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Travelers Property Casualty Company of America, and St. Paul Fire & Marine Insurance Company v. Flexsteel Industries, Inc., and Sentry Insurance Mutual Company Continental Casualty Company National Union Fire Insurance Co. of Pittsburgh, Pa Illinois National Insurance Company Hartford Fire Insurance Company American Guarantee and Liability Insurance Company United States Fire Insurance Company Great American Insurance Company Fireman's Fund Insurance Company Kemper Insurance Company Twin City Fire Insurance Company And Federal Insurance Company
15-0103
| Iowa Ct. App. | Aug 17, 2016
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Background

  • Travelers Property Casualty and St. Paul sued Flexsteel in Iowa seeking coverage determinations under pollution exclusions; many other insurers joined.
  • Flexsteel filed related claims and a third-party action in Indiana; discovery and motions occurred in both forums.
  • This court previously held Indiana law, not Iowa law, should govern the interpretation of the pollution exclusion, and remanded for further proceedings.
  • Indiana actions progressed while Iowa actions remained in early stages; after remand, Flexsteel moved to dismiss or stay the Iowa actions on comity grounds.
  • Travelers resisted; discovery requests were served to test choice-of-law facts; Flexsteel sought a protective order, asserting law-of-the-case and issue-preclusion.
  • The district court dismissed the Iowa actions on comity grounds, and Travelers appeals claiming the court could revisit the choice-of-law issue and that dismissal was an abuse of discretion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the district court could revisit the choice-of-law ruling on remand. Travelers argues court can revisit the choice-of-law issue with new facts. Flexsteel contends law-of-the-case precludes reopening the issue. Yes, but not to compel reinstatement; comity governs dismissal independent of choice of law.
Whether the district court abused its discretion in applying comity factors to dismiss Iowa actions. Travelers asserts district court should not dismiss when grounds are not compelling. Flexsteel emphasizes reduced forum multiplicity and Indiana's progress justify dismissal. No abuse; district court properly weighed factors and favored moving the dispute to Indiana.

Key Cases Cited

  • First Midwest Corp. v. Corp. Fin. Assocs., 663 N.W.2d 888 (Iowa 2003) (abuse of discretion standard for comity dismissals)
  • Lee v. State, 874 N.W.2d 631 (Iowa 2016) (law-of-the-case doctrine; binding principles and exceptions)
  • United Fire & Cas. Co. v. Iowa Dist. Ct., 612 N.W.2d 101 (Iowa 2000) (exceptions to law-of-the-case allow reconsideration on changed facts)
  • State v. Grosvenor, 402 N.W.2d 402 (Iowa 1987) (law-of-the-case and exception framework for retrial on remand)
  • Hammond v. Fla. Fin. Corp., 695 N.W.2d 1 (Iowa 2005) (comity dismissal not an adjudication on the merits)
  • Am. Econ. Ins. Co. v. Felts, 759 N.E.2d 649 (Ind. Ct. App. 2001) (comity and forum considerations across states)
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Case Details

Case Name: Travelers Property Casualty Company of America, and St. Paul Fire & Marine Insurance Company v. Flexsteel Industries, Inc., and Sentry Insurance Mutual Company Continental Casualty Company National Union Fire Insurance Co. of Pittsburgh, Pa Illinois National Insurance Company Hartford Fire Insurance Company American Guarantee and Liability Insurance Company United States Fire Insurance Company Great American Insurance Company Fireman's Fund Insurance Company Kemper Insurance Company Twin City Fire Insurance Company And Federal Insurance Company
Court Name: Court of Appeals of Iowa
Date Published: Aug 17, 2016
Docket Number: 15-0103
Court Abbreviation: Iowa Ct. App.