Opinion ID: 6713
Heading Depth: 3
Heading Rank: 4

Heading: Breach of Duty to Raise Defenses

Text: 30 Daniels also claims Equitable breached its duty to raise certain procedural defenses on his behalf as to the annuity funds' exemption from garnishment by Pecan Valley. In this regard, it should be again noted that Daniels was also a party to the state court proceeding, where he raised his own defenses. More importantly, the Kerr County court determined that the funds were not exempt from garnishment, that they were attached by the writ of garnishment, that the funds were properly interpleaded by Equitable, and that Pecan Valley was entitled to them. Daniels has failed to identify any valid defense that Equitable could have raised that would have enabled Daniels to prevail. 31 Furthermore, under Texas law, an insurance company is entitled to maintain an interpleader suit if there exists a reasonable doubt of either fact or law as to which of the rival claimants is entitled to the proceeds. See, e.g., Cable Communications Network, Inc. v. Aetna Casualty & Surety Co., 838 S.W.2d 947 (Tex.App.--Houston 14th Dist.1992, no writ) (We find no basis for holding (the insurer) acted in bad faith or breached its contract (to the lessee) by turning to the courts to resolve these serious conflicting monetary claims, rather than adjudicating them at its own risk.). Thus, if the state court found that Equitable's interpleader was appropriate, Equitable cannot now be found to have breached a duty to Daniel by interpleading the funds. Because the state court found that Equitable properly filed its interpleader, Daniels is collaterally estopped from asserting these tort claims in the present cause of action. 32