Practice, remedies. It is where a party, by bringing an action, gives an action to the defendant against him. As, supposing the obligee of a bond covenanted that he would not sue on it; if he were to sue he would give an. action against himself to the defendant for a breach of his covenant. The courts prevent such circuitous actions, for it is a maxim of law, so to judge of contracts as to prevent a multiplicity of actions; and in the case just put, they would hold that the covenant not to sue operated as a release. It is a favorite object of courts of equity to prevent a multiplicity of actions.
Texas courts apply the circuity of action doctrine to extinguish a plaintiff's cause of action when, as the result of indemnification obligations or settlement agreements between the parties, a plaintiff would end up indemnifying another party for its own original claim. Phillips Pipe Line Co. v. McKown, 580 S.W.2d 435, 440 (Tex. Civ. App.-Tyler 1979, writ ref'd n.r.e.). The concept of circuity of action has its origin in the Texas Supreme Court's decision in Palestine Contractors, Inc. v. Perkins, 386 S.W.2d ...