Dennis Webb v. State Farm Lloyds
17-0400
| Tex. | Dec 20, 2017Background
- Homeowner Dennis Webb discovered a major plumbing leak under his garage in May 2012; water seeped under the slab and later kitchen tiles, garage slab, and brick developed new cracks.
- State Farm inspected, relied on its engineer (Brandon English), and denied coverage in October 2012, concluding the plumbing leak did not cause the foundation/tile cracking.
- Webb retained engineer Peter Rabner, who concluded to a reasonable engineering probability that the leak soaked expansive clay soils, causing temporary heave and subsequent cracking as soils dried.
- At trial a jury found State Farm breached the policy and violated the Texas Insurance Code; the jury awarded contract damages and attorneys’ fees.
- The Ninth Court of Appeals affirmed the breach-of-contract damages ($15,000), reversed the Insurance Code damages and additional damages, and remanded for a new trial on attorneys’ fees (limited/segregation issues).
- Webb’s filing is his response to State Farm’s petition for review, defending admissibility of Rabner’s opinions and the attorneys’ fee proof/reconstruction methods, and arguing State Farm’s statutory settlement-offer contention is premature.
Issues
| Issue | Plaintiff's Argument (Webb) | Defendant's Argument (State Farm) | Held (Court of Appeals / Position in response) |
|---|---|---|---|
| Admissibility of engineering expert (Rabner) | Rabner used reliable methods, considered evidence, and properly linked leak → saturated expansive soils → temporary heave → cracking; admission not error | Rabner’s theory was novel, had an analytical gap, relied on plaintiff’s recollection, and contradicted objective data/surveys | Court of appeals (as summarized) did not find reversible error; Webb urges no state-law conflict warranting review |
| Weight of competing expert opinions | Expert may credit certain factual accounts; jury decides credibility; Rabner’s opinion fits observable facts (timing of cracks, expansive soils, water) | State Farm’s expert contends seasonal/vegetation causes and disputes causal link to leak | Jury credited Webb’s evidence; appellate decision affirmed breach award and rejected State Farm’s attack as insufficient to raise a novel legal question |
| Attorneys’ fees proof (reconstructed time records) | Reconstructed worksheets and trial testimony meet Arthur Andersen standard where contemporaneous bills unavailable; some fee evidence was admitted without objection | Reconstructed records insufficient; lack of contemporaneous billing undermines fee award | Court of appeals remanded for new trial on fees because segregation between claims (Insurance Code vs contract) was inadequate; precedent permits reconstruction when needed (no mandate that contemporaneous records are always required) |
| Effect of State Farm’s settlement offer under Tex. Ins. Code §541.159 | Statutory procedure to limit damages/fees was not properly invoked at trial; jury answered N/A on pre-offer fees; court of appeals declined to decide because remand on fees was required | Offer should limit recoverable fees/damages to statutory caps; Court should decide effect now | Court of appeals did not rule on §541.159; remand for new trial on fees keeps issue for trial court to apply statutory procedures if State Farm properly invokes them |
Key Cases Cited
- Arthur Andersen & Co. v. Perry Equip. Corp., 945 S.W.2d 812 (Tex. 1997) (standards for reasonable and necessary attorneys’ fees evidence)
- Caffe Ribs, Inc. v. State, 487 S.W.3d 137 (Tex. 2016) (expert opinion admissibility: opinions need not be predicated on undisputed facts; only contrary to undisputed facts is unreliable)
- El Apple I, Ltd. v. Olivas, 370 S.W.3d 757 (Tex. 2012) (fee-shifting context: contemporaneous billing records preferred but not always mandatory)
- City of Laredo v. Montano, 414 S.W.3d 731 (Tex. 2013) (permitting reconstruction of fee records when contemporaneous records unavailable)
- Long v. Griffin, 442 S.W.3d 253 (Tex. 2014) (fee proof standards and reconstruction acknowledged)
- Ross v. St. Luke's Episcopal Hosp., 462 S.W.3d 496 (Tex. 2015) (appellate briefing obligations and preservation of issues)
- Horizon Health Corp. v. Acadia Healthcare Co., 520 S.W.3d 848 (Tex. 2017) (procedural waiver principles on appeal)