If a Hawai`i resident's second home in Florida suffered hurricane damage and coverage was denied by a Florida based insurer, could the insured sue the insurer in Hawai`i?  In re: Garnett v. Citizens Prop. Ins. Corp., No. 1070663, 2009 Ala. LEXIS 30 (Ala. Jan. 30, 2009) suggests the answer is "no."

    Ms. Garnett was an Alabama resident, but owned a home in Florida.  The home was insured by Citizens, a Florida government entity created to insure applicants who are unable to obtain coverage in the voluntary market.  Citizens issues insurance only on property located in Florida and only through insurance agents licensed in Florida.  In September 2004, Ms. Garnett's home was destroyed by Hurricane Ivan.  She sought coverage from Citizens, but the claim was denied because the damage was allegedly caused by storm surge, not wind. 

    Garnett sued Citizens in an Alabama state court.  Citizens moved to dismiss for lack of personal jurisdiction and forum non conveniens.  Discovery showed that 2,363 policies issued by Citizens were held by Alabama residents.  Citizens, however, maintained no office in Alabama, did not conduct any business in Alabama, had no property in Alabama, had no telephone listing in Alabama, had no employees or authorized agents in Alabama, and derived no income from business conducted in Alabama.  Nevertheless, the circuit court denied Citizens' motion to dismiss.

    The Alabama Supreme Court reversed.  Citizens' contacts were insufficient to satisfy the requirements for personal jurisdiction. Citizens had not purposefully availed itself of the privilege of conducting business in Alabama such that it could reasonably anticipate having to appear in an Alabama court.  Although this decision seems reasonable, two justices dissented, finding personal jurisdiction existed based on the 2,363 polices issued to Alabama residents.