Lexington Insurance v. RolisonLexington Insurance v. Rolison
ORDER
This matter is before the Court on three pending motions, to-wit: defendant Rudolph Rolison’s Amended Motion to Dismiss and/or Motion to Abstain (doc. 8), plaintiff/counterclaim defendant Lexington Insurance Company’s Motion to Dismiss Count Two of Bradford’s Counterclaim (doc. 30), and defendant/counter claim plaintiff Addiction & Mental Health Services, Inc.’s Motion for Leave to File Amended Counterclaim (doc. 35). All of these motions have been briefed and are now ripe for disposition. 1
I. Background.
This insurance dispute bears a complicated, multi-tiered procedural pedigree. It constitutes one of four related lawsuits arising from a tragic automobile accident on February 7, 2002 at the junction of Interstate Highway 65 and Alabama State Highway 225, which resulted in the death of teenaged Melissa Allison Sproles (“Sproles”). On or about September 23, 2002, Laura Miller (“Miller”), as mother and next Mend of Sproles, filed suit in Mobile County Circuit Court against Addiction and Mental Health Services, Inc., d/b/a Bradford Health Services, Inc. (“Bradford”) and Rudolph Rolison (“Roli-son”) in an action styled Laura Miller v. Bradford Health Services, Inc. and Rudolph Rolison, CV-2002-3206 (the “Miller Action”). In that lawsuit, Miller alleged that Rolison, operating within the line and scope of his employment with Bradford, negligently and wantonly swerved his vehicle in front of Sproles’, causing Sproles to lose control of her vehicle, collide with a tractor trailer, and sustain fatal injuries. In addition to the negligence and wantonness claims against Rolison, the Miller Action included claims against Bradford for negligence, wantonness, and negligent entrustment. When Miller went to trial in January 2005, a jury found in the plaintiffs favor and awarded a judgment of $3 million against Bradford and Rolison.
Bradford was defended in the
Miller
Action by both Lexington Insurance Company (“Lexington”), its general liability insurer, and St. Paul Fire and Marine Insurance Company (“St.Paul”), its commercial automobile insurer, pursuant to reservations of rights.
2
These insurers did not defend Rolison. The defendants appealed the
Miller
jury verdict; however, the state
Less than four weeks after the Lexington Action was filed, on February 15, 2006, Rolison filed a lawsuit of his own against Lexington, St. Paul, Royal and others in the Circuit Court of Choctaw County, Alabama, alleging causes of action for breach of contract and bad-faith failure to settle the Miller Action, among others. The crux of Rolison’s claims was that he was an insured under Bradford’s insurance policies with Lexington, St. Paul and Royal, and that he was aggrieved by those carriers’ failure to protect his interests in connection with the Miller Action and the ensuing judgment. 4 That case was styled Rudolph Rolison v. St. Paul Fire & Marine Insurance Company, et al, CV-06-15 (the “Rolison Action”). St. Paul removed the Rolison Action to this District Court on March 24, 2006, at which time it was placed on the undersigned’s docket and assigned Civil Action No. 06-177-WS-B. Rolison promptly moved to remand the Rolison Action to state court, citing both procedural and jurisdictional defects. On May 15, 2006, the undersigned granted the motion and remanded the Rolison Action to Choctaw County Circuit Court, finding that removal was untimely and therefore procedurally defective. 5
Armed with this procedural background, the undersigned will address the pending motions in this action. 6
A. Positions of the Parties.
As the Court understands it, the crux of Rolison’s Motion is that the Court should abstain from deciding the Lexington Action, pending resolution of the overlapping, later-filed Rolison Action. Rolison’s position, which Lexington does not challenge, is that the Lexington Action concerns “the exact same factual and/or legal issues” raised in the Rolison Action. (Amended Motion to Dismiss, ¶ 5.) Rolison further asserts that Lexington was filed “merely to beat Rolison to the punch” and “to win the race to the courthouse.” (Id. at ¶ 4 & n. 1.) As factual grounds for this objection, Rolison points to a January 10, 2006 letter written by his personal counsel to insurance-appointed counsel for Bradford demanding that Bradford or its insurers post a supersedeas appeal bond on Rolison’s behalf to prevent Miller’s attorneys from executing the Miller judgment against him during the pendency of the appeal. The January 10 letter stated as follows:
“Let this letter serve as official notice that you have 7 days in which to purchase a bond that would cover Rudolph Rolison in this matter or he will be forced to protect himself.”
(Motion to Dismiss, at Exh. D.) Lexington does not dispute that it had actual, contemporaneous notice of the January 10 letter. The
Lexington
Action was filed just 10 days later. In light of this sequence of events, Rolison urges the Court to apply the criteria of
Ameritas Variable Life Ins. Co. v. Roach,
Both Bradford and Lexington oppose Rolison’s Motion. For its part, Bradford points out that it has filed counterclaims against Lexington in these proceedings seeking monetary relief for breach of contract and bad-faith refusal to settle, thereby removing this action from the Declaratory Judgment Act’s zone of discretion and obligating the Court to exercise jurisdiction. Meanwhile, Lexington contests Roli-son’s characterization of this action as an anticipatory filing and, further, furnishes a separate analysis of the
Ameritas
factors that, it contends, mandates a finding that abstention is improper. Significantly, neither Bradford nor Lexington disputes Ro-lison’s contention that there is considerable factual and legal overlap between the
B. Legal Standard.
The Complaint reflects that Lexington’s claims in this action sound exclusively in declaratory judgment, and were brought “pursuant to the provisions of
Consistent with the foregoing, it has long been recognized in this Circuit that a district court has discretion to “decline to entertain a declaratory judgment action on the merits when a pending proceeding in another court will fully resolve the controversy between the parties.”
Ven-Fuel, Inc. v. Department of the Treasury,
Last year, the Eleventh Circuit expounded on its
Ven-Fuel
holding in two
Mere months after
Ameritas,
the Eleventh Circuit provided both reinforcement and clarification of that opinion in
Manuel v. Convergys Corp.,
C. Analysis.
Rolison’s Motion rests exclusively on the notion that, pursuant to
Ameritas,
the discretion created by the Declaratory Judgment Act should be exercised in favor of abstention, given the pendency of the
Roli-
1. Wilton/Brillhart Discretion Applies.
Bradford contends that an Ameritas analysis would be improper, as a matter of law, because the instant action is not confined to claims for declaratory judgment. Indeed, Bradford’s Counterclaims against Lexington demand monetary relief in excess of $500,000 in compensatory damages, plus punitive damages, based on Alabama state law claims of breach of contract and bad-faith refusal to settle. As a result of its Counterclaims, Bradford argues, this action lies outside the Ameritas framework. While this Court would ordinarily be vested with broad discretion under Wilton in deciding whether to hear Lexington’s claims for declaratory judgment, according to Bradford, no concomitant discretion attaches to its Counterclaims, which the Court must hear. If the Counterclaims must remain in federal court, the logic goes, then so must the declaratory judgment claims, so as to avoid splintering this litigation into small fragments to be decided by different courts in different fora.
As support for its position, Bradford relies on
Government Employees Ins. Co. v. Dizol,
Bradford’s reliance on this
dicta
from
Dizol
is misplaced. As an initial matter,
More importantly, the viewpoint of the Ninth Circuit as expressed in
Dizol
and its progeny is not unanimously embraced by federal courts nationwide. No party has identified, and this Court has not found, any Eleventh Circuit authority tackling this thorny question. However, a recent published decision out of the Eastern District of Pennsylvania quite helpfully sheds light on this esoteric subject by surveying federal caselaw and outlining three distinct, emergent lines of precedent.
See ITT Industries, Inc. v. Pacific Employers Ins. Co.,
After studying these precedents and the parties’ respective briefs, the undersigned finds that the “heart of the action” test is the most appropriate and the most readily reconcilable with applicable legal principles. In
Wilton,
the unanimous Supreme Court explained that declaratory judgment actions are fundamentally different than ordinary civil actions because of the discretion imbued in district courts by Congress in deciding whether and when to avail themselves of this “remedial arrow in the district court’s quiver.”
One of the most desirable features of the “heart of the action” rule is its
See ITT, at 553 (finding that while amended complaint contained claims for bad faith and breach of contract, in addition to declaratory judgment, cutting through “rhetorical fog” of pleadings illustrated that essence of dispute was scope of insurance coverage, and that bad faith/contract claims depended on declaratory claims). This latter combination of circumstances is precisely the posture of the instant action. Accordingly, the Court readily concludes that this ease is, at its heart, a declaratory judgment action, and that the discretionary standard of Wilton (and the multifactor analysis of Ameritas) applies. 16
2. The Ameritas Factors Warrant Abstention.
Having determined that Wilton discretion does attach in this case, the undersigned next must apply the nine Ameritas guideposts (as described previously) to the particular circumstances here in order to assess whether abstention in favor of the Rolison Action in Choctaw County is appropriate.
The first
Ameritas
factor concerns “the strength of the state’s interest in having
Second, Ameritas looks to “whether the judgment in the federal declaratory action would settle the controversy.” Id. It undoubtedly would not. This litigation is a subset of that presented in the Rolison Action. Indeed, several parties to the Ro-lison Action, including St. Paul, Royal, Shelly Clark, and Bob Coleman, are not parties to this case. Resolution of the issues presented by Lexington and Bradford here would leave unresolved various matters in the Rolison Action, including coverage and bad faith issues pertaining to Bradford’s insurance contracts with St. Paul and Royal, not just with Lexington. Also, a ruling in this declaratory judgment action adverse to Lexington would not obviate the need to proceed in the Rolison Action; to the contrary, Rolison would be obliged to move forward with his damages claims against Lexington in the Rolison Action because those claims are not part of this litigation. Imagine the awkwardness that would result if this Court found against Lexington on the declaratory judgment claim, leaving the state court to entertain Rolison’s damages claims even if it disagreed with the undersigned’s declaratory ruling on coverage. That kind of unnecessary, entangling interference is exactly the reason animating Wilton discretion, and plainly militates in favor of abstention here. 18
The third
Ameritas
guidepost is “whether the federal declaratory action would serve a useful purpose in clarifying the legal relations at issue.”
Id.
It undoubtedly would, to a limited degree. Both Lexington and Rolison stand to benefit from clarification of the legal relations between them (albeit a clarification that could be equally well or better provided by an Alabama state court in the
Rolison
Action).
The parties disagree vehemently over the fourth Ameritas consideration, to-wit: “whether the declaratory remedy is being used merely for the purpose of ‘procedural fencing’-' — 'that is, to provide an arena for a race for res judicata or to achieve a federal hearing in a case otherwise not removable.” Id. The critical bone of contention is whether Lexington raced to the courthouse to file this action in anticipation of Rolison filing a lawsuit of his own. It is undisputed that, just 10 days before Lexington filed suit, it received a letter from Rolison’s attorney stating that unless Lexington purchased an appeal bond to cover Rolison concerning the Miller judgment, “he will be forced to protect himself.” (Motion to Dismiss, at Exh. D.)
In response to Rolison’s characterization of the letter as a threat of litigation, Lexington protests that the letter “is hardly so clear,” that its meaning “is, at best, uncertain,” and that “a direct threat was not made prior to Lexington’s filing.” (Response, at 7-8.) This position is not credible. The January 10 letter cannot reasonably be construed as anything other than a direct threat of litigation; indeed, the Court is at a loss to envision (and Lexington does not suggest) what Rolison might have done to “protect himself’ other than to sue Bradford’s insurers (including Lexington) on various coverage and bad-faith grounds in an effort to force the issue. The “procedural fencing” criterion does not require Rolison to announce bluntly “I am going to sue you if you don’t do what I want” before a filing can be deemed anticipatory. In any event, Lexington was plainly on notice that he intended to do just that.
19
Therefore, Lexington’s act of responding to this revelation by quickly filing a declaratory judgment action of its own cannot reasonably be construed as anything other than an anticipatory filing.
20
While not dispositive, the fact that Lexington filed an anticipatory declaratory
The fifth
Ameritas
consideration is “whether the use of a declaratory action would increase the friction between our federal and state courts and improperly encroach on state jurisdiction.”
Sixth,
Ameritas
directs courts to examine “whether there is an alternative remedy that is better or more effective.”
Id.
Rohson urges the Court to answer this question affirmatively, inasmuch as the
Rolison
Action can incorporate all of the similar, overlapping legal issues among Robson, the various insurance carriers and Bradford. Should this action proceed, Robson argues, the Court will decide a small slice of the dispute, but the remainder will still need to be addressed by the Choctaw County court, such that the state court remedy will be far more effective, economical and efficient. In response, Lexington does not contest that all disputed issues in these related cases may be effectively and efficiently resolved in a single forum in the
Rolison
Action. Instead, Lexington unveils a protracted criticism of Robson’s choice of a Choctaw County venue for the
Rolison
Action which, in its view, renders the “alternative remedy” unsatisfactory. (Response, at 16-19.) Notably, Lexington does not contend that Robson was forbidden from filing his lawsuit in Alabama state court; rather, its point is that Robson should have selected Mobile County, not Choctaw County. But this Court is not empowered to enter advisory rulings for an Alabama state court as to whether venue does or does not properly be in a particular county; therefore, it would constitute inappropriate encroachment and interference for this Court to pass judgment on the propriety of a Choctaw County venue in another case. Moreover, assuming (without deciding) that venue in Choctaw County is improper, that fact does not render the
Rolison
Action an inferior, unacceptable or non-viable remedy. To the contrary, if Lexington’s venue arguments are accepted by the state court, then the most likely outcome is not dismissal of the
Rolison
Action, but transfer to an Alabama county where venue does properly be. None of this venue debate will or can deprive the alternative remedy of its effi
The seventh and eighth Ameritas guideposts are “whether the underlying factual issues are important to an informed resolution of the case” and, if so, “whether the state trial court is in a better position to evaluate those factual issues than is the federal court.” Id. On this record, any legal determination of Rolison’s status under the relevant policies of insurance will likely depend, at least in part, on the underlying facts surrounding Rolison’s relationship with Bradford. Although it is not immediately clear that an Alabama state court would be better equipped than a federal court to make those factual assessments, the Alabama court would have a distinct advantage in one important respect, to-wit: It would have all the claims, all the factual issues, all the parties and all of the evidence before it, while this Court would be forced to reckon with only a portion of those facts based on evidence presented by a subset of the parties to the state proceedings. Simply put, the state court would be better able to see the whole board, rather than just the sliver of it presented in federal court. Thus, while these two factors are largely neutral, they do lend some modicum of support to declining jurisdiction over the declaratory judgment action.
Ninth and finally, Ameritas directs district courts to consider “whether there is a close nexus between the underlying factual and legal issues and state law and/or public policy, or whether federal common or statutory law dictates a resolution of the declaratory judgment action.” Id. This factor unambiguously weighs in favor of abstention. Lexington’s Complaint (and Bradford’s Counterclaim, for that matter) raises exclusively state law issues and implicates exclusively state law public policies, with no reference whatsoever to federal common or statutory law. Lexington does not and cannot contest the application of this guidepost in support of abstaining from jurisdiction over these proceedings.
Considered collectively, the
Ameritas
guideposts and the other arguments and factors identified in the parties’ briefs point towards abstention. The chronology
But there’s more here. This declaratory judgment action implicates exclusively Alabama state law issues relating to which of several parties bears legal responsibility for satisfying a judgment entered by an Alabama state court based on the verdict of an Alabama state jury. It is undisputed that all of the legal and factual issues raised by Lexington here are also at issue in the currently pending Choctaw County action, and that Bradford could readily interpose its monetary claims against Lexington in that proceeding. That fact supports abstention.
See Shenvin-Williams Co. v. Holmes County,
In short, taking to heart
Wilton’s
concerns of “practicality and wise judicial administration,” the Court finds that those virtues would be poorly served by retaining jurisdiction over this declaratory judgment action, inasmuch as (a) the same exclusively state law issues presented here are being litigated by the same parties in a
3. The First-Filed Rule is Inapplicable.
Lexington strives to retain the federal forum for this declaratory judgment action by invoking the first-filed rule, pursuant to which “[i]n absence of compelling circumstances, the court initially seized of a controversy should be the one to decide the case.”
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Haydu,
The flaw in this argument is that the first-filed rule is not an absolute, mandatory, inflexible requirement. Rather, courts have routinely cautioned against rote, mechanical application of the first-filed rule, and instead weigh the first-filed issue in the broader context of the ends of justice.
See, e.g., Lockheed Martin Corp. v. L-3 Communications Corp.,
I. Stay or Dismissal?
Having determined that Wilton discretion is in play, and having applied the Ameritas guideposts to conclude that abstention will promote the interests of practicality, comity and efficient, wise administration of justice, the Court now must decide which of dismissal or stay is the appropriate remedy. Despite their expansive briefing, Rolison, Lexington and Bradford omit discussion concerning whether, once abstention is deemed appropriate, the proper course of action is dismissal without prejudice or a stay pending resolution of the state court proceeding. Notwithstanding this omission, the Court must address and resolve this issue in order to determine what form the abstention should take here.
In
Wilton,
the Supreme Court observed that “where the basis for declining to proceed is the pendency of a state proceeding, a stay will often be the preferable course, because it assures that the federal action can proceed without risk of a time bar if the state case, for any reason, fails to resolve the matter in controversy.”
The Court finds that dismissal is warranted here for two reasons. First, in contrast to the concerns articulated in Wilton and Gatewood, no party has suggested that there would be any reasonable risk of a time bar in the Choctaw County action with respect to any claim asserted in this action, so as to render a stay appropriate. Second, if this action were stayed, it is possible that certain parties might choose to forego their claims in the Rolison Action in state court in hopes that they might litigate them in federal court after the conclusion of the Rolison Action and after the stay is lifted. Thus, in the circumstances presented here, granting a stay might yield the type of forum-shopping and piecemeal litigation that Wilton/Brill-hart abstention was designed to prevent. Based on these considerations, and in the absence of argument or analysis by the parties, the Court concludes that this action is due to be dismissed, rather than stayed.
III. Conclusion.
For all of the foregoing reasons, defendant Rudolph Rolisoris Amended Motion to Dismiss and/or Motion to Abstain (doc. 8) is granted. This action is hereby dismissed without prejudice pursuant to Wilton/Brillhart abstention, to enable the parties to litigate all issues pertaining to this dispute in the parallel lawsuit currently pending in Choctaw County Circuit Court. In light of this disposition, Lexington’s Motion to Dismiss Count Two of Bradford’s Counterclaim (doc. 30) and Bradford’s Motion for Leave to File Amended Counterclaim (doc. 35) are both moot. Defendant Rolison’s original, superseded Motion to Dismiss and/or Motion to Abstain (doc. 7) is likewise moot. A separate judgment will enter.
DONE and ORDERED this 16th day of May, 2006.
Notes
. Also pending is Rolison’s original Motion to Dismiss and/or Motion to Abstain (doc. 7). Inasmuch as that Motion has been superseded in its entirely by the Amended Motion, the original Motion to Dismiss and/or Motion to Abstain (doc. 7) is moot.
. Bradford also had a third carrier, Royal Insurance Company of America ("Royal”),
. On March 9, 2006, defendant Bradford filed a two-count Counterclaim (doc. 17) against Lexington in this case, alleging that the latter breached its contractual obligations to Bradford under the applicable insurance policy by failing to indemnify it and settle the Miller Action, and that Lexington also engaged in negligent or bad-faith refusal to settle the Miller Action despite timely demands from Bradford.
. Rolison also sued Bradford and two of its employees, Bob Coleman and Shelly Clark, for alleged misrepresentations in connection with whether Rolison would be fully covered by Bradford’s policies of insurance in performing duties on Bradford’s behalf. Like Rolison, Bradford, Coleman and Clark are Alabama citizens for diversity purposes.
. It is the Court’s understanding that yet another lawsuit has spun off from the Miller litigation, as St. Paul evidently filed a declaratory judgment action of its own in the United States District Court for the Northern District of Alabama just one day after the Lexington Action. It is staggeringly inefficient, to say the least, that the discrete issues of the insurers’ rights, duties and liabilities with respect to Rolison and Bradford in the Miller Action have yielded three roughly contemporaneously-filed actions pending in three different fora involving substantially similar parties and addressing overlapping (if not identical) issues.
. Pleadings filed in both this action and in
Rolison
in recent weeks alluded to imminent settlement of the
Miller
Action. In light of this information, on April 3, 2006, the undersigned entered an Order (doc. 33) in this action setting forth its expectation “that the parties will file appropriate pleadings to the extent the underlying settlement impacts either of these two related actions now pending before the undersigned.” (Doc. 33.) On May
.
Ven-Fuel
is consistent with, extant Supreme Court jurisprudence. More than 60 years ago, the Supreme Court opined that it would be both "uneconomical” and "vexatious” for a federal district court to proceed with a declaratory judgment action, concurrently with ongoing proceedings involving the same parties and same legal issues (not arising under federal law) in state court.
Brillhart v. Excess Ins. Co. of America,
. These considerations have been echoed by other appellate courts.
See, e.g., Government Employees Ins. Co. v. Dizol,
. Rolison has not asked the Court to abstain from hearing this dispute under principles of Burford or Colorado River abstention; therefore, the undersigned will not sua sponte explore whether abstention would be viable under those doctrines.
. In a nutshell,
Colorado River
authorizes a federal district court to dismiss or stay an
. The
R & D Latex
court explained the Ninth Circuit's standard in the following terms: "The proper analysis, then, must be whether the claim for monetary relief is independent in the sense that it could be litigated in federal court even if no declaratory claim had been filed. In other words, the district court should consider whether it has subject matter jurisdiction over the monetary claim alone, and if so, whether that claim must be joined with one for declaratory relief.”
.
See also United Capitol Ins. Co. v. Kapiloff,
. Arguably, there is a fourth line of precedent as well, pursuant to which the presence of a declaratory judgment claim always gives rise to
Wilton
discretion, regardless of the other facts and circumstances.
See Great American Ins. Co. v. Gross,
. In pointing out this likelihood, the Court is in no way casting aspersions on the legitimacy of Bradford's Counterclaims in this action, nor is it imputing any improper or untoward forum-shopping motives to Bradford in filing such claims.
. The alternative approaches do not offer sufficient flexibility in this regard. "To apply the Colorado River standard to actions containing both declaratory judgment and coercive claims without an analysis of the facts at hand would be to ignore the Supreme Court's specific recognition that declaratory judgment actions necessitate a different treatment than other types of cases.” ITT, at 553. Analogous reasoning counsels against the Great American "discretion-no-matter-what” regime.
. Many (if not all) of the decisions cited by Bradford in support of the notion that Colorado River, and not Wilton, governs Rolison's Motion involve coercive claims appearing side by side with declaratory claims in the complaint, rather in counterclaims filed by a defendant. Rolison urges the Court to reject Bradford’s Colorado River argument out of hand on the basis of this distinction. However, the Court is unaware of any principled reason why the assertion of coercive claims in a counterclaim rather than a complaint should be a per se guarantee of Wilton discretion. Under certain circumstances, a counterclaim could be emblematic of the heart of the action. More generally, viable claims to which federal subject-matter jurisdiction applies are no less worthy of being heard in federal court because they appear in a counterclaim rather than in a complaint. Nor does the Court need to make such an extreme, sweeping pronouncement regarding coercive counterclaims as a whole in order to eschew reliance on Colorado River here. Rather, it suffices to find (and the Court does find) that the "heart of the action” test applies, and that on the facts and circumstances presented here, the declaratory judgment cause of action lies at the heart of these proceedings.
. Lexington disputes this analysis by arguing that the relevant judgment was entered in Mobile County, while the Rolison Action was filed in Choctaw County. According to Lexington, "[t]he Choctaw County state court has no interest in this action." (Lexington Brief (doc. 20), at 14.) But Ameritas does not instruct district courts to evaluate the interest of Choctaw County in deciding the dispute; rather, it turns on whether Alabama has an interest in having this dispute decided in its courts, instead of federal courts. That question is undoubtedly answered in the affirmative. Besides, Rolison’s evidence is that he is now a resident of Choctaw County, Alabama. Surely Choctaw County has some interest in deciding state law legal disputes involving its residents.
.
See Ameritas,
. The Court understands Lexington's position that Rolison could not have sued it until the Miller appeal was final, and that it could not reasonably have predicted that Rolison would dismiss that appeal in order to give him standing to sue Lexington. (Response, at 9-11.) In other words, Lexington seems to be saying that it waved aside Rolison's threat as mere idle talk. The Court also understands Rolison's position that he already had standing to sue Lexington based on events preceding the Miller judgment, such as Lexington's alleged bad-faith failure to settle on his behalf. (Reply, at 2.) The undersigned need not wade into this morass to evaluate this Ameri-tas factor. The critical fact is that Rolison unambiguously threatened legal action if Lexington failed to provide a bond; therefore, Lexington could and should reasonably have anticipated that Rolison would take any and all steps it deemed necessary and appropriate to carry out that threat. Lexington apparently did just that, since it sued Rolison barely a week after the threat was made. As for Lexington’s assertion that Rolison’s dismissal of his appeal in Miller was a breach of his obligations under the applicable policy (Response, at 10-11), that merits-based argument (even if correct) appears ancillary and unrelated to the question of whether Lexington's filing of this lawsuit was in anticipation of the Rolison Action. The Court will not venture so far afield in resolving the narrow abstention issues before it at this time.
. Lexington suggests that the timing of its declaratory judgment action is properly explained not by the January 10 letter, but by the
Miller
court’s denial of Rolison’s motion to stay execution of the judgment pending
. Of course, the not-so-subtle subtext of Lexington's venue objection is that Lexington should not be penalized for filing anticipatory litigation when Rolison himself has "engaged in illicit forum-shopping" by filing his lawsuit in the wrong state court. (Response, at 18.) But a state court plaintiff need not engage in model, exemplary conduct in order for a district court to be justified in exercising its discretion not to hear a redundant declaratory judgment action. The Ameritas guideposts do not specifically take into account the behavior of the state court plaintiff in deciding whether considerations of federalism, efficiency and comity militate in favor of abstention from hearing a declaratory judgment action concurrently with a parallel state court proceeding. To the extent that Rolison's alleged forum-shopping in state court is a relevant factor in the exercise of Wilton discretion, it does not substantially influence the Court's decision because (a) there is no evidence that Rolison's decision to file in the county where he resides did not arise from a good-faith (even if mistaken) interpretation of Alabama venue rules, (b) in the undersigned’s experience, defects in venue are relatively common and innocuous, as they are often waived by defendants and easily remedied otherwise, (c) such ostensible "illicit forum-shopping” may be readily corrected by Lexington seeking for a transfer of venue in the Rolison Action, and (d) the degree of virtue of the plaintiff’s litigation strategies in the state court proceedings is a tangentially relevant factor, at best, and is therefore entitled to little weight in the Ameri-tas process.
. Other appellate courts have adopted similar approaches, reasoning that "federal courts should generally decline to entertain reactive declaratory actions.”
Dizol,
. Courts in other jurisdictions have made these points even more forcefully.
See Electronics for Imaging, Inc. v. Coyle,
.
See generally Poston,