App.Fort Worth 1998, no pet.) Co. v. Truckin USA, 122 F.3d 270, 272-73 (5th Cir. Tex. Rule 57. Federated Mut. <> 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. DECLARATIONS RELATING TO TRUST OR ESTATE. App. A declaration does not prejudice the rights of a person not a party to the proceeding. at 332. Co. v. Murray, 437 S.W.2d 264, 265-66 (Tex. 1998) (whether release was sudden and accidental); Western Heritage Ins. Sec. One of the factors the courts will review is whether the declaratory action is filed in anticipation of a state court suit. Sec. 1023, 1026 (N.D. Tex. The Texas Civil Practice and Remedies Code Section 37.005. provides that: & Rem. Although efforts are occasionally made, it is inappropriate for the insurer to be joined as a defendant in a liability suit. Auto. dismd, 507 U.S. 1026 (1993); cf. 1445(c) and federal abstention principles. See Firemans Ins. See, e.g., Ruth v. Imperial Ins. App.Austin 1998, pet. 1997); Heyden Newport Chemical Corp. v. So. POWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. The North Dakota Supreme Court concluded the district court lacked subject matter jurisdiction because Appellants failed . [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. 959, Sec. Co. v. Merchants Fast Motor Lines, Inc., 939 S.W.2d 139 (Tex. New Orleans, LA 70130 & Rem. At issue was a declaratory judgment action over whether medical expenses were owed to an insured worker, under The Workers Compensation Act, where the expenses were incurred after settlement of the employees negligence suit against a third party. 2001) (when lease obtained); Guaranty Natl Ins. 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. endstream endobj startxref 2001). 713-403-8210, 601 Poydras App.Dallas 2000, pet. 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. Therefore, either diversity or federal question jurisdiction must still exist. 1, eff. Background This case involves a dispute over a . The Act provides you with a mechanism to get a ruling from the court before you are dragged through costly litigation. denied); ANR Prod. Step 1: Written Notice to Vacate. When an issue has been litigated in the underlying case, when can it be re-litigated in the coverage dispute? App.El Paso 1976, writ refd n.r.e.) Co. v. Am. 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. 1993); American States Ins. All orders, judgments, and decrees under this chapter may be reviewed as other orders, judgments, and decrees. 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. Declaratory Judgment. Acts 1985, 69th Leg., ch. Co. v. Ward, 107 S.W.3d 820 (Tex. 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). Ins. App.Dallas 1998, pet. 1968). See Brillhart v. Excess Ins. Rule 56(c). Prac. Co., 975 S.W.2d 329, 332 n.1 (Tex. Acts 1985, 69th Leg., ch. 1996) (nevertheless refraining from determining coverage for indemnity, on the basis of judicial economy). Genl Ins. Co. v. Carmichael, 1998 Tex. LEXIS 7088 (Tex. In re Houston Specialty Insurance Co., 569 S.W.3d 138 (Tex. App.Waco 1943, no writ); Superior Ins. R. Civ. LEXIS 7550 (Tex. SUPPLEMENTAL RELIEF. App.Amarillo 1976, writ refd n.r.e. 1271 (N.D. Tex. Rule 57, FED. The collision was also in Hidalgo County, as was the liability suit. Insrs v. American Home Assur. (a) This chapter may be cited as the Uniform Declaratory Judgments Act. Concho counterclaimed for breach of contract and a declaratory judgment premised on the signed 2008 letter. Texas Dept of Public Safety v. Moore, 985 S.W.2d 149, 153-54 (Tex. Wade, 827 S.W.2d at 451. Cigna Lloyds Ins. 37.007. In American Genl Fire & Cas. e) Summary judgment is available in declaratory judgment actions. 651-389-5000, 10001 Reunion Place The courts have recognized an exception when the liability insurance is statutorily required, and arguably for the benefit of the claimant, such as compulsory auto insurance or workers compensation. 1974, no writ). In this chapter, "person" means an individual, partnership, joint-stock company, unincorporated association or society, or municipal or other corporation of any character. Declaratory Judgments Act) Texas CPRC Plus REF KFT 1728.A196 A2 CPRC Ch. Recent cases discussing the enforceability of policy buy-backs suggest there may be other exceptions in which a statutory insurance requirement renders a claimant an intended beneficiary. Co. v. Delaney, 386 S.W.2d 648 (Tex. endobj Co. of Texas v. Erskine, 169 S.W.2d 731 (Tex. DEFINITION. No. Co. v. Vandewater, 907 S.W.2d 491 (Tex. If any facts within the scope of coverage are determined, however, an insurer is required to defend. 1992), cert. It may be appropriate for courts to abstain, in certain circumstances. Sept. 1, 1985. (because claimant could not bring suit, she had no right to intervene); see, e.g., Graciela v. Tagle, 946 S.W.2d 504 (Tex. PRAC. Co. v. Griffin, 955 S.W.2d 81 (Tex. 1995, no writ); Employers Cas. 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. See Murray, 437 S.W.2d 264 (Tex. Co. v. Ochoa, 19 S.W.3d 452 (Tex. Corp., 817 F.Supp. . 168 0 obj <>/Filter/FlateDecode/ID[<9A8DD3395C28F34D981E9CD96490FD9D>]/Index[140 50]/Info 139 0 R/Length 129/Prev 481282/Root 141 0 R/Size 190/Type/XRef/W[1 3 1]>>stream [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. 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. [iii] Ibid Uniform Declaratory Judgments Act, [iv]Ibid Uniform Declaratory Judgments Act, [v] Ibid Uniform Declaratory Judgments Act, [vi] Ibid Uniform Declaratory Judgments Act. (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. When Is a Declaratory Judgment Proper? In Williamson, a jury awarded the claimant damages against the insured for false imprisonment. denied). Costs and fees are not dependent upon the outcome, and can be awarded to either the prevailing or the non-prevailing party. App.Dallas 2001, no pet.) Genl Agency v. Cooper, 952 S.W.2d 861 (Tex. (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 a proceeding under this chapter involves the determination of an issue of fact, the issue may be tried and determined in the same manner as issues of fact are tried and determined in other civil actions in the court in which the proceeding is pending. See Bailey, 133 F.3d at 369 n.4; Travelers Ins. CODE ANN. Typically, the first-filed suit has dominant jurisdiction. When you get the motions and read the second book, you will get the most out of this class. 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. <>>> App.Fort Worth 1978, no writ); Providence Lloyds Ins. App.Houston [1st Dist.] See, e.g., State Farm Fire & Cas. 167, Sec. and that a prior judgment is void. 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. The court then noted the special concerns applicable in declaratory actions. denied); State Farm Lloyds v. When to file is often determined by what is at issue. . Despite the complaint allegation rule, Texas courts have always recognized that there are circumstances in which the court must look to extrinsic evidence to determine whether a duty to defend exists. Uniform Declaratory Judgment Act A party to a declaratory judgment claim may recover "reasonable and necessary attorney's fees as are equitable and just" under the Uniform Declaratory Judgment Act (UDJA), which is codified in Chapter 37 of the Texas Civil Practice and Remedies Code. endobj Co. v. Gandy, 925 S.W.2d 696 (Tex. If no facts within the scope of coverage are alleged, an insurer is not required to defend. Ins. (providing a "court . Tex. Tex. The Motion: a) May be filed by a defending party any . 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 The award is subject to reversal only if it is arbitrary and unreasonable. Can I Still File if I am already in Costly Litigation? App.Corpus Christi 2000, no writ). A Texas court may also enjoin the litigants from moving forward on the same issues in any other jurisdiction. denied) (refusing to allow use of extrinsic evidence to disprove alleged facts). at 452-53; but see Tri-Coastal Contrs Inc., 981 S.W.2d at 863 (questioning scope of exception). 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. The insurer denied defense based on the liquor liability exclusion and filed a declaratory judgment action. Co. v. Tex. 1965, writ refd n.r.e.) Under state or federal law, declaratory relief is only appropriate when there is an actual case or controversy. A fee award is not mandatoryunder the UDJA . As a general rule, only one final judgment may be signed in a lawsuit (note, thought, that this rule does not always apply in probate and family law cases). Copyright 2013 - 2023. Co. v. Tandy Corp., 986 F.2d 94, 96 (5th Cir. . Co. v. Trejo, 39 F.3d 585 (5th Cir. An advantage to arbitration may be the possibility of a quicker trial date, quicker final resolution, and privacy, but arbitration rulings are usually consid-ered final and cannot be appealed. Co. v. Watson, 876 S.W.2d 145, 149 (Tex. Id . App.San Antonio 1998, pet. The petition in the underlying suit was amended, however, and all references to alcohol were deleted. In this instance, there may be legitimate concerns that the insurers discovery will inure to the benefit of the liability plaintiff, which is likely not in the interest of either the insured or the insurer. State Farm argued the policy changes were made in Milam County, where the agent was located, and the policy was sold. Co., 61 F.3d 389 (5th Cir. Sept. 1, 1985. It is still likely a court will not allow dual-track litigation of issues that affect liability and coverage. (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. 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." Ins. The author would like to thank the Texas Tech Law School Foundation for its generous support. The most common exception for extrinsic evidence is when the pleadings simply do not assert facts that would determine coverage. The application must be by petition to a court having jurisdiction to grant the relief. 2000) (staying declaratory action because of motion to join insurer in state court liability suit). A motion for declaratory judgment is an appropriate vehicle for determining the validity of a prenuptial agreement. The El Paso Court of Appeals recently considered Eggemeyer v. Hughes, a case involving a disputed boundary line. In Natl Union Fire Ins. Texas follows the American Rule Corp. v. Vacuum Tanks, Inc., 975 F.2d 1130, 1133 (5th Cir. Sec. County Mut. A justiciable controversy requires a real and substantial controversy over tangibles interests, and not merely a theoretical dispute. All rights reserved, Declaratory Relief Declaratory Judgment and Rights. Co., 981 S.W.2d 861 (Tex. 955 S.W.2d at 84 (construing Tex. (whether policy was void or loss was covered presented justiciable controversy); American States Ins. 1994), the court reviewed abstention doctrine in relation to declaratory judgment actions. The declaratory judgment is to also help you prevent additional costly litigation as stated above. A number of issues arise in regard to discovery in a declaratory judgment action. The claims involved crop-dusting, which allegedly damaged abutting fields because of herbicide drift. Sept. 1, 1999. Tex. App.Houston 1965, writ refd n.r.e.) 2002, no pet. E.g., Chenault v. Phillips, 914 S.W.2d 140, 141 (Tex. R. CIV. endobj PARTIES. & Rem. Id. 37.002 (b) (Vernon 2008); see Bonham State Bank, 907 S.W.2d at 467; Indian Beach Property Owners' Ass'n v. Co. v. Vic Mfg. App.Fort Worth 1973, writ refd n.r.e.). 2d 601, 621-22 (E.D. endobj Marriages between two people of the same sex are valid in Texas. 1995) (whether trademark violation occurred during policy period). Advisory opinions are prohibited by both the state and federal constitutions. SHORT TITLE, CONSTRUCTION, INTERPRETATION. 10, eff. Acts 1985, 69th Leg., ch. declaratory judgment be granted as requested herein, and Plaintiff be awarded costs and reasonable and necessary attorney's fees, and for such other and further relief that may be awarded at law or in equity. Volumes are organized by broad practice area and are generally sold individually, since few practitioners have need for all of them. A marriage might be void for other reasons, but not because the spouses are of the same sex. Despite its title, this order would not be a final judgment because it does not dispose of all claims at issue in the lawsuit. June 15, 2007. 1999) (insureds motion to transfer erroneously granted); Southern County Mut. The federal act allows the court to declare the rights of any interested party.. endstream Co., 96 S.W.3d 673 (Tex. 39 F.3d at 591. App.Dallas 1998, no pet.). Co. v. Childress, 650 S.W.2d 770, 775-76 (Tex.