Wednesday, April 30, 2008

Claimspitting: In re Stonebridge Life Ins. Co.

In re Stonebridge Life Insurance Company, No. 03-08-00124-CV (Tex.App.- Austin, Mar. 21, 2008)(Opinion by Justice Pemberton [ PDF ])(claim splitting, multiple suits, mandamus granted) (Before Chief Justice Law, Justices Pemberton and Waldrop)
03-08-00124-CV
In re Stonebridge Life Insurance Company--Appeal from 207th District Court of Comal County

Stonebridge Life Insurance Company seeks a writ of mandamus directing the district court to vacate its order denying its motion to consolidate eleven lawsuits filed against it by real party in interest Lawrence A. Stoepler and order the district court to grant its motion. Under the unique circumstances presented here, we conditionally grant the requested relief.

We must conclude on this record that Stoepler's pursuit of this his claim as eleven separate suits amounts to claim-splitting and is a violation of the single action rule. The district court's refusal to consolidate Stoepler's eleven lawsuits therefore constitutes an abuse of discretion. We conditionally grant Stonebridge's petition for writ of mandamus and direct the district court to vacate its order denying Stonebridge's motion to consolidate and consolidate the eleven suits in question. The writ will issue only if the district court fails to take appropriate action in accordance with this opinion. We express no opinion regarding implications of this proceeding, if any, for removal or concerning the ultimate merits of the parties' claims or defenses.

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