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28 U.S.C. Co. v. Watson, 876 S.W.2d 145, 149 (Tex. If the order resolves the entire action, then the answer is easy. Last week, the Texas Supreme Court settled a long-running dispute and upheld an appeals court's ruling that claimants can use the Uniform Declaratory Judgments Act to establish a carrier's liability for uninsured/underinsured ("UM/UIM") motorist benefits under the claimant's policy and obtain attorney's fees as well. Sec. In Gandy, the court broadened the scope of re-litigation, noting that in no event, however, is a judgment for plaintiff against defendant rendered without a fully adversarial trial, binding on defendants insurer . App.Houston [1st Dist.] Contact Us if you have questions.). ("[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 . 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. 1996). denied). Wade, 827 S.W.2d at 451. See Fed. (b) A contract may be construed either before or after there has been a breach. 97 (E.D. Ins. Co. v. Delaney, 386 S.W.2d 648 (Tex. & Rem. New Orleans, LA 70130 Group v. Lou-Con, Inc., 293 F.3d 908 (5th Cir. App.Dallas 1998, pet. Civ. 1995) (whether trademark violation occurred during policy period). 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. See Bocquet v. Herring, 972 S.W.2d 19 (Tex. Rule 57, FED. 1994). Local venue flavor/influences II. In this chapter, "person" means an individual, partnership, joint-stock company, unincorporated association or society, or municipal or other corporation of any character. The insurer denied defense based on the liquor liability exclusion and filed a declaratory judgment action. See, e.g., Standard Fire Ins. App.Corpus Christi 1998), revd on other grounds, 995 S.W.2d 675 (Tex. When to file is often determined by what is at issue. Id. 2000) (staying declaratory action because of motion to join insurer in state court liability suit). App.Houston [1st Dist.] <>>> 1023, 1026 (N.D. Tex. See Bernard v. Gulf Ins. Tex. See London Mut. R. Civ. *I`Sl,'dpC2\,AMia*K/[ -M @ICPgIw5 Y k]x?4 :D R*NuNK^CXdmS0I,-B App.Houston [1st Dist.] 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. 1997)2; see also State Farm Lloyds v. C.M.W., 53 S.W.3d 877 (Tex. App.Corpus Christi 2000, no writ). 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. 1965, writ refd n.r.e.) The court remanded for consideration of these factors. at 313. Co. v. Grapevine Excavation, 241 F.3d 396 (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. 1991), affd in part, 961 F.2d 213 (5th Cir. McKee Foods Kingman v. Kellogg Co., 474 F. Supp . COSTS. & Rem. You may use the information for your individual case only. 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. 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. Nor can an insurer join the claimants and address the issues through interpleader. 1996) (nevertheless refraining from determining coverage for indemnity, on the basis of judicial economy). The Act provides you with a mechanism to get a ruling from the court before you are dragged through costly litigation. [iii] Ibid Uniform Declaratory Judgments Act, [iv]Ibid Uniform Declaratory Judgments Act, [v] Ibid Uniform Declaratory Judgments Act, [vi] Ibid Uniform Declaratory Judgments Act. oEN>-BZ=/c]-ZP4U3o>0!f$F = FQfB@DlClYthnA mML.;Emu =uT The award is subject to reversal only if it is arbitrary and unreasonable. Litigation in Texas. Co. v. River Entertainment, 998 F.2d 311, 315 (5th Cir. <> denied) (failure to satisfy burden is not finding of proof of opposite). River Entertainment was joined because it owned Pepes where the defendant imbibed. 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. (4) to determine rights or legal relations of an independent executor or independent administrator regarding fiduciary fees and the settling of accounts. Texas Pattern Jury Charges, published by the State Bar of Texas, is a compilation of definitions, jury instructions, and supplemental material, intended to assist practitioners with developing jury charges. Because the pleadings did not address a fact essential to determining coverage, the court allowed extrinsic evidence. The underlying liability suit arose from an accident in which one defendant, while intoxicated, hit the plaintiffs vehicle, killing their daughter. See Feria v. CU Lloyds of Texas, 2001 Tex. Twenty-Fifth Floor - Plaza of the Americas. Co., 2000 Tex. Co., 767 F.Supp. 1, eff. One reason proffered is the possibility of inconsistent outcomes. (not justiciable controversy); Foust v. Ranger Ins. 1992); cf. 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. If your state does not have a declaratory judgment statute that provides you the ability to be heard on your constitutional rights consider filing in federal court for this relief. Co. v. Tilley, 484 S.W.2d 802, 806 (Tex. 37.006. See the resource below for more details. 1995). The application must be by petition to a court having jurisdiction to grant the relief. The petition in the underlying suit was amended, however, and all references to alcohol were deleted. 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. (b) This chapter is remedial; its purpose is to settle and to afford relief from uncertainty and insecurity with respect to rights, status, and other legal relations; and it is to be liberally construed and administered. Tex. [Read opinion here.] On appeal, HTC challenged: " (1) the district court's exclusion of three of HTC's requested jury instructions; (2) the district court's declaratory judgment that Ericsson had complied with . 905 (a) (5), appeals are from judgments, not orders a common . Id. For our purposes, "litigation" refers to the filing and prosecuting of a real estate-related lawsuit, or defense against one, in the Texas county civil courts at law or the civil district courts. A declaratory judgment is one that simply declares the rights, status, or other legal relations of the parties without ordering anything to be done. 2001). Civ. A declaratory judgment claim can be useful in a wide variety of circumstances. final decision in the case instead of a judge. at 68. App.Texarkana 2003, pet. Ins. When an issue has been litigated in the underlying case, when can it be re-litigated in the coverage dispute? App.Austin 1999, no pet.) Sept. 1, 1985. A justiciable controversy may nonetheless exist where no other cause of action is available or has ripened. Co., 981 S.W.2d 889 (Tex. endobj 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. 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. 2201, and further provides for a jury trial. may declare the rights. Prac. Cf. Tex. endobj & Ind. App.Houston 1998, pet. App.Austin 1987, no writ); Safeway Mng. App.Austin, Oct. 2, 2003, no pet. 1993); McLaren v. Imperial Cas. Co., 143 F.3d 192 (5th Cir. [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. Civ. Instead, a party may recover fees only where controlling substantive law permits recovery. The firm's new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112. . The focus is on the factual allegations that show the origin of damages, rather than the legal theories alleged. See, e.g., State Farm Fire & Cas. Co. v. Truckin USA, 122 F.3d 270, 272-73 (5th Cir. App.Waco 1943, no writ); Superior Ins. It is axiomatic that the duty to defend is broader than the duty to indemnify. 1995). Sec.A37.003.AAPOWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. and Laju Patel Beaumont, Texas civil litigation lawyers represented Defendant accused of paying kickbacks. endobj Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. The Federal Declaratory Judgment Act creates a remedy, not a basis for jurisdiction. Allstate Ins. Co., 542 S.W.2d 429 (Tex. App.Dallas 1998, pet. See TEX. 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. 1996). Ins. The complaint allegation rule can pose a problem with declaratory relief. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Declaratory Judgment These rules govern the procedure for obtaining a declaratory judgment under 28 U.S.C. Co., 981 S.W.2d 861 (Tex. Co., 316 U.S. 491 (1942); Wilton, 515 U.S. 277. R. CIV. 1993) (whether accident arose from liquor liability); Acceptance Ins. Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. 1999) (insureds motion to transfer erroneously granted); Southern County Mut. Suite 300 v. Mitchell, 138 F.3d 208, 210 (5th Cir. 37.010. REVIEW. denied sub nom. endobj Austin, TX 78746 See, e.g., Standard Fire Ins. Civ. Ins. Rules 38 and 39 govern a demand for a jury trial. 1997), the Supreme Court reaffirmed the complaint allegation rule, with dicta suggesting that the exception for extrinsic evidence would be narrowed. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. A motion for declaratory judgment is an appropriate vehicle for determining the validity of a prenuptial agreement. 45 . stream 1, eff. 1998, pet. Thus, an insured can seek an affirmative finding of coverage, or an insurer can seek a negative determination that coverage does not exist. ydXOEp Pzz2 -Ia5D(eUE02Xd#zG5 ;}srmVY9c~Vqz6#tUy/`ck$cVpxKCoo,}o{T#@TQ]%5|@Rtx~K9jptm> oL In older cases, courts allowed broad introduction of extrinsic evidence in a declaratory judgment context. R. Civ. 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. Co. v. Griffin, 955 S.W.2d 81 (Tex. denied) (judgment of negligence in underlying case did not establish that negligent acts caused bodily injury, and did not preclude insurer from establishing intentional conduct); Deering Mgmt. App.Corpus Christi 2003, no writ). RestoringFreedom2016.com Kash Jackson campaign for defunding Title IV-D, and restoring constitutional parental and child rights. App.Houston [14th Dist.] App. <> Guar. App.Dallas 2001, no pet.) (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. 1992), cert. . 925 S.W.2d at 714. 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. See Bituminous Cas. <> Co. v. Wade, 827 S.W.2d 448 (Tex. Cty. See State Farm Mut. A justiciable controversy requires a real and substantial controversy over tangibles interests, and not merely a theoretical dispute. An action or proceeding is not open to objection on the ground that a declaratory judgment or decree is prayed for. Texas Uniform Declaratory Judgments Act, You can get sample motions here: Declaratory Relief Declaratory Judgment and Rights. Frontier Pac. Co. v. Louisiana Farm Bureau Federation, 996 F.2d 774, 778 (5th Cir. App. 1995). See Granite State Ins. Amount in Controversy (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. Co. v. River Entertainment, 998 F.2d 311, 315 (5th Cir. See, e.g., Commercial Metals Co. v. Balfour, Guthrie & Co., Ltd., 577 F.2d 264 (5th Cir. ), Code of Judical Conduct, Canon 3 B (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;. (a) In a case of actual controversy within its jurisdiction, except with respect to Federal taxes . The author would like to thank the Texas Tech Law School Foundation for its generous support. C.M.W., 53 S.W.3d 877 (Tex. We are posting this information just for educational purposes and not as a practice of law. 855, Sec. September 1, 2007. 512-708-8200, 700 North Pearl Street SUBJECT MATTER OF RELIEF. Co. v. Ochoa, 19 S.W.3d 452 (Tex. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. 19821 DECLARATORY JUDGMENTS IN TEXAS their statutory law. Co. v. Griffin, 955 S.W.2d 81, 82-84 (Tex. 2201-2202 . B. Respondent misstates the current law in Texas. DECLARATORY JUDGMENTS 37.001. 12 0 obj Co., 579 S.W.2d 523 (Tex. Copyright 2013 - 2023. 651-389-5000, 10001 Reunion Place A party seeking to recover upon a claim, counterclaim, or cross-claim or to obtain a declaratory judgment may, at any time after the adverse party has appeared or answered, move with or without supporting affidavits for a summary judgment in his favor upon all . P. 76A; 192.6(b)(5). 31 APP. Please avail yourself of these resources before seeking a consultation. Under Texas substantive law, attorneys fees may be available to the insured if the insurer has breached its duty to defend or indemnify. 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. Co. v. Taylor, 832 S.W.2d 645 (Tex. 1993). ), the court held the county where the agent was located, the policy was sold, and the claim was reported, was not a proper venue. While the law is less clear, Federal courts, applying Texas law, have reached a similar conclusion. ^9@VXB-'C(SOZ#jGT"1kfWj7i,9^'EJ relief is or could be sought." 28 U.S.C. at 368-69. 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. Typically, an anti-suit injunction is appropriate in limited instances: 1) to address a threat to the courts jurisdiction; 2) to prevent the evasion of important public policy; 3) to prevent a multiplicity of suits; or 4) to protect a party from vexatious or harassing litigation. Rule 57, FED. Ins. 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. 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. 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. Until a writ of possession is issued, the tenant can remain in their home. A defendant is the side the lawsuit has been filed against.The defendant is the party that may have to pay money damages or perform some other action if the plaintiff wins and the . 30. 1995). App.Beaumont 1972), affd other grounds, 496 S.W.2d 552 (Tex. Federal courts have broad discretion as to whether to retain jurisdiction or dismiss declaratory judgment actions. See Utica Lloyds of Tex. denied, 511 U.S. 1032 (1994). When there is uncertainty as to the legal obligations or rights between two parties, a declaratory judgment offers an immediate means to resolve this uncertainty. Cigna Lloyds Ins. and that a prior judgment is void. 7 0 obj Marriages between two people of the same sex are valid in Texas. Acts 1985, 69th Leg., ch. Sherrys teachings are unique and cutting edge to the family law industry developed by her and her husband. <> Co., 628 S.W.2d 184 (Tex. Civ. E.g., Wilton v. Seven Falls Co., 515 U.S. 277 (1995); American States Ins. The declaratory judgment action allows relief, even where another remedy exists. 1992), cert. Pursuant to 37.003, a declaration may be either affirmative or negative in form and effect. 2003) (finding Texas allows only narrow exception); but see Gonzales v. American States Ins. 1998) (whether release was sudden and accidental); Western Heritage Ins. & Rem. All orders, judgments, and decrees under this chapter may be reviewed as other orders, judgments, and decrees. The following are some specific ways that declaratory judgments can be used in family law. St. Paul had also appealed the original award to state district court, and that suit had also been settled, with a provision for payment of future expenses. 167, Sec. Under most liability policies, the claimants are not third-party beneficiaries and have no direct rights, and no cause of action, against the insurer until there has been a settlement, to which the insurer agrees, or a judgment against the insured. Co. v. Gaskins, 572 S.W.2d 573, 575 (Tex. at 332. 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. to prevent: 1. litigation, 2. loss, 3. debt, 4. damage (injury), and 5. penalties! App.Amarillo 1997, no pet.). Declaratory relief is an especially appropriate method for resolving coverage disputes, because of the limited options available for resolution of such disputes. 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. In addition, Rule 57 provides that the court may order a speedy hearing as an action for a declaratory judgment and may advance it on the calendar.. June 15, 2007. Code Ann. endobj 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.. The Federal act is broader in scope. 1994). In part, of course, the scope of discovery will be determined by the nature of the issue. 7/22/14 N/A Yes . As au- 1995); but cf. In a number of instances, courts have concluded that an insurer is entitled to re-litigate issues. All Rights Reserved. Co. v. Merchants Fast Motor Lines, Inc., 939 S.W.2d 139 (Tex. 1969); see also Allstate Ins. Foust v. Ranger Ins. See, e.g., City of Galveston v. Giles, 902 S.W.2d 167 (Tex. Dallas, TX 75201 1973) (court had no authority to order declaration against insurer in response to insureds motion for summary judgment on insurers claims); Indigo Oil, Inc. v. Wiser Oil Co., 1998 TEX. Sept. 1, 1999. [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. Co. v. Taylor, 706 S.W.2d 352 (Tex. Acts 1985, 69th Leg., ch. App.San Antonio 1998, pet. Auto Ins. SEGURA.POSTMACRO.3 (DO NOT DELETE) 6/19/2015 8:20 AM DISPUTING THE BOUNDARY OF THE DECLARATORY JUDGMENTS ACT Philip Thomas Segura* I. TRESPASS TO TRY TITLE OR DECLARATORY JUDGMENTS ACT Texas state law provides that "[a] trespass to try title action is the method of determining title to lands, tenements, or other real property."1 In Texas, this is the only method of resolving property . See Great American Ins. Federated Mut. P. 26; Tex. 2201(a) . R. CIV. (a) When declaratory relief is sought, all persons who have or claim any interest that would be affected by the declaration must be made parties. 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. Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper. <> denied). Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. 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. The answer may depend upon whether the insurer has defended or simply denied coverage, and the extent to which the issue is actually material to, and fully litigated in, the underlying dispute. A declaratory judgment is a legal determination by the court, which resolves legal uncertainties in a controversy. Because the Declaratory Judgment Act expressly allows plaintiffs who win declaratory relief to seek injunctive relief either simultaneously or subsequently, any losing defendant will know that the potential for sanctions is only one step away. 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. (B) A contract may be construed either before or after there has been a breach. "Undoubtedly, the degree of control the agreement ultimately exerts over the parties' rights in the . 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. Texas Air Control Bd., 852 S.W.2d at 444. Also, seeking title by declaratory judgment is improper. App.Houston 1965, writ refd n.r.e.) Burch involved a declaration that the insurer owed defense, and also owed indemnity for the insureds liability for his wifes torts. 37.002. App.Dallas 2001, pet. 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. Texas Declaratory Judgment Law United States of America v. Vijesh Patel, M.D. Many of our sample motions are here in electronic form. If any facts within the scope of coverage are determined, however, an insurer is required to defend. C.M.W., 53 S.W.3d 877 (Tex. Prior to the Grapevine Excavation case, the Fifth Circuit had construed 38.006 to exempt insurers from paying attorneys fees in breach of contract actions. 1991). (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. As Texas law remains uncertain regarding reimbursement of defense costs, and as many insureds are not financially capable of repayment, the defense issue may be rendered moot either practically or legally by delay. Co. v. Gandy, 925 S.W.2d 696 (Tex. COPYRIGHT: All of the materials are copyrighted. See Natl Union Fire Ins. See, e.g., Ruth v. Imperial Ins. See, e.g., State Farm Lloyds v. 1974, no writ). Under federal law, the Declaratory Judgment Act, itself, does not authorize attorneys fees. See Farmers Tex. An action or proceeding is not open to objection on the ground that a declaratory judgment or decree is prayed for." - Texas Uniform Declaratory Judgments Act <> Acts 2007, 80th Leg., R.S., Ch. Obviously, the nature of the coverage issue to be determined will also determine the scope of discovery. [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. Because there was no judgment in the liability suit, the court concluded that any declaration regarding indemnity would be purely hypothetical.1 In 1997, the Supreme Court concluded that the law had changed, however, and determined that a declaration of indemnity was available, when the same facts that defeated a duty to defend also defeated a duty to indemnify. Sec. 1997); Heyden Newport Chemical Corp. v. So. 6 0 obj Background This case involves a dispute over a . Ins. Co. v. Hood, 895 F.Supp. Fam. In addition, in many instances, a protective order will allow broad discovery, without fear of disclosure to the plaintiff. Coverage disputes under liability policies are well-suited for declaratory actions. App.Houston [14th Dist.] . 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. Sept. 1, 1985. Co. v. Vic Mfg. Civ. See Hartford Ins. App.Dallas 2001, pet. Dept. denied). Co. v. Rio Grande Heart Specialists of So. Added by Acts 2007, 80th Leg., R.S., Ch. A federal anti-injunction also exists. Under Texas law, a duty to defend is determined by the complaint allegation rule. Still, there are often strategic benefits to filing early. LEXIS 7088 (Tex. Declaratory judgment actions have been a recognized civil vehicle for more than one hundred years. We do not guarantee or warrant any of this information. & REM. Under state or federal law, declaratory relief is only appropriate when there is an actual case or controversy. 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.