Dalworth Restoration, Inc. v. Mrs. Angie Rife-Marshall
2014 Tex. App. LEXIS 5271
| Tex. App. | 2014Background
- Appellant Dalworth Restoration, Inc. appeals a trial court money judgment in favor of appellee Angie Rife-Marshall.
- Appellee initially sued Liberty Mutual Insurance Co., Larry Pitman, and Noel Najera for hailstorm damages and related losses.
- Dalworth was added as a defendant in 2010 to address remediation and property-damage claims.
- In 2010 appellee settled with the original defendants for about $600,000 and dismissed those claims.
- The trial court later denied a settlement credit; the jury found Dalworth wholly liable and awarded $151,000 in damages plus prejudgment interest, for a total judgment of $163,080.
- The Texas Court of Appeals reversed, holding Dalworth was entitled to a $600,000 settlement credit under Chapter 33, and rendered a take-nothing judgment for Dalworth.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a settlement credit under Chapter 33 applies | Dalworth: entitled to credit for $600,000 settlement | Rife-Marshall: no credit without proper allocation | Yes; settlement credit applies; take-nothing judgment appropriate because credit exceeds award |
Key Cases Cited
- Mobil Oil Corp. v. Ellender, 968 S.W.2d 920 (Tex. 1998) (burden-shifting framework for settlement credits; defendant proves right to credit; plaintiff must show allocation in a settlement)
- Utts v. Short, 81 S.W.3d 822 (Tex. 2002) (burden shifts to plaintiff to show settlement allocation; nonsettling party’s credit depends on allocation evidence)
- Goose Creek Consolidated ISD v. Jarrar's Plumbing, Inc., 74 S.W.3d 486 (Tex. App.—Texarkana 2002) (allocation of settlement amounts; if not allocated, full credit may apply)
- Galle, Inc. v. Pool, 262 S.W.3d 564 (Tex. App.—Austin 2008) (allocation required to limit credit to jointly liable damages)
- Crown Life Ins. Co. v. Casteel, 22 S.W.3d 378 (Tex. 2000) (allocation principles for settlement credits under Chapter 33)
- Roberts v. Williamson, 111 S.W.3d 113 (Tex. 2003) (statutory reduction of damages must account for settlements)