J. Franklin Long, Esquire
Bluefield, West Virginia
Attorney for Petitioner
Susan O. Phillips, Esquire
Ancil G. Ramey, Esquire
Steptoe & Johnson
Charleston, West Virginia
Attorneys for Respondent Joseph P. Nieto, D.O.
A. L. Emch, Esquire
Lynn Oliver Frye, Esquire
Katherine Venti, Esquire
Jackson & Kelly
Charleston, West Virginia
Attorneys for Respondent Laboratory
Corporation of America Holdings
Thomas V. Flaherty, Esquire
W. E. Sam Fox, II, Esquire
Flaherty, Sensabaugh & Bonasso
Charleston, West Virginia
Attorneys for Respondent Princeton
Community Hospital Association, Inc.
The Opinion of the Court was delivered PER CURIAM.
JUSTICE MAYNARD dissents and reserves the right to file a dissenting opinion.
JUDGE FRED RISOVICH, II, sitting by temporary assignment.
JUSTICE SCOTT did not participate in the decision in this case.
Whether a corporation is subject to venue in a given county in this State under
the phrase in W. Va. Code, 56-1-1(b), wherein it does business depends upon the
sufficiency of the corporation's minimum contacts in such county that demonstrate it is doing
business, as that concept is used in W. Va. Code, 31-1-15. To the extent that Brent v. Board
of Trustees, 163 W. Va. 390, 256 S.E.2d 432 (1979), implies a more restrictive standard, it
is overruled. Syllabus, Kidwell v. Westinghouse Electric Company, 178 W. Va. 161, 358
S.E.2d 420 (1986).
Per Curiam:
In this proceeding in prohibition, the relator Dollie Huffman, as Administratrix
of the Estate of Kayla Rene Huffman, prays that this Court issue a writ of prohibition
prohibiting the respondent Judge of the Circuit Court of McDowell County from transferring
to Mercer County a wrongful death action instituted by her in the Circuit Court of McDowell
County. The respondent argues that such a transfer is appropriate because the Circuit Court
of Mercer County is an appropriate venue for trial of the case.
Following the death of Kayla, Dollie Huffman, acting as Administratrix of the
Estate of Kayla Rene Huffman, instituted a wrongful death action against her physician,
against Laboratory Corporation of America Holdings, and against Princeton Community
Hospital Association. The action was instituted in the Circuit Court of McDowell County.
After the filing of the action, Laboratory Corporation of America Holdings
moved to dismiss on the ground that the Circuit Court of McDowell County lacked venue
for trial of the action. In the alternative, Laboratory Corporation of America Holdings moved
to transfer the action from McDowell County to Mercer County on the basis of the doctrine
of forum non conveniens.
After receiving the motions of Laboratory Corporation of America Holdings,
the Circuit Court of McDowell County on April 27, 1999 entered an order stating:
Based upon review of the pleadings and argument of counsel,
the Court is of the opinion that venue would be proper in the
Circuit Court of Mercer County and, accordingly, hereby
transfer this Civil Action to the Circuit Court of Mercer County.
In a subsequent order entered on May 19, 1999, the Circuit Court of McDowell County
found that the contacts between Laboratory Corporation of America Holdings and McDowell
County were insufficient to establish venue, and that as a consequence, there was no venue
for the action in McDowell County. The court went on to find that venue would be proper
in the Circuit Court of Mercer County and ordered transfer of the action to Mercer County.
In the present proceedings, the relator, Dollie Huffman, as Administratrix of
the Estate of Kayla Rene Huffman, contends that the facts of the case are sufficient to
establish venue in the Circuit Court of McDowell County and that the change of venue
ordered by the circuit court was inappropriate under our law. The relator, therefore, prays
that this Court issue a writ of prohibition prohibiting the respondent Judge of the Circuit
Court of McDowell County from transferring the case from McDowell County to Mercer
County.
In State ex rel. Riffle v. Ranson, 195 W. Va. 121, 464 S.E.2d 763 (1995), this
Court recognized that the exercise of original jurisdiction in prohibition by this Court was
appropriate to resolve the issue of where venue for a civil action lies. We reached this
conclusion after noting that the issue of venue had the potential of placing a litigant at an
unwarranted disadvantage in a pending action and that relief by appeal would be inadequate.
Fundamental to the decision of the principal issue in the present case is W. Va.
Code 56-1-1, which establishes where venue for a civil action lies in the State of West
Virginia. That statute provides, in relevant part:
(a) Any civil action or other proceeding, except where it is
otherwise specially provided, may hereafter be brought in the
circuit court of any county:
(1) Wherein any of the defendants may reside or the cause of
action arose, except that an action of ejectment or unlawful
detainer must be brought in the county wherein the land sought
to be recovered or some part thereof, is; or
(2) If a corporation be a defendant, wherein its principal office
is, or wherein its mayor, president or other chief officer resides;
or if its principal office be not in this state, and its mayor,
president or other chief officer do not reside therein, wherein it
does business; or if it be a corporation organized under the laws
of this state, which has its principal office located outside of this
state, and which has no office or place of business within the
state, the circuit court of the county in which the plaintiff resides
or the circuit court of the county in which the seat of state
government is located shall have jurisdiction of all actions at
law or suits in equity against such corporation, where the cause
of action arose in this state or grew out of the rights of
stockholders with respect to corporate management; . . .
The evidence presented in the case presently before the Court shows that
Laboratory Corporation of America Holdings is a Delaware corporation with its principal
offices in North Carolina. It does not appear that the mayor, president or other chief officer
of Laboratory Corporation of America Holdings resides in West Virginia. Thus, it would
appear that, under W. Va. Code 56-1-1(a)(2), venue for an action against Laboratory
Corporation of America Holdings would lie in any county wherein it does business.
In Kidwell v. Westinghouse Electric Company, 178 W. Va. 161, 358 S.E.2d
420 (1986), this Court examined the meaning of the phrase wherein it does business
contained in our venue statute. In Kidwell, the Court overruled Brent v. Board of Trustees,
163 W. Va. 390, 256 S.E.2d 432 (1979), and held that the proper test for determining venue
under W. Va. Code 56-1-1 is the same test used for determining personal jurisdiction under
W. Va. Code 31-1-15. In the Brent case, the Court had held that the test for venue in a tort
case was whether a corporation's business activity in a county related directly to the acts
which caused injury. In Kidwell, the Court concluded that this test was inappropriate. In the
sole syllabus of Kidwell, the Court stated:
Whether a corporation is subject to venue in a given county in
this State under the phrase in W. Va. Code, 56-1-1(b), wherein
it does business depends upon the sufficiency of the
corporation's minimum contacts in such county that demonstrate
it is doing business, as that concept is used in W. Va. Code,
31-1-15. To the extent that Brent v. Board of Trustees, 163
W. Va. 390, 256 S.E.2d 432 (1979), implies a more restrictive
standard, it is overruled.
In Eastern Marketing Corporation v. Texas Meridian Production Company,
LTD, 798 F.Supp. 363 (S.D. W.Va. 1992), the United States District Court for the Southern
District of West Virginia recognized that the minimum contacts test of West Virginia's
jurisdiction statute, and inferentially, of West Virginia's venue statute, would comport with
federal due process requirements where the minimum contacts showed that the defendant had
purposely directed its activities at residents of the forum state and that litigation had arisen
out of or related to those activities.
An examination of the documents filed in the present case shows that
Laboratory Corporation of America Holdings did and does have contacts within McDowell
County, where the relator brought her action. Further, it appears that those activities were
purposefully directed at West Virginia parties and that the activities are the type of activity
that gave rise to the present action. Specifically, the documents filed in the present case
indicate that Laboratory Corporation of America Holdings has maintained accounts for
Welch Emergency Hospital, located in McDowell County, West Virginia; Tug River Clinic
of Northfork, located in McDowell County, West Virginia; and McDowell Medical
Associates, Inc., located in McDowell County, West Virginia. These accounts exist because
Laboratory Corporation of America Holdings performs tests and/or provides test results to
these McDowell County organizations. Additionally, invoices are sent to these McDowell
County organizations for payments due. The present action arose out of the type of testing
that Laboratory Corporation of America Holdings performs for its McDowell County
customers.
It is the claim of Laboratory Corporation of America Holdings that its
conducting of tests, its reading of test results, and its billing of McDowell County customers
do not constitute sufficient contact with McDowell County for venue of the relator's civil
action to lie against it in McDowell County. In arguing this point, Laboratory Corporation
of America Holdings takes the position that testing of fluid and tissue specimens is its real
business and that it does not physically do that business in McDowell County. Specifically,
in its memorandum Laboratory Corporation of America Holdings states:
The testing of fluid and tissue specimens is truly the business
of LabCorp. Accordingly, any business conducted or transacted
by LabCorp takes place outside McDowell County. Any
contacts with McDowell County are merely incidental and
attenuated to the performance of LabCorp in transacting its
business.
This Court finds this argument unpersuasive. It defies logic to conclude that
testing of fluids is the only business of Laboratory Corporation of America Holdings and that
it is not in the business of billing and collecting for such activities. The documents filed
show that in addition to testing, it does submit invoices for payment due and expects to
receive payment due. The record also suggests that the activity is not sporadic but is ongoing
and that there is, in fact, an ongoing business relationship between Laboratory Corporation
of America Holdings and its McDowell County customers.
A fair reading of the facts as developed by the documents filed in this case
shows that Laboratory Corporation of America Holdings maintains a business relationship
with a number of parties located in McDowell County, West Virginia, that it performs
services for those parties, and that it does bill those parties in McDowell County, West
Virginia.
The contacts of Laboratory Corporation of America Holdings with McDowell
County are substantial and have been repeated and are, in our opinion, under our law,
sufficient to support the finding that venue for the petitioner's action does lie in the Circuit
Court of McDowell County.
W. Va. Code 56-1-1(b) indicates that even where venue does lie in a county,
the civil action may be transferred to another county if certain circumstances are present. As
previously stated, W. Va. Code 56-1-1(b) provides:
(b) Whenever a civil action or proceeding is brought in the
county wherein the cause of action arose, under the provisions
of subsection (a) of this section, if no defendant resides in such
county, a defendant to the action or proceeding may move the
court before which the action is pending for a change of venue
to a county wherein one or more of the defendants resides, and
upon a showing by the moving defendant that the county to
which the proposed change of venue would be made would
better afford convenience to the parties litigant and the witnesses
likely to be called, and if the ends of justice would be better
served by such change of venue, the court may grant such
motion.
In Syllabus Point 1 of State ex rel. Riffle v. Ranson, supra, this Court stated:
W. Va. Code, 56-1-1(b) (1986), is the exclusive authority for
a discretionary transfer or change of venue and any other
transfer or change of venue from one county to another within
West Virginia that is not explicitly permitted by the statute is
impermissible and forbidden.
West Virginia Code 56-1-1(b) authorizes a change of venue only when a civil
action or proceeding is brought in the county in which the action arose. The relator's action
was not brought in Mercer County where it arose, but in McDowell County where venue lies
under W. Va. Code 56-1-1(a). Since W. Va. Code 56-1-1(b) permits a change of venue only
when the action is brought in the county where action lies, this Court believes that the Circuit
Court of McDowell County lacked authority for transferring venue of the action to the
Circuit Court of Mercer County.
For the reasons stated, this Court believes that the appropriate venue for the
relator's action is the Circuit Court of McDowell County and that the respondent judge of
the Circuit Court of McDowell County erred in ordering a transfer of the case to the Circuit
Court of Mercer County.
The writ of prohibition which the relator seeks is, therefore, issued and the
respondent judge is directed to refrain from proceeding to transfer the action to the Circuit
Court of Mercer County.