American Cemwood Corp. v. American Home Assurance Co.

In this case we consider whether a defendant seeking to stay or dismiss an action on the basis of forum non conveniens must show that all defendants are subject to jurisdiction in the proposed alternate forum. We hold that, on the facts presented here, such a showing is required.

Background

Appellant American Cemwood Corporation (American Cemwood) is an Oregon corporation. In 1993, the company was acquired by appellant MacMillan Bloedel (USA) Inc., a wholly owned subsidiary of MacMillan Bloedel Limited (MacMillan Bloedel), a Canadian corporation.

At the core of this insurance dispute are defective roofing tiles manufactured by American Cemwood between March 1987 and April 1998. By 1999, over 7,000 claims for damages caused by defective tiles had been filed against the company.

I. The Insurance Policies

Between 1989 and its 1993 acquisition by MacMillan Bloedel, American Cemwood was insured by three insurers: Travelers Casualty & Surety Co. (Travelers), a Connecticut corporation; Reliance Insurance Co. (Reliance), a Pennsylvania corporation; and North Pacific Insurance Co. (North Pacific), an Oregon corporation.

From 1993 through 1998 American Cemwood was insured by…