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Bryant v. Shields5/31/1996
Filed May 31, 1996
OPINION
Appellant Jeanne Barnes Bryant ("Bryant"), as Liquidator of Anchorage Fire & Casualty Insurance Company ("Anchorage"), appeals a judgment entered for appellee Shields, Britton & Fraser ("Shields") on Shields's suit on a sworn account. In two points of error, Bryant complains the trial court erred by: (1) entering a default judgment against Anchorage because Shields presented no evidence or insufficient evidence of service of citation on Anchorage or Bryant; and (2) overruling Bryant's motion to dismiss or stay the lawsuit in deference to earlier pending insurance receivership proceedings in Tennessee. Because we conclude the trial court erred in refusing to give the Tennessee receivership court's liquidation order full faith and credit, we reverse the trial court's judgement and remand the case to the trial court with orders to dismiss the lawsuit.
BACKGROUND
On March 9, 1993, the Chancery Court of the State of Tennessee (the "Tennessee receivership court") entered an order granting petition for conservatorship (the "conservatorship order") for Anchorage, a corporation organized under the laws of Antigua. The court entered the conservatorship order pursuant to the Tennessee Insurers Rehabilitation and Liquidation Act (the "Tennessee Act"), which provides for the rehabilitation and liquidation of insolvent insurers who have done business in Tennessee and insurers who have insureds resident in Tennessee. See Tenn. Code Ann. Section(s) 56-9-102(1)-(3)(1994). The conservatorship order directed the Tennessee Insurance Commissioner, as conservator, to take possession of Anchorage's assets and to administer them under the court's supervision. The order also enjoined all persons from interfering with the conservatorship and from instituting or prosecuting actions against Anchorage.
Shields filed this lawsuit against Anchorage a day later on March 10, 1993. James Shields and the law firm of Shields, Britton & Fraser had represented an insured of Global Capital Assurance ("Global") in defense of a claim made against the insured. Global is also known as Anchorage. Shields represented Anchorage's insured from August 1992 until the parties resolved the case on March 4, 1993. Based on Anchorage's alleged failure to pay attorney's fees for the legal services it had provided to Anchorage's insured, Shields brought this suit on a sworn account and other causes of action, including Texas Insurance Code article 21.21-2 and common law fraud claims. Shields sought damages in excess of $30,000, punitive damages, preand postjudgment interest, and attorney's fees.
Shields asserted in its petition that Anchorage had its principal office in Houston, Texas, was doing business in Dallas County, Texas, and could be served with citation by serving its registered agent, Darwin Seidel. On March 19, 1993, Shields had citation served on Darwin Seidel. Bryant denies that Seidel was Anchorage's registered agent for service of process.
On May 7, 1993, the trial court held a hearing. Shields advised the trial court that Anchorage had not answered Shields's petition. James Shields testified that the indebtedness on the sworn account was just and true and the amount owed was $30,170.52. He further testified that Shields had incurred $4,000 in attorney's fees for substantial discussions, correspondence, research, and briefing with the Tennessee conservator regarding the merits of its claim. The trial court then granted a default judgement that awarded Shields $30,170.52, $4,000 in attorney's fees, and preand post-judgment interest. The default judgment, however, was interlocutory only.
About a week la
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