Nationwide Mutual Insurance Company v. Black

Kay Black and William Black (passengers), Ohio residents, were passengers in a car owned and driven by Ruby Black (driver) (defendant), also an Ohio resident. In Ontario, Canada, the driver’s car collided with a car driven by an Ontario resident. The passengers, who were injured in the collision, submitted claims to State Farm Insurance, the driver’s insurer. Although the driver’s policy had been written in Ohio, State Farm was not an Ohio corporation. After State Farm denied their claims, the passengers submitted claims to their own insurance company, Nationwide Mutual Insurance Company (Nationwide) (plaintiff), an Ohio corporation, for payment pursuant to their policy’s uninsured-motorist coverage. Nationwide paid the passengers’ claims and subsequently filed a subrogation lawsuit against both the driver and State Farm in Ohio state court. The lawsuit sought a declaration that Ohio law, and not Ontario law, applied to the matter. Application of Ohio law would require State Farm to indemnify the driver, as its insured, for all damages paid to the passengers. Application of Ontario’s no-fault law, on the other hand, would mean that the driver was not liable for the collision and that State Farm was therefore not required to indemnify her. The trial court concluded that Ontario law applied to the matter. Nationwide appealed.