Pacific Lutheran Univ. v. Certain Underwriters at Lloyd's London (Majority, Concurrence and Dissent)
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In this case before the Supreme Court of the State of Washington, a consortium of over 130 institutions of higher education sued a group of 16 insurance carriers for denying their COVID-19 related claims. The insurance carriers had issued identical “all risk” property insurance policies to the institutions via the Educational & Institutional Insurance Administrators Inc. (EIIA). The colleges, including three in Washington, filed the suit in Pierce County Superior Court, Washington, seeking a declaratory judgment that their COVID-19 related losses were covered under the insurance policies. However, two of the defendant insurers filed a similar suit in Illinois, seeking a declaratory judgment that the losses were not covered by the policies.
The insurers argued that the Washington court should dismiss the case based on forum non conveniens, asserting that Illinois was a more convenient forum due to the geographical distribution of the colleges. They also argued that the Illinois action should be allowed to proceed. The colleges, on the other hand, argued that the insurance policies' "suit against the company" clause allowed them to choose the forum and prohibited the insurers from seeking to alter that choice.
The Supreme Court of the State of Washington affirmed the lower court's decision, denying the motion to dismiss on forum non conveniens grounds and issuing an injunction against further proceedings in the Illinois action. The court held that the insurers had contractually agreed to submit to the jurisdiction of any court chosen by the insured and could not seek to transfer, change venue, or remove any lawsuit filed by the insured in such a court. The court also found that an injunction was appropriate under the circumstances to protect the colleges' contractual rights and prevent a manifest wrong and injustice.
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