Opinion
Civil Action No. 3:03-CV-2172-M.
October 7, 2004
MEMORANDUM OPINION AND ORDER
Before the Court is a Motion for Summary Judgment, filed by Defendants Henry Leaverton and Tammy Leaverton on September 7, 2004. For the following reasons, the Court is of the opinion that Defendants' Motion should be DENIED.
The dispute arises out of an automobile accident in which Defendant Jason Rogers ("Rogers") was injured. After the accident, Rogers filed an insurance claim with Plaintiff Charter Oak Fire Insurance Company ("Charter Oak"). The insurance policy at issue was purchased by Rogers's stepfather, Defendant Henry Leaverton. The policy listed Rogers and Rogers's mother, Defendant Tammy Leaverton, as additional insured drivers. Charter Oak denied Rogers's claim on grounds that Rogers did not reside with Henry Leaverton, as is required by the policy.
Charter Oak filed this declaratory judgment action against Defendants, asking the Court to rule that it need not reimburse or indemnify any of the Defendants for losses resulting from Rogers's accident. Defendants Henry and Tammy Leaverton request summary judgment on grounds that they are not proper parties to Charter Oak's declaratory judgment suit. The Court is of the opinion that Defendants are proper parties.
Both Henry and Tammy Leaverton have a right to assert claims against Plaintiff arising out of Plaintiff's decision to deny coverage for Rogers's accident. It is axiomatic that the parties to a contract have a right to complain of a breach thereof. See Bruner v. Exxon Co., U.S.A., A Div. of Exxon Corp., 752 S.W.2d 679 (Tex.App.-Dallas, 1988, writ denied). In addition, a third party may sue under a contract if she can demonstrate that the contract is intended to confer a benefit upon her. See Sales Co., Inc. v. New Hampshire Ins. Co., 774 S.W.2d 659, 660 (Tex. 1989). Here, the insurance contract was executed between Henry Leaverton and Charter Oak. It makes Tammy Leaverton a donee beneficiary by providing that all rights under the policy vest in the "named insured" and that person's spouse. Plaintiff alleges that Defendants Henry and Tammy Leaverton were married at the time of Rogers's injury, and that Defendants incurred liabilities in connection with Rogers's injuries. Defendants do not contest these allegations. Accordingly, both Henry and Tammy Leaverton may sue Charter Oak to enforce the policy.
The Court finds that if Defendants' Motion is granted Plaintiff will be at risk of additional lawsuits pertaining to the same underlying incident, and that without the presence of all three Defendants, Plaintiff will not be able to obtain complete declaratory relief. Joinder of the three Defendants is, therefore, required by Fed.R.Civ.P. 19(a), which instructs a party to join any person who is within the Court's jurisdiction, and without whom complete relief cannot be accorded. Defendants' Motion for Summary Judgment is DENIED.
SO ORDERED.