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Perez v. Villarreal

Court of Appeals of Texas, Fourth District, San Antonio

December 20, 2013

Javier H. PEREZ, Appellant
v.
Patricia VILLARREAL and Israel Villarreal, Appellees

From the 111th Judicial District Court, Webb County, Texas Trial Court No. 2011-CVT-000406-D2 Honorable Monica Z. Notzon, Judge Presiding

ORDER

Marialyn Barnard, Justice

On August 9, 2013, in response to this court's late brief notice, appellees filed a notice of automatic stay. Attached to the notice was an order from the Texas Commissioner of Insurance stating Driver's Insurance Company, the insurance carrier defending appellees in this matter, is insolvent and has been designated an impaired insurer under Chapter 462 of the Texas Insurance Code. When the Texas Commissioner of Insurance issues an order designating an insurer as impaired, an automatic stay is required by statute. See Tex. Ins. Code Ann. § 462.309 (West 2009). We therefore ordered the appeal abated and treated as a closed case until reinstated by this court.

On December 17, 2013, appellant filed a letter in this court advising that the statutory automatic stay had expired. Reviewing the applicable statute, it appears appellant is correct. Section 462.309 of the Texas Insurance Code states when an automatic stay is instituted because of the insolvency of an insurer, the matter is stayed for: "(1) a six-month period beginning on the later of the date of the designation of impairment or the date an ancillary proceeding is brought in this state; and (2) a subsequent period as determined by the court, if any." Id. § 462.309(a)(1). The designation of impairment was effective May 13, 2013. Therefore, in the absence of an extension of the stay by a court, appellant is correct that the stay expired November 13, 2013.

Accordingly, we ORDER appellees to show cause in writing on or before January 20, 2014 why the abatement previously ordered by this court should not be lifted and this matter reinstated on the court's active docket. At the time this matter was abated, appellees' brief was due. If appellee's do not show cause as directed in this order, this court will lift the abatement, reinstate the case on the ...


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