See Fed. 1992); LaFarge Corp. v. Hartford Cas. App.El Paso 2000, no pet. Co. v. Cowan, 945 S.W.2d 819 (Tex. Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. 6 0 obj Sept. 1, 1985. App.Austin, Oct. 2, 2003, no pet. 37 Declaratory Judgments Texas Family Law Manual KFT 1294.T4S7 Ch. 45 . A declaratory judgment claim can be useful in a wide variety of circumstances. <> She enables parents and attorneys to assert rights and convert the constitutional principles into everyday practice and natural language. Issues also arise, when the underlying case is still proceeding, as to the extent to which the insurer can discover information which could also be relevant, and potentially damaging, in the underlying liability suit. 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. At issue was a 100-year old agreement regarding the proper boundary line that referred to certain mesquite trees and rock piles, a fence line drawn on a decades-old survey, and the ownership of 90 acres of land. Corp. v. Vacuum Tanks, Inc., 975 F.2d 1130, 1133 (5th Cir. Sec. Rule 57. In this instance, both state and federal courts have readily allowed the use of extrinsic evidence to determine the duty to defend. 1998); see also Abraxas Petroleum Corp. v. Hornburg, 20 S.W.3d 741 (Tex. (2) the decisions of other courts interpreting Section 8, Article I, United States Constitution. denied); Ranger Ins. However, because family settlement agreements are treated as contracts under Texas law, it is important that all of the parties . Youell & Cos v. Getty Oil Co., 510 U.S. 820 (1993); Service Mutual Ins. The court then noted the special concerns applicable in declaratory actions. Ins. App.Corpus Christi 2003, no writ). dismd, 507 U.S. 1026 (1993); cf. %PDF-1.6 % P., also addresses declaratory judgments, by reference to 28 U.S.C. A. denied). While some older cases find an insurer cannot re-litigate facts, if it has wrongfully refused to defend, recent cases have held that an insurer is not bound, in any circumstance, where the facts allegedly establishing coverage are not fully litigated. The existence of another adequate remedy does not preclude a declaratory judgment that is otherwise appropriate. 1271 (N.D. Tex. 37.004. Sec. A binding adjudication of the rights and status of litigants even though no consequential relief is awarded. "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.Corpus Christi 2002, pet. 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. 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 A declaration does not prejudice the rights of a person not a party to the proceeding. and Laju Patel Beaumont, Texas civil litigation lawyers represented Defendant accused of paying kickbacks. See, e.g., Stroop v. N. County Mut. Costs and fees are not dependent upon the outcome, and can be awarded to either the prevailing or the non-prevailing party. (whether driver qualified as an insured); John Deere Ins. Because the insurer would be allowed to re-litigate, after the underlying case is resolved, there is no reason to delay the inevitable. The following are some specific ways that declaratory judgments can be used in family law. 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. ("[B]ecause the trial court judgment rests upon the specific grounds set out in the findings of fact and conclusions of law that accompany the judgment, we are not permitted to assume omitted findings or conclusions necessary to any other grounds for the judgment, even . A person interested as or through an executor or administrator, including an independent executor or administrator, a trustee, guardian, other fiduciary, creditor, devisee, legatee, heir, next of kin, or cestui que trust in the administration of a trust or of the estate of a decedent, an infant, mentally incapacitated person, or insolvent may have a declaration of rights or legal relations in respect to the trust or estate: (1) to ascertain any class of creditors, devisees, legatees, heirs, next of kin, or others; (2) to direct the executors, administrators, or trustees to do or abstain from doing any particular act in their fiduciary capacity; (3) to determine any question arising in the administration of the trust or estate, including questions of construction of wills and other writings; or. 1993); Trinity Univ. (a) This chapter may be cited as the Uniform Declaratory Judgments Act. 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. Dallas, TX 75201 Group, Inc., 946 F.Supp. endobj When an issue has been litigated in the underlying case, when can it be re-litigated in the coverage dispute? The District Court of Delaware dismissed a generic drug company's declaratory judgment counterclaims of non-infringement and invalidity, finding that the court no longer had subject. Under this rule, the insurers defense obligations are determined by the allegations of the pleadings and the language of the insurance policy, without regard to the actual facts. 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. Civ. P., also addresses declaratory judgments, by reference to 28 U.S.C. 91a.1 Motion and Grounds. Co. v. Bailey, 133 F.3d 363, 368 (5th Cir. 39 F.3d at 591. 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. Am., 845 S.W.2d 794, 801 (Tex. App.Houston [14th Dist.] 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. You can share these posts as long as you are linking to our posts. (b) A contract may be construed either before or after there has been a breach. Co. v. Delaney, 386 S.W.2d 648 (Tex. Westport v. Atchley, Russell, Waldrop & Hlavinka, 267 F. Supp. Pursuant to 37.003, a declaration may be either affirmative or negative in form and effect. 1, eff. See Feria v. CU Lloyds of Texas, 2001 Tex. Auto Ins. Declaratory Judgment These rules govern the procedure for obtaining a declaratory judgment under 28 U.S.C. Co. v. Griffin, 955 S.W.2d 81 (Tex. App.Houston 1998, pet. See TEX. See, e.g., Western Heritage Ins. Ellison sought a declaratory judgment to that effect and also brought claims for trespass to try title, trespass to real property, conversion, unlawful drainage, gross negligence, and nonpayment of oil and gas proceeds. 1993); American States Ins. Ins. & Rem. This information is not a substitute for an attorney. denied) (failure to satisfy burden is not finding of proof of opposite). 2201. Under the Declaratory Judgment Act, district courts have discretion to determine whether to entertain an action. insecurity with respect to rights, status, and other legal relations.". 2001) (when lease obtained); Guaranty Natl Ins. 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). 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. . 855, Sec. 1271 (N.D. Tex. to prevent: 1. litigation, 2. loss, 3. debt, 4. damage (injury), and 5. penalties! CODE ANN. Co. v. Burch, 442 S.W.2d 331 (Tex. App.Texarkana 1967, no writ) (auto excluded); International Serv. DEFINITION. 2005); In re Marriage of Byrne, 179 Ill.App.3d 944 (1st Dist. Co. v. Griffin, 955 S.W.2d 81, 82-84 (Tex. 6#7a |mp}v"VY2I Co. v. Merchants Fast Motor Lines, Inc., 939 S.W.2d 139 (Tex. Co. v. Tandy Corp., 986 F.2d 94, 96 (5th Cir. Sec. In St. Paul Ins. 37.0055. App. 1995). 37.003. (c) This chapter shall be so interpreted and construed as to 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. (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. at 368-69. 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. Code 6.305 (a) (1)- (2). Because the pleadings did not address a fact essential to determining coverage, the court allowed extrinsic evidence. 28 U.S.C. Houston, TX 77056 (whether policy was void or loss was covered presented justiciable controversy); American States Ins. E.g., Wilton v. Seven Falls Co., 515 U.S. 277 (1995); American States Ins. See Farmers Tex. Definition of Declaratory Judgment Noun A legal determination, made by a court, resolving a legal uncertainty within a legal action by outlining the facts of the case before it. Allstate Ins. PARTIES. 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. See, e.g., Standard Fire Ins. Co. v. Murray, 437 S.W.2d 264, 265-66 (Tex. Co. v. Deering Mgmt. 3. Ins. 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. ); State Farm Lloyds Ins. ^9@VXB-'C(SOZ#jGT"1kfWj7i,9^'EJ 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. 9 0 obj The district court dismissed the indemnification issue, but granted judgment on defense, based on the extrinsic evidence. 1998, pet. 2001). 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. App.Houston [1st Dist.] On the other hand, in some instances, principally those in which only indemnity is at issue, or where stay or abstention is likely, there may be no benefit to early filing. [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. In older cases, courts allowed broad introduction of extrinsic evidence in a declaratory judgment context. 4 0 obj at 332. 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. 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. endobj stream Frontier Pac. 37.007. 1995), the court held a minor, whose interests were affected, was properly made a party to a declaratory judgment action, and was bound by the judgment where the minors mother answered, as next friend, and a guardian ad litem was appointed. Cf. Sec. App.Corpus Christi 2000, no writ). (B) A contract may be construed either before or after there has been a breach. Co. v. Wade, 827 S.W.2d 448 (Tex. ); but cf. 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. Co. v. Rio Grande Heart Specialists of So. 1969); Getty Oil v. 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. & Rem. Civ. In a straight complaint allegation case, for instance, there should be extremely limited discovery, beyond verification of the pleadings and the policy. Co. v. Vic Mfg. App.Austin 1998, no pet. DEFINITION. App.Amarillo 1997, no pet.). Id. (driver excluded); see also Tri-Coastal Contrs, Inc. v. Hartford Undwrs Ins. 37.002. 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. endobj 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. September 1, 2007. 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. 45 (N.D. Tex. Ins. denied sub nom. Sec. [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. On the other hand, the existence of another remedy, or unresolved issues, does not preclude declaratory relief.