The Arkansas Court of Appeals recently ruled in favor of Southern Farm Bureau Casualty Insurance Company (SFB) in a case concerning the transfer of a declaratory judgment action. The court overturned a lower court's decision that had moved the case from Pulaski County to Phillips County. This ruling impacts how similar cases may be handled in the future, particularly regarding venue selection.
The case began when Samantha Eggleston was involved in a car accident in Phillips County on March 4, 2024. Eggleston's vehicle collided with another car driven by Kevin Stackhouse, which then struck property owned by Sheila and Dwight Hardison. Following the accident, the Hardisons and Stackhouse filed a negligence lawsuit against Eggleston in Phillips County, seeking damages for property and personal injuries.
In response to the negligence suit, SFB filed a complaint for declaratory judgment in Pulaski County against Eggleston and Brittany Arvie, the owner of the vehicle Eggleston was driving. SFB claimed that Eggleston had driven Arvie's car without permission, which triggered an exclusion in Arvie's insurance policy. SFB argued that it had no obligation to defend or indemnify Eggleston in the Phillips County lawsuit.
After filing its complaint, SFB amended it to include Stackhouse and the Hardisons as defendants. The amended complaint reiterated SFB's position that it had no duty to provide coverage in the negligence case. Stackhouse responded with a motion to dismiss, arguing that the Pulaski County lawsuit should be dismissed because the same matters were already pending in Phillips County. He maintained that Phillips County was a more convenient forum since the accident occurred there and most witnesses resided in that area.
SFB countered that the two lawsuits were not the same, as the Pulaski County case was about insurance coverage while the Phillips County case involved negligence. SFB noted that it and Arvie were not parties to the negligence lawsuit, making the issue of coverage irrelevant in that case.
Despite SFB's arguments, the Hardisons also sought to have the Pulaski County case transferred to Phillips County, claiming it was the proper and more convenient venue. In June 2025, after a hearing, the Pulaski County Circuit Court denied the motion to dismiss but granted the transfer to Phillips County, citing the convenience of the venue.
SFB appealed the decision, arguing that the transfer was improper. The court found that the Pulaski County Circuit Court had erred in its ruling. The court noted that the decision to transfer was based on factors relevant to the doctrine of forum non conveniens, which should not apply between counties in Arkansas.
The court stated, "When the legislative branch of the government gives the plaintiff the choice of venues and the plaintiff diligently exercises the choice, the courts should not apply the doctrine of forum non conveniens to transfer a matter to another county." The court emphasized that SFB had properly filed its action in Pulaski County, and the lower court's transfer to Phillips County was incorrect.
As a result of the ruling, the appeals court reversed the lower court's decision and remanded the case back to Pulaski County for further proceedings. The court's ruling clarifies that a plaintiff's choice of venue should be respected unless there are compelling reasons to change it.
This ruling could have significant implications for future cases involving venue disputes in Arkansas. It reinforces the principle that plaintiffs have the right to choose their venue and that courts should not override that choice without substantial justification.
Looking ahead, it is unclear whether the parties will seek further appeals or if there are related cases pending. However, the court's decision has set a clear precedent regarding the handling of venue transfers in similar cases.