§ 12.16 Venue - Federal Court

• Library: Guide to South Carolina Liability and Property Insurance Law (SCBar) (2019 Ed.)

§ 12.16 Venue - Federal Court

28 U.S.C. § 1391(b) provides:

(b) Venue in general. A civil action may be brought in —

(1) a judicial district in which any defendant resides, if all defendants are residents of the State in which the district is located;
(2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated; or
(3) if there is no district in which an action may otherwise be brought as provided in this section, any judicial district in which any defendant is subject to the court's personal jurisdiction with respect to such action.

The federal district court addressed the operation of the venue statute for removed cases and explained that while "[t]he general venue statute is 28 U.S.C. § 1391, [] venue in a removed case is governed exclusively by 28 U.S.C. § 1441."¹²⁸ The claimants brought suit against the insurer's insured subcontractor for injuries sustained when a stairway collapsed. The claimants filed suit against the subcontractor in Beaufort County, South Carolina. The parties in the underlying lawsuit entered an Order of Judgment, wherein the insured confessed judgment in favor of the claimants and assigned its rights to the claimants. The insurer filed a declaratory judgment, also in state court, seeking a declaration that the policy did not afford coverage because the policy was cancelled on the date of the accident.¹²⁹ The claimants removed the case to federal court and argued that venue was improper in the South Carolina federal district court in the...