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STATE OF MINNESOTA IN SUPREME COURT A07-784

Court of Appeals

Meyer, J. Took no part, Page and Gildea, JJ.

In re Continental Casualty Company and Continental Insurance Company, Petitioners. Continental Casualty Company, et al., Appellants, vs. 3M Company, Respondent, ACE Bermuda Insurance, Ltd., et al., Defendants, Transamerica Premier Insurance Company, n/k/a Fairmont Premier Insurance, Respondent. SYLLABUS The Hennepin County District Court correctly transferred venue of a case to the asbestos judges in Ramsey County pursuant to this courts asbestos order in In re Minnesota Asbestos Litigation, No. C4-87-2406, where the case involved insurance Filed: May 29, 2008 Office of Appellate Courts

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coverage disputes seeking trigger and allocation determinations for asbestos injury claims. Affirmed. Heard, considered, and decided by the court en banc. OPINION MEYER, Justice. This case arises from a declaratory judgment action commenced in Hennepin County by petitioners Continental Casualty Company and Continental Insurance Company (Continental), insurers of respondent 3M Company. The action seeks a

declaratory judgment denying 3M coverage under Continentals policies based on a variety of breach-of-contract claims. In addition, in the event that coverage is not denied, Continental seeks resolution of trigger and allocation issues to apportion coverage among insurers and 3M. The claims against 3M underlying the coverage dispute involve

allegations that defective protective masks manufactured by 3M resulted in injury to users who were exposed to various harmful agents, including asbestos. Additional

underlying claims allege injury resulting from exposure to products produced by 3M that themselves contained harmful agents, including asbestos. Continental venued its declaratory judgment action in Hennepin County District Court on the basis that both the plaintiffs and 3M reside in Hennepin County. Respondent moved for a change of venue to Ramsey County, contending that no defendant resided in Hennepin County and further, that the ends of justice would be promoted by a change of venue to Ramsey County based on certain asbestos orders. 2

Hennepin County District Court transferred venue to the asbestos judges in Ramsey County. The court of appeals affirmed. We also affirm. According to the complaint, 3M has been the target of a large number of toxicexposure claims, many of which allege injury resulting from exposure to asbestoscontaining products. Continental and many other insurers named in this action issued excess liability insurance policies to 3M at various times after approximately 1960. Continental alleges that 3M has defended, settled, and paid toxic-exposure claims without giving its insurers notice, an opportunity to participate in the defense, or an opportunity to evaluate the settlements. On January 5, 2007, Continental commenced a declaratory judgment action in Hennepin County District Court, naming 3M and its other insurers as defendants, and seeking to determine the extent of its insurance coverage obligations for a variety of toxic-exposure claims, including many asbestos-exposure claims. 3M demanded a change of venue. 3M argued that there is no defendant residing in Hennepin County and because 3M has its principal place of business in Ramsey County, a change of venue is mandated by Minn. Stat.

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