Christi Bay Temple v. GuideOne Specialty Mutual Insurance Co.

Summary

The Supreme Court of Texas considered whether a church lacked capacity to sue its insurer because a similarly named nonprofit corporation had forfeited its charter. The court held that the insurer failed to prove that the church operated as that corporation or otherwise lacked capacity to sue. It reversed the court of appeals' judgment and remanded the case to the trial court.

Holdings

1. An unincorporated association organized for nonbusiness purposes generally has legal capacity to sue or be sued in its assumed name under Texas Rule of Civil Procedure 28.
2. The party challenging capacity bears the burden of proof, and GuideOne failed to meet that burden; therefore, the lower courts erred in dismissing the church's claims for want of prosecution.

Questions Presented

1. Whether Christi Bay Temple had capacity to sue its insurance carrier as an unincorporated religious association.
2. Whether the trial court properly abated and dismissed the church's breach-of-contract action for want of prosecution based on the alleged lack of capacity.

Disposition

reversed_and_remanded