Uslife Title Insurance Co. of Dallas v. Howard

603 S.W.2d 322, 1980 Tex. App. LEXIS 3739
CourtCourt of Appeals of Texas
DecidedJuly 23, 1980
DocketNo. 9140
StatusPublished
Cited by2 cases

This text of 603 S.W.2d 322 (Uslife Title Insurance Co. of Dallas v. Howard) 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
Uslife Title Insurance Co. of Dallas v. Howard, 603 S.W.2d 322, 1980 Tex. App. LEXIS 3739 (Tex. Ct. App. 1980).

Opinion

ON MOTION FOR REHEARING

REYNOLDS, Chief Justice.

On original submission of this venue phase of a breach of contract action, we [323]*323reversed the trial court’s judgment overruling a plea of privilege and remanded the cause on the determination that the venue facts were not fully developed. After further consideration initiated by appellees’ motion for rehearing, we deem the venue facts sufficiently developed in one respect to sustain the court’s judgment. We, therefore, withdraw our 30 June 1980 opinion, set aside our judgment of reversal and remand, and substitute this opinion of affirmance.

According to the record made in the trial court, Freddie Howard purchased from Homer Sudderth on 31 July 1975 the East 200 acres out of the South Half (S/2) of Section 2, Block D, John D. Gibson Survey, Yoakum County, Texas. USLIFE TITLE INSURANCE COMPANY OF DALLAS issued its owner policy of title insurance, dated 31 July 1975, to Freddie Howard and wife, Billie L. Howard, guaranteeing

that as of the date hereof, the Insured [the Howards] has good and indefeasible title to the estate or interest in the land described or referred to in this policy.

The title described in the policy is fee simple. By the terms of the policy, USLIFE assumed liability for the actual monetary loss of the Howards not to exceed $17,400, and stipulated that it

shall, except as hereinafter stated, at its own cost defend the Insured in every action or proceeding on any claim against, or right to the estate or interest in the land or any part thereof, adverse to the title to the estate or interest in the land as hereby guaranteed, but the Company [USLIFE] shall not be required to defend against any claims based upon matters in any manner excepted under this policy by the exceptions in Schedule B hereof or excluded by Paragraph 2, “Exclusions from Coverage of this Policy,” of the Conditions and Stipulations hereof.

Thereafter, the Howards filed in Yoakum County the suit underlying this plea of privilege proceeding, seeking damages for, as it is material to this appeal, breach of the contract of insurance. The Howards alleged, in brief, their purchase of the property from Homer Sudderth and wife, Shirley Sudderth; the issuance of USLIFE’s policy of title insurance; the filing of an action in Cause No. 3549 in Yoakum County by the Sudderths to set aside the conveyance to, and to recover damages from, the Howards; a request to and refusal by USLIFE to defend the suit; a judgment setting aside the conveyance to the Howards; and a refusal by USLIFE to pay the principal amount of the policy after judgment against the Howards or the Howards’ attorney’s fees in defending the suit.

USLIFE interposed its plea of privilege, asserting the right to have the suit transferred to Dallas County, where it was domiciled. The Howards controverted the plea, specifying subdivisions 5(a), 14, 15, 23, 28 and 28a of Article 1995, Texas Revised Civil Statutes Annotated (Vernon 1964; Vernon Supp. 1980),1 as exceptions to general venue which would sustain venue of their suit in Yoakum County.

At the venue hearing, the policy of title insurance, identified as being issued and delivered in Yoakum County, was placed in evidence, and Freddie Howard gave testimony. Testifying in support of the How-ards’ allegations, Howard also stated, in essence, that as a result of the Sudderths’ suit heard by the district court in Yoakum County, the sale was set aside, he lost his title to the land, and he does not own the property or have title to it.

The trial court overruled USLIFE’s plea of privilege. The court affirmatively declined to identify the exception or exceptions upon which the venue ruling was based.

On appeal, USLIFE undertakes to demonstrate that the lack of either any evidence or factually sufficient evidence renders inapplicable the exceptions specified and relied upon by the Howards. The How-ards counter that venue is sustainable in [324]*324Yoakum County under subdivisions 5(a), 23, 28 and 28a of the general venue statute.2

To sustain venue in Yoakum County under any exception specified to defeat US-LIFE’s plea of privilege, the Howards were required to clearly plead and prove the venue facts stated in one or more of those exceptions as applicable or appropriate to the character of their alleged action. Colorado Interstate Gas Co. v. MAPCO, Inc., 570 S.W.2d 164, 167 (Tex.Civ.App.-Amarillo 1978, no writ). The Howards’ allegations, as related to the venue proceeding, characterize an action for damages occasioned by USLIFE’s breach of its contractual (1) guarantee of title which failed and (2) obligation to defend the Howards against the Sudderths’ suit.

Subdivision 5(a) permits venue in the county where “a person has contracted in writing to perform an obligation . expressly naming such county, or a definite place therein, by such writing.” Despite their reliance on this permission, the How-ards neither alleged nor proved that the insurance policy expressly named Yoakum County as the county where USLIFE was to perform the obligations which the How-ards alleged were breached. Instead, the Howards argue that because the policy guaranteed title to described land in Yoakum County, it thereby provides for performance of USLIFE’s obligations in Yoa-kum County. To agree would be to fix venue by implication, which never is permissible. Saigh v. Monteith, 147 Tex. 341, 215 S.W.2d 610, 611 (1948). Therefore, because the policy does not expressly name Yoakum County or a definite place therein for USLIFE’s performance of its obligations, subdivision 5(a) was not invoked. Harkness v. Employers National Insurance Company, 502 S.W.2d 670 (Tex. 1973).

Similarly, subdivisions 28 and 28a were not invoked. Neither the pleadings nor the proof identifies USLIFE as one of the kinds of insurance companies to which these exceptions apply. The Howards suggest it is sufficient that the evidence establishes USLIFE is a property insurer; but, for the insurer to be subjected to either exception, the pleadings and the proof must evince the essential venue fact that the insurer is one of the types of insurance companies named in the appropriate subdivision. Great Southwest Life Insurance Company v. Camp, 464 S.W.2d 702, 704-05 (Tex.Civ.App.-Fort Worth 1971, no writ); National Aid Life v. Self, 140 S.W.2d 606, 607 (Tex.Civ.App.-Eastland 1940, no writ). This essential venue fact is not of evidence in the appellate record.

As germane here,, subdivision 23 provides that a suit against a private corporation may be brought “in the county in which the cause of action or part thereof arose.” The quoted statutory phrase requires the plaintiff to plead and prove facts showing both a cause of action — i. e., at least a right of plaintiff and a breach by defendant of the corresponding duty — and that the cause of action, or a part of it, arose in the county of suit. Employers Casualty Company v. Clark,

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Cite This Page — Counsel Stack

Bluebook (online)
603 S.W.2d 322, 1980 Tex. App. LEXIS 3739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uslife-title-insurance-co-of-dallas-v-howard-texapp-1980.