Insurance Coverage and Bad Faith Case Law 2006 Appellate Insurance Law Decisions from Texas Courts of Appeals (Tex.App.-Houston 2006) (Tex. 2006) also see ---> 2007 Insurance Law Cases from Houston
Middleton v. National Family Care Life Ins. Co. (Tex.App.- Houston Jan. 17, 2006)(Frost)(insurance) [insurance law, bad faith, lack of record dooms appeal, merits not reached] AFFIRMED: Opinion by Justice Frost Before Justices Hudson, Frost and Seymore 14-04-00428-CV J. E. Middleton, Indivdually and as the Representative of the Estate of J. E. Middleton v. National Family Care Life Insurance Company Appeal from 190th District Court of Harris County (Judge Shearn Smith)
Richardson v. Mercer Inc. (Tex.App.- Houston [1st Dist.] Dec. 7, 2006)(Radack) [bizlaw, tortious interference, DTPA, insurance code violations, HISD contract, benefits] AFFIRM TC JUDGMENT: Opinion by Chief Justice Radack Before Chief Justice Radack, Justices Alcala and Bland 01-04-01000-CV Richardson-Eagle, Inc. v. William M. Mercer Incorporated, William M. Mercer of Texas, Inc., and Rupa Mathur--Appeal from 129th District Court of Harris County
Shipside Crating v. Trinity Universal Ins. (Tex.App.- Houston [14th Dist.] Nov. 21, 2006)(Hedges) [insurance law, coverage, sj, indemnity, duty to defend, eight-corners rule, exclusion clauses] AFFIRMED: Chief Justice Hedges Before Chief Justice Hedges, Justices Brock Yates and Seymore 14-06-00229-CV Shipside Crating Company, Inc. v. Trinity Universal Insurance Company Appeal from 295th District Court of Harris County (TRACY KEE CHRISTOPHER)
Thomas v. Allstate Ins. Co. (Tex.App.- Houston [14th Dist.] Aug. 10, 2006)(Frost) [insurance code violation, second appeal, no evidence, proof of damages] AFFIRMED: Opinion by Justice Frost Before Justices Hudson, Frost and Seymore 14-05-00293-CV Glenn Thomas v. Allstate Insurance Company Appeal from 152nd District Court of Harris County (Judge Kenneth Price Wise)
Jankowiak v. Allstate (Tex.App.- Houston [14th Dist.] Aug. 8, 2006)(Hudson) [consumer law, insurance law, auto, denial of claim for uninsured motorist coverage, contract construction, public policy, SJ reversed] REVERSED AND REMANDED: Opinion by Justice Hudson Before Justices Hudson, Fowler and Seymore 14-05-00072-CV Harry Jankowiak and Pam Jankowiak Individually and as Next Friend of Laci Jankowiak v. Allstate Property and Casualty Insurance Company Appeal from 127th District Court of Harris County
Sanchez de Arrellano v. State Farm (Tex.App.-Houston, April 11, 2006)(Anderson) [insurance coverage, exclusion, duty to defend, death, work site, nonsubscriber, workers comp] AFFIRMED: Opinion by Justice Anderson Before Chief Justice Hedges, Justices Brock Yates and Anderson 14-05-00466-CV Rosa Velia Sanchez De Arrellano, Individually and a/n/f of Griselda Arrellano, Jamie Arrellano and Cesar Arrellano, Minors; Josefina Del Gadillo, as Representative of the Estate of Jamie Arrellano, Deceased; Ines Martinez De Arrellano v. State Farm Fire and Casualty Company Appeal from 295th District Court of Harris County
Goudeau v. Rodriguez and U.S. Fidelity & Guarantee Co (Tex.App.- Houston [1st Dist.] Aug. 31, 2006)(Taft)(auto PI, insurance law, UIM coverage) AFFIRM TC JUDGMENT IN PART, REVERSE TC JUDGMENT IN PART, AND REMAND CASE TO TC FOR FURTHER PROCEEDINGS: Opinion by Justice Taft (Before Chief Justice Radack, Justices Taft and Nuchia) 01-04-01168-CV Louis Goudeau and Tasha Goudeau v. Alex Rodriguez and United States Fidelity & Guaranty Company--Appeal from 280th District Court of Harris County
Fire Insurance Exchange v. Sullivan (Tex.App.- Houston [14th Dist.] Feb. 7, 2006)(Guzman) [insurance homeowner, water damage, mold] REVERSED AND RENDERED: Justice Guzman (Before Justices Edelman, Seymore and Guzman) 14-04-00081-CV Fire Insurance Exchange v. Clifton Sullivan and Diane Sullivan Appeal from Co Ct at Law No 3 & Probate Ct of Brazoria County
Fiess v. State Farm Lloyds , No. 05-1104 (Tex. Aug 31, 2006)(Brister)(certified question from Fifth Circuit) [insurance, mold coverage, contract construction] RICHARD FIESS AND STEPHANIE FIESS v. STATE FARM LLOYDS motion to strike post-submission brief denied motion to strike post-submission supplemental brief denied motion for sanctions denied The Court answers the question certified by the United States Court of Appeals for the Fifth Circuit. Justice Brister delivered the opinion of the Court, joined by Chief Justice Jefferson, Justice Hecht, Justice Wainwright, Justice Green, Justice Johnson, and Justice Willett Justice Medina delivered a dissenting opinion, joined by Justice O'Neill ("Courts adhere to prior precedents for reasons of efficiency, fairness, and legitimacy.[49] For more than a century this Court has held that in construing insurance policies “where the language is plain and unambiguous, courts must enforce the contract as made by the parties, and cannot make a new contract for them, nor change that which they have made under the guise of construction.”[50] If the political branches of Texas government decide that mold should be covered in Texas insurance policies, they have tools at their disposal to do so; Texas courts must stick to what those policies say, and cannot adopt a different rule when a “crisis” arises.") Accordingly, for the reasons and to the extent stated in this opinion, we answer the certified question “No.” Justice Medina delivered a dissenting opinion, joined by Justice O'Neill
Guideline Elite Ins. o. v. Fielder Road Baptist Church (Tex. June 30, 2006)(Medina) [duty to defend, insurance policy coverage dispute, eight-corners rule) 04-0692 GUIDEONE ELITE INSURANCE COMPANY F/K/A PREFERRED ABSTAINERS INSURANCE COMPANY v. FIELDER ROAD BAPTIST CHURCH; from Tarrant County; 2nd district (02 02 00231 CV, 139 SW3d 384, 05 20 04) motion to dismiss petition for review for lack of jurisdiction, and in the alternative, motion to strike evidence not part of the record denied The Court affirms the court of appeals' judgment. Justice Medina delivered the opinion of the Court, joined by Chief Justice Jefferson, Justice O'Neill, Justice Green, and Justice Johnson (“In this declaratory judgment action, we are asked to create an exception to the complaint-allegation or eight- corners rule. The eight-corners rule provides that when an insured is sued by a third party, the liability insurer is to determine its duty to defend solely from terms of the policy and the pleadings of the third-party claimant. Resort to evidence outside the four corners of these two documents is generally prohibited. The trial court, relying on evidence extrinsic to the policy and pleadings, declared that the insurer had no duty to defend the underlying claim against its insured. The court of appeals, however, reversed, concluding that because the circumstances of the case presented no reason to create an exception to the eight-corners rule, the trial court had erred in using extrinsic evidence to defeat the insurer’s duty to defend. 139 S.W.3d 384. We agree and, accordingly, affirm the court of appeals’ judgment.”) Justice Hecht delivered a concurring opinion, joined by Justice Wainwright, Justice Brister, and Justice Willett
Evanston Inc. Co. v. Atofina (Tex. May 4, 2006)(Green) [insurance coverage dispute, industrial accident liability] 03-0647 EVANSTON INSURANCE COMPANY v. ATOFINA PETROCHEMICALS, INC.; from Jefferson County; 9th district (09 02 00072 CV, 104 S.W.3d 247, 04 10 03) The Court reverses the court of appeals' judgment and remands the case to the trial court. Justice Green delivered the opinion of the Court
Minnesota Life Ins. Co. v. Vasquez No. 04-0477 (Tex. April 7, 2006)(Oinion by Justice Brister)(insurance) [bad faith insurance case, delay, prompt payment, extra-contractual damages reversed] 04-0477 MINNESOTA LIFE INSURANCE COMPANY v. ELIA L. VASQUEZ; from Nueces County; 13th district (13 02 00554 CV, 133 SW3d 320, 04 01 04) The Court reverses the court of appeals' judgment and remands the case to the trial court. Justice Brister delivered the opinion of the Court (“Under the Insurance Code, an insurer that fails to pay claims promptly must pay for actual damages it causes as a result. But payments beyond that cannot be based on negligence or hindsight; there must be evidence that the insurer was actually aware that it was handling the claim in a way that was false, deceptive, or unfair. As there is no such evidence here, the lower courts erred in awarding extra-contractual damages.”)
In re State Farm Mutual Auto. Ins. Co. (Tex.App.-Houston [14th Dist.] April 27, 2006)(per curiam) [PI-auto, insurance law, UIM, severance of contractual and extra-contractual claims] MOTION OR WRIT GRANTED: Per Curiam Before Chief Justice Hedges, Justices Brock Yates and Guzman 14-06-00161-CV In Re: State Farm Mutual Automobile Insurance Company, Bryan Kenney, Ray Medley and Oscar Garcia--Appeal from 56th District Court of Galveston County (Hon. Lonnie Cox) In most circumstances, a decision to grant or deny a motion to abate is within the discretion of the trial court. Project Eng'g USA Corp. v. Gator Hawk, Inc. 833 S.W.2d 716, 724 (Tex. App.-Houston [1st Dist.] 1992, no writ). As a general rule, a plea in abatement is an incidental ruling that is not subject to mandamus review. Abor v. Black, 695 S.W.2d 564, 567 (Tex. 1985). However, where a plaintiff has filed a breach of contract claim as well as extra- contractual claims, and a settlement offer has been made, severance and abatement are required. U.S. Fire Ins. Co. v. Millard, 847 S.W.2d 668, 673 (Tex. App.-Houston [1st Dist.] 1993, original proceeding). It is an abuse of discretion and a violation of plain legal duty to deny a motion to sever and abate an uninsured motorist breach of contract claim from extra-contractual claims. Id. Further, relators do not have an adequate remedy by appeal because if the extra-contractual claims are tried with the breach of contract claim, the court, as well as the parties, will be put to the expense and the effort of preparing and trying extra-contractual claims that may be disposed of in the resolution of the breach of contract claim. Id. at 675. Relators are entitled to mandamus relief compelling the respondent to abate the real party in interest's breach of contract claim from her extra-contractual claims.
Marley v. Allstate Ins. Co. (Tex.App.- Houston [1st. Dist.] Apr. 27, 2006, no pet.)(Hanks)(prejudgment interest, settlement credit, offset) AFFIRM TC JUDGMENT: Opinion by Justice Hanks Before Justices Taft, Keyes and Hanks 01-04-00174-CV Robert Marley v. Allstate Insurance Company Appeal from 11th District Court of Harris County (Judge Mark Davidson)
Sanchez de Arrellano v. State Farm (Tex.App.-Houston, April 11, 2006)(Anderson) [insurance coverage, exclusion, duty to defend, death, work site, nonsubscriber, workers comp] AFFIRMED: Opinion by Justice Anderson Before Chief Justice Hedges, Justices Brock Yates and Anderson 14-05-00466-CV Rosa Velia Sanchez De Arrellano, Individually and a/n/f of Griselda Arrellano, Jamie Arrellano and Cesar Arrellano, Minors; Josefina Del Gadillo, as Representative of the Estate of Jamie Arrellano, Deceased; Ines Martinez De Arrellano v. State Farm Fire and Casualty Company Appeal from 295th District Court of Harris County
Lennar Corp v. Great American Ins. Co (Tex.App.-Houston, April 11, 2006 Dissent by Edelman) [insurance coverage, construction of policy, event, occurrence, accident] CONCURRING/DISSENTING: Opinion by Justice Richard Edelman Before Justices Fowler, Edelman and Seymore 14-02-00860-CV Lennar Corporation, et al v. Great American Insurance Company, et al Appeal from 270th District Court of Harris County
Primary Plumbing Services, Inc. v. Certain Underwriters at Lloyds of London (Tex.App.- Houston [1st Dist.] Jan 26, 2006)(Jennings)[insurance law, duty to defend, indemnify, construction defect liability] AFFIRM TC JUDGMENT: Opinion by Justice Jennings Before Justices Nuchia, Jennings and Higley 01-05-00135-CV Primary Plumbing Services, Inc. v. Certain Underwriters at Lloyds of London Participating in Syndicate #1096 Subscribing to Certificate Number LMP 1060 Appeal from 157th District Court of Harris County (Trial Judge: Hon. Randy L. Wilson )
Middleton v. National Family Care Life Ins. Co. (Tex.App.- Houston Jan. 17, 2006)(Frost)(insurance) [insurance law, bad faith, lack of record dooms appeal, merits not reached] AFFIRMED: Opinion by Justice Frost Before Justices Hudson, Frost and Seymore 14-04-00428-CV J. E. Middleton, Indivdually and as the Representative of the Estate of J. E. Middleton v. National Family Care Life Insurance Company Appeal from 190th District Court of Harris County (Judge Shearn Smith)