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Southern County Mutual Insurance Co. v. Ochoa3/2/2000
Southern County Mutual Insurance Co. and Trinity Universal Insurance Co. (collectively "Trinity") appeal from a final summary judgment against them for $40,000 policy limits on an automobile liability policy, plus the interest that has accrued since 1994 on a separate judgment against their insured, Ronnie D. Bleeker, for approximately $11,500,000 in excess of the policy limits. Trinity raises four issues on appeal, complaining that the trial court erred in failing to transfer venue, in failing to abate, and in granting summary judgment while fact issues remain concerning Trinity's defenses of res judicata and prior payment of the claim. We reverse and remand.
The lawsuit underlying the present appeal is only the latest of several actions arising out of a 1990 collision in Williamson County, Texas, in which Bleeker negligently killed or injured numerous members of the Villarreal and Ochoa families (collectively the "Ochoas"). At the time of the accident, Bleeker possessed an auto liability insurance policy from Southern County Insurance Company for the minimum required by law, $20,100 per person and $40,000 per accident. Trinity Universal reinsured Southern County's policies and handled their claims.
In February 1991, the Ochoas sued Bleeker in Hidalgo County district court for wrongful death and personal injuries resulting from his negligence in causing the collision. They obtained a judgment against him for $11,556,001 on January 3, 1994. Bleeker appealed, but did not supersede that judgment, which this Court generally affirmed. In the meantime, the trial court had signed a March 1, 1994, turnover order allowing the Ochoas to satisfy their judgment by pursuing Bleeker's claims against Trinity.
On December 8, 1992, Southern County filed an interpleader action in Williamson County, naming as defendants Bleeker, the Ochoas, and the Austin Hospital that had treated the injured family members. Southern County concurrently placed a check for its $40,000 policy limits into the registry of court. Although the interpleader action was dismissed for want of prosecution in February 1995, Trinity contends that the $40,000 is still in the registry of court.
On July 18, 1994, the Ochoas, pursuant to the turnover order and suing in Bleeker's name, filed a Stowers action against Trinity for the amount of the judgment the Ochoas recovered against Bleeker. The trial court granted judgment for the Ochoas, but the Texas Supreme Court ultimately reversed and rendered judgment that they take nothing.
On December 10, 1997, Trinity filed a declaratory judgment action in Williamson County district court, asking for a declaration of its obligations to Bleeker and the Ochoas under the insurance policy. That lawsuit remains pending in Williamson County.
Finally, on December 29, 1997, the Ochoas filed in Hidalgo County district court the present lawsuit against Trinity for the policy limits and for interest on the prior judgment against Bleeker under a provision of the insurance policy allowing the insured to recover the interest accruing until Trinity pays the policy limits. Trinity moved for transfer of venue to Williamson County, and alternately pled for abatement based on dominant jurisdiction of its declaratory judgment action in that county. The Ochoas moved for summary judgment on their claims, and Trinity defended against summary judgment on the grounds that: (1) the present suit is barred by res judicata and the claims are barred by collateral estoppel, based on the prior take-nothing judgment on their claims against Trinity; (2) Trinity had already paid policy limits by tendering the funds into the registry of the Williamson County district cour
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