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2201(a) . Id. ); Rice v. Alamo Rent-A-Car, Inc., 987 S.W.2d 231 (Tex. Co. v. Trejo, 39 F.3d 585 (5th Cir. Frontier Pac. 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. A justiciable controversy requires a real and substantial controversy over tangibles interests, and not merely a theoretical dispute. Co. v. Delaney, 386 S.W.2d 648 (Tex. A Texas Rule 11 family settlement agreement can be a wonderful tool to resolve a Texas probate dispute. Texas Declaratory Judgment Law United States of America v. Vijesh Patel, M.D. App.Dallas 1998, pet. 28 U.S.C. App.Fort Worth 1998, no pet.) 1993) (Colorado River factors inapplicable in declaratory judgment action); Granite State Ins. See, e.g., Dairyland County Mut. [iii] Ibid Uniform Declaratory Judgments Act, [iv]Ibid Uniform Declaratory Judgments Act, [v] Ibid Uniform Declaratory Judgments Act, [vi] Ibid Uniform Declaratory Judgments Act. 8 0 obj The Act provides you with a mechanism to get a ruling from the court before you are dragged through costly litigation. 10, eff. (a) This chapter may be cited as the Uniform Declaratory Judgments Act. The most common exception for extrinsic evidence is when the pleadings simply do not assert facts that would determine coverage. Instead, a party may recover fees only where controlling substantive law permits recovery. See Bocquet v. Herring, 972 S.W.2d 19 (Tex. [i] UNIFORM DECLARATORY JUDGMENTS ACT paper by NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS at the conference in San Francisco on August 2-8, 1922. The declaratory judgment action allows relief, even where another remedy exists. See, e.g., State Farm Fire & Cas. 2010), Sec. Ins. COSTS. 5 0 obj <> The Western Heritage case epitomizes the argument for use of extrinsic evidence. He then filed a lawsuit seeking a declaratory judgment that Allstate owed him the difference between the settlement . 1998, no pet.). 91a.1 Motion and Grounds. 2000) (staying declaratory action because of motion to join insurer in state court liability suit). %PDF-1.5 Courts have struggled with the issue of what can be resolved in the declaratory judgment action, when the issue determining coverage may also be material in the underlying case. We are not attorneys. & Rem. 1995) (whether trademark violation occurred during policy period). In a straight complaint allegation case, for instance, there should be extremely limited discovery, beyond verification of the pleadings and the policy. Cigna Lloyds Ins. App.Houston [1st Dist.] Co. v. Tandy Corp., 986 F.2d 94, 96 (5th Cir. The Historic Hamm Building Acts 1985, 69th Leg., ch. See, e.g., Commercial Metals Co. v. Balfour, Guthrie & Co., Ltd., 577 F.2d 264 (5th Cir. It is still likely a court will not allow dual-track litigation of issues that affect liability and coverage. See, e.g., Standard Fire Ins. 1993). R. CIV. App.Dallas 2000, pet. See Firemans Ins. The following are some specific ways that declaratory judgments can be used in family law. Acts 2007, 80th Leg., R.S., Ch. 37.004. 1992); cf. Suite 400 App.San Antonio 1965), affd, 396 S.W.2d 855 (holding state court had no jurisdiction to render advisory opinion while prior suit was pending on appeal in Fifth Circuit, despite federal courts voluntary stay). 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. 1994), the court reviewed abstention doctrine in relation to declaratory judgment actions. 2 The courts decision has been described as carving out an exception, rather than overruling prior law. at 468. denied); see also State Farm Fire & Cas. 19821 DECLARATORY JUDGMENTS IN TEXAS their statutory 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. Co. v. Carmichael, 1998 Tex. P. 26; Tex. Marriages between two people of the same sex are valid in Texas. 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. All Rights Reserved. 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 . 925 S.W.2d at 714. (prior judgment not res judicata as to amended pleading that alleged new facts, not involving completed operations); St. Paul Ins. Also, seeking title by declaratory judgment is improper. Ohio Cas. Co. v. Ochoa, 19 S.W.3d 452 (Tex. App.Corpus Christi 2000, no writ). Code 37.002 (b). at 313. Ins. (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. (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. <> Sec. hb```c`` AX,$)00(IrZ Ny d3Vttt00 RestoringFreedom2016.com Kash Jackson campaign for defunding Title IV-D, and restoring constitutional parental and child rights. Can I Still File if I am already in Costly Litigation? In re Houston Specialty Insurance Co., 569 S.W.3d 138 (Tex. App. 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. A declaration does not prejudice the rights of a person not a party to the proceeding. Sec. Prac. App.Austin 1987, no writ); Safeway Mng. Go to this page for more information on this path: Federal Court Declaratory Relief Declaratory Judgment sample motions. Code 6.305 (a) (1)- (2). 167, Sec. See, e.g., Ohio Cas. (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. Co. v. Boll, 392 S.W.2d 158, 161 (Tex. App.Houston [14th Dist.] at 332. (a) In a case of actual controversy within its jurisdiction, except with respect to Federal taxes . 1969); see also Allstate Ins. 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. One reason proffered is the possibility of inconsistent outcomes. 37.001. Tex. endobj Allstate Ins. 713-403-8210, 601 Poydras P., also addresses declaratory judgments, by reference to 28 U.S.C. denied) (failure to satisfy burden is not finding of proof of opposite). may declare the rights. When to file is often determined by what is at issue. Ins. See State Farm Mut. Prac. Step 1: Written Notice to Vacate. 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. 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. Federal Jurisdiction Issues A. Diversity Jurisdiction 1. See Murray, 437 S.W.2d 264 (Tex. 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. See, e.g., State Farm Fire & Cas. (a) In this section, "state" includes any political subdivision of that state. The order, once it has been reduced to judgment (under Pa. R.A.P. (although judgment reversed on coverage, no indication courts refusal to award fees to either party was abuse of discretion). 4 Among the statutes allowing for award of attorney's fee s is the following non-exhaustive list: 5Civil Practice & Remedies Code. 959, Sec. 3. Until a writ of possession is issued, the tenant can remain in their home. In cases involving duty to indemnify, there may be issues as to whether the indemnity facts were fully litigated in an actual trial, or whether the facts can be re-litigated, construing Gandy and Maldonado. Here are the requirements: An informal or common-law marriage exists in Texas if the parties (1) agree to be married, (2) live together in Texas as husband and wife after the agreement, and (3) represent to others that they are married. Declaratory Judgment These rules govern the procedure for obtaining a declaratory judgment under 28 U.S.C. Federal: Declaratory Judgment Act, 28 U.S.C. Am., 845 S.W.2d 794, 801 (Tex. See Bernard v. Gulf Ins. 1996). 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. 3.08(a), eff. recoverable by the prevailing party under the Texas Declaratory Judgment Act, the federal act does not provide for fees to be awarded. 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). Co. v. Vic Mfg. 6#7a |mp}v"VY2I 05-05-00061-CV, citing Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. See Employers Cas. LEXIS 8494 (Tex. One common element circuit courts often point to is whether the suit was brought . Prac. In any proceeding under this chapter, the court may award costs and reasonable and necessary attorney's fees as are equitable and just. )1^Hl]TgxY8Ubs,! 9@Dyp*l8sA!N\X The purpose of the Declaratory Judgments Act is "to settle and afford relief from uncertainty and. The focus is on the factual allegations that show the origin of damages, rather than the legal theories alleged. 1997); Trinity Universal Ins. It has long been recognized that Texas law does not allow recovery of attorneys fees unless authorized by statute or contract. Chapter 5 2 III. The court remanded for consideration of these factors. 7531-7541. Corp. v. Vacuum Tanks, Inc., 975 F.2d 1130, 1133 (5th Cir. See Farmers Tex. See Bituminous Cas. Sept. 1, 1985. (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 App.Austin, Oct. 2, 2003, no pet. The abundance of case law allowing extrinsic evidence, however, suggests that the exception will continue. App.Corpus Christi 2003, no writ). endstream September 1, 2007. Ins. stream 512-708-8200, 700 North Pearl Street 2002); Monticello Ins. Suite 1400 Acts 1985, 69th Leg., ch. 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. 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. ^9@VXB-'C(SOZ#jGT"1kfWj7i,9^'EJ 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. 830-252-5100. Id. (not justiciable controversy); Foust v. Ranger Ins. See Fed. final decision in the case instead of a judge. 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 McCarthy Bros. Co. v. Continental Lloyds, 7 S.W.3d 725 (Tex. E.g., Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. Section 6.204 of the Texas Family Code still states that same-sex marriages are void, but that law is no longer enforceable. Rules 38 and 39 govern a demand for a jury trial. Clearly, the insurer should be entitled to discovery of anything that has been discovered in the underlying suit. See, e.g., City of Galveston v. Giles, 902 S.W.2d 167 (Tex. denied). 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. App.Corpus Christi 2000, no writ). One of the factors the courts will review is whether the declaratory action is filed in anticipation of a state court suit. Flexibility of Court in Awarding Fees. 214-871-8200, One Riverway Cty. See, e.g., Standard Fire Ins. [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. 1998). Co. v. Patriot Sec., Inc., 926 F.Supp. (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. (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. The county where the contract was formed may also be a proper venue. 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. App.Austin 1998, pet. 305 (H.B. 140 0 obj <> endobj Sec.A37.003.AAPOWER OF COURTS TO RENDER JUDGMENT; FORM AND EFFECT. 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. The application must be by petition to a court having jurisdiction to grant the relief. Costs and fees are not dependent upon the outcome, and can be awarded to either the prevailing or the non-prevailing party. See Brillhart v. Excess Ins. The district court dismissed the indemnification issue, but granted judgment on defense, based on the extrinsic evidence. CODE provides, in subpart (a), that: When declaratory relief is sought, all persons who have or claim any interest that would be affected by the declaration must be made parties. See Bailey, 133 F.3d at 369 n.4; Travelers Ins. Now you can hire experts to teach your court that you are asserting the protections of your parental rights[vii]. App.Dallas 1992, writ denied); U.S. Fire Ins. Sec. 1996); Williamson v. State Farm Lloyds, 76 S.W.3d 64 (Tex. 1997); Heyden Newport Chemical Corp. v. So. endobj ***It is your responsibility to make sure that this is appropriate for your individual case. 1989, no writ); In re Fontenot, 13 S.W.3d 111 (Tex. R. Civ. The controversy is ripe, because the insurer is called upon to defend, and because the existence of coverage may impact the outcome of the suit. <> (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. denied); Ranger Ins. 1995). Texas is not a direct action state, and a claimant typically has no claim against an insurer until a judgment is obtained. See the resource below for more details. 2201, and further provides for a jury trial. App.Fort Worth 2000, no pet.). See State Farm Fire & Cas. A justiciable controversy may nonetheless exist where no other cause of action is available or has ripened. 1998), overruled on other grounds, State Farm Fire & Cas. . Genl Ins. Civ. Indemnity is based on the actual facts establishing liability in the underlying suit. A court can dismiss a declaratory action even if it fails to meet the stringent standards for abstention. A declaratory judgment is one that simply declares the rights, status, or other legal relations of the parties without ordering anything to be done. (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. We do not guarantee or warrant any of this information. 1995, no writ); Employers Cas. SHORT TITLE, CONSTRUCTION, INTERPRETATION. See, e.g., Stroop v. N. County Mut. (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. Co. v. Deering Mgmt. (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. 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. TO PREVENT COSTLY LITIGATION, LOSS, DEBT, DAMAGE, AND PENALTIES: It should be the primary purpose of the State to save its citizens from injury, debt, damage and penalties; and to this end the highest function of the court ought to be to decide, when possible, the controversies of parties before any loss has been suffered or any offense committed. ~Uniform Declaratory Judgments Act Reasons for Adoption 1922. County Mut. 2.401 (a) (West 2006) She enables parents and attorneys to assert rights and convert the constitutional principles into everyday practice and natural language. Genl Agency v. Cooper, 952 S.W.2d 861 (Tex. Co., 316 U.S. 491 (1942); Wilton, 515 U.S. 277. Federal courts have broad discretion as to whether to retain jurisdiction or dismiss declaratory judgment actions. Co. v. Fraiman, 514 S.W.2d 343, 346 (Tex. App.Corpus Christi 2002, pet. 4 . Litigation in Texas. (b) A contract may be construed either before or after there has been a breach. Tex. 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 . Admiral Ins. Code 7.001. 1989). (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. The policy provided limits of $100,000 per occurrence and $200,000 in the aggregate. Pursuant to 37.003, a declaration may be either affirmative or negative in form and effect. 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. Unless the lease agreement says otherwise, the landlord must give the tenant at least 3 days to move out. 1997)2; see also State Farm Lloyds v. stream Co. v. Travis, 68 S.W.3d 72, 77 (Tex. 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. !`g)a00-k@@eU The court may refuse to render or enter a declaratory judgment or decree if the judgment or decree would not terminate the uncertainty or controversy giving rise to the proceeding. Co. v. Wade, 827 S.W.2d 448 (Tex. App.Austin 1999, no pet.) o FRCP Rule 57. 1364 (N.D. Tex. App.Beaumont 1972), affd other grounds, 496 S.W.2d 552 (Tex. 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. Dept. *I`Sl,'dpC2\,AMia*K/[ -M @ICPgIw5 Y k]x?4 :D R*NuNK^CXdmS0I,-B PARTIES. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Under the Declaratory Judgment Act, district courts have discretion to determine whether to entertain an action. Co., 628 S.W.2d 184 (Tex. App.El Paso 1976, writ refd n.r.e.) art. Contact Us if you have questions.). for Declaratory Judgment at 3. 6 0 obj Co. v. Bailey, 133 F.3d 363, 368 (5th Cir. Indemnity, on the other hand, is based on actual facts and should always be subject to extrinsic evidence. Texas Air Control Bd., 852 S.W.2d at 444. See Feria v. CU Lloyds of Texas, 2001 Tex. See Scottsdale Ins. Fam. Ins. Co. v. Marathon Ashland Petrol., L.L.C., 87 F. Supp. App.Houston [14th Dist.] 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. 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. "Since its inception, the Declaratory Judgment Act has been understood to confer on federal CODE ANN. Code, applied to breaches of an insurance agreement, this question was resolved by the Texas Supreme Court, on a certified question from the Fifth Circuit, in Grapevine Excavation, Inc. v. Maryland Lloyds, 35 S.W.3d 1 (Tex. V 8). Co. v. Watson, 876 S.W.2d 145, 149 (Tex. Co. v. Griffin, 955 S.W.2d 81 (Tex. denied). declaratory judgment action or dismiss the case. denied), the court held it was permissible, and not purely advisory, to determine the number of occurrences involved in the underlying litigation. 1979, no writ) (not justiciable controversy); Boorhem-Fields, Inc. v. Burlington Northern Railroad Co., 884 S.W.2d 530 (Tex. The North Dakota Supreme Court concluded the district court lacked subject matter jurisdiction because Appellants failed . Corp., 817 F.Supp. of Trans., 999 S.W.2d 881, 883 (Tex. 1998). Civ. 1998); see also Abraxas Petroleum Corp. v. Hornburg, 20 S.W.3d 741 (Tex. Co. v. Tex. R. Civ. The Burches were the plaintiffs, and were also the petitioners for declaratory relief. Sec. at 68. 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. Irwin settled with Alonso's insurance carrier for the $30,000 policy limit. endobj at 368-69. v. Mitchell, 138 F.3d 208, 210 (5th Cir. See Southern County Mut. App.Corpus Christi 1982, no writ), the court declared that the rule was that use of extrinsic evidence was allowed to determine coverage, but not to determine facts that would establish the insurers liability. See Firemens Ins. Co. v. Gaskins, 572 S.W.2d 573, 575 (Tex. ("[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 . Cluett v. Medical Protective Co., 829 S.W.2d 822, 826 (Tex. 1965). App.Dallas 2001, pet. denied); ANR Prod. In Foust v. Ranger Ins. <> Declaratory Judgment Construing Will on Westlaw. No. Ins. 2005); In re Marriage of Byrne, 179 Ill.App.3d 944 (1st Dist. App. App.Houston [1st Dist.] Thus, an insured can seek an affirmative finding of coverage, or an insurer can seek a negative determination that coverage does not exist. 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. 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. Co., 61 F.3d 389 (5th Cir. See Farmers Tex. Co. v. Blevins, 741 S.W.2d 604, 606 (Tex. The Motion: a) May be filed by a defending party any . Cf. 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. Youell & Cos v. Getty Oil Co., 510 U.S. 820 (1993); Service Mutual Ins. In older cases, courts allowed broad introduction of extrinsic evidence in a declaratory judgment context. App.Corpus Christi 1998), revd on other grounds, 995 S.W.2d 675 (Tex. All orders, judgments, and decrees under this chapter may be reviewed as other orders, judgments, and decrees. 37.0055. However, because family settlement agreements are treated as contracts under Texas law, it is important that all of the parties . Co., 542 S.W.2d 429 (Tex. Background This case involves a dispute over a . 1974, no writ). Tex. 1992), cert. 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. 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. These rules govern the procedure for obtaining a declaratory judgment under 18 U.S.C. SHORT TITLE, CONSTRUCTION, INTERPRETATION. Why File a Declaratory Judgment in State Court? App.Dallas 1992, writ denied) (insurer not collaterally estopped from challenging findings); United States Fire Ins. If no facts within the scope of coverage are alleged, an insurer is not required to defend.