The National Football League has returned to Los Angeles, but not, as many Angelenos hope, bearing the gift of a new home team. The league administration and its intellectual property marketing arm have been sued in multiple states by dozens of former players alleging lifelong brain damage from onfield injuries dating back to the 1950's. In this case the plaintiffs, National Football League and NFL Properties LLC, seek a Los Angeles Superior Court declaratory relief judgment regarding the coverage duties of 32 insurance carriers pursuant to some 187 commercial liability policies that were issued over a 50 to 60 year period. All the same entities are parties to parallel coverage actions filed by some of the insurers in New York state courts at approximately the same time as the California case.
The insurer defendants sought a dismissal or stay of the California case on a theory of forum non conveniens. Following extensive briefing and a hearing, the California trial court ordered the California proceeding stayed pending the outcome of the New York actions. The plaintiffs appeal, contending the trial court misapprehended the applicable legal test and abused its
Plaintiff National Football League (NFL) is an unincorporated association headquartered in New York City since 1960 and comprised of 32 member "clubs" based in various states throughout the country. Only two states, California and Florida, are home to three teams. New York is home to only the Buffalo Bills; the "New York" Giants and "New York" Jets are located in northern New Jersey, a short distance from New York City.
Plaintiff NFL Properties LLC is a Delaware corporation headquartered, since 1970, in New York City. At the time the actions at issue here were filed, NFL Properties was not licensed to do intrastate business in California. NFL Properties develops, licenses and markets the intellectual property of the NFL and its member clubs. NFL Properties is the successor to National Football League Properties, Inc. (NFLP), which was incorporated in California in 1963. NFLP was a California corporation throughout its existence, which ended in 2001. Its principal place of business until approximately 1970 was in Los Angeles County, where it and then NFL Properties maintained an office until 2005.
Thirty-two insurers are named as defendants in the instant coverage case. NFL alleges those companies issued commercial general liability (CGL) policies providing primary and excess coverage over a roughly 45-year period from the late 1960's to 2012. Decades of policies are implicated in the underlying tort litigation because CGL policies generally cover only occurrences within the policy period and the tort plaintiffs allege injuries dating back to the 1950's. Plaintiffs NFL and NFL Properties separately purchased and maintained their own insurance programs over the years involved here up until 2000, when they fully integrated their programs.
Thus far, the NFL plaintiffs have identified at least 187 policies issued to one or both of them by the 32 defendants covering time periods between March 1968 and August 2012. The vast majority were brokered and delivered to NFL in New York City. The policies provide coverage in layers: a first-recourse "primary" layer and "umbrella" or "excess" layers of coverage. Fifty-two of the policies, issued by 12 of the insurer defendants, are primary policies, which include a duty to defend against lawsuits potentially covered by the policy. Prior to 1977, NFL relied primarily on California-based insurance brokers and offices. It is expected that some or all policies from that era, which are yet to be located, were issued through California brokers and/or to California-based NFL entities.
All defendants are licensed and/or doing business in both California and New York. With one exception, the insurers currently have their principal places of business east of the Mississippi River, primarily in the northeast and mid-Atlantic states. The majority are located within 250 miles of New York City. Only Fireman's Fund Insurance Company has a principal business location in California, in the city of Novato. Three insurers have their principal place of business in New York. Fourteen defendants have their principal place of business in either Connecticut or New Jersey, which along with New York are collectively referred to as the "Tri-State Area." Four insurers have their principal place of business in Pennsylvania. Four more are
Chartis is the only primary carrier with a principal place of business in New York. NFL alleges that Chartis issued 12 policies under which NFL is entitled to coverage. Eleven policies were negotiated primarily between underwriters located in New York and NFL's New York broker, and the policies were delivered to NFL in New York. One Chartis policy was negotiated primarily between underwriters located in both Illinois and New York and an NFL broker in Indiana. NFL tendered its claims for coverage under the Chartis policies from its New York offices, and Chartis is handling those claims in New York, where documents concerning the claims are located.
TIG issued more duty-to-defend policies than any other insurer. Although TIG is incorporated in California and maintained its principal business location here at the time most of its NFL policies were written, the TIG policies were issued to NFL in New York through a New York-based broker. All relevant TIG documents and personnel are located in Manchester, New Hampshire. TIG's two affiliates have their principal places of business in New Jersey, where all their relevant documents and witnesses are located.
The Travelers policies were negotiated, issued, or issued for delivery to NFL in New York, often through New York brokers. Travelers is handling NFL's claims in New York City.
ACE is headquartered in Philadelphia. All 28 of its primary and secondary policies allegedly issued to NFL since 1968 were brokered, issued, and delivered to NFL in New York. Although ACE is handling NFL's claims partly in California, representatives from New Jersey, Delaware and Pennsylvania are also involved.
The Chubb policies were delivered to NFL in New York, and most of the brokers for those policies are located in New York. One Chubb person responsible for NFL claims handling is located in California; several others are located in Texas and New Jersey.
Hartford Accident & Indemnity Company and New England Reinsurance Corporation issued seven policies to NFL. Six policies for which information is available were issued in New York, five through a New York-based broker. NFL's claims under these policies have been handled by representatives in Connecticut working with NFL personnel in New York.
Fireman's Fund or an affiliate issued four policies to NFL in New York. Three policies were issued through a New York-based broker and one primary policy was issued through a California-based broker that is now located in Illinois. This insurer is handling NFL's claims through employees in California and South Carolina, who have communicated with NFL's New York personnel.
Through Harbor Insurance Company and Niagara Fire Insurance Company, Continental Insurance Company issued four policies to NFL. Three were negotiated between New York underwriters and brokers; one involved a New York underwriter and a broker in California. That California broker has since been acquired by a Chicago-based brokerage. NFL's claims under these policies are being handled in New Jersey.
Allstate Insurance Company is the successor in interest to Northbrook Excess & Surplus Insurance Company, formerly Northbrook Insurance Company. All the policies under which Allstate may be liable were issued to NFL in New York through a New York broker. All claims handling with respect to these policies is taking place in Illinois.
Alterra issued one policy to NFL through a New York broker; it is handling NFL's claims in New York and Virginia.
American Re issued one policy to NFL through a California broker that has since been acquired by a Chicago-based brokerage. All claims handling is taking place in New Jersey.
American Guarantee & Liability Insurance Company, Arrowood, Guarantee Insurance Company and OneBeacon Insurance Company each issued one policy to NFL in New York and through a New York broker in most cases. These carriers are handling NFL's claims in states other than California, including Minnesota, Georgia and Florida.
As set forth in appellants' appendix, in July 2011, 73 former players sued the NFL and NFL Properties, along with helmet-maker Riddell in Los Angeles Superior Court (the Maxwell case). The players alleged concussions and other injuries sustained during their NFL careers had resulted in brain
NFL removed Maxwell, Pear, and Barnes to the United States District Court for the Central District of California on the basis of a federal question of jurisdiction, contending that plaintiffs' claims were preempted under the Labor-Management Relations Act, 1947 (29 U.S.C. § 141 et seq.) and provisions of the players' collective bargaining agreement.
In January 2012, the Judicial Panel on Multidistrict Litigation ordered the Maxwell, Pear, and Barnes actions transferred to the Eastern District of Pennsylvania for MDL pretrial proceedings. All the players allege in the concussion MDL that "all NFL policies and decisions relevant to the conduct alleged herein occurred primarily in the NFL corporate offices in New York." An amended MDL complaint focuses on the claim that NFL's senior
As of November 2012, players had filed more than 174 lawsuits against the NFL itself, many of which also named NFL Properties as a defendant. Most (154) were filed in states other than California. More than 3,700 former players and more than 2,000 spouses are plaintiffs in those cases. Approximately 12 percent of the former players allege California residence; approximately 1.5 percent alleges New York residence. Most of these cases have been, or will be, consolidated in the MDL in Pennsylvania.
At the time the trial court stayed NFL's California action, the MDL proceedings were in the initial pleading stage, with discovery stayed and motions to dismiss pending and awaiting oral argument. If the underlying tort litigation is not dismissed on pretrial motions, the individual lawsuits will be returned for trial to the jurisdictions (including Cal.) in which they were initially filed.
The underlying tort claims are being handled at NFL's New York headquarters and a New York broker, Marsh USA, Inc. Correspondence regarding the coverage issues has been directed, at NFL's request, to its vice-president of legal affairs at NFL's Park Avenue headquarters.
On August 13, 2012, Alterra America Insurance Company filed suit against NFL in the New York State Supreme Court in Manhattan. There Alterra alleges that former players sued NFL alleging neurological injuries sustained while playing football. According to Alterra, NFL tendered some of these lawsuits for defense and indemnity and Alterra declined coverage. Alterra seeks a declaration that it is not obligated to defend or indemnify NFL.
Two days after Alterra filed in New York, NFL instituted this action in Los Angeles Superior Court against Alterra and 31 other insurance companies. The operative complaint alleges breach of contract against certain primary insurance carriers and three declaratory relief claims against all insurers. NFL claims that between 1968 and 2012 the insurers issued 187 primary and umbrella or excess insurance policies to NFL. According to NFL, former football players and their spouses filed more than 140 lawsuits alleging concussions and other football injuries resulting in long-term brain damage. NFL claims that 12 insurers have breached their duty to defend under 52 primary policies. As to all 32 insurers, NFL seeks a declaration that the insurers must indemnify NFL under all policies for any damages they must pay to claimants in the underlying brain injury suits.
On August 21, 2012, Discover Property & Casualty Company and five affiliated companies (collectively, Travelers), all of which are defendants in the present NFL lawsuit, filed a new action in the New York State Supreme Court in Manhattan. Travelers seeks declaratory relief as to its duty to defend and indemnify NFL in the brain injury cases pursuant to policies issued from the 1960's to 2012. Travelers also seeks a declaration that the other NFL insurers are not entitled to contribution from Travelers with respect to any amounts those insurers pay to defend or indemnify NFL. All parties in the present NFL action are parties to Travelers's New York action. The Travelers case was consolidated with the Alterra action on September 19, 2012. No insurers involved in the New York actions have challenged personal jurisdiction or claimed the issues are not justiciable.
On August 22, 2012, Alterra filed an amended complaint in its New York action, naming as defendants all but two of the insurers who are defendants in NFL's California action. Alterra repeats the allegations from its original complaint and claims that the insurer defendants issued policies to NFL.
On August 23, 2012, TIG Insurance Company and two affiliates, all of which are defendants in the NFL's California action, filed an answer, counterclaim, cross-claims and a third party complaint in the Alterra action. TIG asserts cross-claims against NFL and all the other insurers seeking declaratory relief as to the duties to defend and indemnify. It also asserts a third party claim for declaratory relief against the two carriers that Alterra did not include in its amended complaint. As a result, all parties in the NFL's California action are parties in Alterra's New York action.
The Chartis Insurers answered in the Alterra and Travelers New York actions on September 6, 2012, and asserted cross-claims against NFL for declaratory relief. On September 12, 2012, ACE American Insurance Company and four affiliates (collectively ACE), and Federal Insurance Company and two affiliates (collectively, Chubb) answered in the Alterra and Travelers actions and asserted cross-claims against NFL.
Shortly after filing the instant action, NFL lodged a notice of related case under California Rules of Court, rule 3.300. NFL asserted this case is related to the Ridell insurance coverage action, given that both arose out of the underlying players' claims. Insurer defendants immediately filed oppositions. On September 17, 2012, NFL filed a motion to relate its case to the Riddell action. The following week, the judge to whom the Riddell action had been assigned heard argument and granted NFL's motion. On October 3, 2012, after Travelers filed a peremptory challenge pursuant to Code of Civil Procedure section 170.6, both this case and Riddell were reassigned to Judge John Shepard Wiley.
In September 2012, defendants Chartis, TIG, Travelers, ACE, Chubb and Fireman's Fund filed separate motions to dismiss or stay NFL's action on forum non conveniens grounds. All but one of the other insurer defendants joined in the motions. NFL filed a consolidated opposition and the insurers filed replies and joinders. On November 28, 2012, the trial court held its hearing on the motions to dismiss or stay this action. At the beginning of the hearing the court furnished the parties with a five-page tentative ruling granting the motions and staying the action. During the hearing, the trial court heard extensive argument by NFL regarding the insurers' motions. Later that day, the trial court issued a written decision (detailed below) granting the motions and imposing a stay of this action, pending the outcome of the parallel New York matters. The trial court set a review hearing in December 2013 and invited the parties to calendar the matter at any time if necessary.
On December 6, 2012, NFL appealed the trial court's orders.
In pertinent part, the trial court's written explanation of its balancing of the interests for and against retaining the action in California reads as follows.
A trial court considering a forum non conveniens issue engages in a two-step process, the first of which is to determine whether a suitable alternative forum exists. (Stangvik, supra, 54 Cal.3d at p. 751; Guimei v. General Electric Co. (2009) 172 Cal.App.4th 689, 696 [91 Cal.Rptr.3d 178] (Guimei).) Where there is a suitable alternative forum, the court proceeds to the next step, consideration of the private interests of the parties and the public interest in keeping the case in California. (Stangvik, supra, at pp. 751, 754; Century Indemnity Co. v. Bank of America, supra, 58 Cal.App.4th at p. 412 (Century).)
"`The private interest factors are those that make trial and the enforceability of the ensuing judgment expeditious and relatively inexpensive, such as the ease of access to sources of proof, the cost of obtaining attendance of witnesses, and the availability of compulsory process for attendance of unwilling witnesses.' (Stangvik, supra, 54 Cal.3d at p. 751.) The residences of the plaintiff and the defendant are relevant, and a corporate defendant's principal place of business is presumptively a convenient forum. (Id. at pp. 754-755.) If the plaintiff is a California resident, the `plaintiff's choice of a forum should rarely be disturbed unless the balance is strongly in favor of the defendant. [Citations.]' (Id. at p. 754; see Bechtel Corp. v. Industrial Indem. Co. (1978) 86 Cal.App.3d 45, 51-53 [150 Cal.Rptr. 29].) The public interest factors include avoidance of overburdening California courts, protecting potential jurors who should not be called on to decide cases in which the local community has little concern, and weighing the competing ties of California and the alternate jurisdiction to the litigation. (Stangvik, [supra,] at p. 751.)'" (Animal Film, LLC v. D.E.J. Productions, Inc. (2011) 193 Cal.App.4th 466, 473 [123 Cal.Rptr.3d 72]; see Great Northern Ry. Co. v. Superior Court (1970) 12 Cal.App.3d 105, 112-115 [90 Cal.Rptr. 461] (Great Northern) [listing 25 relevant factors].)
Had the suitability of an alternate forum been disputed in the present case, the trial court's ruling on that point would have been subject to either a de novo or substantial evidence review on appeal. (Investors Equity Life Holding Co. v. Schmidt (2011) 195 Cal.App.4th 1519, 1528 [126 Cal.Rptr.3d 135] (Investors Equity) [de novo standard]; Guimei, supra, 172 Cal.App.4th at p. 696 [substantial evidence standard].) However, there is no dispute here that New York is a suitable alternate forum.
The second part of the analysis, the weighing and balancing of private and public factors, is reviewed pursuant to an abuse of discretion standard; "substantial deference" is accorded the trial court's ruling. (Stangvik, supra, 54 Cal.3d at p. 751.) "We `will only interfere with a trial court's exercise of discretion where [we find] that under all the evidence, viewed most favorably in support of the trial court's action, no judge could have reasonably reached the challenged result.'" (Guimei, supra, 172 Cal.App.4th at p. 696.) "`"[A]s long as there exists `a reasonable or even fairly debatable justification, under the law, for the action taken, such action will not be ... set aside....'"'" (Ibid.; see Taschen, supra, 134 Cal.App.4th at p. 691 ["`"appropriate test for abuse of discretion is whether the trial court exceeded the bounds of reason"'"].)
The Court of Appeal "cannot reweigh the evidence or draw contrary inferences. [Citations.] We presume the trial court found every fact and drew every reasonable inference necessary to support its determination. [Citation.] We cannot reject evidence accepted by the trial court as true unless it is physically impossible or its falsity is obvious without resort to inferences or deduction. [Citation.]" (Guimei, supra, 172 Cal.App.4th at pp. 698-699.)
Although NFL agrees that abuse of discretion is the standard on appellate review of a trial court's weighing and balancing of private and public interests in the forum non conveniens context, it argues the trial court erred to NFL's detriment in several respects regarding the moving party defendants' burden of proof at the trial court level. NFL contends it is a California resident for purposes of the forum non conveniens analysis, because, as an unincorporated association of member football clubs, it resides wherever its members are located. In the alternative, NFL argues that, regardless of residency, the trial court erred in failing to strongly presume in favor of plaintiff's choice of forum. NFL further faults the trial court for not requiring defendants to prove California is a seriously inconvenient forum. Finally, NFL contends the court below erroneously gave dispositive deference to defendant insurers' New York lawsuits and erroneously shifted the burden of proof to plaintiffs.
In the introductory portion of its ruling, the trial court states: "The National Football League is headquartered in New York. It has been there 50 years or more." Later in the decision, the court states: "The NFL selected California — true — but `that factor is of lesser significance' because the NFL is not a California resident. (Century Indemnity Co. v. Bank of America, supra, 58 Cal.App.4th 408, 412.)" Further along in its decision, the court added, "The NFL raises ... other unpersuasive points. [¶] First, the NFL urges that it is not a corporation but rather an unincorporated association of football clubs. The form is inconsequential. Whatever it is, the NFL long has had its headquarters in New York. New York is the NFL's physical center of operations: where its important people go to work, directing NFL affairs. New York is where these executives make and keep their important documents. [¶] Second, the NFL lists its past contacts with California. These contacts, however, are in the past. The question today is not the jurisdictional one, where the extent of past contacts affects the fairness of summoning a defendant to some remote court. Instead, today's question is about convenience. What is convenient today depends on today's conditions. The past is gone."
On appeal, NFL again asserts the argument reflected in the final quotation above, i.e., as an unincorporated association it legally resides wherever its
Here the trial court, well aware of the primary place of business of the 49ers, Raiders and Chargers, properly exercised its discretion in assessing the nature of the NFL plaintiffs' businesses as they relate to California as a forum. The court's broad statement that NFL is not a California resident must be considered in light of its conclusion that technicalities regarding the form of plaintiffs' association are outweighed by the undisputed fact of plaintiffs' decades-long existence as New York entities
The trial court properly recognized that NFL operates in New York independently of its teams and properly considered the effect of that practical reality in its balancing of the private and public interest factors. Those factors focus on practical concerns such as access to witnesses and evidence, the costs of litigation, and the interests of California and its citizens in deciding the dispute. When weighing such concerns, the trial court was legally correct and well within the bounds of reason in denying NFL the status of a full-fledged California resident.
NFL asserts error by the trial court in failing to recognize that all plaintiffs are entitled to a strong presumption in favor of their choice of forum and in failing to require defendant insurers to demonstrate that California is a seriously inconvenient forum. The trial court rejected these arguments, noting that such standards are not imposed in the Stangvik opinion. The court also noted that these higher burdens would be counterproductive to the concern raised in Stangvik regarding the potential effect on the California court system from "an unchecked and unregulated importation of transitory causes." The trial court also relied heavily on Century, supra, 58 Cal.App.4th at page 412, which rejected both the strong presumption and serious inconvenience standards where the trial court stays rather than dismisses a California action filed by a nonresident. The Century court specifically distinguished Ford, supra, 35 Cal.App.4th 604, on which NFL relies, as a case involving a dismissal rather than a stay.
On appeal, the insurers rely heavily on the stay/dismissal distinction in defending the trial court's burden of proof calculus. Defendants also argue that Ford is an aberrant decision which the trial court properly ignored. NFL counters with the contention that Century was wrongly decided as to the burden of proof issue. We hold that the trial court committed no error.
The forum non conveniens doctrine developed as a dismissal remedy for cases where some or all parties were nonresidents and where plaintiff's
A corollary to the early rule banned dismissals, except under extraordinary circumstances, in actions filed by California residents, because such plaintiffs are entitled as a matter of overriding state policy to redress their grievances in their own court system. (Thomson v. Continental Ins. Co. (1967) 66 Cal.2d 738, 742 [59 Cal.Rptr. 101, 427 P.2d 765]; Archibald, supra, 15 Cal.3d at pp. 858-859; accord, Goodwine v. Superior Court (1965) 63 Cal.2d 481, 485-486 [47 Cal.Rptr. 201, 407 P.2d 1] ["[a] determination that a plaintiff is domiciled [in California] would ordinarily preclude granting the defendant's motion for dismissal on the grounds of forum non conveniens"].)
It cannot be ignored that the California inconvenient forum doctrine is now embedded in statute. (Taschen, supra, 134 Cal.App.4th at p. 687.) One of the purposes of the enactment of Code of Civil Procedure section 410.30 was to give "less weight to the plaintiff's domicile or residence." (Delfosse v. C.A.C.I., Inc.-Federal (1990) 218 Cal.App.3d 683, 688, fn 4 [267 Cal.Rptr. 224] (Delfosse).) Yet, our appellate courts have given significant weight to the Judicial Council comment and the Restatement in applying the doctrine. (See Stangvik, supra, 54 Cal.3d at pp. 752-753; Hahn v. Diaz-Barba, supra, 194 Cal.App.4th at p. 1186, fn. 5; Delfosse, supra, 218 Cal.App.3d at p. 689.) It follows that NFL correctly points out that the strong presumption in favor of plaintiff's choice of forum and the seriously inconvenient burden of proof are long-standing principles within the forum conveniens doctrine. We turn to postcodification cases to determine whether those standards were properly distinguished by the trial court in the present case.
The leading California Supreme Court case in the era subsequent to the enactment of Code of Civil Procedure section 410.30 is Stangvik, supra, 54 Cal.3d at page 744. Prior to Stangvik, a number of Court of Appeal cases involving California resident plaintiffs took note of the strong presumption in favor of the correctness of the plaintiff's choice of forum. (See Bechtel Corp. v. Industrial Indem. Co., supra, 86 Cal.App.3d at pp. 50-51 [stay order reversed in a case where a Cal. engineering firm sued the carrier of its employee fidelity bonds to recover for damages the firm would be paying for its employees' misconduct in the course of a Md. project; the Court of Appeal cited Gilbert, Price and other cases for the proposition that "`unless the
Defendants contend a separate branch of the inconvenient forum doctrine traces to the postcodification California Supreme Court decision in Archibald, supra, 15 Cal.3d 853. There the court focused on a trial court's power to stay, rather than dismiss, California proceedings filed by California residents. (Archibald, supra, at pp. 857-860.) In evaluating a stay request, the court in Archibald said, "[t]he plaintiff's residence is but one of many factors which the court may consider. The court can also take into account the amenability of the defendants to personal jurisdiction, the convenience of witnesses, the expense of trial, the choice of law, and indeed any consideration which legitimately bears upon the relative suitability or convenience of the alternative forums. [(Citing Gilbert, Thomson, Goodwine, and Great Northern, supra, 12 Cal.App.3d [at pp.] 113-115)]. In short, the trial court retains a flexible power to consider and weigh all factors relevant to determining which forum is the more convenient, and to stay actions by true California residents when it finds that the foreign forum is preferable." (Id. at p. 860.)
In pre-Stangvik cases Courts of Appeal cited Archibald for the proposition that less deference is to be afforded nonresident plaintiffs. In Corrigan v. Bjork Shiley Corp. (1986) 182 Cal.App.3d 166, 171 [227 Cal.Rptr. 247] (Corrigan), the Court of Appeal reversed the stay of a heart-valve product liability case filed against a California corporation by residents of Australia. The court stated, "Although the rule of substantial deference is not eliminated when plaintiff is foreign (either noncitizen or nonresident), the deference accorded his choice is less than that accorded the choice of a California resident. [(Quoting and citing Archibald.).]" (Id. at p. 176.) The court summed up by stating, "Therefore, ... although the Australian plaintiffs' choice of a California forum is entitled to some deference, this consideration cannot dominate our decision." (Ibid.)
These dueling lines of cases set the stage for the California Supreme Court's 1991 decision in Stangvik, supra, 54 Cal.3d 744. We look to it for guidance even though it involved noncitizen plaintiffs, as distinct from the nonresident American plaintiffs in the instant case.
We have quoted above the Stangvik court's holding regarding the essential balancing process, which the court derived from the United States Supreme Court decisions in Gilbert and Piper. (See Stangvik, supra, 54 Cal.3d at p. 751.) For purposes of the present discussion, it is noteworthy that the court in Stangvik was reviewing a trial court stay order in a wrongful death case involving Swedish and Norwegian plaintiffs suing the California designer and manufacturer (Shiley) of allegedly defective heart valves which had been purchased and implanted in Sweden and Norway with fatal results. (Id. at pp. 749-750.) The court noted that at the time of the trial court's ruling 108 similar cases against Shiley had been filed in California by foreign plaintiffs and that the number had increased substantially by the time Supreme Court briefs were filed. (Id. at p. 758.) The court affirmed the stay after a detailed review of the public and private interests involved. (Id. at pp. 761-764.)
As noted the Stangvik opinion states quite clearly that a plaintiff from a foreign country is not entitled to a strong presumption of the correctness of its choice of forum. As the present parties point out, the opinion contains dictum to the effect that the strong presumption should be limited to California residents but expressly declines to reach the issue. (Stangvik, supra, 54 Cal.3d at p. 755, fn. 7.) Thus, the issue of whether a plaintiff who is a nonresident citizen of the United States is entitled to a "strong presumption" or "substantial deference" remained open for the competing decisions relied on by the parties in the present case.
As mentioned, the NFL plaintiffs rely on the Ford case, decided by the court of appeal four years after Stangvik. In 1992, Ford Motor Company (Ford) filed a coverage action related to three polluted industrial sites in California. One site had been an assembly plant operated by plaintiff Ford from 1955 to 1983. The other two sites had been operated by a subsidiary, Ford Aerospace Corporation, until 1988 and 1990, respectively. In 1990 Ford sold the subsidiary but retained an interest in one of the polluted properties. (Ford, supra, 35 Cal.App.4th at pp. 607-608.) The defendants were various insurance carriers with whom Ford, through its Michigan headquarters, had contracted for coverage for its properties and operations in California. (Id. at p. 608.) None of the defendants was either incorporated or headquartered in California or the potential alternate venue, Michigan. Ford's principal place of business was in Michigan, but it was not incorporated there or in California. (Id. at p. 609.) The California trial court dismissed Ford's action on forum non conveniens grounds. (Id. at pp. 609-610.) The Court of Appeal reversed, in light of a "wealth of factors favoring California as a forum" (id. at p. 618), including the fact that plaintiff Ford was a "California taxpayer, employer and property owner" whose operations led to pollution at various sites in California which this state had a significant interest in remediating (id. at p. 612). As to the applicable legal standard, the Court of Appeal remarked that "great weight" should be afforded to even a nonresident plaintiff's choice of forum. (Id. at p. 610.) The court also referred to the standard as a "strong presumption." (Id. at p. 611.) For these propositions, the Ford court cited to
Just two years after Ford, a different Court of Appeal district decided the case relied on by the instant trial court and defendants, Century, supra, 58 Cal.App.4th 408. Century involved two insurer plaintiffs, one a California resident, the other incorporated in Pennsylvania. A coverage dispute developed between the plaintiffs and their insured, an Oregon bank. (Century, supra, at pp. 410-412.) The policies at issue had been sold to a bank in Hawaii, where the allegedly covered event took place. Thirteen days after the bank sued for declaratory relief in Hawaii, the carriers filed a similar action in California. The bank's dismissal motion was denied by the California trial court; instead, the court stayed the action and the carriers appealed. (Id. at pp. 410-411.) In setting the legal ground rules, the Court of Appeal acknowledged that the resident insurer plaintiff was entitled to a strong "preference" as to its choice of forum; as to the nonresident, "that factor is of lesser significance." (Id. at p. 412.) Beyond that, the court in Century took its lead from California Supreme Court precedent, noting, for instance, that discretion to stay is "considerably wider" than to dismiss, citing Thomson v. Continental Ins. Co., supra, 66 Cal.2d at p. 746, fn. 4. (Century, supra, at p. 411.) The Century decision also cites Archibald, supra, 15 Cal.3d at page 860 for the proposition that "in considering a stay the trial court can take into account any consideration which bears on the relative suitability or convenience of the two forums." (Century, supra, at p. 412.) For guidance concerning the actual factors a court must consider, the court in Century cited and followed Stangvik. (Id. at p. 412.)
Like NFL in the present case, the insurer plaintiffs in Century quoted the "`strong presumption'" and "`seriously inconvenient'" language in Ford, as defining the moving party's burden of proof. (Century, supra, 58 Cal.App.4th at p. 412.) The court in Century declined to follow Ford because Ford involved a dismissal rather than a stay. (Ibid.) The court again quoted the Supreme Court's Archibald decision, "`[i]n considering whether to stay an action, in contrast to dismissing it, the plaintiff's residence is but one of many factors which the court may consider." [Citation.]' (Century, supra, 58 Cal.App.4th at p. 413.) The court then completed its analysis of the Stangvik factors and, finding no abuse of discretion, upheld the trial court's stay order as to both the resident and nonresident plaintiffs. (Id. at pp. 413-414.)
NFL's contention that the moving party's burden of proof in a forum non conveniens motion includes proving California is a "seriously inconvenient" forum also relies heavily on the Ford case, which we have discussed above. To review, in Ford the Court of Appeal overturned a trial court dismissal of a coverage action filed by a nonresident corporate plaintiff where the underlying issue was liability for cleaning up polluted California properties where the plaintiff and its subsidiary had operated for lengthy periods in the recent past. The defendants were various insurance carriers, also not California residents. (Ford, supra, 35 Cal.App.4th at pp. 607-610.) The Court of Appeal reversed, in light of a "wealth of factors favoring California as a forum" (id. at p. 618), including the fact that plaintiff Ford was a California taxpayer, employer and property owner and the polluted properties were in California (id. at pp. 612-613). In imposing the questionable "strong presumption" standard discussed above, the court summarized the moving party's burden of proof in the following language: "The analysis ... must start from the premise that defendants bore the burden of producing sufficient evidence to overcome the strong presumption of appropriateness attending plaintiff's choice of forum.... [T]he inquiry is not whether Michigan provides a better forum than does California, but whether California is a seriously inconvenient forum. (Northrop Corp.... v. American Motorists Ins. Co., supra, 220 Cal.App.3d at p. 1561.)" (Ford, supra, at p. 611.)
As the passage just quoted reveals, the Ford court cited only page 1561 of the Northrop opinion for the proposition that the "seriously inconvenient" burden arises out of the "strong presumption of appropriateness attending plaintiff's choice of forum." (Ford, supra, 35 Cal.App.4th at p. 611.) Northrop, decided a year before Stangvik, involved a major California corporation seeking declaratory relief as to its primary liability carrier's duty to cover a hazardous chemical spill which had taken place in Massachusetts. (Northrop, supra, 220 Cal.App.3d at p. 1557.) Not surprisingly, the Court of Appeal reversed the trial court's order dismissing the California plaintiff's California action. (Ibid.) However, one searches the Northrop opinion in vain
In any event, defendants correctly assert that Ford and Northrop can be distinguished from the present case as to the remedy imposed by the trial court. Here the court imposed a stay, retaining jurisdiction over the case should the New York proceeding fail to dispose of the controversy. In Ford, Northrop and a number of other cases imposing the "serious inconvenience" or a similar burden of proof, the trial court dismissed the in-state action. (See, e.g., Gilbert, supra, 330 U.S. at p. 502; Price, supra, 42 Cal.2d at p. 579.)
However, NFL points out that at least two recent cases involving trial court stay orders have cited to Ford in support of a "seriously inconvenient" burden. Taschen, supra, 134 Cal.App.4th 681, was a German couple's marital dissolution action where the value of a large European corporation was at issue. The litigants lived part time in California and part time in Germany. The Court of Appeal cited only Ford for the proposition that the "moving party bears the burden of proving that `California is a seriously inconvenient forum.'" (Id. at p. 691.) The court concluded that standard had been met, and it upheld the stay order. (Ibid.)
Most recently, a Court of Appeal upheld a trial court's stay order in a case filed in California by Texas residents, alleging injury by exposure to toxic chemicals in the workplace for six years in California, followed by nearly 20 years of exposure in Texas. Twenty-one corporate defendants were sued, only two being California corporations. Citing only Ford, the court stated, "The ultimate question is whether the balancing of the Stangvik factors shows that California is a seriously inconvenient forum. [Citation.] The defendant, as moving party, bears the burden of proof." (Morris v. AGFA Corp., supra, 144 Cal.App.4th at p. 1464 (Morris).) When discussing the balancing of factors, the court noted that even nonresident plaintiffs' forum choices are entitled to "`great weight,'" although "a plaintiff's choice of forum can be disturbed if the balance is strongly in favor of the defendant." (Id. at p. 1465.) For the latter principles, the Morris court cited Ford, supra, 35 Cal.App.4th at p. 610, and Hansen, supra, 51 Cal.App.4th at p. 760.
We conclude that the phraseology "seriously inconvenient" as used in the Judicial Council comment was intended to describe the quantum of evidence needed to justify a dismissal in the face of the strong presumption favoring a resident plaintiff's choice to sue in its home state court system. Ford was not such a case, although the court there understandably gave weight to the plaintiff's past and present contacts with California and the fact the underlying dispute revolved around the need to clean up polluted California land, one parcel of which was still owned by plaintiff Ford Motor Company. As we have noted, the present case does not involve a California-resident plaintiff, and there is no California land involved in the underlying dispute.
Like NFL in the present case, the insurer plaintiffs in Century cited the "strong presumption" and "seriously inconvenient" language in Ford, as defining the moving party's burden of proof. (Century, supra, 58 Cal.App.4th at p. 412.) The court in Century declined to follow Ford because Ford involved a dismissal rather than a stay. (Ibid.) The court again quoted the Supreme Court's Archibald decision: "`[i]n considering whether to stay an action, in contrast to dismissing it, the plaintiff's residence is but one of many factors which the court may consider.' [Citation.]" (Century, supra, at p. 413.) The court then completed its analysis of the Stangvik factors and, finding no abuse of discretion, upheld the trial court's stay order. (Id. at pp. 413-414.)
In sum, we find the Ford decision questionable and in any event inapposite. The present case, unlike Ford, does not involve a dismissal order adverse to a California resident. We respectfully disagree with Taschen, Morris and Hansen to the extent that they impose the "seriously inconvenient" burden on parties moving for a mere stay based on forum non conveniens. Century, on the other hand, we find to be well reasoned and well grounded in the teachings of our Supreme Court. We hold that the trial court properly declined to require defendant insurers to prove California is a seriously inconvenient forum in the present case.
The trial court's statement of decision included the following: "California is not a convenient home for this case, given that this case duplicates an older litigation in the NFL's home state of New York." It also referred to the California action as "a new and redundant case about the same insurance coverage dispute already being litigated in New York." Seizing on these findings, NFL contends the trial court "apparently" found the fact the New York case was "first-filed" to be a "dispositive" factor in the analysis. Such a finding, argues NFL, erroneously shifted the burden of proof to plaintiff and is otherwise flawed.
We need not explore the disputes about whether a "first-filed" rule exists or the likely fate of the New York action, because we disagree with the premise that the court gave any improper weight to the existence or filing date of the New York case. The language quoted by NFL appears in the introductory section of the statement of decision, shortly before the trial court briefly addressed the threshold issue of whether New York is an adequate forum. We read the trial court's decision to have considered the existence of the New York case primarily as a strong indicator that such an alternative forum exists. The court thereafter proceeded to address the required balancing of private and public interests, as well as NFL's various arguments. We reject the notion that the trial court gave dispositive deference to the New York litigation as unsupported by the record.
Notwithstanding the trial court's express finding that the "moving parties have met their burden" of proof, NFL contends the trial court erred in "functionally" requiring NFL to prove the inconvenience of the New York forum. NFL argues this issue circumstantially, citing no direct evidence in the record. We reject NFL's claim of an improper burden shift.
NFL's argument relies heavily on its contentions that defendants' burden of proof was to show the serious inconvenience of the California forum and
NFL notes the trial court's description of their California filing as "`selective and tactical.'" In argument before the trial court, NFL conceded this point, correctly contending "there is nothing wrong with lawyers and their clients proceeding tactically." We think the trial court elegantly summed up its view of this issue within the balancing process when it stated at the hearing that a tactical filing decision is "not to be condemned, but neither is it to be cherished." The trial court properly considered filing tactics as a neutral factor in its analysis. (Stangvik, supra, 54 Cal.3d at pp. 763-764 [disapproving earlier cases which considered advantages to plaintiff of Cal. law as a factor favoring denial of forum non conveniens motion].)
NFL contends the trial court's tentative ruling, comments during argument and final order "are replete with what the court felt the NFL had failed to show, while saying almost nothing about any showing made (or not made) by the insurers." Similarly, NFL alleges the statement of decision largely ignores facts on the "`California is seriously inconvenient' side of the ledger." These arguments are nonstarters because the trial court was under no obligation to recite every fact considered in its balancing process or to follow any formula in explaining itself. The commonplace fact that a ruling focuses on the factors supporting it is not an indication that contrary evidence was ignored. Additionally, we note that once a presumption is rebutted or a burden met, the burden shifts to the responding party to overcome the moving party's rebuttal evidence. We believe that is exactly what occurred here, as illustrated by the trial court asking NFL during the argument on the motion what "counter-showing" they had to the "volumes of evidence that your colleagues have adduced...."
Finally, we decline NFL's invitation to reweigh the individual facts contained in the trial court's ruling, given the abuse of discretion standard on appeal. (Stangvik, supra, 54 Cal.3d at p. 751.)
NFL attacks the trial court's exercise of its discretion in four ways. First, it argues the trial court "skewed" several factors by incorrectly concluding they weigh against the Los Angeles venue, when in fact they favor it or are neutral. Second, NFL contends the trial court ignored significant private and
The factors allegedly "skewed" by the trial court include the past California residency of the predecessor to plaintiff NFL Properties, the paucity of defendants who principally do business in New York, the relative abilities of the New York and Los Angeles courts to handle complex commercial matters, the absence of a California forum selection clause in the subject policies, and the difficulties of bringing evidence and witnesses to the ultimate forum. In each of these areas, NFL argues the trial court gave undue weight to the pro-New York arguments while neglecting or misconstruing the degree to which the issue favors a California forum. In other words, NFL asks us to reweigh the evidence and substitute our judgment for that of the trial court. This we cannot do. (Stangvik, supra, 54 Cal.3d at p. 751.) Nor do we attach significance to the trial court's failure to mention any particular part of the evidence. Where the record is silent we draw all reasonable inferences in favor of the trial court's ruling, because that court had no duty to fully express the reasons for its ruling. (Hahn v. Diaz-Barba, supra, 194 Cal.App.4th at pp. 1187-1188.) Given the thoroughness of the briefing, argument and the court's written ruling, we have no doubt the court was mindful of all aspects of the record.
The first factor favoring a California forum allegedly ignored by the trial court is the fact that two defendants, Fireman's Fund and TIG, are California residents and they issued approximately half of the primary policies involved in the present case.
Fireman's Fund, which allegedly refused to defend the underlying tort litigation despite being a primary insurer, is a California corporation with its principal place of business here. However, it remains only one of 32 defendant insurers whose interests must be taken into account. Further, because of the inescapable fact that NFL does business in New York, that is where any legal injury has occurred.
TIG, a California corporation, allegedly issued 10 primary policies, more than any other defendant. Some were issued when TIG's principal place of business was in California. NFL notes that either the state of incorporation or
The second factor NFL contends was erroneously ignored is the contacts, past and present, between plaintiffs and the State of California. These include: the fact that NFLP, the predecessor of NFL Properties, was a California corporation during its 38-year existence and principally did business and bought insurance in Los Angeles between 1963 and 1970; and the multiple teams that have made California home, resulting in extensive community ties; and, we are told, more NFL games having been played here over the last 50 years than any other state. NFL argues these long-term contacts are relevant in a case where the underlying torts and resulting coverage issues date back nearly 50 years. The trial court did not ignore these issues. Rather, it correctly pointed out that the issue at hand, convenience, depends on current circumstances, unlike a "minimum contacts" jurisdictional issue. NFL Properties and its predecessor have done business principally in New York for over 40 years. California's interest in a former resident's entitlement to coverage for tort claims filed nationwide, mostly by non-California residents, is minimal.
NFL's third allegedly ignored factor, policies that were issued or brokered in California in the 1970's, along with possible 1960's California policies yet to be located, is unpersuasive. Only a handful of the 187 known policies were brokered in California, and those brokers have since merged with Chicago agencies. Most of the policies were placed by New York brokers, who cannot easily be compelled to appear for trial in California. Again, California's interest in litigating policies issued to a former resident corporation decades ago pales in comparison to New York's interest in resolving a case where the vast majority of policies were issued outside California through New York brokers to current New York residents. Thus, the trial court understandably gave short shrift to past contacts with California, as compared to the current state of affairs.
NFL next claims that because the first few of the underlying tort cases were filed in California, the first alleged coverage breaches took place here. Those cases, involving 12 percent of the 3,700 players who have sued, could eventually be returned for trial in a California federal court. The brain injury suits were predominantly filed outside of California, which is where most defense resources will be needed. And, again, any alleged breach of the duty to defend has injured NFL where it lives, in New York.
The sixth allegedly undervalued factor raised by NFL is Los Angeles Superior Court's ruling "relating" the instant case to the Riddell coverage action, which was filed four months before NFL's case and remains pending in Los Angeles. NFL points out the two cases arise from the same underlying tort claims and involve some of the same insurer defendants, as well as issues relating to NFL being an additional insured on policies issued to Riddell. This issue was not ignored by the trial court, which expressly found that the, "Riddell case does not make California a convenient location for [this case]." While it is arguable that certain efficiencies would occur should the two cases remain in the same Los Angeles courtroom, the cases involve coverage for different types of claims under different insurance policies, potentially governed by the laws of different states. NFL's coverage for products liability under Riddell's policies is not the same issue as its coverage under its own policies for other tort claims. Consequently, we disagree with NFL's contention that separating the two cases might lead to inconsistent results.
In sum, the above discussed factors were expressly or impliedly considered by the trial court in its balancing process. They were not, as argued by NFL, undervalued or ignored. We find no abuse of discretion in the trial court's conclusion that, considered singly or in combination, they did not mandate a denial of the defense motions.
NFL notes cautionary language in Stangvik regarding avoiding undue emphasis on any single factor in the balancing analysis (Stangvik, supra, 54 Cal.3d at p. 753) and not using a forum non conveniens ruling to control one's docket (id. at p. 758). It argues the trial court abused its discretion by
Seizing on the trial court's comment in its written ruling that "nothing recommends California," NFL argues the trial court abused its discretion by giving no weight whatsoever to the factors discussed above in part D.2. of this opinion. We have already examined those factors and explained why we are unpersuaded by the NFL's claims that they demonstrate an abuse of discretion. We review the trial court's action, not its precise reasoning, and especially not a few of its words taken out of context. (Cal-State Business Products & Services, Inc. v. Ricoh (1993) 12 Cal.App.4th 1666, 1676 [16 Cal.Rptr.2d 417].) There was no abuse of the trial court's wide discretion to assign appropriate weight to the relevant factors.
The trial court orders staying the proceedings below pending the outcome of the parallel New York actions are affirmed. Costs on appeal are awarded to defendants.
Turner, P.J., and Kriegler, J., concurred.