and that a prior judgment is void. 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. One common element circuit courts often point to is whether the suit was brought . 1992); LaFarge Corp. v. Hartford Cas. 37.008 provides that the court may refuse to render a declaratory judgment if the judgment would not terminate the uncertainty or controversy giving rise to the proceeding. to prevent: 1. litigation, 2. loss, 3. debt, 4. damage (injury), and 5. penalties! 19821 DECLARATORY JUDGMENTS IN TEXAS their statutory law. JURY TRIAL. Co. v. Louisiana Farm Bureau Federation, 996 F.2d 774, 778 (5th Cir. P. 26; Tex. R. Civ. 1997)2; see also State Farm Lloyds v. 1995). If the discovery is limited, or poorly conducted, or does not address the coverage issues, however, the insurer may seek additional testimony and evidence. The Historic Hamm Building Tex. " (emphasis added)). App.Texarkana 1994, no writ) (possibility that liability triggering indemnity would be incurred was a feature hypothetical event, and court had no power to pass upon hypothetical or contingent situation); Fort Worth Lloyds v. Garza, 527 S.W.2d 195 (Tex. (a) In this section, "state" includes any political subdivision of that state. Therefore, the claimants should not be necessary or indispensable parties, prior to the settlement or judgment. The Declaratory Judgment Act itself provides that a "declaration shall have the force and effect of a final judgment or decree," 28 U. S. C. 2201; eminent authority anticipated that declaratory judgments would be res judicata, E. Borchard, Declaratory Judgments 10-11 (2d ed. Civ. App.Austin 1999, no pet.) Indemnity is based on the actual facts establishing liability in the underlying suit. Co. v. Travis, 68 S.W.3d 72, 77 (Tex. (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. 305 (H.B. 37.011. DECLARATIONS RELATING TO TRUST OR ESTATE. 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. 45 (N.D. Tex. 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. %PDF-1.6 % Co. v. Bailey, 133 F.3d 363, 368 (5th Cir. However, because family settlement agreements are treated as contracts under Texas law, it is important that all of the parties . R. CIV. Co. v. Merchants Fast Motor Lines, Inc., 939 S.W.2d 139 (Tex. Co. v. Block, 744 S.W.2d 940, 943 (Tex. 37.002. 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. Court refused this collateral attack on prior judgment by declaration. 1993); American States Ins. The existence of another adequate remedy does not preclude a declaratory judgment that is otherwise appropriate. Suite 1850 Flexibility of Court in Awarding Fees. In addition to the county of the defendants residence or principal office, venue is generally deemed proper in the county where the liability suit is pending, or judgment is entered. COURT REFUSAL TO RENDER. First, is the constitutional inquiry - the case must be a 'case or controversy' pursuant to. Sherry attributes successfully developing the most powerful tools and a five-stage formula to assist attorneys and pro se parents get better results and fight legal abuses that occur in the family court settings. 45 (N.D. Tex. App.Houston [1st Dist.] denied sub nom. A Texas court may also enjoin the litigants from moving forward on the same issues in any other jurisdiction. Federated Mut. Co. v. Wade, 827 S.W.2d 448 (Tex. 6 0 obj Civ. Rule 57. A declaratory judgments purpose is to prevent costly litigation, remove uncertainty, terminate the controversy[ii], and to protect its citizens from injury, debt, damage and penalties;before any loss has been suffered or any offense committed.. of Trans., 999 S.W.2d 881, 883 (Tex. Instead, a party may recover fees only where controlling substantive law permits recovery. Tex. These rules govern the procedure for obtaining a declaratory judgment under 18 U.S.C. (not justiciable controversy); Foust v. Ranger Ins. declaratory judgment action or dismiss the case. Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. APP. Co. v. Bradleys Elec., Inc., 993 S.W.2d 673 (Tex. 7531-7541. App.Dallas 2001, no pet.) Const. If any facts within the scope of coverage are determined, however, an insurer is required to defend. c) The court may grant summary judgment as to liability only and leave damages for the jury, as appropriate. Co. v. Watson, 876 S.W.2d 145, 149 (Tex. 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. (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. Concho counterclaimed for breach of contract and a declaratory judgment premised on the signed 2008 letter. Sept. 1, 1987; Acts 1999, 76th Leg., ch. App.Austin 2003, no pet. The march towards a nation-wide fulfillment of the concept suf-fered a temporary setback in 1910 by the decision of the Supreme Court of the United States in Muskrat v. United States. Co., 767 F.Supp. Tex. Twenty-Fifth Floor - Plaza of the Americas. There are a number of instances in which extrinsic evidence may be at issue: Extrinsic evidence may be used to show that the person sued does not qualify as an insured, or that the vehicle or equipment in issue is not insured. & Rem. App.Houston [1st Dist.] 37.003. 1996). A declaratory judgment is a legal determination by the court, which resolves legal uncertainties in a controversy. The declaratory judgment action allows relief, even where another remedy exists. Unfortunately, while 38.001, et seq., may allow recovery of attorneys fees by the insured, in a proper case, it provides no basis for recovery of fees by an insurer. The existence of another adequate remedy does not preclude a declaratory judgment that is otherwise appropriate. Co., 975 S.W.2d 329, 332 n.1 (Tex. COSTS. C.M.W., 53 S.W.3d 877 (Tex. Foust v. Ranger Ins. Ins. . App.Houston [14th Dist.] App.Houston [1st Dist.] The author would like to thank the Texas Tech Law School Foundation for its generous support. App.Corpus Christi 2002, pet. A. However, each party must still plead for relief and carry its own burden of proof. Co., 418 S.W.2d 712, 715-16 (Tex. 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). 1989, no writ); In re Fontenot, 13 S.W.3d 111 (Tex. It is not an abuse of discretion, however, to retain a suit, and to decide issues of indemnity, even before the underlying liability suit has reached judgment. 2d 601, 621-22 (E.D. E.g., Wilton v. Seven Falls Co., 515 U.S. 277 (1995); American States Ins. h.). 1, eff. See, e.g., Ruth v. Imperial Ins. 1979, no writ) (not justiciable controversy); Boorhem-Fields, Inc. v. Burlington Northern Railroad Co., 884 S.W.2d 530 (Tex. Co. v. 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. One of the factors the courts will review is whether the declaratory action is filed in anticipation of a state court suit. Code 37.002 (b). LEXIS 1736 (Tex. [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. (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. App. Contact Us if you have questions.). 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. (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. After St. Paul filed its declaratory action in federal court, the claimant filed suit in state court in the same court in which the two prior suits had been filed. Under federal law, the Declaratory Judgment Act, itself, does not authorize attorneys fees. In St. Paul Ins. Eskew, 731 S.W.2d 124, 132 (Tex.App.-Austin 1987, writ ref'd n.r.e.) 3 0 obj endobj Co. v. Vic Mfg. The declaratory judgment is to also help you prevent additional costly litigation as stated above. Ins. Where suits are filed in two states, one court may abstain in favor of the first-filed suit. Co. v. Patriot Sec., Inc., 926 F.Supp. Rule 166a - Summary Judgment. 1993); Trinity Univ. 11 0 obj denied); Ranger Ins. Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. Respondent contends the Supreme Court's holding in Obergefell v. Hodges, 576 U.S. 644 (2015), the "state courts are split as to whether the ruling (in Obergefell) applies retroactively to any marriage." Respondent's Mtn. 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. 1. 2283. App.Corpus Christi 2000, no writ). Co., 95 S.W.3d 702 (Tex. Co. v. Gandy, 925 S.W.2d 696 (Tex. Youell & Cos v. Getty Oil Co., 510 U.S. 820 (1993); Service Mutual Ins. If done right, it can save parties to a probate dispute time and money, and avoid the uncertainty of litigation. Code37.009 provides that in any proceeding under this Chapter, the court may award costs and reasonable and necessary attorneys fees as they are equitable and just.. 10 0 obj Coverage disputes under liability policies are well-suited for declaratory actions. Id. App.Dallas 2001, pet. 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. Under Texas law, a duty to defend is determined by the complaint allegation rule. A declaratory judgment is one that simply declares the rights, status, or other legal relations of the parties without ordering anything to be done. 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. 131 (E.D. [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. App.Corpus Christi 1997, no pet.) 1983). App.Corpus Christi 1982, no writ) (could not consider facts of ownership that conflicted with petition); Calderon v. Mid-Century Indem. Co. v. Vandewater, 907 S.W.2d 491 (Tex. See Fed. 37 Declaratory Judgments Texas Family Law Manual KFT 1294.T4S7 Ch. 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. There is a contract, and a dispute over the parties rights and obligations under the contract. In re Houston Specialty Insurance Co., 569 S.W.3d 138 (Tex. Citing the Travelers case, the court recited the relevant factors the court must consider in determining whether to dismiss a declaratory judgment action: 1) whether there is a pending state action in which all of the matters in controversy may be fully litigated; 2) whether the plaintiff filed suit in anticipation of a lawsuit filed by the defendant; 3) whether the plaintiff engaged in forum shopping in bringing the suit; 4) whether possible inequities in allowing the declaratory plaintiff to gain precedence in time or to change forums exist; 5) whether the federal court is a convenient forum for the parties and witnesses; 6) whether retaining the lawsuit in federal court would serve the purposes of judicial economy; and. There was also a declaration that the insurer owed neither defense nor indemnity to the wife. . Sec. 37.0055. 1998) (whether release was sudden and accidental); Western Heritage Ins. 2002, no pet. Texas Dept of Public Safety v. Moore, 985 S.W.2d 149, 153-54 (Tex. Co. v. Burch, 442 S.W.2d 331 (Tex. 512-708-8200, 700 North Pearl Street Co. v. Deering Mgmt. Co. of Texas v. Erskine, 169 S.W.2d 731 (Tex. A federal court cannot, however, stay a pending suit for declaratory relief to allow the parties to re-file suit in state court, as the state court will have no jurisdiction. 37.002 provides that the chapter is remedial: Its purpose is to settle and to afford relief from uncertainty and in security with respect to rights, status, and other legal relations; and it is to be legally construed and administered. The Act does not create or enlarge jurisdiction. It is axiomatic that the duty to defend is broader than the duty to indemnify. See, e.g., State Farm Fire & Cas. App.El Paso 2000, no pet. App. Protective orders are still relatively simple, and can usually be subject to an agreed motion in federal court. <> 3. )1^Hl]TgxY8Ubs,! 9@Dyp*l8sA!N\X The right to award costs and fees is discretionary, not mandatory. . 2 The courts decision has been described as carving out an exception, rather than overruling prior law. Co. v. Quinn-L Capital Corp., 3 F.3d 877 (5th Cir. 6#7a |mp}v"VY2I Co. v. Am. P. 301; Logan v. Mullis, 686 S.W.2d 605, 609 (Tex . [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. 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.
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