The federal district court granted the insured’s motion to dismiss the insurer’s federal suit for declaratory judgment because the insured filed a more complete action in state court. Church Mut. Ins. Co. v. Elmwood Baptist Church, 2025 U.S. Dist. LEXIS 259762 (S.D. W.V. Dec. 16, 2025).

Elmwood purchased a property policy from Church Mutual Insurance Company. After the roof of Elmwood’s property collapsed, the parties disputed the amount Church Mutual owed to Elmwood.

Church Mutual filed suit in federal district court asking for a declaration that the policy was “void ab initio,’ or, alternatively, that Church had fully compensated Elmwood for its loss.

After Church Mutual filed its lawsuit, Elmwood filed its own action against Church Mutual in West Virginia state court. Elmwood then filed a motion to dismiss or stay the federal suit, asking the court to sustain from deciding Church Mutual’s action, or alternatively, staying the action pending resolution of the state suit.

In its opposition, Church Mutual first argued that the court should hear its declaratory judgment action because it was the first filed. The court disagreed with this argument. Where a later-filed state suit would resolve all competing claims, the balance of convenience tipped in favor of the second filed state-court action. Here, Elmwood’s state suit would resolve the entire controversy between the parties, while the declaratory judgment action would settle a narrower set of issues.

Second, Church Mutual argued that abstention was inappropriate since Church Mutual planned to remove Elmwood’s case to federal court. Church Mutual, however, had not yet removed Elmwood’s state action. Since the removal was hypothetical at this point, the court would not consider it in ruling on the motion to dismiss.

Finally, Church Mutual asserted that Elmwood engaged in forum shopping. The court noted, however, that Elmwood’s case raised claims that would not be addressed in the federal case.

None of Church Mutual’s arguments were persuasive and Elmwood’s motion to dismiss was granted.