 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Horton v. State Department of Insurance Receiver J. Robert Hunter8/16/1995
Appellant Charles Ray Horton settled a personal injury lawsuit against All-Ways Trucking Company ("All-Ways") and executed a "Release and Assignment Agreement." Horton then sued the receiver of All-Ways's impaired insurer, appellee Department of Insurance Receiver J. Robert Hunter (the "Receiver"), to collect the damages awarded under the judgment rendered against All-Ways. The Receiver filed a motion for summary judgment, which the trial court granted. Horton then filed a motion for new trial, which the trial court overruled. In four points of error, Horton challenges the trial court's order granting summary judgment and its order overruling his motion for new trial. We will reverse the judgement of the trial court and remand the cause for trial on the merits.
BACKGROUND
In December 1986, Horton was injured in an accident involving a tractor/trailer rig leased by All-Ways. Horton sued All-Ways, and after a bench trial, the trial court rendered judgement against All-Ways for $350,000 pursuant to the parties' joint motion for entry of judgment. Horton and All-Ways executed a "Release and Assignment Agreement," outlining their agreement regarding the filing of the joint motion for entry of judgment. In the agreement, All-Ways agreed to assign to Horton all rights or causes of action, or any rights of recovery that it had against Dexter Lloyds Insurance Company ("Dexter"), its successor, or its receiver for monies awarded under the judgment. In exchange and " n consideration of the Judgement becoming Final," Horton entered into a covenant not to execute, promising not to
"(1) abstract or record the Judgment; (2) levy execution against [AllWays]; (3) garnish [All-Ways's] accounts; (4) attach assets of [AllWays]; (5) take any action to collect the Judgement from [All-Ways]; except that CHARLES RAY HORTON shall and is granted permission and assignment of the right to pursue any and all efforts to recover monies awarded pursuant to the Judgement from any insurance company, a Receiver appointed or selected by the Liquidation Division of the State Board of Insurance or by a Texas State District Court." (Emphasis added.)
At the time of the accident giving rise to the judgment, AllWays Trucking was covered under an insurance policy issued by Dexter; however, Dexter was placed into receivership before trial, and Hunter was appointed Receiver to handle the impaired insurer's claims. Therefore, Horton filed a proof of claim with the Receiver. See Tex. Ins. Code Ann. art. 21.28, Section(s) 3(e) (West Supp. 1995) (permitting persons having causes of action against one insured by impaired insurer to file claim with receiver). The Receiver took no action on his claim, and Horton filed suit against the Receiver for recovery of the damages sustained in the accident. The Receiver then rejected Horton's claim on the grounds that the claim was "currently involved in litigation and will be resolved through that process."
In the pending lawsuit, the Receiver moved for summary judgment, denying liability on the basis that Horton no longer had a viable cause of action against All-Ways because Horton had released it from all liability. According to the Receiver, since All-Ways was effectively released, Horton had no claim against the Receiver. The trial court granted the Receiver's motion and rendered a take-nothing judgment against Horton.
Appellee Texas Property and Casualty Insurance Guaranty Association (the "Guaranty Association") intervened after the trial court rendered judgment. As the statutory successor to certain "covered claims" against receivership estates of impaired carriers, the Guaranty Association is a proper party to any pending litigation involvi
Page 1 2 3 4 Texas Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|