Ruby Black was driving her car in Ontario, Canada, when it was involved in a collision with a car driven by Michael Fuller, a resident of Canada.

Black's passengers, Kay and William Black, and Grace Bell, were all injured. Kay and William Black had coverage with Nationwide on their personal car (which was not involved). Ruby Black was insured by State Farm. Kay and William Black filed claims for their injuries with State Farm, and it denied liability. They then sent their claims to Nationwide for payment under the UM coverage of their policy, and received payment from Nationwide.

In the interim, the Blacks and Nationwide had filed an action against Ruby Black and State Farm for declaratory judgment. The complaint alleged that Ruby Black had negligently operated her car, resulting in their injuries. After the Blacks had received payment for their injuries, they were dismissed from the action.

As the remaining plaintiff, Nationwide alleged that Ontario, where the accident occurred, had a comprehensive no-fault law, which provided that a claimant must first look to his own company for payment of medical expenses and lost wages, but could pursue any claim for special damages against the person responsible, or his insurance company, in the event of serious or permanent injury. Nationwide argued that the Ontario law should govern since the accident occurred there. It contended that it was entitled to judgment against Ruby Black and State Farm for any payments it was required to make to Kay and William Black, plus its costs.

The trial court found that the Ontario law prevailed, and Nationwide appealed.

Both insurance companies were licensed to do business in Ohio, where this action was filed.

The higher court decided that the judgment of the lower court was correct, and it affirmed the decision that the Ontario law should prevail, even though the passengers and their driver were residents of Ohio.

(Nationwide Mutual Insurance Company, Appellant v. Black et al--No. 16906--Court of Appeals of Ohio, Ninth District, Summit County--March 29, 1995--656 North Eastern Reporter 2d 1352.)