West Virginia Investment Management Board v. Variable Annuity Life Insurance Company

Summary

The Supreme Court of Appeals of West Virginia reviewed summary judgments entered in favor of The Variable Annuity Life Insurance Company in a dispute concerning the surrender of two annuity contracts holding public retirement funds. The court held that the petitioners established a justiciable controversy and that the Consolidated Public Retirement Board had standing to seek declaratory relief, and it reversed the circuit court’s rulings with directions.

Holdings

1. A justiciable controversy existed because the petitioners asserted a present legal right to immediate and aggregate removal of the annuity funds without fees or restrictions, VALIC denied that right, and declaratory relief would resolve the dispute.
2. As a statutory trustee of West Virginia's public retirement funds, the Consolidated Public Retirement Board had standing to bring an action under the Uniform Declaratory Judgments Act concerning investment-related contracts involving those funds, regardless of whether it was a signatory to the contract.
3. The Investment Management Board had standing to join the Board in seeking a declaration of rights concerning the 1991 contract.
4. The endorsement language concerning 'a withdrawal for transfer to another funding entity' was ambiguous, and the circuit court erred in treating it as unambiguous and concluding that it restricted the Investment Management Board's requested full withdrawal from the 2008 contract.

Questions Presented

1. Whether a justiciable controversy existed between the Consolidated Public Retirement Board and VALIC concerning the Board's right to immediate and unrestricted surrender of funds under the 1991 contract.
2. Whether the Consolidated Public Retirement Board had standing to seek declaratory relief concerning the 2008 contract even though it was not a signatory.
3. Whether the Investment Management Board had standing to seek relief concerning the 1991 contract.
4. Whether the endorsement language limiting withdrawals made for transfer to another funding entity was ambiguous and applicable to the requested full surrender of the 2008 contract.

Disposition

reversed_and_remanded