Chapter 5-5 Declaratory Judgment on Policy—Coverage Claim

• Jurisdiction: United States

5-5 Declaratory Judgment on Policy—Coverage Claim

5-5:1 Overview

"The Declaratory Judgments Act does not confer new substantive rights upon the parties nor additional jurisdiction on the courts but merely provides a procedural device for determination of controversies which are already within the jurisdiction of the courts."¹¹⁸

Texas courts construe insurance policies using ordinary rules of contract inter-pretation.¹¹⁹ Therefore, Declaratory Judgment actions can be a useful tool to settle disputes on insurance coverage.

5-5:1.1 Related Causes of Action

Bad Faith, Breach of Contract, Breach of Stowers Duty, DTPA, Insurance Code Violations

MUST READ CASES & STATUTES

Texas Civil Practice and Remedies Code Section 37.004 (Uniform Declaratory Judgments Act)
Texas Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 446 (Tex. 1993)

5-5:2 Requirements to Bring a Declaratory Judgment Action¹²⁰

(1) A justiciable controversy (to constitute a justiciable controversy, there must exist a real and substantial controversy involving a genuine conflict of tangible interests and not merely a theoretical dispute).¹²¹ exists as to the rights and status of the parties; and
(2) A declaration will resolve the controversy.

5-5:2.1 Elements

To prove coverage under the policy, the insured must establish that:

(1) the injury or damage is the type covered by the policy,
(2) the injury or

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