Opinion ID: 1364390
Heading Depth: 1
Heading Rank: 4

Heading: constitutional immunity and the limited statutory basis of any liability.

Text: We begin our discussion by reviewing the limited statutory basis for the exercise of jurisdiction by the courts of this State over any claim against that State and its agencies. Article VI, § 35 of the West Virginia Constitution grants immunity from claims against the State. That section states, in part: The State of West Virginia shall never be made defendant in any court of law or equity[.] As noted above, appellees, the Parole Board and the Division of Corrections, defendants below, are instrumentalities of the State. [5] This Court has long held that Article VI, § 35 of the State Constitution grants sovereign immunity to the State and that the agencies and instrumentalities of the State are entitled to the benefit of that immunity. [6] Accordingly, under the traditional view, the claims giving rise to this appeal may not be prosecuted in the courts by reason of the sovereign immunity of the State. Under that view, the remedy available to appellant, if any, would be to seek a recognition by the Legislature of her claim as a moral obligation of the State pursuant to W.Va.Code § 14-2-1, et seq., or W.Va.Code § 14-2A-1, et seq., and the procedures employed prior to the enactment of those articles of the Code. However, in addition to providing a method of redressing claims against the State as moral obligations of the State, the Legislature has also authorized the purchase of liability insurance providing coverage of State property, activities and responsibilities, in spite of the fact that the State was and is immune from suit in the law courts of the State. See Ch. 96, Acts of the Legislature, 1957, and W.Va.Code § 29-12-5, as thereafter amended and reenacted. In Pittsburgh Elevator v. W.Va. Board of Regents, 172 W.Va. 743, 310 S.E.2d 675 (1983), the Court addressed the interaction of the insurance coverage within the State's sovereign immunity. In syllabus point 2, the Court concluded, [s]uits which seek no recovery from state funds, but rather allege that recovery is sought under and up to the limits of the State's liability insurance coverage, fall outside the traditional constitutional bar to suits against the State. Later, in syllabus point 1 of Eggleston v. W.Va. Dept. of Highways, 189 W.Va. 230, 429 S.E.2d 636 (1993), this Court analyzed the State's statutory authority to purchase liability insurance and a litigant's consequent ability to maintain an action in the courts of this State for recovery under that insurance despite the State's immunity, as follows: W.Va.Code, 29-12-5(a) (1986), provides an exception for the State's constitutional immunity found in Section 35 of Article VI of the West Virginia Constitution. It requires the State Board of Risk and Insurance Management to purchase or contract for insurance and requires that such insurance policy shall provide that the insurer shall be barred and estopped from relying upon the constitutional immunity of the State of West Virginia against claims or suits. We reiterated this position in State ex rel. W.Va. Dept. of Transportation, Highways Division v. Madden, 192 W.Va. 497, 500, 453 S.E.2d 331, 334 (1994) (per curiam), where we said, these cases stand for the proposition that coverage for such liability accruing from alleged negligent acts by the State is covered by the limits of the State's liability insurance coverage and not state funds. The statutory provision applicable to this action, authorizing the purchase of such liability insurance by the State, W.Va.Code § 29-12-5(a) (1986), [7] provided as follows: The board [of risk and insurance management] shall have general supervision and control over the insurance of all state property, activities and responsibilities, including the acquisition and cancellation thereof; determination of amount and kind of coverage, including, but not limited to, deductible forms of insurance coverage, inspections or examinations relating thereto, reinsurance, and any and all matters, factors and considerations entering into negotiations for advantageous rates on and coverage of all such state property, activities and responsibilities. Any policy of insurance purchased or contracted for by the board shall provide that the insurer shall be barred and estopped from relying upon the constitutional immunity of the state of West Virginia against claims or suits; Provided, That nothing herein shall bar the insurer of political subdivisions from relying upon any statutory immunity granted such political subdivisions against claims or suits .... [The board] shall endeavor to secure the maximum protection against loss, damage or liability to state property and on account of state activities and responsibilities by proper and adequate insurance coverage through the introduction and employment of sound and accepted methods of protection and principles of insurance .... (Emphasis added.) [8] Accordingly, it appears that, notwithstanding the sovereign immunity of the State, appellant is entitled to maintain an action against the Parole Board and the Division of Corrections seeking recovery under and up to the limits of the State's liability insurance coverage, for loss or damage on account of State activities and responsibilities, provided that the State Board of Insurance (Risk and Insurance Management) has acquired that kind of coverage, which would afford recovery under the circumstances of this case. In attempting to determine whether appellees in the present proceeding are insured with respect to the State activities and responsibilities which are the subject of this action, we have examined the record before us, including the complaint and the motion for an amended complaint, and the State register of regulations. Unfortunately, the record before us is silent regarding, and we find no applicable regulations which speak to, the scope of coverage or the contractual exceptions to that coverage. In short, we cannot determine, on the record before us, whether appellant's action is or is not within the exception to the constitutional sovereign immunity of the State sanctioned by our ruling set forth in syllabus point 1 of Eggleston, supra . We are advised by the representations of counsel during oral argument that some specie of insurance coverage indeed exists relating to the Parole Board and the Division of Corrections. Reluctantly, we will proceed to analyze the errors assigned by the parties on the premise that nothing contained in the applicable policy or policies expressly addresses the issues appealed. We recall and emphasize here that Pittsburgh Elevator approved only those suits against the State which allege that recovery is sought under and up to the limits of the State's liability insurance coverage, acquired under the authority of W.Va.Code § 29-12-5. We emphasize that in actions such as the one before us, the pleadings should state that qualification, limiting the relief sought to the coverage actually provided by the applicable insurance policies. Ideally, the text of the applicable insurance coverages afforded, including any applicable contractual exceptions or limitations contained in the policies, should be included in the record at an early stage of the proceedings so that the trial court can readily determine whether, and to what extent, claims and causes of action pleaded are made subject to litigation in the courts by reason of W.Va.Code§ 29-12-5 and the applicable insurance policy or policies. In the future, this Court will not review suits against the State brought under the authority of W.Va.Code § 29-12-5 unless it is alleged that the recovery sought is limited to the applicable insurance coverage and the scope of the coverage and its exceptions are apparent from the record. Upon remand of this action, if it is to proceed, appellant should be permitted to promptly amend her pleadings to include the necessary allegation limiting the relief sought to the insurance coverage and appellees should promptly provide the applicable coverage terms and contractual exceptions.