London Market Insurers v. Am. Home Assur.

Decision Date09 January 2003
Docket NumberNo. 13-02-231-CV.,13-02-231-CV.
Citation95 S.W.3d 702
PartiesLONDON MARKET INSURERS, Appellant, v. AMERICAN HOME ASSURANCE COMPANY, et al., Appellees.
CourtTexas Court of Appeals

George G. Brin, Brin & Brin, for appellant.

Alexander J. Kovacs, Caron, Constants & Wilson, Rutherford, NJ, Alicia G. Curran, Burt Barr & Assoc., Dallas, Charles J. Stoia, D. Jeffrey Campbell, Robert J. Brennan, Porzio, Bromberg & Newman, Morristown, NJ, Cuyler Burk, Parsipanny, NJ, David Cobin, Moreira Law Firm, New York, NY, M.W. Meredith, Jr., Meredith, Donnell & Abernethy, Corpus Christi, Michael R. Gregg, Russ D. Roloff, Merlo, Danofsky & Brinkmeier, Chicago, IL, Michael S. Olsan, White & Williams, Philadelphia, PA, Mitchell C. Chaney, Rodriguez, Colvin & Chaney, Brownsville, Richard A. Crooker, Parsipanny, NJ, Wayne B. Mason, Sedgwick, Detert, Moran & Arnold, Dallas, for appellees.

Before Chief Justice VALDEZ and Justices RODRIGUEZ and DORSEY.1

OPINION

Opinion by Justice RODRIGUEZ.

This is an interlocutory appeal of an anti-suit injunction entered in a declaratory judgment action involving an insurance coverage dispute. See TEX. CIV. PRAC. & REM.CODE ANN. § 51.014(a)(4) (Vernon Supp.2002). The district court in Nueces County, Texas, enjoined appellants, Certain Underwriters at Lloyd's, London, London Market Insurance Companies (London Market Insurers), from filing or pursuing any insurance coverage declaratory judgment action against appellees, Asarco, Incorporated (Asarco, Inc.), Lac D' Amiante du Quebec, Ltee (LAQ), and Capco Pipe Company, Inc. (CAPCO), in any other jurisdiction that would raise the same issues as those raised in the Texas action. By three issues, London Market Insurers contend the trial court abused its discretion in issuing the anti-suit injunction. We affirm.

I. Background

On May 21, 2001, pursuant to section 37.001 of the Texas Civil Practice & Remedies Code, Asarco, Inc., filed a declaratory judgment action in Texas. See TEX. CIV. PRAC. & REM.CODE ANN. §§ 37.001-.011 (Vernon 1997 & Supp.2003). Generally, Asarco, Inc., sought "a judicial determination of the rights and duties of [Asarco, Inc.], and each of the defendants with respect to an actual controversy arising out of the Policies issued to [Asarco, Inc.], by the Defendants." Specifically, Asarco, Inc., sought a declaratory judgment to determine insurance coverage for alleged injury arising from exposure to asbestos at its industrial facilities in Texas. Asarco, Inc., identified the underlying claims as premises claims.

On October 2, 2001, London Market Insurers filed suit in New York County, New York, against Asarco, Inc., LAQ and CAPCO. They sought a declaratory judgment to determine insurance coverage for products liability claims allegedly resulting from exposure to asbestos in products that LAQ and CAPCO introduced into the stream of commerce. They brought the action against Asarco, Inc., as the corporate parent and/or affiliate of LAQ and CAPCO.

On November 5, 2001, after the New York action was filed, Asarco, Inc., amended its petition to add plaintiffs, LAQ and CAPCO. By this amended petition, appellees sought a declaratory judgment to determine insurance coverage for alleged injuries caused by asserted exposure to asbestos fiber or asbestos-containing materials produced or sold by LAQ or CAPCO. Appellees referred to these underlying claims as products claims.

On March 15, 2002, appellees filed a motion for an anti-suit injunction asking the Texas court for an injunction precluding London Market Insurers from prosecuting the New York action and any other actions relative to interpretation of the insurance policies at issue. On April 18, 2002, the Nueces County District Court issued an anti-suit injunction against London Market Insurers. The trial court found that appellees "established that the New York Action present[ed] a threat to [its] jurisdiction and that issuance of an anti-suit injunction [was] necessary to prevent the evasion of important Texas public policy and to prevent a multiplicity of suits." It further found that appellees "established the existence of very special circumstances and the potential for an irreparable miscarriage of justice to warrant the issuance of an anti-suit injunction." The trial court enjoined London Market Insurers from "filing or pursuing any insurance coverage declaratory judgment action against [Asarco, Inc., LAQ, and CAPCO] in any other jurisdiction that would raise the same issues as those in this action, specifically including without limitation the action ... currently pending in ... the State of New York, County of New York."

II. Standard of Review

Issuance of an anti-suit injunction rests within the sound discretion of the trial court. Gannon v. Payne, 706 S.W.2d 304, 305 (Tex.1986); Davis v. Huey, 571 S.W.2d 859, 861-62 (Tex.1978); Am. Int'l Specialty Lines Ins. Co. v. Triton Energy Ltd., 52 S.W.3d 337, 339 (Tex. App.-Dallas 2001, pet. dism'd w.o.j.); Fina Oil & Chem. Co. v. Alonso, 941 S.W.2d 287, 290 (Tex.App.-Corpus Christi 1996, no writ) (citing Walling v. Metcalfe, 863 S.W.2d 56, 57 (Tex.1993)). "A trial court abuses its discretion when it acts arbitrarily and unreasonably, without reference to guiding rules or principles, or misapplies the law to the established facts of the case." Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex.1985). A reviewing court must consider "[w]hether the trial court's action is so arbitrary that it exceeds the bounds of reasonable discretion," but the appellate court may not substitute its judgment for that of the trial judge. City of San Antonio v. Rankin, 905 S.W.2d 427, 430 (Tex.App.-San Antonio 1995, no writ); see Tex. Foundries v. Int'l Moulders & Foundry Workers' Union, 151 Tex. 239, 244-45, 248 S.W.2d 460, 463 (1952). Drawing all legitimate inferences from the evidence in the light most favorable to the trial court's ruling, where "some basis" exists on which the trial court could have properly held as it did, there can be no abuse of discretion. See Munson v. Milton, 948 S.W.2d 813, 815 (Tex.App.-San Antonio 1997, pet. denied); City of San Antonio, 905 S.W.2d at 430.

III. Analysis
A. Anti-suit Injunction

An anti-suit injunction is appropriate in four instances: 1) to address a threat to the court's 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. Golden Rule Ins. Co. v. Harper, 925 S.W.2d 649, 651 (Tex.1996) (per curiam); Gannon, 706 S.W.2d at 307. Texas courts have the power to prevent persons from proceeding with litigation filed in other state courts. Golden Rule, 925 S.W.2d at 651; Gannon, 706 S.W.2d at 305-06; Monsanto Co. v. Davis, 25 S.W.3d 773, 778 (Tex.App.-Waco 2000, pet. denied); Mfrs. Hanover Trust Co. v. Kingston Investors Corp., 819 S.W.2d 607, 612 (Tex.App.-Houston 1991, no writ). However, the principle of comity requires that courts exercise this equitable power sparingly, and only in very special circumstances. Christensen v. Integrity Ins. Co., 719 S.W.2d 161, 163 (Tex.1986). Thus, the party seeking the injunction has the burden to show that a clear equity demands the injunction. Id.; Harbor Perfusion, Inc. v. Floyd, 45 S.W.3d 713, 718 (Tex. App.-Corpus Christi 2001, no pet.). Therefore, the applicant must also demonstrate the potential for an irreparable miscarriage of justice in order to obtain the antisuit injunction. Golden Rule, 925 S.W.2d at 651-52 (mirror image proceedings not irreparable miscarriage of justice); Triton, 52 S.W.3d 337, 341 (appellate court affirmed trial court's issuance of anti-suit injunction based, in part, on service of suit clause where insurer agreed to abide by final determination of jurisdiction selected by policyholder); Forum Ins. Co. v. Bristol-Myers Squibb Co., 929 S.W.2d 114, 119 (Tex.App.-Beaumont 1996, writ denied) (clear equity favors all parties seeking completion and finality to dispute in single proceeding without vexation of potentially multiplicitous or harassing litigation).

B. Threat to Jurisdiction

By its second issue, London Market Insurers contend the trial court abused its discretion because the evidence does not support a finding that the proceeding in New York posed a threat to the court's jurisdiction in Texas. London Market Insurers argue that because the action before the Texas court was limited to premises liability coverage claims at the time the New York suit was filed, the New York action which involved only products liability coverage could not be regarded as a threat to the jurisdiction of the Texas court. They contend the New York action was the first-filed action relating to asbestos-products claims, and, thus, the evidence could not support a finding that the proceeding in New York posed a threat to jurisdiction in Texas.

Generally, where an action could be filed in either of two courts, the "first court acquiring jurisdiction will retain jurisdiction." Armstrong v. Steppes Apts., Ltd., 57 S.W.3d 37, 49-50 (Tex.App.-Fort Worth 2001, pet. denied) cert. denied, ___ U.S. ___, 122 S.Ct. 2645, 153 L.Ed.2d 823, 70 U.S.L.W. 3789 (2002); see Perry v. Del Rio, 66 S.W.3d 239, 252-53 (Tex.2001); Gurvich v. Tyree, 694 S.W.2d 39, 42 (Tex. App.-Corpus Christi 1985, no writ). "[W]here jurisdiction is once lawfully and properly acquired, no subsequent fact or event in the particular case serves to defeat that jurisdiction." Isbell v. Kenyon-Warner Dredging Co., 113 Tex. 528, 261 S.W. 762, 763 (1924); see Haginas v. Malbis Memorial Found., 163 Tex. 274, 278, 354 S.W.2d 368, 371 (1962). An exception to this rule applies only when an amended petition presents a new cause of action that does not relate back to the original cause of action and amounts to the beginning of a new suit. Isbell, 113 Tex. at 531, 261 S.W. at 763.

London Market Insurers contend the new allegations in appellees' ...

To continue reading

Request your trial
17 cases
  • Judge Carlos Cascos
    • United States
    • Court of Appeals of Texas
    • 2 Septiembre 2010
    ...relief, we are to draw inferences from the evidence in the manner most favorable to the trial court's ruling. London Mkt. Insurers v. Am. Home Assur. Co., 95 S.W.3d 702, 705 (Tex.App.-Corpus Christi 2003, no pet.). A trial court does not abuse its discretion when it bases its decision on co......
  • Texas Mutual Insurance Company v. Howell, No. 13-05-026-CV (TX 8/25/2005)
    • United States
    • Supreme Court of Texas
    • 25 Agosto 2005
    ...rests within the sound discretion of the trial court. Gannon v. Payne, 706 S.W.2d 304, 305 (Tex. 1986); London Mkt. Insurers v. Am. Home Assurance Co., 95 S.W.3d 702, 704 (Tex. App.-Corpus Christi 2003, no pet.); Fina Oil & Chem. Co. v. Alonso, 941 S.W.2d 287, 290 (Tex. App.-Corpus Christi ......
  • Fleming v. Ahumada
    • United States
    • Court of Appeals of Texas
    • 18 Mayo 2006
    ...The decision to issue an anti-suit injunction rests within the sound discretion of the trial court. London Mkt. Insurers' v. American Home Assurance Co., 95 S.W.3d 702, 705 (Tex.App.-Corpus Christi 2003, no pet.). In reviewing the trial court's decision, we are to draw inferences from the e......
  • In re Graybar Electric Company, Inc., No. 13-08-00073-CV (Tex. App. 8/26/2008), 13-08-00073-CV.
    • United States
    • Court of Appeals of Texas
    • 26 Agosto 2008
    ...litigation). The issuance of an anti-suit injunction is within the sound discretion of the trial court. London Mkt. Insurers v. Am. Home Assurance Co., 95 S.W.3d 702, 705-06 (Tex. App.-Corpus Christi 2003, no Graybar's second issue hinges upon the interpretation of section 65.023 of the civ......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT