Allstate Insurance Company v. Margaret Jordan
503 S.W.3d 450
Tex. App.2016Background
- Margaret Jordan was injured in an August 5, 2010 rear-end collision caused by Nickel Ford; Ford’s insurer (GEICO) paid its $25,000 policy limit and Jordan then sued her UIM carrier, Allstate, under the family policy with $100,000 UIM limits.
- At trial liability of Ford was not contested; the central dispute was whether Jordan’s damages exceeded Ford’s policy limit and which expenses were compensable given intervening events and pre-existing conditions.
- A jury awarded $30,000 for past medical expenses but $0 for past physical pain; the trial court entered a declaratory judgment establishing Allstate’s $27,500 offset and entered a net award to Jordan of $3,110.60 plus prejudgment interest, and also awarded attorney’s fees under the UDJA.
- Allstate appealed, arguing declaratory relief was improper, the UDJA fee award was improper, and the unconditional fee award on appeal was erroneous; Jordan cross-appealed the $0 award for past physical pain as against the great weight of the evidence.
- The court held declaratory judgment was an appropriate procedural vehicle to establish the liability/damages prerequisites to UIM recovery but removed the UDJA attorney-fee award as inequitable at this stage; it affirmed the $0 award for past physical pain as supported by factually sufficient evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether declaratory judgment was proper to decide UIM prerequisites | Jordan: UDJA properly invoked to determine liability and whether damages exceed tort carrier limits | Allstate: UDJA not appropriate; claim is breach of contract and Brainard limits use of UDJA here | Declaratory judgment is appropriate to establish prerequisites to UIM recovery |
| Whether UDJA attorney’s fees could be awarded at this stage | Jordan: entitled to fees awarded under UDJA | Allstate: awarding UDJA fees here is improper because Chapter 38 governs contract fees and insurer has no duty to pay until liability/damages are established | UDJA attorney’s fees reversed—plaintiff not entitled to fees at this stage |
| Whether jury’s $0 award for past physical pain is against the great weight of the evidence | Jordan: medical treatment and objective records required an award for pain | Allstate: pain tied to pre-existing conditions and intervening garden fall; pain evidence subjective/conflicting | Affirmed: factually sufficient evidence supports $0 award for past physical pain |
| Whether unconditional appellate attorney-fee award should remain | (implicit) Jordan sought to keep fee award intact | Allstate argued unconditional appellate fee award erroneous given appeal and fee problem | Deletion of attorney-fee award resolved appellate-fee complaint; judgment modified to remove fees |
Key Cases Cited
- Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006) (insurer has no duty to pay UIM benefits until liability and damages of other motorist are determined)
- Henson v. Southern Farm Bureau Casualty Insurance Co., 17 S.W.3d 652 (Tex. 2000) (timing of insurer’s duty to pay in UM/UIM context)
- State Farm Mutual Automobile Insurance Co. v. Norris, 216 S.W.3d 819 (Tex. 2006) (insured cannot seek contract attorney’s fees under Chapter 38 until insurer has refused payment and statutory waiting period has passed)
- MBM Financial Corp. v. Woodlands Operating Co., L.P., 292 S.W.3d 660 (Tex. 2009) (UDJA cannot be used to obtain otherwise impermissible attorney’s fees)
- Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757 (Tex. 2003) (standard for when a no‑damages or low‑damages jury verdict is against the great weight and preponderance of the evidence)