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Id. 1994), the court reviewed abstention doctrine in relation to declaratory judgment actions. If any facts within the scope of coverage are determined, however, an insurer is required to defend. See, e.g., Wilton v. Seven Falls Co., 515 U.S. 277, 286 (1995). Frontier Pac. [ii]Civil Practice and Remedies Code Declaratory Judgments Sec 37.002 and Sec 37.003 (c) (c) The enumerations in Sections 37.004 and 37.005 do not limit or restrict the exercise of the general powers conferred in this section in any proceeding in which declaratory relief is sought and a judgment or decree will terminate the controversy or remove an uncertainty. Co., 975 S.W.2d 329, 332 n.1 (Tex. Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. The dispute was over an unscheduled vehicle. Sec. For more information, please contact the law firm at 817-335-8800. CIV. (driver excluded); see also Tri-Coastal Contrs, Inc. v. Hartford Undwrs Ins. Instead, plaintiffs alleged River Entertainment was negligent for allowing the defendant to leave, in his own vehicle, when they should have known his driving ability was impaired. Co. v. Tandy Corp., 986 F.2d 94, 95 (5th Cir. A justiciable controversy may nonetheless exist where no other cause of action is available or has ripened. We are not attorneys. 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. 1996). A developing issue has been the extent to which declaratory relief is available to determine an insurers indemnity obligations, while the underlying suit is pending. Any such declaration shall have the force and effect of a final judgment or decree and shall be reviewable as such. 2 The courts decision has been described as carving out an exception, rather than overruling prior law. The Fifth Circuit overruled prior case law to conform with the Supreme Courts ruling. On the other hand, where the insured seeks a declaration that the insurer owes indemnity, before resolution of the underlying case, the opinion may be considered advisory, and declaratory relief may, indeed, be premature. c) The court may grant summary judgment as to liability only and leave damages for the jury, as appropriate. *I`Sl,'dpC2\,AMia*K/[ -M @ICPgIw5 Y k]x?4 :D R*NuNK^CXdmS0I,-B Cf. endstream endobj startxref Acts 1985, 69th Leg., ch. 37.003. d) The court may also grant summary judgment against the moving party, if appropriate. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Texas Air Control Bd., 852 S.W.2d at 444. Co. v. Fraiman, 514 S.W.2d 343, 346 (Tex. & REM. The district court dismissed the indemnification issue, but granted judgment on defense, based on the extrinsic evidence. : `g`R@, w@T!A4Au~?8\m`g`v4oy@+./`N`p4#fb` w{X0=@ d$ denied sub nom. ), the court held the county where the agent was located, the policy was sold, and the claim was reported, was not a proper venue. v. Mitchell, 138 F.3d 208, 210 (5th Cir. It is axiomatic that the duty to defend is broader than the duty to indemnify. The firm's new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112. . 45 . may declare the rights. A Texas court may also enjoin the litigants from moving forward on the same issues in any other jurisdiction. 1993). LEXIS 7550 (Tex. 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." The order, once it has been reduced to judgment (under Pa. R.A.P. Civ. The insurer refused to pay the judgment, on the basis that the insureds conduct constituted a willful violation of a penal statute, and was thus excluded by the policy. denied). Wherefore, Plaintiff prays for judgment against the Defendants as follows: Respectfully submitted, KOONSFULLER, P.C. See, e.g., Commercial Metals Co. v. Balfour, Guthrie & Co., Ltd., 577 F.2d 264 (5th Cir. Co., 502 S.W.2d 232 (Tex. County Mut. "A declaratory judgment is appropriate only when there is a justiciable controversy about the rights and status of the parties, and the declaration would resolve the controversy." (Kinnard v. Collin Co Bail Bond (2006) No. App.Dallas 1998, pet. Tex. 1969); Getty Oil v. Ins. 37.009. (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. Co. v. Taylor, 706 S.W.2d 352 (Tex. Copyright 2013 - 2023. (b) In any proceeding that involves the validity of a municipal ordinance or franchise, the municipality must be made a party and is entitled to be heard, and if the statute, ordinance, or franchise is alleged to be unconstitutional, the attorney general of the state must also be served with a copy of the proceeding and is entitled to be heard. Auto. Texas Dept of Public Safety v. Moore, 985 S.W.2d 149, 153-54 (Tex. The Texas Civil Practice and Remedies Code Section 37.005. provides that: 2000). Sept. 1, 1985. The Texas Legislature adopted the Uniform Act, with some slight variations, in 1943V. 1997)2; see also State Farm Lloyds v. The courts appear to be split, with federal courts being somewhat more lenient in allowing the use of extrinsic evidence in this circumstance. endobj Co. v. Griffin, 955 S.W.2d 81 (Tex. Civ. A declaratory judgment is typically requested when a party is threatened with a lawsuit but the lawsuit has not yet been filed; or when a party or parties believe that their rights under law and/or contract might conflict; or as part of a counterclaim to prevent further lawsuits from the same plaintiff (for example, when only a contract claim is denied); see also State Farm Fire & Cas. Prior to the Grapevine Excavation case, the Fifth Circuit had construed 38.006 to exempt insurers from paying attorneys fees in breach of contract actions. [iii] Ibid Uniform Declaratory Judgments Act, [iv]Ibid Uniform Declaratory Judgments Act, [v] Ibid Uniform Declaratory Judgments Act, [vi] Ibid Uniform Declaratory Judgments Act. See Tri-Coastal Contractors, Inc. v. Hartford Undwrs Ins. Co. v. Ward, 107 S.W.3d 820 (Tex. See Bocquet v. Herring, 972 S.W.2d 19 (Tex. Youell & Cos v. Getty Oil Co., 510 U.S. 820 (1993); Service Mutual Ins. There are exceptions, however, (1) when conduct estops a party from asserting prior active jurisdiction; (2) where parties are lacking; or (3) where there is lack of intent to prosecute. In St. Paul Ins. San Antonio, TX 78216 App.Beaumont 1972), affd other grounds, 496 S.W.2d 552 (Tex. 1993); American States Ins. Co. v. Tilley, 484 S.W.2d 802, 806 (Tex. (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 (2) a responding party that: (A) is an official of another state; and These rules govern the procedure for obtaining a declaratory judgment under 18 U.S.C. Co. v. Trejo, 39 F.3d 585 (5th Cir. In Natl Union Fire Ins. 1787), Sec. 140 0 obj <> endobj 2201, and further provides for a jury trial. <> "Undoubtedly, the degree of control the agreement ultimately exerts over the parties' rights in the . FFC Home Page / 5 Reasons to file a Declaratory Judgment. See, e.g., Ohio Cas. The court in Griffin relied upon a change in the Texas Constitution, expanding the scope of district court jurisdiction and eliminating the minimum amount in controversy. App. Berger v. Berger, 358 Ill.App.3d 651 (1st Dist. Also, seeking title by declaratory judgment is improper. R. CIV. Here are the requirements: An informal or common-law marriage exists in Texas if the parties (1) agree to be married, (2) live together in Texas as husband and wife after the agreement, and (3) represent to others that they are married. 37.010. REVIEW. Sec. Co. v. Patriot Sec., Inc., 926 F.Supp. Co. v. Taylor, 832 S.W.2d 645 (Tex. Sec. The federal act allows the court to declare the rights of any interested party.. C.M.W., 53 S.W.3d 877 (Tex. 3. Further necessary or proper relief based on a declaratory judgment or decree may be granted, after reasonable notice and hearing, against any adverse party whose rights have been determined by such judgment. LEXIS 8082 (Tex. Co. v. Hood, 895 F.Supp. endobj 2000) (staying declaratory action because of motion to join insurer in state court liability suit). effectuate its general purpose to make uniform the law of those states that enact it and to harmonize, as far as possible, with federal laws and regulations on the subject of declaratory judgments and decrees. Why File a Declaratory Judgment in State Court? Ins. 2201(a) . For years, Texas courts concluded that a declaration of indemnity was premature, until the underlying suit was resolved. endobj 1996) (insurer not estopped from litigating employment issue). Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. Therefore, either diversity or federal question jurisdiction must still exist. final decision in the case instead of a judge. SUPPLEMENTAL RELIEF. ***It is your responsibility to make sure that this is appropriate for your individual case. dismd by agrmt.) While federal abstention doctrine is equally applicable to declaratory judgments action, courts are particularly vigilant in exercising their discretion to protect comity and prevent forum shopping. It may be appropriate for courts to abstain, in certain circumstances. App.Texarkana 2003, pet. 10, eff. denied); Ranger Ins. No. When Is a Declaratory Judgment Proper? [i]Since the state requires that you file some sort of lawsuit to protect your rights and time to your child and your property, and most state statutes authorize the use of state power to affect these rights, you should consider using declaratory judgment to establish what process and procedure your court will use to protect you and your child from the harm of a court completely ignoring process and procedure required for fundamental rights. Until a writ of possession is issued, the tenant can remain in their home. 959, 1, eff. The court may order a speedy hearing of a declaratory judgment action. Co. v. Gaskins, 572 S.W.2d 573, 575 (Tex. Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper. )1^Hl]TgxY8Ubs,! 9@Dyp*l8sA!N\X 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. 37.011. 2.401 (a) (West 2006) hbbd```b``3@$i6D2j`5`YOe= "Ydl_02]fIk`|g (not justiciable controversy); Foust v. Ranger Ins. FAM. You want to get the most out of these motion arguments, so make sure you do step 1 and 2 as well. (2) the decisions of other courts interpreting Section 8, Article I, United States Constitution. (a) A court of record within its jurisdiction has power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. If not you can still use them to teach your attorney how to argue the motions. The petition in the underlying suit was amended, however, and all references to alcohol were deleted. Rule 57, FED. 7531-7541. 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. Chapter 5 2 III. App.Corpus Christi 2000, no writ). See, e.g., State Farm Fire & Cas. 37.0055. 1996). (a) This chapter may be cited as the Uniform Declaratory Judgments Act. The court remanded for consideration of these factors. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. Declaratory Judgment Construing Will on Westlaw. 2023 Thompson, Coe, Cousins & Irons, LLP. See Granite State Ins. 1992), cert. In a number of instances, courts have concluded that an insurer is entitled to re-litigate issues. (4) to determine rights or legal relations of an independent executor or independent administrator regarding fiduciary fees and the settling of accounts. A declaratory judgment is a legal determination by the court, which resolves legal uncertainties in a controversy. Co. v. Travis, 68 S.W.3d 72, 77 (Tex. Id. endobj 2002); Monticello Ins. (c) A business described by Subsection (b)(1) is entitled to declaratory relief on the issue of whether the requirement of another state that the business collect and remit sales or use taxes to that state constitutes an undue burden on interstate commerce under Section 8, Article I, United States Constitution. 37 Declaratory Judgments Texas Family Law Manual KFT 1294.T4S7 Ch. App.Corpus Christi 1975, writ refd n.r.e.) In Foust v. Ranger Ins. An action or proceeding is not open to objection on the ground that a declaratory judgment or decree is prayed for." - Texas Uniform Declaratory Judgments Act The declaratory judgment action allows relief, even where another remedy exists. E.g., Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. Concho counterclaimed for breach of contract and a declaratory judgment premised on the signed 2008 letter. 37.007. Where the insurer is providing a defense, it is a party to the attorney-client privilege, and can share in communications between the insured and defense counsel, without waiver. App.Dallas 2001, pet. See Bailey, 133 F.3d at 369 n.4; Travelers Ins. Group, Inc., 946 F.Supp. 1991), affd in part, 961 F.2d 213 (5th Cir. See Feria v. CU Lloyds of Texas, 2001 Tex. See, e.g., Standard Fire Ins. R. Civ. SUBJECT MATTER OF RELIEF. While the law is less clear, Federal courts, applying Texas law, have reached a similar conclusion. 2d 601, 621-22 (E.D. See the resource below for more details. 1992), cert. App.El Paso 1976, writ refd n.r.e.) Insrs v. American Home Assur. Obviously, the nature of the coverage issue to be determined will also determine the scope of discovery. COSTS. App.El Paso 2000, no pet. We do not guarantee or warrant any of this information. Co., 542 S.W.2d 429 (Tex. 8 0 obj R. CIV. The Act provides you with a mechanism to get a ruling from the court before you are dragged through costly litigation. (a) In a case of actual controversy within its jurisdiction, except with respect to Federal taxes . Co., 996 S.W.2d 207 (Tex. Please avail yourself of these resources before seeking a consultation. Civ. The court, in the coverage action, concluded that there was a conflict of interest and a lack of privity, and therefore the insurer was not collaterally estopped from re-litigating the existence of false imprisonment. Co. v. Rio Grande Heart Specialists of So. River Entertainment was joined because it owned Pepes where the defendant imbibed. (b) A contract may be construed either before or after there has been a breach. SHORT TITLE, CONSTRUCTION, INTERPRETATION. 1968) (J. Smith, dissenting). Cigna Lloyds Ins. Marriages between two people of the same sex are valid in Texas. Co., 975 S.W.2d 329, 332 (Tex. Sept. 1, 1985. (B) A contract may be construed either before or after there has been a breach. A binding adjudication of the rights and status of litigants even though no consequential relief is awarded. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 12 0 R/Group<>/Tabs/S/StructParents 1>> See, e.g., Boring & Tunneling Co. v. Salazar, 782 S.W.2d 284, 289-90 (Tex. 31 Despite the insurers right to review any such documents without waiver of the privilege, and the likelihood that defense counsels concerns would be abrogated by the right to conduct discovery, there is still a question as to what extent defense counsels opinions or observations would be relevant to coverage. Co. v. Cowan, 945 S.W.2d 819 (Tex. See Brillhart v. Excess Ins. The crop-dusting involved only one flight, but several passes during which herbicide was released, and during which wind direction and velocity varied. In state court, an order to seal discovery requires that the parties jump through a number of additional hoops, but protective orders are still available. Tex. Pursuant to this directive, OCA has prepared the following felony judgment forms and instructions for the forms:: Judgment of Acquittal by Court Judgment of Acquittal by Jury Judgment of Conviction by Court Judgment of Conviction by Jury Judgment of Conviction (Capital Murder-State seeks Death) A federal anti-injunction also exists. Co., 981 S.W.2d 861 (Tex. Under federal law, the Declaratory Judgment Act, itself, does not authorize attorneys fees. 1997); Heyden Newport Chemical Corp. v. So. 955 S.W.2d at 84 (construing Tex. Co. v. Vandewater, 907 S.W.2d 491 (Tex. at 313. App.Fort Worth 1992, writ denied) (insurer not estopped by failing to have declaratory judgment determined before judgment in underlying case). Through the years, many family lawyers have recommended taking additional steps to assure the sanctity of a partition agreement, including initiating a declaratory judgment action to seek a. 1998, pet. APP. E.g., Chenault v. Phillips, 914 S.W.2d 140, 141 (Tex. Co. v. Cooper Mach. SHORT TITLE, CONSTRUCTION, INTERPRETATION. Group v. Lou-Con, Inc., 293 F.3d 908 (5th Cir. Federal Jurisdiction Issues A. Diversity Jurisdiction 1. <> Westport v. Atchley, Russell, Waldrop & Hlavinka, 267 F. Supp. 1996). (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. . 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. A Declaratory Judgment allows you to establish with your court what your rights are before you take steps which might involve you in costly litigation. App. You can share these posts as long as you are linking to our posts. 1, eff. dismd, 507 U.S. 1026 (1993). The above information is taken from the Palmers training on their sample motions, parental rights motions. The author would like to thank the Texas Tech Law School Foundation for its generous support. Ins. 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. For our purposes, "litigation" refers to the filing and prosecuting of a real estate-related lawsuit, or defense against one, in the Texas county civil courts at law or the civil district courts. 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%. Co. v. Grapevine Excavation, 241 F.3d 396 (5th Cir. (because claimant could not bring suit, she had no right to intervene); see, e.g., Graciela v. Tagle, 946 S.W.2d 504 (Tex. App.Fort Worth 2000, no pet.). When you get the motions and read the second book, you will get the most out of this class. Sec. The purpose of a Declaratory Judgment is to protect you, your child, your relationship with your child, your property, and your money from your ex and the state: The purpose of the Act and its effect is to enable the citizen to procure from a court guidance which will keep him out of trouble and to procure that guidance with materially less expense than he would have to incur if he should wait until the trouble came before having recourse to the court.[iv], It concerns itself not only with contracts, but withrespect to titles to property, and particularly with the status of family relations, man and wife, parent and child, guardian and ward, and also with provisions of trust.[v], This act is declared to be remedial; its purpose it to settle and to afford relief from uncertainty and insecurity with respect to rights, status, and other legal relations; and is to be liberally construed and administered.[vi], Sec.