American Alliance Insurance Co. v. Frito-Lay, Inc.

OPINION

Before WHITHAM, ROWE and BAKER, JJ. BAKER, Justice.

American Alliance Insurance Company appeals the trial court’s order enjoining it from pursuing a declaratory cause of action against Frito-Lay and Pepsico (Frito-Lay) in a New York court. It argues that although Frito-Lay has a suit pending in Texas concerning American Alliance’s duty to defend Frito-Lay, that cause does not affect American Alliance’s right to prosecute a declaratory action in New York on its duty to indemnify Frito-Lay. We agree. We reverse the trial court’s judgment and dissolve the temporary injunction.

In 1984,…