The most significant is that there must be a justiciable controversy between the parties. On March 11, 2021, the Nevada Supreme Court, in a 4-3 decision, held in Nautilus Insurance Company v. Access Medical, LLC, 2021 WL 936076 (Nev. 2021) that an insurance company is entitled to reimbursement of defense costs where a determination is ultimately made that the insurer did not owe a duty to defend, and the insurer expressly reserved its right to seek recoupment. Insurer's right to assert other policy defenses . In a declaratory judgment action, neither party is seeking a judgment for money damages. App.Dallas 2001, no pet.) The Murphys opposed Wells Fargo's motion, arguing, among other things, that Wells Fargo's claims should not be characterized as requesting declaratory relief. xko9.ou _:=;0b+w)m3]WTy:>yYWOv]vs|?V~>zw"{}v~eM/XVY&R~Eou6Wv/ *]nT:^\-G:[A? Co. v. Taylor, 832 S.W.2d 645 (Tex. Co. v. Grapevine Excavation, 241 F.3d 396 (5th Cir. 1170 (1933). Co. v. Gandy, 925 S.W.2d 696 (Tex. PDF IN THE SUPREME COURT OF TEXAS - txcourts.gov Federal: Declare Assess Act, 28 U.S.C. 37.005. App.Texarkana 2003, pet. Co., 975 S.W.2d 329 (Tex. Co., 542 S.W.2d 429 (Tex. JURY TRIAL. See Travelers Ins. Download PDF Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. hearing as an action for a declaratory judgment and may advance it on the calendar." 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. at 332. COSTS. In this instance, both state and federal courts have readily allowed the use of extrinsic evidence to determine the duty to defend. endobj This is an action for declaratory judgment pursuant to the Federal Declaratory Judgment Act, 28 U.S.C. 466, 473, 80 L.Ed. App.Austin 1999, pet. denied). The policy provided limits of $100,000 per occurrence and $200,000 in the aggregate. Houston, TX 77056 Co. of N. Co., 767 F.Supp. See, e.g., Ohio Cas. 959, Sec. See Brillhart v. Excess Ins. endobj 1974, no writ). dYU1oprU.:1FlU;{~_%uIMT6cHE 7o1E-j=E.s nR&%*%")QmLd~s`MF_]jd%DhjP1h 4 z#G?o 0Xj[f e /R&K(KX K$ TBu /5v+nA%. art. County Mut. If the discovery is limited, or poorly conducted, or does not address the coverage issues, however, the insurer may seek additional testimony and evidence. App.Dallas 2001, pet. Ins. App.Fort Worth 1992, writ denied) (insurer not estopped by failing to have declaratory judgment determined before judgment in underlying case). denied), the court held it was permissible, and not purely advisory, to determine the number of occurrences involved in the underlying litigation. 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. 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. PDF UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS - Manatt App.Fort Worth 1998, no pet.) The focus is on the factual allegations that show the origin of damages, rather than the legal theories alleged. 2201. App.Corpus Christi 1975, writ refd n.r.e.) In St. Paul Ins. defenses always be pled by motion. 37.008 provides that aforementioned court may refuse to render a declaratory judgements if the judgment become nay terminate and uncertainty or controversy giving rise to the proceeding. 9. Co. v. Trejo, 39 F.3d 585, 590 (5th Cir. 3.08(a), eff. 1993), cert. 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. 9 0 obj See Southern County Mut. The district court dismissed the declaratory action on the defendants motion based on 28 U.S.C. & REM. 30, 2007, eff. Civ. App.Beaumont 1999, pet. A declaration does not prejudice the rights of a person not a party to the proceeding. See Bernard v. Gulf Ins. 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. & Ind. 830-252-5100. % App.San Antonio 1998, pet. POWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. Supreme Court of Texas Denies Motion to Compel Arbitration on Alternate Co., 981 S.W.2d 861 (Tex. <> Co. v. Louisiana Farm Bureau Federation, 996 F.2d 774, 778 (5th Cir. See Utica Lloyds of Tex. (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. & REM. 1271 (N.D. Tex. C.M.W., 53 S.W.3d 877 (Tex. Texas is not a direct action state, and a claimant typically has no claim against an insurer until a judgment is obtained. The application must be by petition to a court having jurisdiction to grant the relief. App. Opinions expressed are those of the author. The declaratory action may also bring the coverage issues into focus for the plaintiff, and assist the insured in negotiating settlement. Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. . They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. Co. v. Ochoa, 19 S.W.3d 452 (Tex. A Texas court may also enjoin the litigants from moving forward on the same issues in any other jurisdiction. Co. v. Griffin, 955 S.W.2d 81, 82-84 (Tex. 1993); American States Ins. 1995). E.g., Wilton v. Seven Falls Co., 515 U.S. 277 (1995); American States Ins. Texas Air Control Bd., 852 S.W.2d at 444. A defense is an act of protecting one's own interests. September 1, 2007. It may be appropriate for courts to abstain, in certain circumstances. title to the propertyan essential element of an action to quiet titleand, in the court of appeals' view, the pleadings alleged "the wrong cause of action," the court concluded that the Brumleys' pleadings did not support the judgment.9 6 603 S.W.3d 449, 451 (Tex.