Court Opinion

ID: 9764696
Source: CourtListenerOpinion
Date Created: 2023-08-29 03:36:34.48461+00
Date Added: 2024-06-11T07:30:00.752394
License: Public Domain

ON MOTION FOR REHEARING
On motion for rehearing, appellee urges that the court of civil appeals had no jurisdiction to render judgment for appellant because there was no justiciable controversy to be considered by the trial court. Appellee argues that since it had no duty to defend under the insurance policy in question, the mere pendency of a claim or suit against an officer or director would not present a justiciable controversy and one would arise only if a judgment was recovered against one of the covered officers or directors. In support of this contention, appellee cites Central Surety & Ins. Corp. v. Anderson, 445 S.W.2d 514 (Tex.1969), and other cases wherein declaratory judgments were brought to determine the insurer’s obligation to defend and its liability to pay any judgments recovered against the insured. The courts have held in these cases that the issue as to whether there was a duty to defend was a justiciable one, but a judgment declaring that insurer would be obligated to pay any judgment rendered against the insured was an advisory opinion prohibited by the Constitution.
We have no such issue before us; our issue being whether under an existing policy of insurance, the insureds’ successor in interest had a legal right to renew the policy or extend the period for which the insured could discover claims which would be covered under the existing policy. This right in issue (the right to renew or extend the discovery period) or lack of such right, existed at the termination date of the policy.
The other points urged by appellee having previously been considered and discussed in the original opinion, the motion for rehearing is overruled.