Zurich Insurance Co. v. International Refining & Manufacturing Co.

Summary

The Alabama Supreme Court granted International Refining's petition for a writ of mandamus and directed the Jefferson Circuit Court to transfer Zurich's declaratory-judgment action to the Fayette Circuit Court. The court held that venue was proper in Fayette County under Alabama Code § 6-3-7(a)(1) because a substantial part of the events giving rise to the insurance-coverage dispute occurred there. The court also concluded that venue was determined at the commencement of the action and that the underlying Bell Carr litigation was central to the declaratory-judgment claim.

Holdings

1. Section 6-3-7(a)(1) applies in determining venue for an action against a corporation regardless of whether the corporation is doing business in Alabama.
2. Fayette County was a proper venue because a substantial part of the events giving rise to Zurich's declaratory-judgment action occurred there.
3. International Refining established a clear legal right to have the declaratory-judgment action transferred from Jefferson Circuit Court to Fayette Circuit Court, warranting mandamus relief.

Questions Presented

1. Whether Ala. Code § 6-3-7(a)(1) permits venue in Fayette County for Zurich's declaratory-judgment action against International Refining even though International Refining was not qualified to do business and did not do business in Alabama.
2. Whether a substantial part of the events giving rise to the declaratory-judgment action occurred in Fayette County based on the underlying toxic-exposure litigation and Zurich's alleged duty to defend and indemnify.
3. Whether International Refining established a clear legal right to transfer the action through a petition for a writ of mandamus.

Disposition

writ_granted