declaratory judgment texas family lawcurrent earls and dukes of england

A developing issue has been the extent to which declaratory relief is available to determine an insurers indemnity obligations, while the underlying suit is pending. It is axiomatic that the duty to defend is broader than the duty to indemnify. See Scottsdale Ins. LEXIS 7088 (Tex. 6 0 obj 1974, no writ). See, e.g., Wilton v. Seven Falls Co., 515 U.S. 277, 286 (1995). 37.005. 37.008. 3. [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. Group v. Lou-Con, Inc., 293 F.3d 908 (5th Cir. Rule 57. If the application is deemed sufficient, the court shall, on reasonable notice, require any adverse party whose rights have been adjudicated by the declaratory judgment or decree to show cause why further relief should not be granted forthwith. Flexibility of Court in Awarding Fees. A declaratory judgment is a legal determination by the court, which resolves legal uncertainties in a controversy. JURY TRIAL. PRAC. Because the insurer would be allowed to re-litigate, after the underlying case is resolved, there is no reason to delay the inevitable. Acts 1985, 69th Leg., ch. & Liab. See State Farm Mut. In a number of instances, courts have concluded that an insurer is entitled to re-litigate issues. 28 U.S.C. Co., 981 S.W.2d 861 (Tex. Wade, 827 S.W.2d at 451. ydXOEp Pzz2 -Ia5D(eUE02Xd#zG5 ;}srmVY9c~Vqz6#tUy/`ck$cVpxKCoo,}o{T#@TQ]%5|@Rtx~K9jptm> oL App.Houston [14th Dist.] A binding adjudication of the rights and status of litigants even though no consequential relief is awarded. POWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. 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. Rule 91a - Dismissal of Baseless Causes of Action. Declaratory judgment actions have been a recognized civil vehicle for more than one hundred years. See Tri-Coastal Contractors, Inc. v. Hartford Undwrs Ins. COSTS. xX]oF}G?SeW0W44q>EqU{s@N|Bt2&iw'PmH'4QH1_>{'Y7bLH dB4uX;iYtI7F7*L^F Sherry does this through creating and teaching online digital courses, speaking, webinars, and workshops. C.M.W., 53 S.W.3d 877 (Tex. Civ. 1965). To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied. Tex. Co., 767 F.Supp. Declaratory Judgment. A court can dismiss a declaratory action even if it fails to meet the stringent standards for abstention. It may be appropriate for courts to abstain, in certain circumstances. Eskew, 731 S.W.2d 124, 132 (Tex.App.-Austin 1987, writ ref'd n.r.e.) Under Texas substantive law, attorneys fees may be available to the insured if the insurer has breached its duty to defend or indemnify. In this instance, both state and federal courts have readily allowed the use of extrinsic evidence to determine the duty to defend. Pursuant to 37.003, a declaration may be either affirmative or negative in form and effect. See Farmers Tex. Over the past few decades, Texas family lawyers have engaged in a legal fiction: Let's tie a bow around the package of a partition and exchange agreement by seeking to have the agreement made the subject of a declaratory judgment action. See Bernard v. Gulf Ins. Co. v. Fraiman, 514 S.W.2d 343, 346 (Tex. In Chiriboga v. State Farm Mut. 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. o FRCP Rule 57. Indemnity is based on the actual facts establishing liability in the underlying suit. * Associate Professor of Law, Texas Tech University School of Law. 1993); McLaren v. Imperial Cas. R. Civ. 1445(c) and federal abstention principles. Co. v. Ochoa, 19 S.W.3d 452 (Tex. 1998). Now you can hire experts to teach your court that you are asserting the protections of your parental rights[vii]. 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. [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. 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. 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. & Rem. 19821 DECLARATORY JUDGMENTS IN TEXAS their statutory law. 37.004. A declaration does not prejudice the rights of a person not a party to the proceeding. at 468. Co. v. Carmichael, 1998 Tex. Co. v. Cowan, 945 S.W.2d 819 (Tex. 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. E.g., Chenault v. Phillips, 914 S.W.2d 140, 141 (Tex. endobj (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. 2005); In re Marriage of Byrne, 179 Ill.App.3d 944 (1st Dist. DEFINITION. P. 26; Tex. Suite 400 See Firemens Ins. Auto Ins. 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. App.Beaumont 1972), affd other grounds, 496 S.W.2d 552 (Tex. SHORT TITLE, CONSTRUCTION, INTERPRETATION. However, because family settlement agreements are treated as contracts under Texas law, it is important that all of the parties . 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. Co. v. Gandy, 925 S.W.2d 696 (Tex. Sec. 1993); American States Ins. Go to this page for more information on this path: Federal Court Declaratory Relief Declaratory Judgment sample motions. Where a judgment has been entered in the underlying case, and the insurer has refused indemnity, it may also be that declaratory relief is inappropriate, because a cause of action for breach of contract has ripened. Coverage disputes under liability policies are well-suited for declaratory actions. See, e.g., Texas Assn of Bus. Co. v. Taylor, 832 S.W.2d 645 (Tex. The Federal Declaratory Judgment Act creates a remedy, not a basis for jurisdiction. In part, of course, the scope of discovery will be determined by the nature of the issue. There is a contract, and a dispute over the parties rights and obligations under the contract. Declaratory Judgment These rules govern the procedure for obtaining a declaratory judgment under 28 U.S.C. The award is subject to reversal only if it is arbitrary and unreasonable. (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. c) The court may grant summary judgment as to liability only and leave damages for the jury, as appropriate. R. Civ. App.Fort Worth 1973, writ refd n.r.e.). (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. (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. (a) In a case of actual controversy within its jurisdiction, except with respect to Federal taxes . As au- at 68. Co. v. Bailey, 133 F.3d 363, 368 (5th Cir. Co. v. Murray, 437 S.W.2d 264, 265-66 (Tex. A declaration does not prejudice the rights of a person not a party to the proceeding. Id. The complaint allegation rule can pose a problem with declaratory relief. 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. 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. A Declaratory Judgment allows you to establish with your court what your rights are before you take steps which might involve you in costly litigation. A future interest in a potential judgment has been held insufficient to allow intervention. See Great American Ins. (a) 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. Burch involved a declaration that the insurer owed defense, and also owed indemnity for the insureds liability for his wifes torts. Rule 56(c). (driver excluded); see also Tri-Coastal Contrs, Inc. v. Hartford Undwrs Ins. App. The North Dakota Supreme Court concluded the district court lacked subject matter jurisdiction because Appellants failed . History of Declaratory Judgments The history of declaratory judgments began in the U.S. in the early 1900s. Dallas, TX 75201 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. See, e.g., Stroop v. N. County Mut. 1, eff. App.Corpus Christi 1997, no pet.) 1 Justice Smith was perhaps prescient in his dissent, concluding that a justiciable controversy existed. One of the factors the courts will review is whether the declaratory action is filed in anticipation of a state court suit. E.g., Wilton v. Seven Falls Co., 515 U.S. 277 (1995); American States Ins. PARTIES. Ins. denied) (any judgment on indemnity was advisory and beyond power and jurisdiction of the court); Campbell v. Commercial Standard Ins. R. CIV. Rule 57, FED. Ins. A plaintiff is the side that starts the lawsuit by filing a complaint or petition with the court.A plaintiff files the lawsuit to get the court to force the defendant to do something, such as pay money damages. Ohio Cas. 905 (a) (5), appeals are from judgments, not orders a common . There are exceptions, of course. We are not responsible for you using any of this information. 1992), cert. McKee Foods Kingman v. Kellogg Co., 474 F. Supp . 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. See Feria v. CU Lloyds of Texas, 2001 Tex. to prevent: 1. litigation, 2. loss, 3. debt, 4. damage (injury), and 5. penalties! In duty to defend cases, the issue of whether extrinsic evidence is even relevant would likely arise. Civ. 959, Sec. Fam. 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. Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. State Farm argued the policy changes were made in Milam County, where the agent was located, and the policy was sold. Co. v. Hood, 895 F.Supp. Read this complete Texas Estates Code - EST 257.101. 1997); Heyden Newport Chemical Corp. v. So. See, e.g., City of Galveston v. Giles, 902 S.W.2d 167 (Tex. 1996) (nevertheless refraining from determining coverage for indemnity, on the basis of judicial economy). 37.002. You want to get the most out of these motion arguments, so make sure you do step 1 and 2 as well. A federal anti-injunction also exists. (b) A district court has original jurisdiction of a proceeding seeking a declaratory judgment that involves: (1) a party seeking declaratory relief that is a business that is: (A) organized under the laws of this state or is otherwise owned by a resident of this state; or, (B) a retailer registered with the comptroller under Section 151.106, Tax Code; and, (A) is an official of another state; and. Co. v. Boll, 392 S.W.2d 158, 161 (Tex. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Ins. 1968); National Sav. This article is designed to acquaint investors with basic rules and procedures involved in Texas litigation. K-yXHMKS mmgOT}|aMz0. All rights reserved, Declaratory Relief Declaratory Judgment and Rights. (c) A business described by Subsection (b)(1) is entitled to declaratory relief on the issue of whether the requirement of another state that the business collect and remit sales or use taxes to that state constitutes an undue burden on interstate commerce under Section 8, Article I, United States Constitution. DECLARATORY JUDGMENTS 37.001. "gj6P'pn.g_9z# ?V#yof.j,^4{%y^LJ_z|0 eivLnBE.orQevfwe^_d \2P4^Gy-ts}] ;|^QRg-d^yX^OeGE?kP0+]kw/k}m+TssVg4Pv. Because the pleadings did not address a fact essential to determining coverage, the court allowed extrinsic evidence. Co. v. Wade, 827 S.W.2d 448 (Tex. . The declaratory judgment action allows relief, even where another remedy exists. Marriages between two people of the same sex are valid in Texas. 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. Co. v. Truckin USA, 122 F.3d 270, 272-73 (5th Cir. dismd, 507 U.S. 1026 (1993). The Historic Hamm Building All orders, judgments, and decrees under this chapter may be reviewed as other orders, judgments, and decrees. 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. (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. 1992), cert. A declaratory judgment must be based on an actual controversy, and cannot be merely advisory. <> Co. v. Boll, 392 S.W.2d 158, 161 (Tex. 97, 99 (E.D. 167, Sec. recoverable by the prevailing party under the Texas Declaratory Judgment Act, the federal act does not provide for fees to be awarded. Suite 1850 10, eff. Further, while it is unlikely that an insurer wishes to proceed, without protective order, to establish evidence that demonstrates the insureds liability as the insurer has not yet prevailed on its coverage defenses it is also unclear under what standard the insured should be able to protect otherwise discoverable information, simply because it is damaging. 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. 12 0 obj 1997); Trinity Universal Ins. 713-403-8210, 601 Poydras 2 . 37.011. 2003) (finding Texas allows only narrow exception); but see Gonzales v. American States Ins. Local venue flavor/influences II. (B) asserts a claim that the party seeking declaratory relief is required to collect sales or use taxes for that state based on conduct of the business that occurs in whole or in part within this state. denied) (failure to satisfy burden is not finding of proof of opposite). Co., 981 S.W.2d 889 (Tex. 1998) (holding that Texas Declaratory Judgment Act was not controlling, substantive law, and did not justify fee award to defendants). App.Corpus Christi 1998), revd on other grounds, 995 S.W.2d 675 (Tex. In Williamson, a jury awarded the claimant damages against the insured for false imprisonment. 959, Sec. 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 When an issue has been litigated in the underlying case, when can it be re-litigated in the coverage dispute? (1) a party seeking declaratory relief that is a business that is: (A) organized under the laws of this state or is otherwise owned by a resident of this state; or (B) a retailer registered with the comptroller under Section 151.106, Tax Code; and (2) a responding party that: (A) is an official of another state; and stream 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. The Federal act is broader in scope. 4 . 1994), the court reviewed abstention doctrine in relation to declaratory judgment actions. See Firemans Ins. An action or proceeding is not open to objection on the ground that a declaratory judgment or decree is prayed for. final decision in the case instead of a judge. A trial court has discretion to enter declaratory judgment if it will serve a useful purpose or will terminate the controversy between the parties. Id. Co. v. Travis, 68 S.W.3d 72, 77 (Tex. Co. v. Block, 744 S.W.2d 940, 943 (Tex. Courts recognize that when there are conflicting positions on coverage, as when the insurer reserves rights, there is no privity between the insured and the insurer on issues relating to coverage, which are also at issue in the underlying case. Co. v. Childress, 650 S.W.2d 770, 775-76 (Tex. App.Dallas 1992, writ denied) (insurer not collaterally estopped from challenging findings); United States Fire Ins. . 925 S.W.2d at 714. Sept. 1, 1985. As amended through January 27, 2023. Tex. Civ. 1965, writ refd n.r.e.) 37.002 (b) (Vernon 2008); see Bonham State Bank, 907 S.W.2d at 467; Indian Beach Property Owners' Ass'n v. 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." 1023, 1026 (N.D. Tex. Prac. 1983). & REM. App.El Paso 2000, no pet. App.Texarkana 1967, no writ) (auto excluded); International Serv. 3, Ch. Id. App.Houston [1st Dist.] Co. v. Louisiana Farm Bureau Federation, 996 F.2d 774, 778 (5th Cir. <> See, e.g., State Farm Fire & Cas. Co. of Texas v. Erskine, 169 S.W.2d 731 (Tex. 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., 95 S.W.3d 702 (Tex. The policy provided limits of $100,000 per occurrence and $200,000 in the aggregate. 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. Lazaro C. Olivarez Family Trust Page 3 of 10 Electronically Filed 11/30/2016 4:52:31 PM Hidalgo County District Clerks Reviewed By: Jennifer Sinder b) Judgment No.2: That trustees cannot use trust funds to respond to this motion for declaratory judgments pursuant to page 14 paragraph numbered 20 of the trust documents because the court's . Id . See Employers Cas. The federal act allows the court to declare the rights of any interested party.. endstream While for years there was a question in the Federal courts as to whether 38.001, Tex. Id. Please avail yourself of these resources before seeking a consultation. 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. Cty. 1941); and there is every reason for not reducing declaratory . Typically, the first-filed suit has dominant jurisdiction. 05-05-00061-CV, citing Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. Copyright 2013 - 2023. For years, Texas courts concluded that a declaration of indemnity was premature, until the underlying suit was resolved. As a constitutional family rights expert researcher and writer, Sherry helps parents and their attorneys see the possibilities in making constitutional arguments for parental rights as being in the childs best interests. 1993) (Colorado River factors inapplicable in declaratory judgment action); Granite State Ins. ); but cf. Co. v. Deering Mgmt. % One reason proffered is the possibility of inconsistent outcomes. 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. Co. v. Griffin, 955 S.W.2d 81, 82-84 (Tex. Under Texas law, a duty to defend is determined by the complaint allegation rule. ); Rice v. Alamo Rent-A-Car, Inc., 987 S.W.2d 231 (Tex. LEXIS 7982 (Tex. Foust v. Ranger Ins. Sec. endobj 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. xko9.ou _:=;0b+w)m3]WTy:>yYWOv]vs|?V~>zw"{}v~eM/XVY&R~Eou6Wv/ *]nT:^\-G:[A? App.Dallas 1998, pet. No. A. The most common exception for extrinsic evidence is when the pleadings simply do not assert facts that would determine coverage. Federal courts have broad discretion as to whether to retain jurisdiction or dismiss declaratory judgment actions. See Travelers Ins. 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. App.Dallas 2001, pet. Advisory opinions are prohibited by both the state and federal constitutions. Court refused this collateral attack on prior judgment by declaration. In St. Paul Ins. Other Resources you might find helpful to help you get through the stress and emotional turmoil involved during the time that you have uncertainty and fear of losing your child and control over your life and your money: **It is your responsibility to prove that the PALMERS qualify as an expert in your state and can testify. See Natl Union Fire Ins. e) Summary judgment is available in declaratory judgment actions. 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%. Co., 2000 Tex. 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. One common element circuit courts often point to is whether the suit was brought . 140 0 obj <> endobj Jan. 25, 2019) is a mandamus case involving an insurer's motion to dismiss a declaratory judgment action by a law firm seeking a declaration of non-liability for malpractice in representing the insurer and advising it did not owe a defense in an underlying suit. Costs and fees are not dependent upon the outcome, and can be awarded to either the prevailing or the non-prevailing party. . 1998, no pet.). Sec. Ins. Under state or federal law, declaratory relief is only appropriate when there is an actual case or controversy. App.Corpus Christi 2000, no writ). 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. Step 1: Written Notice to Vacate. Admiral Ins. Code 37.002 (b). Sec. Any such declaration shall have the force and effect of a final judgment or decree and shall be reviewable as such. App.Corpus Christi 2002, pet. 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. Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper. A marriage might be void for other reasons, but not because the spouses are of the same sex. and that a prior judgment is void. See Murray, 437 S.W.2d 264 (Tex. If the discovery is limited, or poorly conducted, or does not address the coverage issues, however, the insurer may seek additional testimony and evidence. Co. v. Deering Mgmt. 1996). . Texas Family Code Section 2.401 states the proof necessary to establish an informal marriage in Texas: . Co. v. Cooper Mach. App.Houston 1998, pet. App.Austin 1999, no pet.) ), 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;. App.Fort Worth 1998, no pet.) The Western Heritage case epitomizes the argument for use of extrinsic evidence. First, is the constitutional inquiry - the case must be a 'case or controversy' pursuant to. It is still likely a court will not allow dual-track litigation of issues that affect liability and coverage. 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. 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. <>>> Federal: Declaratory Judgment Act, 28 U.S.C. 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. The declaratory action may also bring the coverage issues into focus for the plaintiff, and assist the insured in negotiating settlement. Guar. App.San Antonio 1998, pet. 1, eff. App.Dallas 2001, no pet.) There was also a declaration that the insurer owed neither defense nor indemnity to the wife. 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. As a preliminary consideration, counsel for the insurer should be careful and selective in what is requested. Code 7.001. Co., 981 S.W.2d 861 (Tex. 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. *I`Sl,'dpC2\,AMia*K/[ -M @ICPgIw5 Y k]x?4 :D R*NuNK^CXdmS0I,-B denied); Ranger Ins. The court may order a speedy hearing of a declaratory judgment action. LEXIS 1736 (Tex. Co. v. Grapevine Excavation, 241 F.3d 396 (5th Cir. App.Houston [1st Dist.] A declaratory judgment is typically requested when a party is threatened with a lawsuit but the lawsuit has not yet been filed; or when a party or parties believe that their rights under law and/or contract might conflict; or as part of a counterclaim to prevent further lawsuits from the same plaintiff (for example, when only a contract claim is Suite 1400 <> hb```c`` AX,$)00(IrZ Ny d3Vttt00 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. C.M.W., 53 S.W.3d 877 (Tex. River Entertainment was joined because it owned Pepes where the defendant imbibed.

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