Crounse v. State Farm Mutual Automobile Insurance Co.
2010 Tex. App. LEXIS 10164
| Tex. App. | 2010Background
- Crounse had auto insurance with State Farm; towing charges were not paid by State Farm despite policy coverage.
- Crounse later needed a new engine; claim for that repair was denied by State Farm.
- Crounse sued for breach of contract, bad faith, unfair settlement practices, and attorney’s fees, seeking Chapter 38 fees; jury found breach for towing and awarded $100 damages, and awarded $0 for attorney’s fees.
- Evidence showed conflicts about whether Crounse submitted the towing bill to State Farm; jury asked to determine reasonable and necessary fees and awarded $0.
- Crounse moved for new trial; trial court denied; on appeal, issue is whether $0 fees is against the great weight and preponderance of the evidence; court affirms.
- Conclusion: Judgment affirmed with respect to both the merits and the attorney’s fees award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Crounse prevailed on a recoverable Chapter 38 claim | Crounse prevailed on the towing breach | State Farm contesting entitlement to fees | Crounse prevailed; may recover if elements proven |
| Whether the $0 attorney's fees award was against the weight of the evidence | Fees were warranted given hours and complexity | No substantial fees were necessary or proven | No, not against weight; verdict supported by evidence |
| Whether the evidence supports a reasonable and necessary fee | Fees of trial and appeal were reasonable and necessary | No sufficient proof of reasonableness or necessity | Evidence sufficient to affirm no fees awarded under record |
Key Cases Cited
- Green Intl., Inc. v. Solis, 951 S.W.2d 384 (Tex. 1997) (prevailing-party requirement for Chapter 38; damages causation)
- Beaston v. State Farm Life Ins. Co., 907 S.W.2d 430 (Tex. 1995) (prevailing party requires damages and recoverable claim)
- Smith v. Patrick W.Y. Tam Trust, 296 S.W.3d 545 (Tex. 2009) (no fee if elements not proven; trial court lacks discretion)
- Bocquet v. Herring, 972 S.W.2d 19 (Tex. 1998) (fee awards under Chapter 38 require proof of reasonable/necessary fees)
- Midland W. Bldg. L.L.C. v. First Serv. Air Conditioning Contractors, Inc., 300 S.W.3d 738 (Tex. 2009) (no attorney's fees if no services were needed; evidence insufficient)
- Sterling v. Stewart Title Guaranty Co., 822 S.W.2d 1 (Tex. 1991) (burden on party seeking fees; need for evidence of reasonable/necessary fees)
- Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757 (Tex. 2003) (jury credibility and weight of witnesses; standard of review for fee awards)
- Arias v. Brookstone, L.P., 265 S.W.3d 459 (Tex. App.—Houston [1st Dist.] 2007) (sufficiency of evidence in appellate review)
- Ortiz v. Jones, 917 S.W.2d 770 (Tex. 1996) (standard for reviewing factual sufficiency; weight of evidence)