Brooks v. Northglen Association, 141 S.W.3d 158, 163-164 (Tex. 11 0 obj 1989, no writ); In re Fontenot, 13 S.W.3d 111 (Tex. The Supreme Court of Texas has ruled that a company did not waive its right to arbitration by bringing a "friendly" declaratory judgment action. Plaintiff lacks standing for some or all of . Declaratory judgment actions are oftentimes filed in federal court. There is a contract, and a dispute over the parties rights and obligations under the contract. A court may not . The Murphys opposed Wells Fargo's motion, arguing, among other things, that Wells Fargo's claims should not be characterized as requesting declaratory relief. 37.003. 2201. denied) (refusing to allow use of extrinsic evidence to disprove alleged facts). While abstention doctrine is more frequently an issue in federal court, state courts can also abstain. Rules 12(b) and 12(h) . endobj CODE 37.001-.011. (a) This chapter may be cited as the Uniform Declaratory Judgments Act. The dispute was over an unscheduled vehicle. As with the state act, one of the exceptions allows a federal court to enjoin re-litigation in state court to protect or effectuate its judgments. See Royal Ins. Download PDF Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. App. See Bituminous Cas. Co., 767 F.Supp. 2d 719 (S.D. See, e.g., Cook v. Ohio Cas. Co. v. Childress, 650 S.W.2d 770, 775-76 (Tex. LEXIS 8082 (Tex. SECOND AFFIRMATIVE DEFENSE. xX]oF}G?SeW0W44q>EqU{s@N|Bt2&iw'PmH'4QH1_>{'Y7bLH dB4uX;iYtI7F7*L^F Aug. 2, 2012). defense n. 1 : the act or action of defending see also self-defense. Tex. While for years there was a question in the Federal courts as to whether 38.001, Tex. 1993) (whether accident arose from liquor liability); Acceptance Ins. A number of issues arise in regard to discovery in a declaratory judgment action. 651-389-5000, 10001 Reunion Place 1965). The collision was also in Hidalgo County, as was the liability suit. (b) A district court has original jurisdiction of a proceeding seeking a declaratory judgment that involves: (1) a party seeking declaratory relief that is a business that is: (A) organized under the laws of this state or is otherwise owned by a resident of this state; or, (B) a retailer registered with the comptroller under Section 151.106, Tax Code; and, (A) is an official of another state; and. This article will discuss some of the recent decisions illustrating the different views that Courts have taken with respect to this issue, as well as the implications for insurance companies that issue duty to defend policies. In Wade, the insurer argued that it was not challenging the veracity of the facts alleged, but had a defense independent of the pleadings. App.Corpus Christi 1975, writ refd n.r.e.) C.M.W., 53 S.W.3d 877 (Tex. & REM. 1998). 2201. See Brillhart v. Excess Ins. endstream Co. v. Marathon Ashland Petrol., L.L.C., 87 F. Supp. . See Feria v. CU Lloyds of Texas, 2001 Tex. See, e.g., Stroop v. N. County Mut. Ins. See, e.g., Standard Fire Ins. The insurer, Nautilus, agreed to defend the suit while also reserving its rights to disclaim coverage and obtain reimbursement of defense costs if it was determined that Nautilus did not owe a duty to defend. 504-526-4350, 408 St. Peter Street, Suite 510 Group, 946 F.Supp. !`g)a00-k@@eU App.Houston 1998, pet. (a) When declaratory relief is sought, all persons who have or claim any interest that would be affected by the declaration must be made parties. See Firemans Ins. Michael L. Zigelman is co-managing partner of the New York City office of Kaufman Dolowich & A separate issue exists, however, as to the facts and testimony relating to the liability event, and the evidence that has been accumulated or produced in the underlying case. In determining amount in controversy, the court may consider policy limits and defense costs, and is not necessarily limited by the damages pleaded in the underlying suit. In RSL Funding, LLC v. Pippins, No. Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. Admiral Ins. denied, 511 U.S. 1032 (1994). art. Co. v. Plummer, 13 F.Supp. See State Farm Mut. The court may refuse to render or enter a declaratory judgment or decree if the judgment or decree would not terminate the uncertainty or controversy giving rise to the proceeding. A future interest in a potential judgment has been held insufficient to allow intervention. The court noted that the Griffin exception did not apply, but that a justiciable controversy existed, as the judgment clarified the rights of the parties under the contract; especially because the policy includes a provision under which Ranger could be relieved of its duty to defend by tendering its limits. BORON. dismd, 507 U.S. 1026 (1993). Issues also arise, when the underlying case is still proceeding, as to the extent to which the insurer can discover information which could also be relevant, and potentially damaging, in the underlying liability suit. <>>> A declaration does not prejudice the rights of a person not a party to the proceeding. denied); State Farm Lloyds v. App.Dallas 1998, no pet.). dYU1oprU.:1FlU;{~_%uIMT6cHE 7o1E-j=E.s nR&%*%")QmLd~s`MF_]jd%DhjP1h 4 z#G?o 0Xj[f e /R&K(KX K$ TBu /5v+nA%. Moreover, Insurers should note that policies that are not duty to defend, or otherwise expressly provide a right of recoupment, may not be subject to the same limitations on the right of recoupment. This article contains general legal information but does not constitute professional legal advice for your particular situation. 1998). Id. 8 0 obj Co. v. Burch, 442 S.W.2d 331 (Tex. Co. v. Tex. Typically, an anti-suit injunction is appropriate in limited instances: 1) to address a threat to the courts jurisdiction; 2) to prevent the evasion of important public policy; 3) to prevent a multiplicity of suits; or 4) to protect a party from vexatious or harassing litigation. Moreover, the Second Department noted that the policy at issue did not expressly provide the insurer with a right to recoup defense costs. The court then noted the special concerns applicable in declaratory actions. Oftentimes, the insurer has no duty to indemnify. App.Houston 1965, writ refd n.r.e.) See, e.g., City of Galveston v. Giles, 902 S.W.2d 167 (Tex. Insurers that issue policies containing a duty to defend, such as CGL policies, should familiarize themselves with the rules governing recoupment in the applicable jurisdiction. 1997) (whether vehicle was owned by insured); Harken Exploration Co. v. Sphere Drake Ins., PLC, 261 F.3d 466 (5th Cir. 1991). 12 0 obj In Chiriboga v. State Farm Mut. that AHCA Comply with Fla. Stat. Declaratoryjudgments are an important tool in litigation. Foust v. Ranger Ins. Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. (d) In determining whether to grant declaratory relief to a business under this section, a court shall consider: (1) the factual circumstances of the business's operations that give rise to the demand by the other state; and. App.Beaumont 1999, pet. Therefore, either diversity or federal question jurisdiction must still exist. US Senate panel seeks ethics details from Supreme Court. Id. Co., 975 S.W.2d 329, 332 (Tex. "gj6P'pn.g_9z# ?V#yof.j,^4{%y^LJ_z|0 eivLnBE.orQevfwe^_d \2P4^Gy-ts}] ;|^QRg-d^yX^OeGE?kP0+]kw/k}m+TssVg4Pv. Coverage disputes under liability policies are well-suited for declaratory actions. In Foust v. Ranger Ins. Since the duty to defend is based solely on the live pleadings, a declaratory judgment is arguably based only on the pleading in effect, and is not determinative as to any subsequent amended or supplemental pleading. App. (auto liability insurer seeking declaratory relief was not subject to cross-action by injured party, or consolidation of liability and coverage suit); see also Firemans Ins. DEFINITION. ydXOEp Pzz2 -Ia5D(eUE02Xd#zG5 ;}srmVY9c~Vqz6#tUy/`ck$cVpxKCoo,}o{T#@TQ]%5|@Rtx~K9jptm> oL Co. v. Ward, 107 S.W.3d 820 (Tex. While some older cases find an insurer cannot re-litigate facts, if it has wrongfully refused to defend, recent cases have held that an insurer is not bound, in any circumstance, where the facts allegedly establishing coverage are not fully litigated. (on petition for mandamus, found claimant was not third party beneficiary and had no right to intervene in declaratory action). Co., 192 A.D. 3d 28 (2d Dep't 2020) the Second Department expressly "declined to follow" the prevailing New York authority. Courts recognize that when there are conflicting positions on coverage, as when the insurer reserves rights, there is no privity between the insured and the insurer on issues relating to coverage, which are also at issue in the underlying case. Voluck LLP and chair of its general liability coverage practice group. Co. v. Griffin, 955 S.W.2d 81 (Tex. Co. v. Cooper Machinery Corp., 817 F.Supp. App.Houston [14th Dist.] Federal courts have typically held that declaratory relief is discretionary, and a federal court has broad authority to stay or dismiss an action seeking a declaratory judgment. 1, eff. Id. Insurer's right to assert other policy defenses . 7) whether the federal court is being called on to construe a state judicial decree involving the same parties and entered by the court before whom the parallel state suit between the same parties is pending. Tex. 639a3). 37.001. There are exceptions, of course. District courts have articulated several reasons for why mirror-image counterclaims should be dismissed. Co. v. River Entertainment, 998 F.2d 311, 315 (5th Cir. (b) A contract may be construed either before or after there has been a breach. (c) Notwithstanding Section 22.001, Property Code, a person described by Subsection (a) may obtain a determination under this chapter when the sole issue concerning title to real property is the determination of the proper boundary line between adjoining properties. 2001). 1965, writ refd n.r.e.) Tex. The insurer denied defense based on the liquor liability exclusion and filed a declaratory judgment action. <> App.Corpus Christi 1997, no pet.) endobj Mut. Suite 1850 1993); McLaren v. Imperial Cas. The Court held that insurers are entitled to recoupment even where the policy at issue does not expressly provide such a right. See, e.g., Sylvester v. Watkins, 538 S.W.2d 827 (Tex. 713-403-8210, 601 Poydras Co. v. Ochoa, 19 S.W.3d 452 (Tex. & Liab. 1998); see also Abraxas Petroleum Corp. v. Hornburg, 20 S.W.3d 741 (Tex. App.Dallas 2001, pet. See McCarthy Bros. Co. v. Continental Lloyds, 7 S.W.3d 725 (Tex. Instead, a party may recover fees only where controlling substantive law permits recovery. See London Mut. Because there was no judgment in the liability suit, the court concluded that any declaration regarding indemnity would be purely hypothetical.1 In 1997, the Supreme Court concluded that the law had changed, however, and determined that a declaration of indemnity was available, when the same facts that defeated a duty to defend also defeated a duty to indemnify. See Southern County Mut. An action or proceeding is not open to objection on the ground that a declaratory judgment or decree is prayed for. App.Dallas 1998, pet. Co. v. Trejo, 39 F.3d 585, 590 (5th Cir. Ins. Co. v. Boll, 392 S.W.2d 158, 161 (Tex. endobj App.Corpus Christi 1992, writ denied) (whether boat was being used for business pursuit); International Serv. Am., 845 S.W.2d 794, 801 (Tex. 45 (N.D. Tex. Control of defense and directing actions of defense counsel in conflict situation (Utica Mut. Civ. He can be reached at [email protected]. Explainer: How did the battle between Ron DeSantis and Disney escalate? See, e.g., State Farm Fire & Cas. (b) The declaration may be either affirmative or negative in form and effect, and the declaration has the force and effect of a final judgment or decree. (b) This chapter is remedial; its purpose is to settle and to afford relief from uncertainty and insecurity with respect to rights, status, and other legal relations; and it is to be liberally construed and administered. Rule 57 also notes that the existence of another adequate remedy does not preclude a judgment for declaratory relief in cases where it is appropriate. In addition, Rule 57 provides that the court may order a speedy hearing as an action for a declaratory judgment and may advance it on the calendar.. Bonham State Bank v. Beadle, 907 S.W.2d 465 (Tex. Houston, TX 77056 If no facts within the scope of coverage are alleged, an insurer is not required to defend. Saint Paul, MN 55102 <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> See Natl Union Fire Ins. denied). P. 76A; 192.6(b)(5). 8. In duty to defend cases, the issue of whether extrinsic evidence is even relevant would likely arise. In Bradleys Electric, the court rejected an argument from the insured that the county where the insurance contract was negotiated and executed was the only proper venue, but recognized it was also proper. 1994). <> 1170 (1933). 1995). See, e.g., State Farm Fire & Cas. Ins. A defense is an act of protecting one's own interests. In St. Paul Ins. App.Houston [14th Dist.] endobj In holding that Nautilus was entitled to recoupment of defense costs, the Court reasoned that the right to recoupment was not governed by the insurance policy at issue, but rather the right is afforded to the insurer under the theory of common law unjust enrichment. 30, 2007, eff. When to file is often determined by what is at issue. Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. 37.008. App.Austin 1998, pet. of Trans., 999 S.W.2d 881, 883 (Tex. Civ. 1997)2; see also State Farm Lloyds v. See Tri-Coastal Contractors, Inc. v. Hartford Undwrs Ins. 1995). (4) to determine rights or legal relations of an independent executor or independent administrator regarding fiduciary fees and the settling of accounts. Dec. 1, 2007. Auto Ins. 1998) (holding that Texas Declaratory Judgment Act was not controlling, substantive law, and did not justify fee award to defendants). Rule 57, FED. App.Corpus Christi 1982, no writ), the court declared that the rule was that use of extrinsic evidence was allowed to determine coverage, but not to determine facts that would establish the insurers liability. App. Instead, the purpose of a declaratory judgment action is to determine the parties' responsibilities in relation to a particular dispute. September 1, 2007. The application must be by petition to a court having jurisdiction to grant the relief. 1968). Co. v. Quinn-L Capital Corp., 3 F.3d 877 (5th Cir. 1995); but cf. 5 0 obj 3.08(a), eff. v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex.
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