Opinion ID: 6713
Heading Depth: 3
Heading Rank: 2

Heading: Breach of the Annuity Contract

Text: 26 Among the causes of action that Daniels has brought against Equitable in this action is his claim that Equitable breached the annuity contract by stopping payment on the $51,000 annuity check. Daniels argues that this issue was not raised or tried in the Kerr County proceeding. Specifically, Daniels claims that Equitable's stop payment on the November 16 check was a breach of the annuity contract because the first writ had been dissolved, and the second writ did not extend back to November 16. 27 As part of its judgment, the Kerr County court held that Equitable properly filed an interpleader. Relevant to this holding, and to Daniels' contentions, the Kerr County court found that Equitable was subject to conflicting claims, one from Daniels and one from Daniels' creditor, Pecan Valley. 2 Further, the court found that Equitable was reasonable in thinking that there were rival claims to the same fund or property. 3 Accordingly, the court found that Equitable had a good faith basis for its refusal to pay either Daniels or Pecan Valley in light of the conflicting claims. 4 Finally, the court also found that Equitable had not become independently liable to any of the claimants, including Daniels. 5 28 The findings on these issues, which were fully litigated and essential to the Kerr County court's judgment, are wholly inconsistent with Daniels' claim that Equitable was contractually obligated to turn those funds over to him on November 16, 1990. 6 Daniels' reply brief correctly admits that the Equitable could have eliminated any liability to Daniels by interpleading the annuity funds on or before November 16, 1990. The San Antonio Court of Appeals in effect held that Equitable did not unreasonably delay in filing the interpleader. Daniels, at 385. The resolution of these issues by the Kerr County court precludes any subsequent argument that Equitable breached a duty to Daniels by stopping payment on the November 16 annuity check.