New England International Surety, Inc. v. State, Department of Insurance
Docket: No. 87-0356
Court: District Court of Appeal of Florida; August 26, 1987; Florida; State Appellate Court
On April 10, 1986, the Florida Department of Insurance filed an administrative complaint against New England International Surety, Inc., alleging that New England was unauthorized to conduct insurance business in any U.S. state. The complaint also claimed that New England entered into a reinsurance contract with Dyna Span Corporation in Boca Raton and issued reinsurance policies in multiple Florida cities. A first amended complaint on November 21, 1986, expanded the allegations to include illegal contracts and policies in eighteen Florida cities and three other states. New England was notified of the Department's intent to issue a cease and desist order following a hearing. In response, New England requested a formal hearing under Florida law and subsequently filed a petition for declaratory and injunctive relief in Palm Beach County, arguing that federal law preempted state insurance regulations. The Department moved to dismiss the complaint or change the venue. The trial court denied the motion to dismiss but granted the change of venue to Leon County. On appeal, New England contended that the "sword-wielder" doctrine justified maintaining the action in Palm Beach County, citing case law that allows such claims if official actions are being performed in the venue of the suit or if a real and imminent threat exists. However, the court found no evidence that New England had an office or property in Palm Beach County that was threatened by the Department's administrative action, which aimed to prevent New England from issuing insurance statewide. Consequently, the trial court's decision to transfer the venue to Leon County was upheld. Judges Anstead and Glickstein concurred with the decision.