Insrs v. American Home Assur. PDF Affirmative and Defensive Pleadings in Insurance Coverage and Bad Faith The courts appear to be split, with federal courts being somewhat more lenient in allowing the use of extrinsic evidence in this circumstance. See Employers Cas. The policy provided limits of $100,000 per occurrence and $200,000 in the aggregate. Thus, an insured can seek an affirmative finding of coverage, or an insurer can seek a negative determination that coverage does not exist. The existence of another adequate remedy does not preclude a declaratory judgment that is otherwise appropriate. The court may order a speedy hearing of a declaratory-judgment action. Co. v. Childress, 650 S.W.2d 770, 775-76 (Tex. 2002); Monticello Ins. 2d 601, 621-22 (E.D. 1, eff. summary judgment on all of the Murphys' claims and its own claim for declaratory relief, requesting attorney's fees for both prosecuting and defending a declaratory judgment action. aspects of insurance coverage including directors and officers liability, professional liability, App.Houston [1st Dist.] The following state regulations pages link to this page. 37.0055. The Fifth Circuit overruled prior case law to conform with the Supreme Courts ruling. Co. v. Bailey, 133 F.3d 363, 368 (5th Cir. In Nautilus, the insureds were sued in California state court by a former business partner asserting numerous claims, including interference with prospective economic advantage. Where suits are filed in two states, one court may abstain in favor of the first-filed suit. Brooks v. Northglen Association, 141 S.W.3d 158, 163-164 (Tex. A declaration may not be rendered if a special statutory proceeding has been provided for the adjudication of some special type of case, but general ordinary or extraordinary legal remedies, whether regulated by statute or not, are not deemed special statutory proceedings. Co. v. Boll, 392 S.W.2d 158, 161 (Tex. Co. v. Tandy Corp., 986 F.2d 94, 96 (5th Cir. LEXIS 8494 (Tex. Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. 2 The courts decision has been described as carving out an exception, rather than overruling prior law. Fla. Stat. Although the trial court vacated the default judgment, on appeal, the Second Department reversed the lower court's order and reinstated the judgment against the insureds. Thompson Coe on Best Lawyers Best Law Firms List for 12th Consecutive Year, Four Years Later: The Impact of Texas Insurance Code Section 542A.006 on Insurance Litigation, Texas Supreme Court Reverses Appeals Court Judgment, Affirms Trial Win for Thompson Coe Client, Developing Texas Insurance Law in the Appellate Courts, Update & Recap: Winter Storm Uri and Impact on Gulf Coast Coverage Cases, The Good, The Bad, The Ugly: Texas Appraisals, NEW June PC Webinar: Insurance Retrospective, Texas Supreme Court Issues Significant Decision on Exception to Eight Corners Rule, 2801 Via Fortuna (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. 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. 1993); Trinity Univ. Amended by Acts 1987, 70th Leg., ch. (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.