It seems to me that the relative adverb and the prepositional phrase with the relative pronoun as object (in which) are completely interchangeable here. But "where" is clearly not a conjunction.
I think "in which" is more common. I think of "where" in explaining formulae, "f = ma, where f is the applied force etc."
GG's point was that your "relative adverb
where" is not refering to a
noun of place as it should, but to a
case, which it should not. "In which" is the correct choice.
You may say, "In a town where a case was pending,". You may not say, "In a case where a town was abandoned,". A case is not a place.