Gulf Insurance Company v. Glasbrenner

417 F.3d 353 (2nd Cir. 2005)

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Nature of the Case

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Facts

In April 1994, Glasbrenner (D) was injured in a Caldor store in New Jersey. D and her husband David sued Caldor in New Jersey state court. Caldor had filed for bankruptcy and the suit was stayed pending proceedings before the bankruptcy court. The bankruptcy court required Ds to arbitrate their claim but ultimately permitted the New Jersey state suit to proceed. The bankruptcy court held that any judgment against Caldor could not be held against the bankrupt estate, but would instead have to be satisfied by Caldor's insurers, which included P. In April 2003, a New Jersey jury returned a verdict of approximately $2.6 million for Ds. P immediately filed this suit in the Southern District of New York seeking a declaration that, under the terms of the applicable insurance policy, it is not liable to pay the New Jersey judgment. Ds promptly moved to dismiss the suit for improper venue, among other things, arguing that venue lies in New Jersey. Ds filed a suit in New Jersey state court -- since removed to federal court in the District of New Jersey -- seeking to compel P to pay the judgment. The district court in New York dismissed P's declaratory judgment action for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3). P appealed.