Atlas Assurance Co. v. Houston Fire & Casualty Insurance Co.

324 S.W.2d 943, 1959 Tex. App. LEXIS 2471
CourtCourt of Appeals of Texas
DecidedMay 11, 1959
Docket6891
StatusPublished
Cited by11 cases

This text of 324 S.W.2d 943 (Atlas Assurance Co. v. Houston Fire & Casualty Insurance Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlas Assurance Co. v. Houston Fire & Casualty Insurance Co., 324 S.W.2d 943, 1959 Tex. App. LEXIS 2471 (Tex. Ct. App. 1959).

Opinion

PITTS, Chief Justice.

This is a venue action that arose out of a suit filed by appellants, Atlas Assurance Company and New York Underwriters Insurance Company, against appellees, Houston Fire & Casualty Insurance Company and John Joseph Malphette and wife, Clara E. Malphette, together with the following named mortgagees: Albín J. Ulrick-son, C. A. Ulrickson and Markum Investment Corporation, neither of which mortgagees answered in the trial court and being party defendants who failed to answer in the trial court and who did not perfect an appeal to this court, the three named mortgagee defendants are not before this court for any purpose. Appellants there sought a declaratory judgment to construe the terms of three separate fire insurance policies issued by the three named insurance companies to cover a dwelling and the contents thereof owned by appellees, John Joseph Malphette and wife, Clara E. Mal-phette, with a loss payee clause in favor of the foregoing named mortgagees in the policies insuring the dwelling, in order to determine liability under the terms of the said policies respectively as a result of a fire that damaged the said dwelling and the contents thereof on the night of December 28, 1957, while all of the said policies were in force. The policies issued by appellant Atlas Assurance Company for $25,000 and by appellee Houston Fire & Casualty Insurance Company for $40,000 insured the said dwelling only as against fire hazards while the policy issued by appellant New York Underwriters Insurance Company for $20,-000 insured the household goods or contents of the dwelling as personal property against the hazards of fire.

Appellees John Joseph Malphette and wife and Houston Fire & Casualty Insurance Company filed two separate pleas of privilege to be sued in Tarrant County, the county of their residences respectively. The named appellants filed a joint controverting affidavit seeking to hold venue in Dallas County under the provisions of Sections 23 and 29a of Article 1995, Vernon’s Ann.Civ.St. In their controverting affidavit appellants contend that they met the venue requirements of Sec. 23 of Art. 1995 when they filed suit in Dallas County against appellee Houston Fire & Casualty Insurance Company, a corporation, which had an agency or representative in Dallas County, in which county appellants reside and in which county the cause of action, or a part thereof, arose and in which county appellants resided at the time the said cause of action, or a part thereof, arose and that Dallas County has venue over all of the named parties because of the provisions of Sec. 29a of Art. 1995, which provides that in a suit filed against two or more defendants and such suit is lawfully maintainable in the county where filed as against any of such defendants, then such suit may be maintained in the said county where filed against any and all of the necessary parties thereto.

The venue issues alone were heard by the trial court without a jury as a result of which both pleas of privilege filed by appel-lees herein were sustained and the case involving only the interests of the named appellants and appellees herein was ordered transferred to Tarrant County, with venue as to the named mortgagees ordered retained in Dallas County. As a basis for such order of transfer the trial court found in its judgment entered that neither of the appellants was a resident of Dallas County but they were both foreign corporations having their home offices outside of the State of Texas and that appellee, Houston Fire & Casualty Insurance Company, had *946 its principal office in Tarrant County with a local agent in Dallas County and that ap-pellees, John Joseph Malphette and wife, were residents of Tarrant County who owned the damaged property in question, which property was located in Tarrant County at the time of the lire and that the alleged cause of action arose in Tarrant County. Appellants have not by an assignment of error or otherwise challenged any of the said findings.

Appellants perfected an appeal from the trial court’s judgment and contend that venue was established in Dallas County under the provisions of Sections 23 and 29a of Article 1995 for the reasons pleaded in their controverting affidavit as previously herein shown. In the alternative appellants contend that in any event the plea of privilege of appellee Houston Fire & Casualty Insurance Company should have been overruled because it was fatally defective in that it did not allege that the said appel-lee was not a resident of Dallas County at the time of service of process herein as required by Rule 86, Texas Rules of Civil Procedure and in the further alternative, .appellants contend that by all means the trial court erred in granting a severance of the cause of action on its own motion, retaining venue in Dallas County of appellants’ alleged cause of action in so far as it applied to the mortgagee defendants, Al-bin J. Ulrickson, C. A. Ulrickson and Mark-urn Investment Corporation, but transferring venue in so far as it applied to appel-lees Houston Fire & Casualty Insurance Company and John Joseph Malphette and wife to Tarrant County, thus splitting the cause of action so that no final judgment can be rendered in either Dallas or Tar-rant County since all of the named parties are necessary parties to the suit.

Appellee Houston Fire & Casualty Insurance Company has challenged the statement of appellants to the effect that it is a necessary party to appellants’ suit, which is a suit to construe three separate insurance policies executed separately by the three named insurance companies to cover fire losses of property owned by appellees John Joseph Malphette and wife, since neither of the named insurance companies is a party to the policy contract executed by either of the other two insurance companies. Observing further, the said appellee contends that there is no contract of insurance in issue in the suit filed to which appellants, on the one hand, and appellee Houston Fire & Casualty Insurance Company on the other hand, are parties and that there is no privity of contract between appellants Atlas Assurance Company and New York Underwriters Insurance Company. For the reasons stated the said appellee contends that appellants herein cannot possibly assert a cause of action against the said appellee in connection with any policy contract here involved. For these reasons the said ap-pellee contends that in any event it was proper to sustain the plea of privilege of appellees John Joseph Malphette and wife as well as that of Houston Fire & Casualty Insurance Company and transfer the case to Tarrant County which is the county of the residence of all appellees herein.

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Bluebook (online)
324 S.W.2d 943, 1959 Tex. App. LEXIS 2471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-assurance-co-v-houston-fire-casualty-insurance-co-texapp-1959.