(although judgment reversed on coverage, no indication courts refusal to award fees to either party was abuse of discretion). 1995). Courts have struggled with the issue of what can be resolved in the declaratory judgment action, when the issue determining coverage may also be material in the underlying case. Where extrinsic evidence is offered, however, the scope of discovery should be broader. C.M.W., 53 S.W.3d 877 (Tex. Co., 628 S.W.2d 184 (Tex. Co. v. Tex. Olympic Financial Group, Inc., ("Olympic Financial") and Abdulaziz Sugule appealed a judgment dismissing their declaratory judgment action without prejudice after the district court granted the Department of Financial Institutions' ("Department") motion to dismiss. (a) In this section, "state" includes any political subdivision of that state. 37.004. 10 0 obj 1995). 2023 Thompson, Coe, Cousins & Irons, LLP. The court may order a speedy hearing of a declaratory judgment action. Group, Inc., 946 F.Supp. Tex. App.Corpus Christi 1998), revd on other grounds, 995 S.W.2d 675 (Tex. 1998). 37 Declaratory Judgments Texas Family Law Manual KFT 1294.T4S7 Ch. App.Austin 1999, no pet.) The purpose of the Declaratory Judgments Act is "to settle and afford relief from uncertainty and. App.Fort Worth 1998, no pet.) Co. v. Louisiana Farm Bureau Fedn, Inc., 996 F.2d 774, 778 (5th Cir. 2003) (finding Texas allows only narrow exception); but see Gonzales v. American States Ins. 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. 1995). Co. of N. Co. v. Cooper Mach. The author would like to thank the Texas Tech Law School Foundation for its generous support. (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. The court recognized that the insurer was defending, but the coverage issue would not be litigated in the underlying case, so declaratory relief was appropriate. denied); ANR Prod. 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. You may use the information for your individual case only. 11 0 obj Where suits are filed in two states, one court may abstain in favor of the first-filed suit. The court then noted the special concerns applicable in declaratory actions. 1983). Co., 767 F.Supp. denied). 1993) (Colorado River factors inapplicable in declaratory judgment action); Granite State Ins. Federal courts are especially reluctant to exercise jurisdiction if there is a parallel state court proceeding even if subsequently filed that includes all necessary parties and will resolve the issues. The El Paso Court of Appeals recently considered Eggemeyer v. Hughes, a case involving a disputed boundary line. Please avail yourself of these resources before seeking a consultation. [Read opinion here.] 1, eff. 1, eff. Ins. Co. v. Boll, 392 S.W.2d 158, 161 (Tex. A Texas Rule 11 family settlement agreement can be a wonderful tool to resolve a Texas probate dispute. Dallas, TX 75201 COSTS. A trial court has discretion to enter declaratory judgment if it will serve a useful purpose or will terminate the controversy between the parties. Id. See London Mut. K-yXHMKS mmgOT}|aMz0. County Mut. App.Austin 1998, pet. See, e.g., Stroop v. N. County Mut. 905 (a) (5), appeals are from judgments, not orders a common . In older cases, courts allowed broad introduction of extrinsic evidence in a declaratory judgment context. The underlying liability suit arose from an accident in which one defendant, while intoxicated, hit the plaintiffs vehicle, killing their daughter. 1997); Heyden Newport Chemical Corp. v. So. This article is designed to acquaint investors with basic rules and procedures involved in Texas litigation. State Farm argued the policy changes were made in Milam County, where the agent was located, and the policy was sold. The above information is taken from the Palmers training on their sample motions, parental rights motions. See United Services Life Ins. Co. v. Griffin, 955 S.W.2d 81, 82-84 (Tex. The most common exception for extrinsic evidence is when the pleadings simply do not assert facts that would determine coverage. v. Mitchell, 138 F.3d 208, 210 (5th Cir. 2002, no pet. Co. v. Taylor, 706 S.W.2d 352 (Tex. A declaratory judgment is a binding judgment from a court defining the legal relationship between parties and their rights in a matter before the court. Sec.A37.003.AAPOWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. (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. 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. 1445(c) and federal abstention principles. 4 Among the statutes allowing for award of attorney's fee s is the following non-exhaustive list: 5Civil Practice & Remedies Code. xX]oF}G?SeW0W44q>EqU{s@N|Bt2&iw'PmH'4QH1_>{'Y7bLH dB4uX;iYtI7F7*L^F Co. v. Marathon Ashland Petrol., L.L.C., 87 F. Supp. 1992); LaFarge Corp. v. Hartford Cas. App.Austin 1999, pet. Texas follows the American Rule Civ. While the law is less clear, Federal courts, applying Texas law, have reached a similar conclusion. (a) In a case of actual controversy within its jurisdiction, except with respect to Federal taxes . A person claiming to be the surviving spouse should file a claim for declaratory judgment to determine if there was a legal common law marriage. Typically, the first-filed suit has dominant jurisdiction. (because claimant could not bring suit, she had no right to intervene); see, e.g., Graciela v. Tagle, 946 S.W.2d 504 (Tex. (not justiciable controversy); Foust v. Ranger Ins. See, e.g., State Farm Fire & Cas. 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. Austin, TX 78746 Except in a case brought under the Family Code or a case governed by Chapter 14 of the Texas Civil Practice and Remedies Code, a party may move to dismiss a cause of action on the grounds that it has no basis in law or fact. 45 . 1965, writ refd n.r.e.) Co., 542 S.W.2d 429 (Tex. Rule 56(c). Tex. App.Dallas 2000, pet. In Williamson, a jury awarded the claimant damages against the insured for false imprisonment. Sec. 1995) (whether trademark violation occurred during policy period). App.El Paso 1976, writ refd n.r.e.) [vii] Texas Code of Judicial Conduct Texas Code of Judicial Conduct Canon B 3 (c) (c) obtaining the advice of a disinterested expert on the law applicable to a proceeding before the judge if the judge gives notice to the parties of the person consulted and the substance of the advice, and affords the parties reasonable opportunity to respond; All of our books are available in electronic form in the membership site. Copyright 2013 - 2023. Similarly, courts have held that an insurance company has no right to intervene in the liability action against the insured to seek a coverage determination. 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. The insured was located in Hidalgo County, the car was purchased in Hidalgo County, and the salesman contacted the agent by phone, from Hidalgo County, to add the car to the policy. (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. The Western Heritage case epitomizes the argument for use of extrinsic evidence. App.Beaumont 1999, pet. 1969); Getty Oil v. Ins. See Utica Lloyds of Tex. Indemnity is based on the actual facts establishing liability in the underlying suit. Co. v. Vandewater, 907 S.W.2d 491 (Tex. 3. 1991), affd in part, 961 F.2d 213 (5th Cir. 1993). Co. v. Truckin USA, 122 F.3d 270, 272-73 (5th Cir. 37.008. 12 0 obj Costs and fees are not dependent upon the outcome, and can be awarded to either the prevailing or the non-prevailing party. An insurer should not be held to have waived its right to litigate coverage by defending under reservation of rights, or by delay in filing a declaratory judgment action. As amended through January 27, 2023. App.Corpus Christi 1982, no writ) (could not consider facts of ownership that conflicted with petition); Calderon v. Mid-Century Indem. & Ind. 37.011. 1996). App.Dallas 2001, pet. 959, Sec. 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. . 1996) (nevertheless refraining from determining coverage for indemnity, on the basis of judicial economy). A fee award is not mandatoryunder the UDJA . A marriage might be void for other reasons, but not because the spouses are of the same sex. Declaratory judgment actions have been a recognized civil vehicle for more than one hundred years. 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. art. 91a.1 Motion and Grounds. 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. Sept. 1, 1987; Acts 1999, 76th Leg., ch. The collision was also in Hidalgo County, as was the liability suit. App.Austin 1998, no pet. See Natl Union Fire Ins. <> In a number of instances, courts have concluded that an insurer is entitled to re-litigate issues. See, e.g., Standard Fire Ins. The Motion: a) May be filed by a defending party any . Auto Ins. App.Corpus Christi 2003, no writ). We are not attorneys. . 2 The courts decision has been described as carving out an exception, rather than overruling prior law. The abundance of case law allowing extrinsic evidence, however, suggests that the exception will continue. App.Dallas 1992, writ denied); U.S. Fire Ins. You may not reproduce or sell this material or copy it into other training without express permission from Ron or Sherry Palmer in writing. Tuesday, February 28, 2023. "Undoubtedly, the degree of control the agreement ultimately exerts over the parties' rights in the . For more information, please contact the law firm at 817-335-8800. denied) (disallowing evidence of workers compensation payments to establish employment). 1994). 1994), the court reviewed abstention doctrine in relation to declaratory judgment actions. The Fifth Circuit reviewed abstention under the Burford and Colorado River doctrines, and concluded that neither was applicable. App.Amarillo 1997, no pet.). 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. Where Can I Get More Information and Training? Thompson Coe on Best Lawyers Best Law Firms List for 12th Consecutive Year, Four Years Later: The Impact of Texas Insurance Code Section 542A.006 on Insurance Litigation, Texas Supreme Court Reverses Appeals Court Judgment, Affirms Trial Win for Thompson Coe Client, Developing Texas Insurance Law in the Appellate Courts, Update & Recap: Winter Storm Uri and Impact on Gulf Coast Coverage Cases, The Good, The Bad, The Ugly: Texas Appraisals, NEW June PC Webinar: Insurance Retrospective, Texas Supreme Court Issues Significant Decision on Exception to Eight Corners Rule, 2801 Via Fortuna 1, eff. Civ. 699 (H.B. Co., 2000 Tex. Co., 502 S.W.2d 232 (Tex. Ins. See Firemens Ins. & Rem. (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. ydXOEp Pzz2 -Ia5D(eUE02Xd#zG5 ;}srmVY9c~Vqz6#tUy/`ck$cVpxKCoo,}o{T#@TQ]%5|@Rtx~K9jptm> oL Co. v. Hood, 895 F.Supp. Individuals may seek a declaratory judgment after a legal controversy has arisen . 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. Suite 300 It has long been recognized that Texas law does not allow recovery of attorneys fees unless authorized by statute or contract. at 1280 (insurer not precluded from relitigating course and scope of employment). We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. 2010), Sec. A Texas court may also enjoin the litigants from moving forward on the same issues in any other jurisdiction. 2001). denied, 511 U.S. 1032 (1994). The crop-dusting involved only one flight, but several passes during which herbicide was released, and during which wind direction and velocity varied. 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. SUPPLEMENTAL RELIEF. Rule 57, FED. denied). A justiciable controversy requires a real and substantial controversy over tangibles interests, and not merely a theoretical dispute. 1979, no writ) (not justiciable controversy); Boorhem-Fields, Inc. v. Burlington Northern Railroad Co., 884 S.W.2d 530 (Tex. Civ. 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. App.Corpus Christi 1975, writ refd n.r.e.) Acts 1985, 69th Leg., ch. (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. <> When an issue has been litigated in the underlying case, when can it be re-litigated in the coverage dispute? [ii], You have the right to ask your state court for relief if you have a statute that says you do, like Texas statute says, 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[viii](Most states have an act like this. This week our nation's highest court will decide whether to review the 6th Circuit's conclusion that a declaratory judgment of liability starts the statute of . The complaint allegation rule can pose a problem with declaratory relief. Texas, Inc., 64 S.W.3d 497 (Tex. DECLARATORY JUDGMENTS 37.001. Texas Dept of Public Safety v. Moore, 985 S.W.2d 149, 153-54 (Tex. The existence of another adequate remedy does not preclude a declaratory judgment that is otherwise appropriate. R. Civ. <> 2001) (when lease obtained); Guaranty Natl Ins. Section 37.003 says that courts of record have within their jurisdiction the "power to declare rights, status and other legal relations whether or not. E.g., Chenault v. Phillips, 914 S.W.2d 140, 141 (Tex. C.M.W., 53 S.W.3d 877 (Tex. App.Waco 1943, no writ); Superior Ins. Sept. 1, 1985. endobj 1995); but cf. Federated Mut. R. CIV. *I`Sl,'dpC2\,AMia*K/[ -M @ICPgIw5 Y k]x?4 :D R*NuNK^CXdmS0I,-B Id. Guar. The woman appealed, arguing the evidence was factually insufficient to support the finding there was no mutual intent to be married. denied). Co. v. Trejo, 39 F.3d 585, 590 (5th Cir. 2.401 (a) (West 2006) Id. 2201, and further provides for a jury trial. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. 6 0 obj Read this complete Texas Estates Code - EST 257.101. Suite 1850 1991). When to file is often determined by what is at issue. Court refused this collateral attack on prior judgment by declaration. Determination of title is only dispute to be raised by declaratory judgment. See Farmers Tex. (a) A person interested under a deed, will, written contract, or other writings constituting a contract or whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract, or franchise may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status, or other legal relations thereunder. App.Fort Worth 1978, no writ); Providence Lloyds Ins. Ins. Co. v. Wade, 827 S.W.2d 448 (Tex. App.Houston 1998, pet. App.Dallas 2001, pet. 1992); cf. All Rights Reserved. Acts 1985, 69th Leg., ch. )1^Hl]TgxY8Ubs,! 9@Dyp*l8sA!N\X Ins. 2 . App.Houston [14th Dist.] Added by Acts 2007, 80th Leg., R.S., Ch. It is axiomatic that the duty to defend is broader than the duty to indemnify. The district court dismissed the declaratory action on the defendants motion based on 28 U.S.C. Rule 57, FED. Code Ann. COPYRIGHT: All of the materials are copyrighted. 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. See Owens v. Allstate Ins. See Bituminous Cas. CIV. Co. v. Quinn-L Capital Corp., 3 F.3d 877 (5th Cir. Co. v. Tandy Corp., 986 F.2d 94, 96 (5th Cir. Federal: Declaratory Judgment Act, 28 U.S.C. POWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. See Bernard v. Gulf Ins. any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought. The Burches were the plaintiffs, and were also the petitioners for declaratory relief. 37.001. The Declaratory Judgment Act states "Courts of record, within their respective jurisdictions, shall have power to declare rights, status, and other legal relations." See 42 Pa. C.S.A. In any proceeding under this chapter, the court may award costs and reasonable and necessary attorney's fees as are equitable and just. Co., 981 S.W.2d 889 (Tex. dismd, 507 U.S. 1026 (1993). 830-252-5100. LEXIS 7088 (Tex. (a) This chapter may be cited as the Uniform Declaratory Judgments Act. at 452-53; but see Tri-Coastal Contrs Inc., 981 S.W.2d at 863 (questioning scope of exception). P. 26; Tex. Co. v. Burch, 442 S.W.2d 331 (Tex. 1998), overruled on other grounds, State Farm Fire & Cas. 1996). In St. Paul Ins. 1995). endobj 167, Sec. Tex. Rule 56(a). In addition, in many instances, a protective order will allow broad discovery, without fear of disclosure to the plaintiff. SHORT TITLE, CONSTRUCTION, INTERPRETATION. 955 S.W.2d at 84 (construing Tex. 959, 1, eff. Am., 845 S.W.2d 794, 801 (Tex. Yes*! Obviously, the nature of the coverage issue to be determined will also determine the scope of discovery. App.Fort Worth 1986, writ refd n.r.e.). According to the Court of Appeals, a declaratory judgment under the UDJA is appropriate only if "a justiciable controversy exists as to the rights and status of the parties and the controversy will be resolved by the declaration sought," and the Act cannot be used to resolve a hypothetical or contingent situation. 37.004. COURT REFUSAL TO RENDER. Board Certified, Consumer and 2d 601, 621-22 (E.D. In a decree for divorce or annulment, the court shall order a division of the estate of the parties in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage. ); Rice v. Alamo Rent-A-Car, Inc., 987 S.W.2d 231 (Tex. 1969); see also Allstate Ins. Federal Jurisdiction Issues A. Diversity Jurisdiction 1. The courts appear to be split, with federal courts being somewhat more lenient in allowing the use of extrinsic evidence in this circumstance. Co. v. Louisiana Farm Bureau Federation, 996 F.2d 774, 778 (5th Cir. (no right to new trial because of amended petition where suit brought and determined based on prior petition).