SWB Wins Insurance Coverage for Clients in Federal Court

insurance-policy-and-gavel

Congratulations to our firm’s clients, Phil and Susan Swartztrauber, for winning a court order obtaining insurance coverage against Travelers Casualty and Surety Company of America.

The case was handled by Alex Beard.  The Swartztraubers were board members of their Home Owners Association (HOA), and were sued for alleged defamation in an underlying suit filed by the HOA’s President.  Travelers insured the HOA, but refused to provide the Swartztraubers with a defense to the defamation suit.

U.S. District Judge David Hittner disagreed, and ruled that Travelers breached its policy contract, and violated the Texas Prompt Payment Statute, by failing to provide the Swartztraubers with a defense.  So, Travelers will have to pay for the defense, legal fees and costs of the coverage case, as well as the underlying lawsuit.

Great work, Alex!

 

Notice of Nonsuit – An Order is Necessary

Although a Motion for Nonsuit or a Notice of Nonsuit is effective immediately upon filing, there must still be an order formally dismissing the case.  Texas Rule of Civil Procedure 162 reads as follows:

At any time before the plaintiff has introduced all of his evidence other than rebuttal evidence, the plaintiff may dismiss a case, or take a non-suit, which shall be entered in the minutes. Notice of the dismissal or non-suit shall be served in accordance with Rule 21 a on any party who has answered or has been served with process without necessity of court order. Any dismissal pursuant to this rule shall not prejudice the right of an adverse party to be heard on a pending claim for affirmative relief or excuse the payment of all costs taxed by the clerk.  A dismissal under this rule shall have no effect on any motion for sanctions, attorney’s fees or other costs, pending at the time of dismissal, as determined by the court. Any dismissal pursuant to this rule which terminates the case shall authorize the clerk to tax court costs against dismissing party unless otherwise ordered by the court.

The phrase “without necessity of court order” does not mean that an order formally dismissing the case is not necessary.  The Supreme Court of Texas sets forth a particularly good reason why an order is necessary:

The nonsuit extinguishes a case or controversy from the moment the motion is filed or an oral motion is made in open court; the only requirement is the mere filing of the motion with the clerk of the court.[1]

However, the signing of an order dismissing a case, not the filing of a notice of nonsuit, is the starting point for determining when a trial court’s plenary power expires. Appellate timetables do not run from the date a nonsuit is filed, but rather from the date the trial court signs an order of dismissal.[2]

An order is necessary in order to establish appellate deadlines.  In addition, a deadline needs to be established for the court’s plenary powers in light of the balance of Rule 162, which specifically allows the trial court to assess sanctions, attorneys’ fees, and costs after the nonsuit is taken.

The necessity of an order is further reinforced when taking into consideration bogus counterclaims for declaratory relief.  In some cases, a defendant may have good reason to dispute a nonsuit, especially if res judicata may prevent future lawsuits.  In such instances, although a nonsuit has been filed, the trial court will need to determine whether a counterclaim exists that prevents the dismissal of the case as a whole.[3]

If you have anything to add to the topic, please leave a comment in the section below.

[1] Univ. of Tex. Med. Branch at Galveston v. Estate of Blackmon, 195 S.W.3d 98, 100 (Tex. 2006).

[2] In re Bennett, 960 S.W.2d 35, 38 (Tex. 1997).

[3] See BHP Petroleum Co. v. Millard, 800 S.W.2d 838 (Tex. 1990).

The Eagle Has Landed

AISD

There is nothing like Fall football, especially in Texas.  As a native Texan, one of my favorite sayings is “everything is bigger and better in Texas.” The Allen football stadium is no exception.

Last year, deficiencies were discovered that resulted in the closure of Allen’s $60 million Eagle Stadium.  Since that time, Mark Walsh, a founding partner of Saunders Walsh & Beard, has been working with AISD, Pogue Construction, and PBK Architects to diagnose, engineer, and create a long term solution to the issues. Implementing that solution, and getting it paid for by the original designers and builders (without litigation) required an aggressive and complex legal strategy, coupled with the cooperation of all parties.

Congratulations to Allen Independent School District, Superintendent Dr. Lance Hindt, and Mark Walsh for developing and executing the legal strategy that got the stadium repaired, losses covered, all expenses paid, and the team back in their Stadium!

For details of the settlement reached, check out the articles below:

http://starlocalmedia.com/allenamerican/news/allen-isd-reaches-m-settlement-for-stadium-repairs/article_e4f5d636-a36f-11e5-ab36-63701a5b5de2.html

http://allenblog.dallasnews.com/2015/12/allen-isd-to-receive-1-7-million-settlement-related-to-stadium-problems.html/

Rule 202 Pre-Suit Depositions

A couple of years ago, a client came to me for assistance.  He suspected that his financial advisor was not being honest with him.  After looking through his documents, I had a lot of questions that needed to be answered, but I did not have enough to justify a lawsuit.  We made every effort to gain the opposing party’s cooperation, but to no avail.  I discussed my concerns with the client and proposed that we seek a Rule 202 deposition.