have an interest in the controversy and, therefore, the circuit court abused its discretion in determining West Virginia residents have a minimal interest. Nevertheless, for the reasons stated in Section III(B)(4), infra, we are unable to conclude the circuit court abused its discretion by determining that Michigan's interest was greater, especially in light of the fact that not all the insurance contracts were issued to Cannelton or were issued in West Virginia. 4.